Executive Education
in Europe

Leading With Impact

6-10 July, 2014
(London, England)

Emphasizing introspection and personal discovery, this program enables you to fulfill and expand your emerging leadership potential. Through self-assessment tools and experiential learning, you examine your strengths and weaknesses while exploring best practices of extraordinary leaders. Delivering proven techniques and greater confidence, the program helps you manage your team more effectively and lead in the midst of adversity and change.

All Global Executive Education Programs

Europe

2014

CLP: Powering Asia HBS Teaching Plan

Serafeim, George, Robert G. Eccles, and Noah Fisher
March 2014

No abstract available

The LEGO Group: Envisioning Risks in Asia (A) & (B) HBS Note

Mikes, Anette
February 2014

No abstract available

Barclays Bank and Contingent Capital Notes, 2012

White, Lucy, and Trent Kim
February 2014

In 2012, regulatory changes following the financial crisis mean that Barclays Bank is faced with the need to raise large amounts of capital in order to comply with increased capital requirements, tightening rules as to the "quality of capital," and increased risk weights for its capital markets assets. The bank is contemplating offering contingent capital bonds, which would act like debt during "normal times" but would convert to create capital should the bank hit a "triggering event." How should these instruments be designed? Can they be made attractive for both the bank and for investors?

Samuel Slater & Francis Cabot Lowell: The Factory System in U.S. Cotton Manufacturing

Nicholas, Tom and Matthew Guilford
February 2014

At the time of the American War of Independence (1776-1783) and for several decades after it, Great Britain dominated the global production of cotton textiles. In fact, Britain became so dominant in textile manufacturing and trading that Manchester, its industrial capital, was nicknamed "Cottonopolis." By contrast, American manufacturing of export-oriented or even tradable-quality cotton textiles was practically nonexistent. This position of relative American backwardness changed with the influence of two prominent individuals: Samuel Slater (1768-1835) and Francis Cabot Lowell (1775-1817). Slater, a skilled British textile machinery engineer, helped to develop the country's first cotton spinning mill. Lowell, a member of a prominent New England mercantile family, established the first integrated cotton spinning and weaving facility in what became the city of Lowell, Massachusetts. Together Slater and Lowell brought the sophistication of British industrial revolution technology and introduced innovative methods of factory production to the United States.

The Kursk Submarine Rescue Mission

Mikes, Anette
February 2014

The Kursk, a Russian nuclear-powered submarine, sank in the relatively shallow waters of the Barents Sea in August 2000, during a naval exercise. Numerous survivors were reported to be awaiting rescue, and within a week, an international rescue party gathered at the scene, which had possessed between them all that was needed for a successful rescue. Yet they failed to save anybody. Based on the recollections and daily situational reports of Commodore David Russell, who headed the Royal Navy's rescue mission, the case explores how and why this failure-a classic coordination failure-occurred. The Kursk rescue mission also illustrates the challenges of pluralistic risk and disaster management and asks students to consider how to bring about solutions in the face of pluralistic risk issues, such as the depletion of natural resources and many other disasters, when multiple parties with competing and often conflicting values and expertise have to learn to coordinate and establish a virtual, well-aligned organization.

Advantage Partners: Dia Kanri (A)

Gompers, Paul A., Nobuo Sato, and Akiko Kanno
February 2014

This case explores the opportunity to purchase the condominium management business of a distressed real estate developer by Advantage Partners, a leading Japanese private equity firm. The case explores investment structuring, bidding strategy, and the ability of private equity firms to add value. The role of private equity in Japan is also explored and allows students to compare the Japanese merger and acquisition market to that of the U.S. and Europe.

Advantage Partners: Dia Kanri (B)

Gompers, Paul A., Nobuo Sato, and Akiko Kanno
February 2014

This case presents the final decision and outcomes for the (A) case.

Aqua Bounty

White, Lucy and Stephen Burn-Murdoch
February 2014

Valuation of a pre-revenue biotech company at IPO using probability trees and real option techniques. Company is based in Massachusetts and lists in London on AIM. Products are genetically modified fast-growing salmon for fish farmers and disease-prevention drugs and diagnostic kits for farmed shrimp.

Mandatory Environmental, Social, and Governance Disclosures in the European Union HBS Note

Serafeim, George and Robert G. Eccles
February 2014

No abstract available.

Value Retail: Opportunities for European Expansion

Segel, Arthur I.
February 2014

Scott Malkin, CEO of Value Retail, a developer and operator of European outlet villages serving luxury brands, is planning on developing a 18,503 m2 open-air outlet village to be built 98 kilometers south of Milan on land he was about to acquire for 7.26 million lira. Is this a good investment? What are the risks associated with the project? Could Value Retail pursue its outlet strategy in Italy? Includes color exhibits.

Value Retail (B) China: Opportunities for Expansion

Segel, Arthur I. and John H. Vogel, Jr.
February 2014

After spending two years evaluating China as a potential market for expansion, in 2012, Scott Malkin, chief executive of Value Retail, identifies a highly desirable site in Suzhou. Now Malkin must decide if it is the right opportunity to open a village in China.

Vodafone in Japan (A)

Alcácer, Juan, Mary Furey, and Mayuka Yamazaki
February 2014

Despite a rough start in the Japanese telecom market, by late 2003, Vodafone seemed to have weathered the storm, largely based on the strength of their mobile phone unit. But was it simply the calm before the storm?

Vodafone in Japan (B)

Alcácer, Juan, Mary Furey, and Mayuka Yamazaki
February 2014

By 2005, Vodafone Group was losing its footing in the sophisticated Japanese telecom market. What were they doing wrong? Should they cut their losses and leave Japan, or could they learn from mistakes and turn things around?

Vodafone in Japan (C)

Alcácer, Juan, Mary Furey, and Mayuka Yamazaki
February 2014

An update to Vodafone cases (A) and (B), describing Softbank's acquisition of Vodafone and its performance in Japan.

Vodafone Japan (A), (B), & (C) HBS Note

Alcácer, Juan
February 2014

The series of three cases is used in Harvard Business School's (HBS) elective course "Competing Globally" as the second case in the first module (Why?: Strategies to create value globally) (See "Competing Globally: Course Note for Instructors," HBS No. 713-422). The module identifies three general strategies that create value through global operations: deploying, developing, and deepening. The Vodafone Japan cases illustrate the second strategy type: developing a new source of competitive advantage through arbitrage of technological and market conditions between Japan and the rest of the world. Specifically, the cases allow instructors to illustrate how developing strategies can create value globally and therefore motivate global expansion, emphasize the tension that exists when firms try to deploy and develop strategies simultaneously, illustrate that a global strategy based on developing competitive advantages relies on differences across countries, and explore under what circumstances firms can benefit from arbitrage opportunities.

Stepping Stone, Stopping Point, or Slippery Slope? Negotiating the Next Iran Deal

Sebenius, James K.
February 2014

The November 2013 "interim" nuclear deal between Iran and the "P5+1"-the United States, Russia, China, Britain, France, and Germany-raises challenging questions. Will the initial deal function as a stepping stone toward a more comprehensive deal? Or will it drift into becoming a stopping point that leaves Iran dangerously close to nuclear weapons capability with the sanctions regime in decline? Or will it devolve to a slippery slope that would end up requiring a painful choice for key players between either acquiescing to a nuclear-capable Iran or attacking Iran's nuclear facilities? With Iran and the P5+1 each splintered into contending factions, a successful stepping stone strategy requires converting enough "persuadable skeptics" on each side to forge a "winning coalition" on behalf of the next nuclear deal. This supportive group must be strong enough to overcome the potent "blocking coalition" that will oppose virtually any larger, next-stage agreement. The best chance for the interim accord to become a stepping stone to a more valuable deal calls for a two-prong negotiating strategy with both value-enhancing and cost-imposing elements. The first prong of this strategy should strive to craft the most valuable possible next deal that credibly offers Iran a range of benefits, not limited to sanctions relief, that are greater and much more salient than those available from the interim agreement. The second prong should significantly worsen the consequences of failing to reach the next nuclear deal by automatically imposing enhanced sanctions if negotiations toward an acceptable, but relatively narrow, nuclear agreement do not succeed by a reasonable but firm deadline.

Harvard Business School Working Paper, No. 14-061, January 2014

Note on Wind Energy HBS Background Note

Maurer, Noel and Richard H.K. Vietor
February 2014

No abstract available

LEGO (A): The Crisis HBS Note

Rivkin, Jan W. and Stefan Thomke
January 2014

No abstract available.

The LEGO Group: Envisioning Risks in Asia (B)

Mikes, Anette, and Amram Migdal
January 2014

This brief follow-up complements the case, "The LEGO Group: Stepping Up in Asia" (HBS No. 113-054), and discusses the aftermath of the scenario planning session in which LEGO managers contemplated the risks of their new Asian strategy. The scenario planning exercise played a role in managers' realization that the Group could not simply "copy-paste" its existing operating model across the diversity of Asian markets. LEGO invested significantly in Asia throughout 2012-2013 in order to adapt its playbook to the anticipated challenges. The case also describes how, in 2013, scenario planning became part of the business-planning process at the LEGO Group. It allows students to understand the difference between a tailored scenario planning exercise and the tenuous future-gazing processes that generally fail to get traction among business managers.

Inditex: 2012

Wells, John R. and Galen Danskin
January 2014

No abstract available

Inditex: 2000

Wells, John R. and Galen Danskin
January 2014

No abstract available

Benetton Group S.p.A., 2012

Wells, John R. and Galen Danskin
January 2014

On May 31, 2012, Benetton was officially delisted and taken private by Edizione, the Benetton family's holding company. At $2.6 billion, Benetton's sales in 2011 were virtually the same as they were in 2000, but Inditex from Spain, Hennes & Mauritz (H&M) from Sweden, and Fast Retailing from Japan had all grown several times larger over the same period. What happened to this global retail giant? With Benetton under private ownership, would Harvard Business School graduate Alessandro Benetton be able to make the changes required to return the company to its former strength?

Benetton Group S.p.A., 2000

Wells, John R. and Galen Danskin
January 2014

In 2000, Benetton was one of the leading mass fashion competitors in the world with approximately $1.9 billion in sales across 5,500 stores in 120 countries. But the company's fortunes seemed to be on the wane. Challengers from H&M to Gap had overtaken Benetton in revenue and profitability. How could chairman Luciano Benetton turn around the company's struggling fortunes?

European Integration: Meeting the Competitiveness Challenge

Porter, Michael E. and Christian Ketels
January 2014

The case discusses the origins and development of the European Integration process from the post-war period up to 2007, focusing particularly on the efforts of the Lisbon agenda under way since 2000 to enhance Europe's competitiveness. It discusses the different policy areas that have been approached at the European level over time and provides background on the architecture of European institutions. The case enables students to understand how European integration has affected competitiveness across the continent. It provides a platform to discuss the impact of collaboration across countries in large geographies on competitiveness and the lessons that the European integration experience might hold for other world regions.

2013

Ahold versus Tesco-Analyzing Performance HBS Note

Srinivasan, Suraj
December 2013

No abstract available

iMatari

Badaracco, Joseph L., and Matthew Preble
December 2013

In late 2012, recent Harvard Business School graduate Hannah Lopez is given the opportunity to lead entry into a new market for Plámo, a company that created startup companies in Europe and emerging markets based upon existing successful business models. She had only been with the company a few months, and while excited by the opportunity, she was beginning to have some doubts about the company. In the brief time she had been with the company, she had had a few experiences that made her question the company's approach to management and the sustainability of its business. Accepting the assignment could give her a unique entrepreneurial opportunity, but she wondered what level of support she could expect to receive and, if the startup did fail, what impact would that have on her career and reputation? Lopez was also starting to worry about the ethical implications of Plámo's style of entrepreneurship. She worried that by agreeing to serve as a manager of the new operations, she would be tacitly supporting elements of Plámo's strategy and practices that she was concerned about. Was she comfortable taking other companies' ideas and simply copying them? Was this true entrepreneurship?

The Paris Opera Hotel

Arthur I. Segel
December 2013

Real estate investor Javier Faus invests in a luxury hotel development in central Paris and must select a management company.

Porto Adriatico HBS Teaching Note

Arthur I. Segel
November 2013

No abstract available

Sustainability at Siemens

Rangan, V. Kasturi, Amy C. Edmondson, Daniela Beyersdorfer, and Emer Moloney
November 2013

Describes sustainability efforts at Siemens since arrival of Chief Sustainability Officer, Barbara Kux, in 2008. Asks students to evaluate success of those efforts and outline what the company should do going forward.

Kvadrat: Leading for Innovation

Groysberg, Boris, and Sarah L. Abbott
November 2013

In 2013, Anders Byriel, CEO of the family-owned Danish textiles company, Kvadrat, considered the firm's strategic plan. In 2000, Byriel and Mette Bendix, Kvadrat's Product Director, had taken over management of the company from their fathers, who had founded Kvadrat in the 1960s. Byriel and Bendix had joined Kvadrat in 1992, and since that time, Kvadrat had grown from €19 million in annual sales to over €86 million. It had expanded its focus on selling textiles to European architects and furniture manufactures, becoming a global company with a wide product range and a broad customer base. Kvadrat's internal organization had grown and transformed to support this larger business. Now Kvadrat's management team was focused on a number of key initiatives: expansion into Asia, improved sales trends in its curtain and Soft Cells businesses, development of Kvadrat's retail sales operations, the implementation of new Human Resources practices, and the execution of a new organizational design. Was such an extensive growth, turnaround, and internal development agenda feasible? And, were the initiatives being considered the right ones for Kvadrat?

Carl Zeiss and Free-Form Production: Can We See Clearly Yet?

Shih, Willy
October 2013

The prescription eyeglass lens industry was complicated and highly fragmented, and even though many of the tools and techniques employed have been relatively unchanged over the last century, there was still a surprising pace of innovation. An aging population around the world meant the demand for progressive lenses was increasing rapidly, and innovations in production technology meant an evolving competitive dynamic with potentially quite different patterns of manufacturing and distribution. Are there theories that Zeiss managers can use to see clearly how industry evolution might portend shifts in the value network?

Carl Zeiss and Free-Form Production: Can We See Clearly Yet?

Shih, Willy
October 2013

The prescription eyeglass lens industry was complicated and highly fragmented, and even though many of the tools and techniques employed have been relatively unchanged over the last century, there was still a surprising pace of innovation. An aging population around the world meant the demand for progressive lenses was increasing rapidly, and innovations in production technology meant an evolving competitive dynamic with potentially quite different patterns of manufacturing and distribution. Are there theories that Zeiss managers can use to see clearly how industry evolution might portend shifts in the value network?

Prosocial Bonuses Increase Employee Satisfaction and Team Performance

Anik, Lalin, Lara B. Aknin, Elizabeth W. Dunn, Michael I. Norton, and Jordi Quoidbach
October 2013

In three field studies, we explore the impact of providing employees and teammates with prosocial bonuses, a novel type of bonus spent on others rather than on oneself. In Experiment 1, we show that prosocial bonuses in the form of donations to charity lead to happier and more satisfied employees at an Australian bank. In Experiments 2a and 2b, we show that prosocial bonuses in the form of expenditures on teammates lead to better performance in both sports teams in Canada and pharmaceutical sales teams in Belgium. These results suggest that a minor adjustment to employee bonuses-shifting the focus from the self to others-can produce measurable benefits for employees and organizations.

PLoS ONE 8, no. 9 (September 18, 2013): 1-8.

Switzerland: Foreign Pressure and Direct Democracy HBS Teaching Note

Rotemberg, Julio J.
October 2013

No abstract available

Barclays Bank, 2008

White, Lucy, Steve Burn-Murdoch, and Jerome Lenhardt
October 2013

n the midst of the financial crisis, Barclays (the world's 4th largest bank by assets) is forced by UK regulators to raise more capital. Should it take up the UK government's offer to invest or take funding from investors from the Middle East? Students may price the two deals to determine which is more expensive and must decide whether avoiding the constraints of government ownership is worth the extra cost.

Global Diversity and Inclusion at Royal Dutch Shell (A)

Sucher, Sandra J., and Elena Corsi
October 2013

Royal Dutch Shell has been among the early players to implement diversity and inclusion policies in the 1990s, first in the U.S. and then globally. In May 2009, Peter Voser, CFO and soon-to-be CEO, wants to adjust the company's business, headcount, and cost levels to adapt to changing economic conditions after one of the worst economic downturns in decades. His all-male executive committee has raised eyebrows since it is a step back from that of his predecessor, and he must decide whether to continue to promote the firm's emphasis on global diversity and inclusion while it restructures its business and reduces its managerial workforce.

Shanghai Pharmaceuticals

Herzlinger, Regina E., and Natalie Kindred
September 2013

Shanghai Pharmaceuticals (SPH), a vertically integrated Chinese pharmaceutical conglomerate, was considering its strategic options in the context of a rapidly evolving industry, policy, and economic environment. The company-essentially a collection of subsidiaries operating under a unified management structure-was formed through the 2009 merger of several state-owned enterprises, part of a broad policy effort in China to streamline state assets, consolidate the fragmented pharmaceutical sector, and enhance the global competitiveness of domestic firms. As it competed with other large domestic firms to become one of the few national champions that the government hoped to create, SPH was also considering an acquisition in the U.S. or Europe. This case allows students to consider the broad trends sweeping China's pharmaceutical industry and health care sector and assess future opportunities there for domestic and foreign businesses.

Learning Resources: A Hands-On Toy Company Deals with New Challenges and Opportunities

Groysberg, Boris, and Anahita Hashemi
September 2013

Learning Resources is a family owned educational toy company that, by late 2011, was facing a myriad of challenges, including increased competition, entry into new markets, new distribution methods, rising costs of production in China, and changing customer behavior. The company lacked a clear strategy and suffered from organizational misalignment. Rick Woldenberg, the former CEO of Learning Resources, is called back to the helm after a four-year absence to address these issues, increase performance, and set a direction for the company, all while remaining true to the values of his family's business.

Pret A Manger

Frei, Frances X., Rick Goldberg, and Stephanie van Sice
September 2013

Pret A Manger, a London-based chain of sandwich shops, was known for its fast, genuine service and pre-packaged sandwiches prepared on-site daily. Instructed by its board to grow at 15% per year, Pret considered opening "twin" shops in locations too small to contain kitchens; these shops would receive sandwich deliveries throughout the day from a nearby "parent" shop. Would Pret's employees and customers accept twin shops or view them as counter to the Pret culture? Through this decision point, the case frames a discussion about how companies build service models to reliably deliver customer service excellence. The case also helps students understand the role of employee management systems in creating consistent service experiences and introduces a set of innovative employee management practices.

Estonia: From Transition to EU Membership

Porter, Michael E., Christian H.M. Ketels, and Orjan Solvell
September 2013

The case discusses the economic development of Estonia, focusing on the period regaining independence from the Soviet Union in 1991 to 2007. It tracks the process from the initial transition towards a market economy to becoming an EU member country and profiles the economy, its key clusters, and the quality of its business environment in 2007 when the first signs of overheating were emerging. The case provides the background for a discussion of policy reforms in a transition economy and the role of legacy and geographical neighborhood in the process of economic upgrading.

Note on Pension Guarantee Funds

Pozen, Robert C. , and Patricia Bissett Higgins
September 2013

The United States and the United Kingdom both had quasi-government agencies that provided backup insurance for individuals participating in defined benefit (DB) pension plans. This note compares and contrasts the United Kingdom's Pension Protection Fund (PPF) with the United States' Pension Benefit Guaranty Corporation (PBGC) to illustrate the implications of poorly designed policy structures (the PBGC) in contrast to those created by well-designed policy (the PPF). Specifically, this note analyzes how differences in governance structure, termination capabilities, funding mechanisms, and asset management policies created distinctly different financial outcomes and incentive structures.

LEGO HBS Teaching Note

Thomke, Stefan H.
August 2013

No abstract available

Germany's Green Energy Revolution

Maurer, Noel, Elena Corsi, Emilie Billaud, and Emer Moloney
August 2013

No abstract available

Nestlé: Agricultural Material Sourcing Within the Concept of Creating Shared Value (CSV)

Goldberg, Ray and Lorin A. Fries
August 2013

No abstract available

Nestlé: Agricultural Material Sourcing Within the Concept of Creating Shared Value (CSV) Teaching Note

Goldberg, Ray A. and Matthew Preble
August 2013

No abstract available

Open Innovation at Siemens

Lakhani, Karim R., Katja Hutter, Stephanie Healy Pokrywa, and Johann Fuller
August 2013

The case describes Siemens, a worldwide innovator in the Energy, Healthcare, Industry, and Infrastructure & Cities sectors, and its efforts to develop and commercialize new R&D through open innovation, including internal and external crowdsourcing contests. Emphasis is placed on exploring actual open innovation initiatives within Siemens and their outcomes. These include creating internal social- and knowledge-sharing networks and utilizing third-party platforms to host internal and external contests. Industries discussed include energy, green technology, infrastructure and cities, and sustainability. In addition, the importance of fostering a collaborative online environment and protecting intellectual property is explored.

Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate? HBS Brief Case

Quelch, John A., and Diane Badame
August 2013

No abstract available

Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate? HBS Brief Case Teaching Note

Quelch, John A., and Diane Badame
August 2013

No abstract available

Château Margaux: Launching the Third Wine

Ofek, Elie, and Eric E. Vogt
August 2013

Château Margaux, one of only five prestigious estates in the Bordeaux Medoc wine region to have been classified as a "first-growth," is facing a host of strategic decisions in early 2013. Up until this point the estate had been selling two red wines, a first wine whose retail price often exceeded $1,000 a bottle, and a second wine whose retail price often exceeded $200 a bottle. Owner Corinne Mentzelopoulos and her management team were now preparing to launch a new third wine made from the estate's production not used to make the first two. They have to decide whether the best go-to-market strategy is to sell the third wine to the local Bordeaux merchants and relinquish commercialization to them or to devise a complete marketing plan for the new wine that includes target market selection, positioning, quantity to release, pricing, channel structure, and brand name. Mentzelopoulos was considering the optimal marketing for the third wine in light of bold moves by other first-growths, such as the purchase of vineyards in the Bordeaux region, global expansion, and deviation from the centuries old tradition of selling wine in the futures market.

YPF-The Argentine Oil Nationalization of 2012

Maurer, Noel, and Gustavo A. Herrero
August 2013

No abstract available

The Kashagan Production Sharing Agreement (PSA)

Esty, Benjamin C., and Florian Bitsch
August 2013

When discovered in the 1990s, the Kashagan oil field was the second largest oil field in the world. The project sponsors (equity investors) signed a 40-year production sharing agreement (PSA) with the Kazakh government in 1997, with the expectation the field would be developed at a total cost of $57 billion and would be pumping oil by 2005. Unlike most contracts in the energy industry, the Kashagan agreement was a "flexible PSA" meaning the contractual terms-the allocation of risks and returns-depended on ex post realizations of such things as capital costs and profitability. The parties incorporated contingencies into the contract to make it fairer and more flexible and to ensure it remain viable over the project's 40-year life. Due to a combination of problems and challenges, the project was still not done in mid-2007. At that time, the sponsors, led by the Italian energy company ENI, announced the project would not be completed until 2010 and the total cost was likely to be $136 billion. Although oil prices had risen dramatically between 1997 and 2007, thereby making the project worth considerably more, the Kazakh government indicated its desire to renegotiate key provisions of the contract. The sponsors had to decide whether to renegotiate the contract and, if so, which parts.

Schön Klinik: Measuring Cost and Value

Kaplan, Robert S., Mary L. Witkowski, and Jessica A. Hohman
August 2013

The case illustrates how a leading German hospital group has invested deeply in the measurement of patient-level outcomes and costs, the foundations of a health care value framework. The company launches a pilot project to use time-driven activity-based costing (TDABC) for measuring the cost of total knee replacements. The costing project complements an existing initiative for comprehensive outcomes measurement. The combination of accurate measurement of outcomes and costs empowers local personnel-physicians, nurses, and administrators-to improve the value of care they deliver. It also permits benchmarking across the group's multiple hospital sites to identify best practices that can be shared. The case concludes with a decision on using outcome and cost measurement to inform the adoption of a new recuperative approach that promises to dramatically lower post-surgical length of stays.

Bancaja: Developing Customer Intelligence (A) & (B) HBS Teaching Note

Martínez-Jerez, F. Asís
August 2013

No abstract available

Luca de Meo at Volkswagen Group

Hill, Linda A., and Dana M. Teppert
July 2013

No abstract available

Aviva Investors Teaching Note

Serafeim, George, Robert G. Eccles, Noah Fisher, and Sarah Farrell
July 2013

No abstract available

Investindustrial Exits Ducati Teaching Note

Brochet, Francois
July 2013

No abstract available

Credit Rating Agency Reform in the U.S. and EU

Pozen, Robert C, and Brian Conroy
July 2013

The purpose of this note is to explore reform options for the credit rating industry. The note examines the ways in which credit rating agencies contributed to the recent financial crisis, particularly through ratings of securitized products and sovereign debt. It further describes changes already enacted by the U.S. and the EU, as well as other reform proposals considered by lawmakers.

FX Risk Hedging at EADS

Kester, W. Carl, Vincent Dessain, and Karol Misztal
July 2013

In 2008, EADS, the European aerospace group that owns Airbus, was faced with the decision of how best to hedge a large and growing mismatch between its dollar revenues and its euro manufacturing costs. Specifically, the company needed to decide if it would continue hedging primarily with forward contracts, but in much higher volumes and at increasingly unfavorable rates, or to break with past practice and begin using foreign exchange option contracts. The decision would have consequences for EADS' profitability, cash flow, and its ability to fund strategic investment programs crucial to its ability to remain competitive with Boeing. Students must address questions concerning the proper way to measure foreign exchange exposures, the objectives of a rational risk management policy and program for a company like EADS competing in a duopoly with Boeing, the differences between hedging with FX options versus FX futures, counterparty risk, and hedge accounting, among other considerations.

Grupo RBS (A)

Davis, John A., and Courtney Collette
July 2013

No abstract available

The LEGO Group: To Publish or Protect?

Shih, Willy
July 2013

No abstract available

Sir Alex Ferguson: Managing Manchester United

Elberse, Anita
July 2013

No abstract available

Cummins, Inc.: Building a Home Community for a Global Company

Bower, Joseph L., and Michael Norris
June 2013

In 2010, Tom Linebarger, president and COO of Cummins, Inc., the Columbus, Indiana-based manufacturer of diesel engines, has to decide where to locate the company's new manufacturing line for high horsepower engines. He has three choices to decide from: Seymour, Indiana; Daventry, England; and Pune, India. The Community Education Coalition (CEC) in Columbus has had success in improving the city's schools to make the area more competitive in attracting and retaining highly educated employees to this small Midwestern city. The CEC is planning an expansion into Seymour with Cummins' help. Will the CEC be able to improve the school system in Seymour enough to make it a viable choice for the new high horsepower engine line? The case highlights the role of Cummins' long-term effort at community development as a key element of its corporate strategy.

Europe: An Ever Closer Union?

Trumbull, Gunnar, Jonathan Schlefer, and Diane Choi
June 2013

In 2010, the European Union faces the challenges of the global financial crisis. With 27 member states, each facing different challenges, can new EU institutions respond effectively? Will its new currency, the euro, survive?

Turkey-A Work in Progress?

Vietor, Richard H.K.
June 2013

For the past 10 years, Turkey has grown its real GDP at about 6% annually. This came after a huge debt crisis in 2001-02, wherein Turkey had to borrow $16 billion more from the IMF and comport with its difficult conditionality. Today, Turkey is a middle-income country in search of an effective development strategy. It tends to run high inflation with a devalued currency, despite massive capital inflows and a huge current account deficit. At home, the government has carefully managed between Islamicization, democracy, and secularism. And abroad, it deals with a difficult neighborhood-Syria, Iran, Iraq, Israel (not to mention Russia, Europe, and the United States). Prime Minister Erdogan is trying to rewrite the Constitution before 2014 when the next election occurs.

Turkey-A Work in Progress?

Vietor, Richard H.K.
June 2013

No abstract available.

Rough Justice: Stuart Eizenstat and Holocaust-era Asset Restitution (A)

Sebenius, James K., and Laurence A. Green
June 2013

Beginning in 1994, a series of articles and public disclosures indicated that Swiss banks may have retained assets belonging to victims of the Holocaust, and also may have engaged in long-term attempts to block survivors' ability to recover those assets after World War II. Stuart Eizenstat, a longtime government official, and U.S. Special Envoy for Property Restitution, undertook a complex multi-year negotiation between victims' representatives, advocacy groups, government officials, and the banks in an unprecedented attempt to obtain restitution for the victims. Unifying fractious parties within an uncertain legal, social, and business landscape, Eizenstat's unique approach of quantifying "rough justice" in order to enforce the accountability of corporate entities and governments for past injustices in Switzerland forms the basis of this study.

Persephone's Pomegranate: Crédit Agricole and Emporiki

Roscini, Dante, Daniela Beyersdorfer, and Jerome Lenhardt
May 2013

In 2006 the French bank Crédit Agricole bought the Greek Emporiki bank, for €2.8 billion, at the peak of a bull market for bank takeovers. Six years, a major financial crisis, and €5.2 billion of losses later, in a context of great uncertainty in the European banking sector, what decision should Crédit Agricole take regarding Emporiki? Through the example of this European cross-border acquisition the case looks at the Greek banking system before and during the unprecedented Greek sovereign debt crisis; the efforts of Greece and the main actors of the European financial system to prevent the embattled country from having to exit the Euro zone; and the potential scenarios for Greek banks in mid-2012.

Barclays and the LIBOR Scandal

Rose, Clayton, and Aldo Sesia
May 2013

In June of 2012, Barclays plc admitted that it had manipulated LIBOR-a benchmark interest rate that was fundamental to the operation of international financial markets and that was the basis for trillions of dollars of financial transactions. Between 2005 and 2009 Barclays, one of the world's largest and most important banks, manipulated LIBOR to gain profits and/or limit losses from derivative trades. In addition, between 2007 and 2009 the firm had made dishonestly low LIBOR submission rates to dampen market speculation and negative media comments about the firm's viability during the financial crisis. In settling with U.K. and U.S. regulators the firm agreed to pay $450 million in fines. Within a few days of the settlement, Barclays' CEO, Robert Diamond, had resigned under pressure from British regulators. Diamond blamed a small number of employees for the derivative trading related LIBOR rate violations and termed their actions as "reprehensible." As for rigging LIBOR rates to limit market and media speculation of Barclays' financial viability, Diamond denied any personal wrongdoing and argued that, if anything, Barclays was more honest in its LIBOR submissions than other banks-questioning how banks that were so troubled as to later be partly nationalized could appear to borrow at a lower rate than Barclays. This case explains why LIBOR was an essential part of the global financial market, the mechanism used to establish the rate, and what Barclays did wrong. The case allows for an examination of i) the consequences of violating the trust of market participants; ii) cultural and leadership flaws at Barclays; iii) the challenge of effectively competing in a market where systemic, and widely understood, corruption is taking place; iv) the complicity of regulators in perpetuating a corrupt system; and v) what might, or might not, be effective remedies for the systemic flaws in LIBOR.

Mutti Spa

Alvarez, José B., Carin-Isabel Knoop, Aldo Sesia, and Mary Shelman
May 2013

No abstract available.

Viterra

Goldberg, Ray A.
May 2013

No abstract available.

Investindustrial Exits Ducati

Brochet, Francois, and Karol Misztal
May 2013

In early 2012, Investindustrial, a European private equity group, publicly announced their intention to sell their 76.7% stake in Ducati Motor Holding S.p.A., an iconic Italian producer of sport performance motorcycles. The decision followed a six-year turnaround during which Ducati returned to profitability and significantly expanded its product line. Investindustrial's team had the following exit alternatives: 1) a trade sale to an automotive buyer; 2) a secondary buyout, partial or complete, by a financial investor; 3) a relisting in Hong Kong. Each option had its pros and cons, but all required a careful valuation of Ducati to maximize the investors' return on their flagship investment.

Kepak and the Future of the Irish Beef Industry

Bell, David E., Damien P. McLoughlin, and Mary Shelman
May 2013

No abstract available

Domaines Barons de Rothschild (Lafite): Plus ça change...

Goldberg, Ray A., Arthur I. Segel, Elie Ofek and Carin-Isabel Knoop
May 2013

No abstract available.

Gazelle in 2012

Hagiu, Andrei
April 2013

No abstract available

The LEGO Group: Publish or Protect?

Shih, Willy, and Sen Chai
April 2013

Senior managers at the LEGO Group are faced with a quandary: Should they patent inventions coming out of their manufacturing process development work, should they keep them as trade secrets, or should they publish them so that they would go into the public domain and nobody else could patent them? They wish to preserve their freedom to practice, but they are very concerned about competitors' ability to benefit from LEGO Group's R&D investments or alternately interfere with its freedom to operate. The case frames important intellectual property issues around appropriability and strategy.

Fonterra

Bell, David E., Mary Shelman, and Annelena Lobb
April 2013

No abstract available.

Société Internationale de Plantations et de Finance (SIPEF)

Hawkins, David F.
April 2013

Management of a company with extensive palm oil tree plantations questions the usefulness to management and investors of IAS41's requirement to value palm oil trees at their fair value.

LEGO (A): The Crisis

Rivkin, Jan W., Stefan H. Thomke,and Daniela Beyersdorfer
April 2013

As this case opens, iconic toymaker LEGO stands on the brink of bankruptcy. Jørgen Vig Knudstorp, LEGO's young and newly appointed CEO, must size up changes in the toy industry, learn from the company's recent moves, and craft a strategy that will put LEGO back on track.

Automating the Paris Subway (A) & (B)

Anteby, Michel, and Ayn Cavicchi
April 2013

No abstract available

Entrepreneurial Finance in Finland?

Kerr, William R.
April 2013

No abstract available

18 Months in a Startup: Zaggora.com

Nicholas, Tom
April 2013

The founders of Zaggora reflected back on a tumultuous year and a half in which they had generated, from just $40,000 in personal savings, a multi-million dollar sportswear enterprise selling Hotpants to women. These were hotpants not of the 1960s hipster variety, but instead the first sportswear product of the new brand Zaggora that was made with a specially developed multi-ply fabric technology that heated up during a workout. While the founders had faced several challenges, including averting bankruptcy, now they faced an equally difficult time ahead. Should they grow the enterprise by continuing with their current bootstrapped online approach, or attempt to get their product into retail stores? Should they continue to self-finance and keep control, or cede some control by taking on venture capital funding?

Chef Davide Oldani and Ristorante D'O

Pisano, Gary P., Alessandro Di Fiore, Elena Corsi, and Elisa Farri
April 2013

This case examines the unique business model of Ristorante D'O, a high end gourmand restaurant located near Milan, Italy. Founded by Chef, Davide Oldani, D'O offers meals at approximately one-third the price of other Michelin starred restaurants. Oldani has made this business model profitable by making a conscious set of operating strategy choices (menu, meal design, service process, lay-out, reservation process) that reduce waste and inefficiency, while preserving quality. The case enables students to understand how cost-quality trade-offs can be altered through creative operating strategies, and sufficient data are available to analyze the operating model in depth. A second focal point of the case concerns Oldani's choices for growth. The wait list for D'O is currently 18 months. He can presumably open another D'O at a different location. At the time of the case, however, he is considering opening a new restaurant in the same vicinity as D'O that would operate at an even lower price point. Case debate can center around whether this new restaurant format makes sense from a strategic point of view, and, in particular, whether the capabilities and know-how acquired in operating D'O are applicable to the new restaurant. The deeper issue in the case concerns how businesses based on the creative talent of an individual (like Chef Oldani) can grow, without losing what makes them special.

Porto Adriatico

Segel, Arthur I.
April 2013

In March 2012, Jack Dawkins is in the early stages of leading the development of an old navy yard in Croatia into a mixed-use waterfront community of residences, hotel rooms, shops and dining. Catering to those arriving by superyachts and other leisure boats, and set amongst dramatic coastline, the project would transform the region. Coordinating the many stakeholders in a new country, Jack has to decide the best way to navigate the development risks and whether the project really makes sense as proposed, in more ways than one.

First Solar: CFRA's Accounting Quality Concerns

Srinivasan, Suraj, and Ian McKown Cornell
March 2013

The case relates to accounting quality analysis conducted by the leading research firm Center for Financial Research and Analysis (CFRA) on companies in the solar industry with a focus on First Solar Inc. In 2009, CFRA was concerned that First Solar, like much of the solar industry, was facing deterioration in business prospects and exposed to risks arising from revenue recognition, high inventory levels, lack of customer and geographic diversification, aggressive warranty policies, excessive production capacity growth, and supply chain risks. The case places students in the shoes of CFRA analysts who need to assess First Solar's accounting quality and business prospects after the company releases its second quarter financial numbers in 2009. The case provides students with background information on the solar power industry, First Solar, data from CFRA research, and First Solar's quarterly reports and the earnings conference call to analyze and draw conclusions about First Solar's accounting practices and strength as a company. Students have to decide whether CFRA should flag First Solar as a concern and add it to CFRA's "Biggest Concerns" list.

The Basque Country: Strategy for Economic Development

Porter, Michael E., Christian H.M. Ketels, and Jesus M. Valdaliso
March 2013

The Basque country, with a population of 2.1 million and covering 7,233 square kilometers, is an autonomous region located in the north of Spain, physically separated from it by the Pyrenees Mountains. Presents the history of the region-highly prosperous at the turn of the 20th century but nearing bankruptcy by the 1950s. By 2001, the Basque GDP per capita had risen to a level well ahead of Spain and most European countries. At the same time that the region was enjoying the spoils of admirably executed cluster initiatives, it was being threatened by the destabilizing violence of the Basque separatist extreme, a slowing global economy, and an always precarious balance of power between the Basque's own government and the government of Spain.

Developing the Materiality Matrix at Telefónica

Eccles, Robert G., George Serafeim, and Asun Cano Escoriaza
March 2013

Telefónica, one of the largest telecommunication companies in the world and headquartered in Spain, has been issuing a corporate sustainability report since 2002. In its 2011 Sustainability report, the company included a "materiality matrix," and was one of only five of the 97 companies in Spain that produced a sustainability report that year. The case describes the purpose of the materiality matrix, how it was developed, and the opportunities the company sees for improving it.

Research In Motion: The Mobile OS Platform War

MacCormack, Alan , Brian Dunn, and Chris F. Kemerer
March 2013

The case describes competition in the market for smart phones in the U.S. and the position of one player, Research In Motion (RIM), who manufactures the popular Blackberry line of products. Early in 2011, RIM is in trouble. Its stock price has plummeted, amidst poor business results, and its future as an independent company is in doubt. A new Chief Executive Officer, Thorsten Heins, must decide how to position the company for the future. The case allows students to understand the strategic dynamics in platform-based industries in general and to explore more specifically how a firm that led the industry in 2007 could fall to earth so dramatically four years later. The case is based upon data and information from public sources.

Diamond Foods, Inc.

Srinivasan, Suraj, and Tim Gray
March 2013

The Diamond Foods, Inc. case describes the major accounting blowup at the company in late 2011 that was triggered by a report by Off Wall Street (OWS), a prominent short selling research firm. Diamond Foods, a high flying growth company in 2011, grew from a walnut farmers' cooperative in 2005 into a branded snack foods manufacturer on the strength of a series of acquisitions. The accounting scandal that involved improper accounting for walnut purchases led to Diamond dropping its high profile acquisition of Pringles, an SEC and DOJ investigation, departure of the CEO and CFO, and the grounding of a high flying growth company. The case describes the history and growth of the company, the investigative and analytical work conducted by OWS, and allows students to understand implications of the growth strategy for financial performance and valuation. Additionally, the case highlights the role of corporate boards and audit committees in managing strategic and financial reporting risks.

Mutti Spa

Alvarez, Jose B., Mary L. Shelman, and Carin-Isabel Knoop
March 2013

Francesco Mutti, owner, CEO, and great-grandson of the founder of Mutti Spa, ran the 113-year old Parma, Italy-based tomato-processing company. Mutti sales grew from €11 million in 1995 to €185 million in 2011, without producing for store brands in a market in which these offerings were steadily gaining share. The company's leaders wanted to make sure Mutti maintained its position in Italy and further, to move into a leadership position in several countries around the world. What was next for the family firm and brand leader from northern Italy's Emilia-Romagna region? How would the singularly focused, consensus-driven firm fare in an increasingly competitive, globalizing retail landscape?

Buro Happold (B)

Eccles, Robert G., and Penelope Rossano
March 2013

Supplements the (A) case

CLP: Powering Asia

Serafeim, George, Robert G. Eccles, and Dawn Lau
March 2013

No abstract available

Talking Strategy at Greighton Partners

Groysberg, Boris, and Kerry Herman
March 2013

Since its inception, London-based private equity firm Greighton Partners had managed over $15 billion in investor capital. The firm employed about 150 professionals around the globe and had completed over 175 company acquisitions since its founding. Started with a small intimate team in London, the firm had merged with a continental PE firm and was successful, with an increased focus on Asia deals. After a long day of global partner meetings behind them, a group of Greighton partners, eager to unwind, gathered to discuss the firm's success in terms of executing on its recently refined strategy. Opinions ranged across the following strategic issues: growing the firm's Asian footprint versus remaining focused in Europe; aiming to be a top performing mid-market firm or focusing on moving up a tier to compete for bigger deals against larger firms; growth and expansion through organic growth, merger/acquisition, or through lateral hires; and finally, sector mix and client mix/client focus.

Great Western Hospital: High-risk Pregnancy Care

Porter, Michael E., Emma Stanton, and Samuel Takvorian
February 2013

Great Western Hospital (GWH) is a community hospital in Wiltshire, South West England, and one of England's largest maternity providers, responsible for delivering over 9,000 babies per year. The case discusses the efforts of Dr. Harini Narayan, consultant obstetrician, and gynecologist, to reorganize antenatal care delivery at GWH. Rather than treating high-risk pregnancies as a homogeneous group, Dr. Narayan pioneered the development of eleven condition-based, high-risk clinics led by dedicated multidisciplinary teams of physicians, midwives, and nurses. The case profiles the Multiple Pregnancy Clinic in particular and its impact on perinatal indicators and outcomes.

SANY: Going Global

Lal, Rajiv, Stefan Lippert, Nancy Hua Dai, and Di Deng
February 2013

April 17, 2012, was a special day for SANY Group and for its founder Liang Wen'gen. Headquartered in Changsha, SANY Group had transformed itself in two decades from a small welding material factory in 1989 to a leading global construction equipment manufacturer with 5 industrial parks in China; 5 R&D and manufacturing bases in America, Germany, India, Brazil, and Indonesia; and 21 sales companies worldwide. SANY Heavy Industry Co., Ltd. (SANY), SANY Group's major subsidiary, engaged in the construction equipment business and was number six on International Construction's 2012 Yellow Table, a ranking of the world's largest construction equipment manufacturers.

Blink Booking

Kerr, William R., Magnus Thor Torfason, and Alexis Brownell
February 2013

No abstract available

Entrepreneurial Finance in Finland?

Kerr, William R., Ramana Nanda, and Alexis Brownell
February 2013

This case describes a new venture attempting to bring early-stage entrepreneurial financing to Finland and other Nordic countries. Entrepreneurship is taking off in Finland, an area that historically has had little venture capital or high-growth start-up activity, but a gap remains for seed-stage financing. The founders are evaluating the best way to structure their private equity fund to reflect their own assets and abilities and the needs and resources of the entrepreneurial scene in the Nordics. The case evaluates whether to organize as an accelerator, a micro-VC fund, an incubator, a normal VC fund, or as a hybrid.

Domaines Barons de Rothschild (Lafite): Plus ça change….

Goldberg, Ray A., Arthur I. Segel, Elie Ofek, and Carin-Isabel Knoop
February 2013

For centuries Lafite has been the most admired wine Estate in the world. How does Baron Eric de Rothschild protect this crown jewel in a conservative manner while DBR develops other Chateaux blending wine programs, reaches out to new areas such as China, and begins to take a more active interest in the world's number one market-the United States.

SMARTBITES (A)

Roberts, Michael J., Jeronimo Silva, and Amar Bhide
February 2013

The case describes a Turkish brother-sister team who are evaluating the option of acquiring and operating a franchise of a U.S. bakery/cafe in Turkey. They are comparing this option to that of simply starting a similar business.

SMARTBITES (B): May 2009

Roberts, Michael J., and Amar Bhide
February 2013

No abstract available

SMARTBITES (C): June 2009

Roberts, Michael J., and Amar Bhide
February 2013

No abstract available

SMARTBITES (D): February 2010

Roberts, Michael J., and Amar Bhide
February 2013

No abstract available

Bonnier: Digitalizing the Media Business

Applegate, Lynda, Daniel Nylen, Jonny Holmstrom, and Kalle Lyytinen
January 2013

The case follows leading Scandinavian media company Bonnier as it establishes a designated R&D division for the first time. The case, in particular, focuses on its first flagship project, called Mag+, in which it creates a digital platform for publishing digital magazines on the iPad. The case is intended, in part, as an introduction to the challenges media companies face due to the disruptive effects of digitalization, where traditional products and services are challenged by new digital category breakers such as the iPhone, Hulu, or Netflix. To this end, it offers a short tour of the changing print media landscape and reviews major upheavals in its business models. The Bonnier case illustrates how to engage in and manage a radical digital innovation process. In particular, it discusses the challenges associated with responding to the disruptive effects of digitalizing printed magazines. It illustrates concrete challenges that Bonnier R&D manager, Sara Öhrvall, needs to tackle as she starts as the first R&D manager at Bonnier.

Bonnier: Digitalizing the Media Business

Applegate, Lynda
January 2013

No abstract available

Russia and China: Energy Relations and International Politics

Abdelal, Rawi, and Sogomon Tarontsi
January 2013

Russia and China are neighbors with complementary needs: Russia has an abundance of energy resources, which China needs to fuel its industry. The case analyzes the evolution of the China-Russia energy relations in the post-Cold War period, with an emphasis on the political factors, external and domestic, impeding and contributing to the full realization of the potential of energy ties between Russia and China.

Greencore

Bell, David E., and Natalie Kindred
January 2013

Patrick Coveney, CEO of Greencore, one of the top producers of private label prepared foods sold through UK grocery retailers, was assessing Greencore's growth options. Growth potential was limited in the UK, a mature market in which retailers were unlikely to grant much greater market share to Greencore or any of its competitors. In the U.S., where Greencore had struggled to gain traction since its initial entry in 2008, the market for fresh, chilled prepared foods was far less developed. Can Greencore translate its success in the UK to the U.S.? Should Coveney focus on developing the U.S. market or on maximizing Greencore's position in the UK?

Ahold versus Tesco-Analyzing Performance

Srinivasan, Suraj, and Penelope Rossano
January 2013

The case relates to understanding and comparing the performance of two leading retail companies-Ahold and Tesco. The case introduces the tools of Dupont and Modified Dupont Decomposition. While performance as measured by return on equity has been similar for the two companies, Ahold has had significantly better stock market performance compared to Tesco. Ahold also has a significant amount of cash on its balance sheet leading to low levels of net debt. The case requires students to analyze performance using Modified Dupont Decomposition techniques to assess if firm performance is resulting from operating profitability or from financial leverage and then suggest strategies to improve performance. To perform the modified Dupont Decomposition, students learn how to reformat and condense the balance sheet and income statement to separately measure profitability arising from operating activities and financing activities. Students also see how excess cash holdings can depress profitability and what factors should drive the appropriate level of leverage for a company.

DeRemate.com: Building a Latin American Internet Auction Site

Collis, David J.
January 2013

No abstract available

ABB: In China, for China

Trumbull, Gunnar, Elena Corsi, and Elisa Farri
January 2013

ABB, a power and automation Swiss engineering company had to decide if they wanted to be even more integrated into the Chinese economy, ABB's biggest market, or if they should instead increase their presence in other emerging markets such as India and Brazil.

ABB: In China, for China

Trumbull, J. Gunnar
January 2013

No abstract available

The Universalization of L'Oréal

Lal, Rajiv, and Carin-Isabel Knoop
January 2013

In 2010, half of the world's cosmetics sales came from the so-called emerging markets for the first time; L'Oréal opened three new subsidiaries, in Egypt, Pakistan, and Kazakhstan; and the Paris, France-based cosmetics and personal care powerhouse declared its intention to double its consumer base to two billion and increase its share of sales from emerging markets. CEO Jean-Paul Agon made it his number one goal to "prepare the company to keep its global leadership in this new era".

Ahold versus Tesco-Analyzing Performance

Srinivasan, Suraj, and Penelope Rossano
January 2013

The case relates to understanding and comparing the performance of two leading retail companies-Ahold and Tesco. The case introduces the tools of Dupont and Modified Dupont Decomposition. While performance as measured by return on equity has been similar for the two companies, Ahold has had significantly better stock market performance compared to Tesco. Ahold also has a significant amount of cash on its balance sheet leading to low levels of net debt. The case requires students to analyze performance using Modified Dupont Decomposition techniques to assess if firm performance is resulting from operating profitability or from financial leverage and then suggest strategies to improve performance. To perform the modified Dupont Decomposition, students learn how to reformat and condense the balance sheet and income statement to separately measure profitability arising from operating activities and financing activities. Students also see how excess cash holdings can depress profitability and what factors should drive the appropriate level of leverage for a company.

INNOVA-MEX's Bid for ENKONTROL

Kerr, William R., and Ramana Nanda
January 2013

No abstract available

DeRemate.com: Building a Latin American Internet Auction Site

Collis, David J.
January 2013

No abstract available

The LEGO Group: Envisioning Risks in Asia

Mikes, Anette, and Dominique Hamel
January 2013

On January 1, 2012, the LEGO Group announced a major new initiative to enhance its market penetration in Asia. Later in the year, a cross-functional group of senior managers gathered at company headquarters to discuss the status of the Asian initiative and the risks associated with it. The aim of the meeting was to outline four scenarios for the future that could help managers assess what key success factors and actions were required for coping with the challenges presented by each scenario and to prioritize them. Students will have an opportunity to enact the scenario exercise themselves, devising their own scenarios, and deciding whether the LEGO Group should build a factory in an Asian location in the next five to seven years. In order to facilitate a discussion about the challenges of designing a "winning organization," the case also presents difficult choices that executives had to make about the LEGO Group's strategy, choice of primary customers, core capabilities, and organizational structure.

2012

Automating the Paris Subway (A)

Anteby, Michel, Elena Corsi, and Emilie Billaud
December 2012

In 2001, the head of the Paris Subway reflected on how to transform Line 1 into a driverless line without triggering a social conflict. After the shock of the 2000 Notre Dame de Lorette subway accident, in which a train derailed and caused 25 injuries in a Paris subway station, the state-owned Paris subway operator Régie Autonome des Transports Parisiens (RATP) decided to adopt new security measures and considered the opportunity to automate the oldest and the busiest line of the network. The head of the Paris Subway, Serge Lagrange, believed that automating Line 1 would improve security as well as performance. However, the automation would bring about the downsizing of 219 drivers' positions. Lagrange had to figure out how to get the RATP employees on board, particularly drivers and trade unions. How could he convince them of the necessity to automate Line 1? How could he prevent the potentially major social conflict that might result from downsizing the drivers' positions?

Automating the Paris Subway (B)

Anteby, Michel, Elena Corsi, and Emilie Billaud
December 2012

N/A

Marc Rich and Global Commodity Trading

Jones, Geoffrey, and Espen Storli
December 2012

Examines the career of Marc Rich, the world's leading commodity trader before his criminal indictment in the United States in 1983. The case surveys the historical growth of commodity trading, especially in metals, from the late nineteenth century, and its evolving forms as governments intervened in markets after 1945. Rich joined Philipp Brothers, then the largest commodity trader, in 1954. He formed his own firm two decades later. He was instrumental in the creation of a spot market in petroleum and assumed a pivotal role in the industry during the 1970s by selling Iranian oil to Israel and South Africa. The case provides a means to explore the rationale and advantages of giant commodity traders, as well as enabling students to debate corporate use of tax havens.

Cialis Lifecycle Management: Lilly's BPH Dilemma

Ofek, Elie, and Natalie Kindred
December 2012

How should Eli Lilly further develop and market a new indication of its highly successful erectile-dysfunction (ED) drug, Cialis, without confusing Cialis's hard-won brand equity with physicians and patients? With the final stages of clinical trials for the new indication, benign prostatic hyperplasia (BPH), soon to be carried out, the team had to make a decision soon. On its face, the market opportunity for a BPH indication, and its synergies with an ED drug, seemed enormous: both ED and BPH were age-related conditions, and data showed that half of men with ED had BPH symptoms. Moreover, the BPH indication would be taken in the same frequency and dosing as the once-a-day version of Cialis. However, market research had revealed significant challenges in introducing the BPH indication under the Cialis name. For example, although ED and BPH often co-existed, men perceived them quite differently. Some physicians also reacted negatively to the BPH indication. Impending competition from low-price ED generics, given that Viagra would soon be going off patent, underscored the importance of the BPH opportunity.

Can the Eurozone Survive

Roscini, Dante, and Jonathan Schlefer
December 2012

The sovereign debt crisis that took Greece by storm in 2010 began to spread to other European markets. Within a few months Ireland and Portugal had also lost access to the sovereign debt markets and had to rely on supranational loans for their financing. The risk of further contagion was clear and present. Political leaders continued to seek measures to stem the crisis and to avoid the larger economies of Spain and Italy becoming involved. The European financial system became strained. Banks were found to be undercapitalized and began to ration credit to the economy. The European Central Bank intervened to provide liquidity to the system in order to avoid a credit crunch. Could the eurozone survive the storm?

Digital Microscopy at Carl Zeiss: Managing Disruption

Shih, Willy
December 2012

Ulrich Simon, the head of the microscopy business group at Carl Zeiss AG, knew that his unit was facing a disruptive threat, so he chartered a special team to tackle the industrial segment. Given a high degree of autonomy, the project team developed an understanding of the marketplace challenge and proceeded to develop and execute on a new business plan. Simon gave the team ample freedom to develop new processes and priorities appropriate to the market segment needs, but he couldn't help but wonder whether it would continue as a stand-alone unit or he would need to reintegrate it into the mainline business. He also was nervous about the plan itself. The team had established timelines and milestones, but now they had to execute and deliver their first product next year.

Natural Gas

Abdelal, Rawi, and Sogomon Tarontsi
December 2012

An an overview of natural gas as a fossil fuel and traded commodity, the case describes various regional markets of natural gas, highlighting diversity of price formation mechanisms across and within those markets. Recent changes in the economics of unconventional natural gas extraction-"the shale revolution"-could potentially remake those markets, steering the world toward the "golden age" of natural gas.

Angry Birds

Gupta, Sunil, and Dharmishta Rood
December 2012

Within months of its launch in December 2009, Angry Birds, a mobile game created by a small Finnish company, Rovio Entertainment Ltd., became an international hit. By late 2011, Rovio was not only making Angry Birds games for the iPhone, Android, and other mobile platforms, but it had also expanded into plush toys, cookbooks, animation videos, and licensing arrangement with major brands. With the goal of making Rovio the next Disney, Mikael Hed, CEO of Rovio, was planning to create an Angry Birds movie. Was Angry Birds a fad that would fade away or was Rovio on a path to build a media empire?

Monocle

Soltes, Eugene , and Sara Hess
December 2012

Monocle, a magazine on global affairs, culture, and business, was founded by Tyler Brûlé to counter a perceived deterioration in the quality of print publications available at the newsstand. Monocle differentiates itself from other publications through its diverse international coverage and related newspaper, radio, and shop offerings. The case investigates the growth of Monocle and how the publication has developed its unique relationship with readers and advertisers.

Industrial Metrology: Getting In-Line? (B)

Shih, Willy
December 2012

Rainer Ohnheiser, the president of Carl Zeiss's Business Group Industrial Metrology (IMT), was focused on the threat that in-line metrology posed to Carl Zeiss IMT's core business. Historically, coordinate measurement machines (CMMs) that employed tactile measurement had fueled great market success for the division, but alternative non-contact measurement methods that employed optical or x-ray technologies were rapidly gaining ground in the market. This case follows the progress that the IMT division has made since the (A) case and examines the challenges that lie ahead.

Intraoperative Radiotherapy for Breast Cancer (B)

Shih, Willy
December 2012

The intraoperative radiotherapy (IORT) business at Carl Zeiss Meditec had struggled with growth since the time of the (A) case. Though the unit had grown revenues in excess of 50% and had exceeded its EBIT target, it faced several key strategic choices. Should it continue to specialize in the breast cancer segment, or should it focus more on surgery with radiotherapy as one technical solution. Should it continue its focus on more mature markets, or should it be making focused investments in emerging markets? The (A) case poses IORT as a disruptive technology, and the (B) case offers the instructor an opportunity to gauge the progress the protagonist has made in applying that framework.

Sir Alex Ferguson: Managing Manchester United

Elberse, Anita, and Thomas Dye
November 2012

Sir Alex Ferguson, the most successful manager in British football history, is preparing for the 2012-2013 season-his record-setting 26th as manager of one of the world's most decorated professional football clubs and one of sport's biggest franchises. Over the years Ferguson has overcome several major challengers to United. The newest rival can be found closer to home: since Manchester City, United's "noisy neighbors," has switched owners, the club has invested unprecedented amounts of money in new players, resulting in its first league title in decades. How could Ferguson lead his team to another victory and bring the next chapter in United's illustrious history to a successful end?

Viterra

Goldberg, Ray A., and Matthew Preble
November 2012

As Mayo Schmidt's tenure as CEO of the Canadian-based agribusiness Viterra wound down before its sale to the Swiss-based commodity company Glencore, he reflected on his tenure, which had seen the firm grow from a Canadian-focused agricultural cooperative to an international agribusiness with operations across the globe, including significant operations in Australia. Now he wondered: What would the future hold for agriculture?

Telecommunications Regulation and Coordinated Competition in Romania

Daemmrich, Arthur A.br /> November 2012

N/A

Baltic Beverages Holding: Competing in a Globalizing World (A) & (B)

Alcácer, Juan
November 2012

N/A

Preem (A) & (B)

Becker, Bo
November 2012

N/A

Reconfiguring Stroke Care in North Central London.

Porter, Michael E., James Mountford, Kamalini Ramdas, and Samuel Takvorian
October 2012

In 2006, surgeon Ara Darzi identified several key areas, including acute stroke care, for improving health care across London. In response to his seminal call to action, stroke care was reorganized around eight hyper-acute stroke units covering London's five sectors, replacing the more than thirty units that had previously delivered acute stroke care. This case profiles the rollout of the new care delivery model in North Central London, where acute stroke care had previously been fragmented among five acute hospital trusts with varying care resources, capacity, and protocols. In the new model, stroke care would be delivered across facilities in an integrated fashion, with a single hyper-acute facility designed for the care of the most acute and severe cases.

Ringier-Building a Digital-Age Media Company

Oberholzer-Gee, Felix
October 2012

Overview of the strategic re-orientation and diversification of Ringier, a Swiss media company, as it confronts the challenges of staying competitive and profitable in the new and increasingly digital media landscape.

Logoplaste: Global Growing Challenges

Alcácer, Juan
October 2012

No abstract available

L'Occitane en Provence

Becker, Bo, and Scott Mayfield
October 2012

No abstract available

inge watertechnologies, GmbH

Nanda, Ramana, Carin-Isabel Knoop, and Markus Mittermaier
September 2012

Using the financing history and exit choices of a German clean-tech startup as a lens, this case explores the reasons why venture-backed entrepreneurship is much lower in Germany that the US, despite a robust SME sector and large-corporate innovation in Germany. It also shows the tight link between investor incentives and a startup's product market strategy, including differences between "pure-play" VCs and corporate venture capital investors.

The Kaesong Industrial Complex (A) & (B)

Werker, Eric, and Dante Roscini
September 2012

No Abstract

LEGO

Rivkin, Jan W., Stefan Thomke, and Daniela Beyersdorfer
August 2012

LEGO has emerged as one of the most successful companies in the toy industry. The case describes LEGO's gradual rise, rapid decline, and recent revitalization as it is keeping up with a changing market place. Central to LEGO's management model is the ability to find the right balance among growing through innovation, staying true to its core, and controlling operational complexity.

Siemens AG: Key Account Management

Steenburgh, Thomas, Michael Ahearne, and Elena Corsi
August 2012

The key account manager of an engineering company has to convince a department to give up important contracts. The German engineering company Siemens had set up a global key account management program since 2010. The key account manager of an emerging account had been asked by his customer to cut the costs of two long-term contracts worth about €300 million that his customer had signed with Siemens. Although legally Siemens could refuse the revision, such an act could jeopardize Siemens' relationship with the customer. At the same time, a change in the contracts would bring about losses for Siemens. How should the key account manager handle this problem? He knew that he would have to be resourceful, given that he had no direct authority in the situation, but this was the nature of his job.

Barclays Capital and the Sale of Del Monte Foods

Coates, John, Clayton Rose, and David Lane
August 2012

This case explores the reputational and legal issues that arise as Barclays Capital attempted to manage client conflicts by following established industry practice in the face of changing legal norms. In February 2011, Judge Travis Laster granted a preliminary injunction that delayed for 20 days a shareholder vote on the sale of Del Monte Foods Co. (Del Monte) to a consortium of three private equity firms. In his opinion, Laster was critical of Del Monte's board, noting that the directors may not have properly exercised their fiduciary duties, and the private equity firms. However, he saved his most severe criticism for an organization that was not even a party to the suit: the company's financial advisor, Barclays Capital. He suggested that Barclays had placed its own interests ahead of the company's in its actions and advice.

Transatlantic Holdings, Inc.-The Belle of the Ball

Rose, Clayton S., and Aldo Sesia
August 2012

In November 2011, Transatlantic Holdings, Inc., a global property and casualty reinsurance company, announced it had agreed to sell itself to Alleghany Corporation, ending "the most frenzied takeover battle" of 2011, which involved competitors, Warren Buffett's National Indemnity, and private equity investors. The agreement with Alleghany came after Transatlantic's failed effort at a merger of equals, and as several other unsuccessful bids for the company, one that was hostile.

Man Group (B)

Pozen, Robert C., and Thomas M. Clay
August 2012

The Man Group was a huge and successful UK-based hedge fund and fund of funds manager. Through acquisitions, the company had consciously diversified its portfolio of investment products. In 2007 Man had to decide whether or not to spin off its brokerage business. Man was also evaluating several new business opportunities with varying strategic and financial rationales. After the financial crisis, Man had to decide what to do in the fund of funds space.

Man Group (A) & (B)

Pozen, Robert C., and Thomas M. Clay
August 2012

No abstract available

Switzerland: Foreign Pressure and Direct Democracy

Rotemberg, Julio J., and Jonathan Naharro Martin
August 2012

No abstract available

Innovation Magic

Thomke, Stefan, and Jason Randal
July 2012

Why do certain product and service experiences seem like magic, making them all but destined for success, while other items languish on store shelves? For a better understanding of that, perhaps there's no better place to turn to than the world of magic. Consider that some professional magicians are constantly under pressure to come up with new "effects" that will wow the audience and ultimately result in a transformational customer experience. As such, these magicians can't just be innovative on a whim; they must have a systematic way of doing so on a regular basis. The note provides some practical insights into a process of creation that is common to both the "tricks" that awe a spellbound audience and what companies need to do to give customers unforgettable product and service experiences.

The Agnellis and Fiat: Family Business Governance in a Crisis (A)

Davis, John A., Bernardo Bertoldi, and Roberto Quaglia
July 2012

After the death of Umberto Agnelli in 2004, the Agnelli family, led by John Elkann, needs to decide whether to keep Fiat CEO Giuseppe Morchio. The Fiat Group is in a delicate financial position, and John Elkann, the new family leader, is untested in this role. The stakes of this decision are high for both the family and the family business. The case describes the leadership and governance of the Fiat Group and raises questions on who should be involved in such decisions.

First Quantum Minerals vs. Eurasian Natural Resources

Serafeim, George, and Andrew Knauer
July 2012

The case describes the battle between First Quantum Mineral (FQM) and Eurasian Resources over mines in Democratic Republic of Congo (DRC). After FQM's license to operate was revoked by the government of the DRC, Eurasian bought the rights over the mines that were previously under FQM's control raising questions about the effectiveness of corporate governance at Eurasian.

Schuberg Philis

DeLong, Thomas J., and Daniela Beyersdorfer
July 2012

The Dutch professional service firm Schuberg Philis has within a few years grown into a well-known player in the Dutch IT outsourcing market and regularly wins high customer- satisfaction marks. The growing workload and 100% promise to customers have increased the pressure on its non-hierarchical teams of engineers, as well as the hiring speed, which some fear could dilute their corporate culture. The three owner-directors must decide whether it is time to stop customer acquisition for a while to "get their house in order." At that moment, though, one of Shuberg Philis perhaps most important business opportunities so far arises.

A.P. Moller - Maersk Group: Evaluating Strategic Talent Management Initiatives

Groysberg, Boris , and Sarah L. Abbott
July 2012

In 2012, Bill Allen and Maria Pejter, of Maersk Group's Human Resources Department, sat down to consider some key aspects of Maersk's talent management strategy. Headquartered in Copenhagen, Maersk was a global conglomerate with large shipping and oil & gas businesses. Among the talent management issues being discussed: an increase in employee turnover, internal training and development programs, hiring experienced talent from outside the firm, rehiring former employees ("boomerangs"), and increasing employee diversity.

Managing the Layoff Process: France

Sucher, Sandra J., NAME
July 2012

This note is an overview of the context for managing layoffs in France. It describes the legal responsibilities of managers in conducting layoffs, recent unemployment trends, and the financial, health, training, job placement, and other benefits that laid-off employees can expect to receive.

Remicade/Simponi: Confidential Instructions for Johnson & Johnson

Subramanian, Guhan, and Rhea Ghosh
July 2012

This two-party negotiation exercise features a real-life dispute between Merck and Johnson & Johnson regarding European distribution rights to two highly lucrative drugs.

Remicade/Simponi: Legal Memorandum

Subramanian, Guhan, and Rhea Ghosh
July 2012

Supplements "Remicade/Simponi: Confidential Instructions for Johnson & Johnson" and "Remicade/Simponi: Confidential Instructions for Merck."

Remicade/Simponi: Confidential Instructions for Merck

Subramanian, Guhan, and Rhea Ghosh
July 2012

This two-party negotiation exercise features a real-life dispute between Merck and Johnson & Johnson regarding European distribution rights to two highly lucrative drugs.

Deferred Tax Assets in Basel III: Lessons from Japan

Hawkins, David, and Karthik Ramanna
July 2012

No abstract available

Henkel: Building a Winning Culture

Simons, Robert L., and Natalie Kindred
July 2012

No abstract available

Tequila Mobile SA

Halaburda, Hanna, and Jerzy Suma
July 2012

No abstract available

Sephora Direct: Investing in Social Media, Video, and Mobile

Ofek, Elie
July 2012

No abstract available

Montague Corporation: Unfolding the Future in Cycling

Tripsas, Mary
July 2012

No abstract available

Rospil.info

Healy, Paul M., Karthik Ramanna, and Matthew Shaffer
June 2012

What should business leaders do about corruption? In December 2011, four HBS alumni met to debate how to engage the unprecedented protests against Vladimir Putin's corrupt government, which had erupted in Russia in response to alleged fraud in the recent parliamentary elections. A notable figure in the protests was anti-corruption blogger Alexey Navalny. Navalny used publicly available requests for tender, "crowd-sourcing," and volunteer experts to discover, expose, and encourage prosecution of corrupt dealings by the Russian government. These efforts made Navalny a cause célèbre in Western media and a popular figure with Russia's tech-savvy population. But was Navalny the right figure for business leaders in Russia to organize around? What were the risks of getting involved with a politically volatile activist?

Roger Caracappa: Package Deals for the Estee Lauder Companies

Sebenius, James K.
June 2012

Roger Caracappa must negotiate a cost-saving, innovative proposal from a potential French supplier that could displace the otherwise satisfactory, long-time incumbent supplier. Shortly after being promoted to executive vice president of the Estée Lauder Companies with global packaging as a key responsibility, Caracappa had to assess a recent proposal he had received from a small French company that had patented a packaging innovation. The innovation could save the Estée Lauder Companies some $4 to $5 million per year if Caracappa championed it, negotiated a deal to use it, and if it were adopted by Lauder's key brands. If the new packaging functioned as promised, the consumer would not perceive any change in the high quality, stylish packaging that was essential to the luxury image of the firm's brands. But if the new packaging caused production, delivery, or quality problems, the supposed savings would be quickly forgotten and Caracappa would bear a heavy responsibility both for the problems and for disrupting an otherwise satisfactory relationship with the long-time incumbent supplier.

Pierre Frankel in Moscow (A): Unfreezing Change

Kanter, Rosabeth Moss , and Matthew Bird
June 2012

A young and upcoming French executive in a global technology company is sent to Moscow as deputy managing director to turn around the Russia subsidiary. He must report to the subsidiary's managing director (a large reason for the organization's underperformance) and to corporate. In his first three months, he had taken steps to prepare the organization for change. Yet the lack of more tangible actions and results left him open to criticism from subsidiary employees and pressure from corporate executives. How could the young executive unfreeze the situation and get movement?

Pierre Frankel in Moscow (B): Plowing Ahead

Kanter, Rosabeth Moss, and Matthew Bird
June 2012

After several months into his turnaround of a global technology company's Russia subsidiary, a young and upcoming French executive reflected on how to institutionalize the subsidiary's transformation by further driving cultural change and breaking down internal silos. He realized that to complete the change he may need to continue into a second year. Yet the physical separation from his family had begun to take a toll. Had the executive done enough to institutionalize change or was it still too dependent on his personal relationships and the ability to build an internal coalition and exchange favors?

Pierre Frankel in Moscow (C): Results

Kanter, Rosabeth Moss, and Matthew Bird
June 2012

After 18 months as the deputy managing director of a global technology company's Russia subsidiary, a young and upcoming French executive prepared to hand over leadership. The executive reflected on what he had achieved and how as he considered next steps. He wanted to return to his native France, but the company requested that he go turn around another emerging market subsidiary. Should he go to India, ask for another assignment, or look at other opportunities outside the company?

Maersk Line and the Future of Container Shipping

Reinhardt, Forest L., Ramon Casadesus-Masanell, and Frederik Nellemann
June 2012

No abstract available

The Eleganzia Group

Ofek, Elie
June 2012

No abstract available

Pierre Frankel in Moscow (A): Unfreezing Change

Kanter, Rosabeth Moss, and Matthew Bird
June 2012

No abstract available

Pierre Frankel in Moscow (B): Plowing Ahead

Kanter, Rosabeth Moss, and Matthew Bird
June 2012

No abstract available

Pierre Frankel in Moscow (C): Results

Kanter, Rosabeth Moss, and Matthew Bird
June 2012

No abstract available

Tequila Mobile SA

Halaburda, Hanna, Jerzy Surma, and Aldo Sesia
May 2012

Wojciech Woziwodzki, co-founder, president, and CEO of Tequila Mobile SA, a mobile gamers developer, publisher, and service provider, had to make some important strategic decisions. Tequila Mobile SA had already decided to shift to a new "free2play" revenue model but needed to decide whether to focus on building its business in markets where penetration of smartphone devices was high and the economy was developed or in markets where the use of mobile devices was taking off but the economy was still developing. The other critical decision was whether to continue to invest in in-house game development or focus on being a platform providing tools for third-party developers. The mobile game industry had exploded in recent years with the introduction of smartphones, application (app) stores, and cell phone penetration into developing economies. It brought with it a significant increase in the number of mobile games being developed and published, and Woziwodzki wanted to differentiate Tequila Mobile SA from the growing number of players in the quickly evolving industry.

Henkel: Building a Winning Culture

Simons, Robert L., and Natalie Kindred
May 2012

This case illustrates a CEO-led organizational transformation driven by stretch goals, performance measurement, and accountability. When Kasper Rorsted became CEO of Henkel, a Germany-based producer of personal care, laundry, and adhesives products, in 2008, he was determined to transform a corporate culture of "good enough" into one singularly focused on winning in a competitive marketplace. Historically, Henkel was a comfortable, stable place to work. Many employees never received negative performance feedback. Seeking to overturn a pervasive attitude of complacency, Rorsted implemented a multi-step change initiative aimed at building a "winning culture." First, in November 2008, he announced a set of ambitious financial targets for 2012. As financial turmoil roiled the global economy, he reaffirmed his commitment to these targets, sending a clear signal to Henkel employees and external stakeholders that excuses were no longer acceptable. Rorsted next introduced a new set of five company values-replacing the previous list of 10 values, which few employees could recite by memory-the first of which emphasized a focus on customers. He also instituted a new, simplified performance management system, which rated managers' performance and advancement potential on a four-point scale. The system also included a forced ranking requirement, mandating that a defined percentage of employees (in each business unit and company-wide) be ranked as top, strong, moderate, or low performers. These ratings significantly impacted managers' bonus compensation. In late 2011-the time in which the case takes place-Henkel is well on its way to achieving its 2012 targets. Having shed nearly half its top management team, along with numerous product sites and brands, Henkel appears to be a leaner, more competitive, "winning" organization.

Chrysler Fiat 2009

Harreld, J. Bruce, Paul W. Marshall, and David Lane
May 2012

In spring 2009, Chrysler entered a prepackaged bankruptcy and exited 40 days later in a deal with Fiat, the U.S. Treasury, and the UAW that kept the automaker alive. Looking forward, what was necessary for Chrysler to move beyond the life support it had received? What was possible? Looking back, how should the company's restructuring be assessed?

Novozymes: Cracking the Emerging Markets Code

Palepu, Krishna G., and Karol Misztal
May 2012

In 2011, the management of Novozymes, the industrial enzymes leader, reflected on the viability of their positioning in the fast growing, yet increasingly competitive Chinese market. Novozymes, a technological innovation pioneer, was prominent in China's premium enzyme markets but felt pressure from local low-cost rivals in volume-driven, commoditized segments. How should Novozymes relate to local competitors? By competing on technological innovation only in high-margin verticals? Or through a separate subsidiary with a new low-cost business model for commoditized verticals?

Virgin Group: Finding New Avenues for Growth

Pisano, Gary P., and Elena Corsi
May 2012

The head of the branded private investment company owner of the Virgin brand reflected on the group's new pillars of growth. Since the 1970s when Richard Branson created the Virgin record retailing company, Virgin had developed from scratch six companies worth more than $1 billion each and changed their focus from record retailing and music production to a broader one based on airlines, health, financial services, mobile, and media businesses. In addition, Virgin had been able to apply the Virgin brand to several different products without harming the brand. Their challenge had been finding the capital to finance the new ventures rather than the brand. Since 2005, Branson was dedicating more and more time to a charitable organization, Virgin Unite, and had appointed Stephen Murphy the new CEO of the Group. As Murphy contemplated their growth strategy for the next decade, he faced a number of difficult decisions. First, how should he fund new ventures? While growing, the Group had sold stakes in its companies and had signed with them licensing agreements for the use of the Virgin brand name. The Virgin Group was today a loose group of companies some linked to Virgin only by brand licensing agreements. Should they expand by signing new licensing agreements? Second, what kind of opportunities should he seek? Should they keep acting as a venture capital firm, nurturing new ventures as in the past or should they invest in larger and more established companies? What would be the consequences of their choices on the brand and on the Group? Would they always be able to inject the Virgin culture and turn around companies?

DONG Energy: Clean and Reliable Energy

Bower, Joseph L., and Elena Corsi
May 2012

The head of Denmark's largest energy group pondered how to use their limited resources to advance the delivery of clean and reliable energy. The Danish State owned DONG Energy had started life as an importer and trader of gas and oil. Under the leadership of the current CEO, Anders Eldrup, the company had become an energy group, present in all steps of the gas and oil value chain and particular, in the EU market leader in offshore wind energy. As a developer and operator of wind farms, it was one of the world's leaders. In 2011, the company faced several strategic questions including whether and where they should continue investing in offshore wind and how to identify the next key growth businesses of the future.

On Two Wheels in Paris: The Velib' Bicycle-Sharing Program

Coles, Peter A., Elena Corsi, and Vincent Dessain
May 2012

French advertising company JCDecaux and the city of Paris jointly developed Vélib', a wildly popular bicycle sharing system. Despite Vélib's public appeal, vandalism and theft led to ballooning operating costs-costs borne by JCDecaux alone. The two parties opted to renegotiate their contract, which would impact prices, revenue sharing, cost allocation, and the operation of the system as a whole. Could the parties agree on a common strategy that would meet their objectives, while still delivering a first class bicycle sharing service to the city of Paris?

On Two Wheels in Paris: The Velib' Bicycle-Sharing Program

Coles, Peter A., and Elena Corsi
May 2012

No abstract available

Dirigo International

Gordon, Christopher M., , and Chad M. Carr
May 2012

Dirigo International is proposing a major expansion of their life sciences research and manufacturing facilities in the heart of a major city and middle- to lower-income residential neighborhood. The company and city government are seeking a development solution in the form of unique land use regulations and a resulting development strategy that weighs the financial, economic, aesthetic, and environmental impacts of the development. Companies and governments around the world often find themselves on opposite sides of land use proposals. This case demonstrates the dilemmas and tradeoffs related to private land owner rights and the role of government in seeking positive outcomes for broader society. Case students will rigorously look at issues of development density, funding responsibilities, financial capacity, land use regulation, and development politics.

Dirigo International

Gordon, Christopher M.
May 2012

No abstract available

Chrysler Fiat 2009

Harreld, J. Bruce
May 2012

No abstract available

Tough Decisions at Marks and Spencer

Eccles, Robert G., George Serafeim, and Kyle Armbrester
April 2012

In 2007, under the leadership of CEO Stuart Rose, the iconic British retailer Marks and Spencer (M&S), with great fanfare, announced its "Plan A" initiative. Based on the five essential pillars of climate change, waste, sustainable materials, fair partnership, and health, the plan sought to transform the company's practices. By 2012, the program's aim was to ensure that M&S was carbon neutral and sent no waste to landfill. It also aimed to help customers and employees achieve a healthier lifestyle and improve the lives of all involved in the company's supply chain with fair wages as well as improved working hours and conditions. Called Plan A "because there is no Plan B," the company identified 180 projects to improve the sustainability of its operations and business practices in anticipation of the need for a very different business model in the future. Key aspects of Plan A included more sustainable sourcing and influencing the business practices of the company's supply chain; communication to employees, customers, and investors; and employee engagement. The case concludes with the tradeoffs involved in the decision of whether or not to install refrigerator doors in the grocery section of its stores. While the energy savings and reduced carbon emissions are relatively clear and easy to measure, the impact on customers and revenues is harder to assess.

Fighting Corruption at Siemens

Healy, Paul, and Djordjija Petkoski
April 2012

On November 15, 2006, German prosecutors raided offices and homes of Siemens AG staff as part of an ongoing investigation into bribery. The subsequent investigations covered business representing 60% of Siemens' revenues and spanned operations in Asia, Africa, Europe, the Middle East, and the Americas. Through interviews with key Siemens executives and supporting internal materials, this multimedia case takes a look at how one of the world's largest companies faced corruption head-on.

Fighting Corruption at Siemens

Healy, Paul
April 2012

No abstract available

Shangri-La Hotels

Campbell, Dennis
April 2012

No abstract available

The Swatch Group

Deshpandé, Rohit, Karol Misztal, and Daniela Beyersdorfer
March 2012

In March 2011, Nicolas Hayek, the CEO of the leading Swiss watch manufacturer, Swatch Group, reflected on the positioning of Omega, its revived flagship brand. Which marketing strategy would best allow it to confront its main competitor, Rolex? And how would potential adjustments to Omega's product, pricing, distribution, and promotion strategies impact the sales of the Swatch Group's other 18 watch brands?

Claude Grunitzky

Battilana, Julie, Lakshmi Ramarajan, and James Weber
March 2012

Claude Grunitzky, a media entrepreneur, develops, maintains, and leverages an extensive personal and professional network across three continents. The case considers the steps he has taken to build and cultivate a network that creates value for himself and others

Integrated Assurance at Philips Electronics N.V.

Eccles, Robert G., and Daniela Saltzman
March 2012

Philips Electronics is a leader in integrated reporting. In 2010 it produced its third generation report. Since its first report in 2008, Philips' integrated reports and its integrated reporting website had grown in sophistication. In planning for its integrated report for 2011, the company is exploring the issues that will need to be addressed in order to produce an integrated report. KPMG is the company's auditor for both the financial and nonfinancial information contained in the integrated report, but these are covered by separate assurance opinions. Among the challenges of providing an integrated audit is getting the internal measurement and control systems for nonfinancial information to be of the same quality as for financial information. A further challenge is that the cultures of the finance function and those who work in sustainability are very different.

Poles Apart on PZU (A)

Gino, Francesca, Vincent Dessain, Karol Misztal, and Michael Khayyat
March 2012

In October 2008, Andrzej Klesyk, CEO of Poland's largest insurer PZU, reflected on possible ways of resolving a decade-long cross-border shareholder conflict at his company. Owned 55% by the Polish State Treasury and 33% by the Dutch insurer Eureko as of October 2008, PZU was a highly profitable company and Poland's biggest asset holder. Eureko aimed at majority ownership of PZU as the building block of its Eastern European expansion strategy. The Treasury, however, was reluctant to forfeit control of the country's crown jewels. Several rounds of negotiations and international arbitration failed to resolve the conflict, leading to a progressive breach of trust. Was there anything Klesyk could do to break this international and multilateral stalemate?

Poles Apart on PZU (B)

Gino, Francesca, Vincent Dessain, Karol Misztal, and Michael Khayyat
March 2012

In September 2008, the Polish State Treasury and the Dutch insurer Eureko were wondering if they were ready to reach an amicable solution on PZU. If so, for how much and under what conditions should they settle so that they, as well as PZU, are satisfied? If not, what other potential alternatives might exist?

Poles Apart on PZU (C)

Gino, Francesca, Vincent Dessain, Karol Misztal, and Michael Khayyat
March 2012

After a decade-long dispute with the Polish State Treasury, in October 2009 the Dutch insurer Eureko agreed to exit PZU in exchange for compensation. Who was the biggest beneficiary of the settlement: Eureko, the Treasury, or PZU itself?

Fonterra

Bell, David E., Mary Shelman
March 2012

In 2011, Fonterra, the world's largest processor and exporter of dairy products, needed to reposition its business to take advantage of rising demand in emerging markets in Asia.

Hengdeli: The Art of Co-existence

Deshpandé, Rohit, and Nancy Hua Dai
March 2012

In October 2011, Zhang Yuping, founder and chairman of Hengdeli, the largest Swiss watch retailer in the world, wondered how to work more closely with its key suppliers-Swatch Group, Richemont Group, LVMH Group, and Rolex Group-to maintain strong growth in the Greater China region. Specifically, how could Hengdeli manage the relationship with these suppliers to ensure getting more supply in a market where demand outgrew supply? How could Hengdeli balance the needs of these competing suppliers without being overreliant on one or two suppliers? How could it continue to expand its retail network to enhance its value and position? How could Hengdeli rationalize the portfolio management to maximize the return in the long-term?

Boardroom Change in Norway

Lorsch, Jay W., and Melissa Barton
March 2012

In 2003, the Norwegian Parliament amended the Public Limited Companies Act in order to achieve greater representation of women on corporate boards. According to the amendment, all state-owned companies and public limited companies were required to have at least 40% women on their boards. This case uses firsthand accounts from Norwegian directors to document the Norwegian business community's reaction to the quota, how Norwegian boards sought women directors, and the transferability of the quota law to other nations.

Brasil Foods

Bell, David E., and Natalie Kindred
March 2012

In mid-2011, the management of Brasil Foods, a leading Brazilian branded foods producer and protein exporter, is evaluating strategies for international and domestic growth. The team has just received approval from Brazil's antitrust authorities to complete the merger of Perdigao and Sadia, the two massive food producers that had combined to form Brasil Foods in 2009. Now, the team is free to focus on their ambitious plan to double revenues by 2015. Domestically, the plan calls for Brasil Foods to maintain its allowed retail market share and expand its presence in the fast-growing food service sector. Internationally, the plan sets out a vision of Brasil Foods evolving from an exporter to a true multinational. The team believes their operational expertise and scale combined with Brazil's booming economy and vast agricultural resources form the ideal platform for achieving their vision. Yet, amid a wealth of possibilities, they face tough choices, such as which emerging markets to pursue first. They also face serious personnel issues, including integrating employees from Perdigao and Sadia-longtime industry rivals-and developing an international team that understands foreign markets.

PAREXEL International Corp. (A)

Herzlinger, Regina E., and Natalie Kindred
March 2012

Despite severe market turmoil, in 2001, the biopharmaceutical contract research organization (CRO) PAREXEL is bucking calls for cost cutting by pursuing an expensive globalization and IT strategy. Under the leadership of founder and CEO Josef von Rickenbach, PAREXEL has made several bold investments over the past 20 years based on a vision of future industry dynamics and client demand. Indeed, over PAREXEL's sometimes-bumpy journey from an opportunistic two-person venture into a global company valued at $1 billion, Rickenbach's willingness to take calculated risks has kept it at the leading edge of the CRO sector. Now, despite slowing demand for CRO services and against the advice of some analysts, PAREXEL is betting that global capability and technology services will become its key competitive advantage in the decade to come. This case traces the evolution of the CRO sector from a small, secondary cluster of firms into a major player with essential capabilities for global drug development. The context of CROs' rise, highlighted in the case, is the biopharmaceutical industry's transformation from the mid-1970s through 2001, including the rising cost and complexity of drug development and the remarkably slow pace of IT adoption in clinical trials.

PAREXEL International Corp. (B)

Herzlinger, Regina E., and Natalie Kindred
March 2012

This case, the denouement to "PAREXEL International Corp. (A)," describes developments at PAREXEL and the biopharmaceutical industry from 2002 to 2011. Through an investment of $365 million over 10 years, PAREXEL has built a strong technology services business that is its key differentiator, although clinical trials remain its most lucrative segment. Additionally, PAREXEL, like others in the industry, has expanded its presence in lower-cost locations, especially the strategically important Asia-Pacific region. Another key change is the growing number of long-term strategic partnerships between CROs and their biopharmaceutical clients, reflecting the strengthened, more equal relationship between the two players. These developments have occurred against a backdrop of a persistent lull in R&D productivity and serious profitability concerns among large drug companies as some of their top-selling products face generic competition. With some observers forecasting an overhaul of the biopharmaceutical R&D structure, students are left to consider what the future holds for PAREXEL.

PAREXEL International Corp. (A) & (B)

Herzlinger, Regina E., and Natalie Kindred
March 2012

No abstract available

Cosméticos de España, S.A. (A), (B), (C), (D), & (E)

Hawkins, David F.
March 2012

No abstract available

SMA: Micro-Electronic Products Division (A), (B), & (C)

Beer, Michael
March 2012

No abstract available

Associated British Foods, Plc

Goldberg, Ray A.
March 2012

No abstract available

Sustainable Tea at Unilever

Henderson, Rebecca, and Frederik Nellemann
March 2012

No abstract available

Hermitage's Russian Quandary (A) and (B)

Werker, Eric, and Ray Fisman
March 2012

No abstract available

Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life

Kraus, Janet, and Shirley M. Spence
February 2012

In April 2010, the eruption of a volcano wreaked havoc in the airline industry and placed Aer Arann on the brink of liquidation. For founder, sole owner, and chairman, Padraig O'Ceidigh, the airline has been a personal as well as a business passion. The case provides a number of options for addressing the crisis. It also places the story in the context of Padraig's life journey and search for multi-dimensional success.

Padraig O'Ceidigh and Aer Arann: Building a Business in the Context of a Life-What Happened.

Kraus, Janet, and Shirley M. Spence
February 2012

Provides an epilogue to the problem posed in the companion case: "What to Do in the Face of Potential Liquidation?"

Associated British Foods, Plc

Goldberg, Ray A., Carin-Isabel Knoop, and Matthew Preble
February 2012

George Weston, CEO of Associated British Foods, and his top executives are deciding how to position the company, a major agribusiness involved in a range of food and processed food categories, ingredients, consumer brands, sugar, and also clothing, in the constantly evolving global food system.

Sustainable Tea at Unilever

Henderson, Rebecca, and Frederik Nellemann
February 2012

Unilever's Lipton Tea had been successful with the first phase of its certification partnership with Rainforest Alliance. Now the company faced challenges in how to push forward with the transformation of more difficult parts of the supply chain and how to market sustainable tea in developing markets like India.

China Novartis Institute for Biomedical Research: Building a Sustainable, Globally Integrated Research Enterprise

Sato, Vicki, Christoph Jaeker, and Pooja Mehta Solanki
February 2012

As the head of the Novartis Institute for Biomedical Research in China, En Li was shepherding a $1 billion R&D investment in China. So far he had been able to attract a large number of Chinese-born but U.S.-trained scientists to play a critical role in establishing the site. How sustainable was this strategy, and what were the key things he had to do right to establish a globally integrated R&D unit in China?

L'Occitane en Provence

Becker, Bo, Daniela Beyersdorfer, Scott Mayfield, and Mayuka Yamazaki
February 2012

Cosmetics company L'Occitane en Provence must decide if it is the right time to go public, and, if so, where to list. The firm could list on Euronext in Paris, close to the firm's headquarters in southern France, on one of the large exchanges in the U.S., or perhaps in Asia, where much of the firm's future growth is expected. The case provides opportunities to discuss the benefits and costs of going public, including valuation implications, and illustrates the choices faced by a prospective IPO firm that operates in a global setting.

Aviva Investors

Serafeim, George, Robert G. Eccles, and Kyle Armbrester
February 2012

The case describes Aviva Investors' engagement strategy with companies and stock exchanges to improve its sustainability performance and the flow of sustainability related information to markets. Aviva Investors, a GBP 259 billion fund, is the investment arm of the large British insurance company, Aviva plc. Aviva Investors is committed to sustainability under the leadership of its CEO, Paul Abberley, and head of sustainability research and engagement, Steve Waygood. The case describes Aviva Investors' policies on materiality, engagement, and its corporate responsibility voting policy. It then explores how the company is implementing these policies in the case of a particular company, the FTSE 100 diversified mining company Vendanta, and the Sustainable Stock Exchange Initiative under the sponsorship of the UN Principles for Responsible Investment.

Novo Nordisk: A Commitment to Sustainability

Eccles, Robert G., and Michael P. Krzus
February 2012

The case describes the early commitment of a European pharmaceutical company, Novo Nordisk, to integrated reporting. Novo Nordisk is one of the pioneers of integrated reporting, which emerged out of its commitment to a "triple bottom line approach to managing the company." The case describes the company's "Blueprint or Change Programme" designed to facilitate stakeholder engagement and communicate how the company delivered value to business and society. The case also provides an investor perspective on the company's integrated reporting efforts and its plans for how to improve it in the future.

Samasource: Give Work, Not Aid

Gino, Francesca, and Bradley R. Staats
February 2012

Samasource sought to use work, not aid, for economic development. The company secured contracts for digital services from large companies in the United States and Europe, divided the work up into small pieces (called microwork), and then sent it to delivery centers in developing regions of the world for completion through a web-based interface. Different from traditional business process outsourcing companies, Samasource relied on a marginalized population of workers to execute the work. The case explores how the company can grow its capability to help individuals around the globe through the provision of digital work. This case includes color exhibits.

Gerson Lehrman Group: Managing Risks

Groysberg, Boris, Paul M. Healy, and Sarah L. Abbott
February 2012

It was June 2011 and Alexander Saint-Amand, president and CEO of Gerson Lehrman Group, the largest expert network firm globally, has found his firm once again in the midst of controversy. This controversy centered around a number of insider trading cases that had been brought against consultants working for competing expert network firms. While GLG was in no way implicated in these cases, and GLG had invested significantly in its compliance policies and controls in order to prevent the mishandling of public information, the entire industry was being impacted. Saint-Amand is faced with the challenge of deciding how best to handle this crisis.

A New Financial Policy at Swedish Match

Becker, Bo
February 2012

Swedish Match is a profitable smokeless tobacco company with low debt compared to other firms in its industry. The firms CFO now wants to revise the firms conservative financial policy.

HCA, Inc. (A) and (B)

Ruback, Richard S.
February 2012

Focuses on the buyout of HCA by three private equity firms: Bain Capital, KKR, and Merrill Lynch Global Private Equity. It provides an opportunity to discuss a variety of issues related to leveraged buyouts including the process, the role of private equity, the incentives of the participants, the benefits to conflicting shareholders, and the valuation of the buyout.

Hungary: Economic Crisis and a Shift to the Right

Weinzierl, Matthew
February 2012

No abstract available

Marine Harvest: Leading Salmon Aquaculture

Bell, David E., and Ryan Johnson
February 2012

Marine Harvest has the leading position in salmon aquaculture. Aquaculture is very much a growth business, many believing it could play a major role in solving the world's growing need for protein. The CEO is considering three alternatives for taking advantage of his firm's dominant position. Expand production in Chile, produce value-added salmon products, or backward-integrate into the salmon feed business.

Bananas (A)

Van den Steen, Eric
February 2012

As owner and CEO, Wim Van der Borght had grown Bananas in eight years from a 4.5 million euro company into a 40 million euro group of companies with a range of field marketing activities in Belgium and the Netherlands. The core of the group consisted of two companies-Bananas and Demonstrate-which were operationally completely independent and acted as competitors in the market. The two companies had different strengths and different cultures. In August 2008, Wim needed to decide on the right degree of interaction or integration of Bananas and Demonstrate. He also wanted to expand the companies' activities to a more comprehensive marketing offering and needed to consider international expansion opportunities.

Bananas (B)

Van den Steen, Eric
February 2012

Supplements the (A) case

Hexcel Turnaround-2001 (A)

Marshall, Paul W., James Quinn, and Reed Martin
January 2012

Hexcel's new CEO is faced with deciding how to "take out" $60 million in cash costs in fiscal 2002, as two of the company's end markets-electronics and commercial aerospace-are expected to decline precipitously. Options include closing plants, exiting a business, or undertaking a major headcount reduction. Includes a description of Hexcel's private equity relationship with Goldman Sach's Capital Partners and presents the financial challenges of renegotiating bank lending covenants and managing maturing debt. Focuses on selecting a turnaround approach from the point of view of a general manager (the CEO).

Hexcel Turnaround-2001 (B)

Marshall, Paul W., James Quinn, and Reed Martin
January 2012

Supplements the (A) case.

Hexcel Turnaround-2001 (C)

Marshall, Paul W., James Quinn, and Reed Martin
January 2012

Supplements the (A) case.

Hungary: Economic Crisis and a Shift to the Right

Di Tella, Rafael M., Matthew C. Weinzierl, and Jacob Kuipers
January 2012

No abstract available

2011

Liberté, Égalité, Sororité: How Should France Achieve Boardroom Parité?

Groysberg, Boris, and Hilary Fischer-Groban
December 2011

The French government is considering mandating a gender quota for corporate boards. Other countries have approached the question of gender equity in corporate governance in various ways; which model might best work for France?

Altoona State Investment Board: December 2008

Lerner, Josh, and Ann Leamon
December 2011

Rod Calhoun, the head of the Altoona State Investment Board's private equity investment program, considered the communication he had just received. It was from Permira, the leading European buyout fund, and concerned its fourth fund, to which Altoona had made a 100 million commitment. The memorandum offered investors a chance to reduce their commitment to Permira IV. This potential offer was an attractive one, as it would allow the state pension to address its "over-commitment problem," one that plagued many institutional investors. But the terms of the arrangement gave Calhoun pause.

BBVA Compass: Marketing Resource Allocation

Gupta, Sunil
December 2011

BBVA Compass, the 15th largest commercial bank in the U.S., is a part of the BBVA Group of Spain, the second largest bank in Spain with $755 billion in assets. In December 2010, Frank Sottosanti, Chief Marketing Officer of BBVA Compass, was reviewing the marketing performance of the company and deciding how to allocate next year's marketing budget across various offline and online channels.

The Greek Crisis: Tragedy or Opportunity?

Roscini, Dante
December 2011

After its 2009-2010 fiscal crisis shook the euro, could the Greek government stabilize debt, avoid default, and stay on the euro? This case looks at the Greek social and political road to fiscal crisis; the economics of that crisis and efforts to recover from it; the danger the crisis posed to the euro; cooperation and conflict among European states, the European Central Bank, and the International Monetary Fund to try to help Greece emerge from crisis; and the role financial markets played in these events.

Supergrid

Vietor, Richard H.K.
December 2011

Supergrid is a mammoth wind-power development scheme for Europe, recently proposed by Airtricity. This firm, founded in 1997, is a fast growing power-development company focused on wind. Already having built about 600 megawatts of wind turbines in Scotland and Ireland, Airtricity has now expanded to the United States. But its "Supergrid" proposal, to build offshore wind turbines with capacity of 30,000 megawatts of power would change the face of European energy networks, use new technology, and help several European countries meet their Kyoto targets for reducing CO2. The issues are whether a small company like Airtricity has the human and capital resources to pull this off, and whether the U.K., Germany, the Netherlands and the EU can be made to cooperate on such a project.

A New Financial Policy at Swedish Match

Becker, Bo, and Michael Norris
December 2011

Swedish Match is a profitable smokeless tobacco company with low debt compared to other firms in its industry. The firm's CFO now wants to revise its conservative financial policy.

Lehman Brothers and Repo 105

Mikes, Anette, Gwen Yu, and Dominique Hamel
December 2011

The collapse of Lehman Brothers in 2008 was the largest bankruptcy in U.S. history. The case examines the economics of the off-balance sheet transactions Lehman undertook prior to the collapse and highlights the corporate governance challenges in situations where firms face capital market pressure and market downturns. In particular, the case examines the financial accounting, auditing, and internal management control practices around the Repo 105 transactions, which had a significant effect on the leverage position of the company. Based on the findings of the bankruptcy examiner's report, the case focuses on the role that management, external auditors, and the audit committee played in what amounted to a significant control failure.

Trucost: Valuing Corporate Environmental Impacts

Toffel, Michael W., and Stephanie van Sice
December 2011

Trucost provided corporate environmental performance data and analysis to institutional investors and corporate managers but after operating for a decade had yet to achieve profitability. Trucost was struggling to effectively differentiate its high quality products from its lower-cost competitors and needed to develop a strategy to educate the marketplace and pursue new distribution channels. Increased investor interest in environmental issues-and an ever growing number of corporate environmental rankings-led to a proliferation of competitors to Trucost, and an industry shakeout was predicted. How should Trucost compete?

A123 Systems: Power. Safety. Life

Vietor, Richard H.K.
December 2011

A123 Systems, the largest manufacturer of lithium ion batteries in North America, is producing and selling batteries for electric vehicles in China and electric buses in Europe and America. It just opened two plants in Michigan, partially funded by a grant from America's stimulus fund. At the same time, the company is expanding its business in large, grid stabilization systems, in California, Chile and New York. The simultaneous pressures of these two businesses, plus dozens of potential deals pending, are testing the company's management skills, cash reserves and abilities to execute.

Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market

Lerner, Josh
December 2011

The private equity group Hony Capital considers what to do with their investment in Zoomlion, which has been successful to date. The question is whether to take their money off the table, or to invest in their acquisition of a large Italian competitor.

Abraaj Capital

Lerner, Josh
December 2011

Abraaj Capital addresses issues of how to respond to the fast-growing Middle East market. Questions of scaling, institutionalization, and geographic scope are among those considered.

Natura Cosméticos, S.A.

Eccles, Robert G.,, George Serafeim, and James Heffernan
December 2011

Rodolfo Guttilla, director of corporate affairs for Natura Cosméticos S.A. (Natura), prepared for a meeting with key stakeholders to discuss the future of integrated reporting at Natura. A cosmetics company with a strong brand, robust growth in international and domestic markets, and premium price and margins, Natura was consistently rated as one of the preferred places to work in Brazil. Its focus on social and environmental responsibility was a source of innovation; strong employee motivation contributed to the company's superior productivity and market share gain in Brazil's cosmetics, fragrances, and toiletries (CF&T) industry. By 2009, Natura's direct sales business model generated income for over 1 million people in Brazil and Latin America. Natura was the first organization in Brazil to produce an integrated report. Senior leadership was convinced that Natura's success over the years had been aided by its corporate responsibility and strategy to continuously seek improvements in both financial and nonfinancial (e.g., environmental, social, and governance) performance. As he prepared for the meeting, Guttilla considered the future of integrated reporting for Natura. What should the future of integrated reporting be like at Natura? How could the organization increase society's participation in the collaborative effort to develop new solutions to today's most challenging problems? How could the report provide a clearer representation of the organization's strategy and its ability to create and sustain value over the long-term? And finally, how could web-based technologies be used to promote the organization's integrated reporting and sustainable development objectives?

Clearwater Seafoods

Reinhardt, Forest L., Michael W. Toffel., and Frederik Peter Nellemann
November 2011

Clearwater was trying to market value-added products in a traditionally commodities based industry while facing supply uncertainties and regulatory, environmental, and foreign exchange challenges. Clearwater harvested shellfish from the Canadian Atlantic fishery and sold this in markets around the world. They prided themselves on their sustainable fishing practices, which were not the norm for the industry. Seafood buyers traditionally bought on price. Clearwater's innovations and technology investments enabled it to produce a higher quality, value-added product, but it faced the challenge of convincing buyers to pay a premium price. Their products originated from a wild resource under government regulations which limited the size of the catch by both the industry and Clearwater. In recent years, Clearwater operated in an environment with a rising Canadian currency. This reduced profitability because Clearwater's costs were in Canadian currency while its sales were largely in other currencies. The case also discusses the challenges of maintaining a sustainable fishery and uses the collapse of the cod fishing industry as an example. Clearwater was founded in 1976, it went public in 2002, and was still managed by its two founding partners in 2006.

Veracity Worldwide: Evaluating FCPA-Related Risks in West Africa

Musacchio, Aldo
November 2011

No abstract available

Industrial Metrology: Getting In-Line?

Shih, Willy
October 2011

Metrology plays a key role in the manufacture of mechanical components. Traditionally it is used extensively in a preprocess stage where a manufacturer does process planning, design, and ramp-up, and in post-process off-line inspection to establish proof of quality. The area that is seeing a lot of growth is the in-process stage of volume manufacturing, where feedback control can help ensure that parts are made to specification. The Industrial Metrology Group at Carl Zeiss AG had its traditional strength in high precision coordinate measuring machines, a universal measuring tool that had been widely used since its introduction in the mid-1970s. The market faced a complex diversification of competition as metrology manufacturers introduced new sensor and measurement technologies, and as some of their customers moved toward a different style of measurement mandating speed and integration with production systems. The case discusses the threat of new in-line metrology systems to the core business as well as the arising new opportunities.

Digital Microscopy Is Making Me Crazy!

Shih, Willy
October 2011

For Carl Zeiss Microimaging, modular hardware and software enabled customers to tailor Zeiss's broad range of microscopy systems hardware and software to meet a wide range of needs from basic scientific research in the biological and medical sciences to clinical applications, materials science, and industrial sectors. Modularity also provided Carl Zeiss' engineers the benefit of decoupling the development schedules of individual components and subsystems. Yet the well codified interfaces at many module boundaries also opened the system up to outside providers of components, mainly software. This served research scientists who were doing cutting edge research extremely well, as they wanted to be able to apply the latest techniques and analysis tools. At the other extreme, clinical and QA/QC applications by their nature had a much higher need for automation, because of the repetitive nature of tasks. Simple, integrated solutions seemed to make more sense in these circumstances, and many applications did not demand the ultraprecision of Carl Zeiss's hardware platforms. Rather there was a call for simplicity and robustness, especially in production environments. The case exposes some of the strategic issues and opportunities facing the microscopy business.

Perella Weinberg Partners: New Firm, Old Values

Rose, Clayton, and Aman Malik
October 2011

In the five years since it opened its doors, the investment banking boutique Perella Weinberg Partners had grown into a firm that advised a roster of blue-chip clients on critical transactions and had over $8 billion of client assets under management. The three co-founders, all veterans of Wall Street, were proud of the firm they had created and were pleased with its success to date, but they also knew that it had reached a key inflection point. How much could they, or would they, want to grow? What was the best way to enhance their "relevance"? What were the costs, benefits, and impediments to growth? Another looming question was whether the firm should go public at some point.

Matrix Capital Management (A)

Baker, Malcolm P., and David Lane
October 2011

Ben Balbale, a partner at hedge fund Matrix Capital, must decide whether to exit their investment in Rovi Corporation, a company with a diverse portfolio of patents used primarily for digital interactive guides. Rovi's shares are up over 50% from the time Balbale initiated a position in the middle of 2009.

In a Pickle: Barclays Capital and the Sale of Del Monte Foods (A)

Coates, John, Clayton Rose, and David Lane
October 2011

In February 2011, Judge Laster of the Delaware Chancery Court was considering a suit claiming that Del Monte board members had breached their fiduciary duty to shareholders by not pursuing the best transaction for Del Monte. In the course of the discovery phase of the trial, the plaintiffs, and Del Monte's board, had learned that the company's financial advisor, Barclays Capital, had also been working with KKR and its partners to create a bid process that could favor them. In addition to the fee from Del Monte for advising on a successful sale, Barclays also desired to play a leading role in the lucrative financing that the private equity firms would organize to fund the deal following a successful bid. The plaintiffs asked the court to delay the shareholder vote on the merger to solicit additional bidders.

In a Pickle: Barclays Capital and the Sale of Del Monte Foods (B)

Coates, John, Clayton Rose, and David Lane
October 2011

The (B) case describes Laster's ruling and thoughts. Del Monte's board had violated its fiduciary duty to shareholders by allowing Barclays to play a dual role, for the seller and the buyer, that disadvantaged the Del Monte shareholders. Laster saved his most severe criticism for Barclays, suggesting that, among other things, it had misled its client's board.

In a Pickle: Barclays Capital and the Sale of Del Monte Foods (C)

Coates, John, Clayton Rose, and David Lane
October 2011

The (C) case describes the remedy that Laster imposes, his rationale for doing so, and the final outcome of the sale of Del Monte.

CP Group: Balancing the Needs of a Family Business with the Needs of a Family of Businesses

Kirby, William C., and Tracy Yuen Manty
October 2011

As a second generation business leader, Chairman Dhanin Chearavanont took over the family agribusiness company and built it to become a major diversified conglomerate in Thailand and expanded the business in Southeast Asia and China. While growing the business, he and his brothers created a holding company to both maintain and separate the interests of the family from the growing business units. As a third and possibly fourth generation of Chearavanonts enter the company, how has Chairman Dhanin created a business culture that maintains the closeness of a family business with the strategic vision, innovations, and transparency of a professionally run company-especially given the fact that many business units are public companies? This case seeks to outline the balance of a family business with the needs of a growing and competitive international conglomerate.

High Wire Act: Credit Suisse and Contingent Capital (A)

Rose, Clayton, and Aldo Sesia
October 2011

Late in 2010, Credit Suisse CEO Brady Dougan and his team closed in on the decision of whether or not to issue contingent capital, which Swiss regulators would require by 2019. There were a number of substantial issues facing Dougan and his team, including whether contingent capital would provide sufficient loss absorption when called upon, would there be sufficient demand for this new instrument, would it be cost effective capital, and what were the risks to Credit Suisse' reputation with clients and regulators if an issue did not go well? In addition, The Basel Committee, the body that recommended global bank capital standards, had decided that much of the existing bank "hybrid debt" would no longer count as capital for regulatory purposes, meaning banks would need to replace this portion of their equity accounts with some other form of capital. However, Basel had yet to decide whether contingent capital would be allowable in the new "Basel III" regulatory regime.

High Wire Act: Credit Suisse and Contingent Capital (B)

Rose, Clayton, and Aldo Sesia
October 2011

The (B) case describes the process and terms of the very successful offerings of contingent capital in February 2011, as well as the Basel Committee's preliminary decision not to allow contingent capital to count as Tier 1 equity.

Steering Monetary Policy Through Unprecedented Crises

Moss, David, and Cole Bolton
September 2011

In early April 2008, economic conditions in Europe appeared to be deteriorating on almost all fronts: sales figures were falling, business and consumer confidence was slumping, forecasts for European growth were being revised downward, and inflation was rising. In fact, figures for the month of March revealed that inflation had reached an annualized rate of 3.5%, Europe's highest level since 1992. On top of these broad economic problems, the European financial sector-indeed, the financial sector worldwide-was in turmoil. By April 2008, global financial institutions had written down the value of their mortgage-related investments and other assets by at least $230 billion, and businesses around the world were complaining that it was ever more difficult to secure credit. In America, meanwhile, consumer confidence was falling, consumer spending had slowed to a near halt, and inflation had crept above 4%. In reaction to these dismal economic conditions, the Federal Reserve had steadily cut interest rates over a seven-month period, most recently lowering its key rate to 2.25% on March18. In sharp contrast to the Fed, the European Central Bank (ECB) had long held its key rate at 4%, where it stood when the ECB's Governing Council reconvened on April 10, 2008. Given both the market turmoil and the evident inflationary pressure, members of the ECB's Governing Council would have to weigh the available data extremely carefully as they decided whether to raise, lower, or maintain their benchmark interest rate. The significance of this decision could hardly be overstated, since it had the potential to send a strong signal about the nature of European monetary policy and the priorities of the ECB going forward.

Shelley Capital and the Hedge Fund Secondary Market

Viceira, Luis, Elena Corsi, and Ruth Dittrich
September 2011

An advisory company has to decide how to sell their client's hedge fund holdings in the secondary market, and thinks about their future. Shelley Capital was a European advisory company operating in the hedge fund secondary market, a market that boosted in 2008 with the world financial crisis. Shelley had identified four final bidders for the $84.5 million portfolio of illiquid hedge fund holdings that one of their clients had commissioned them to sell and had now to decide to whom they should sell the holdings, if they should split up the portfolio, or if they should postpone the sale. At the same time, they needed to decide about their future business. The financial crisis was behind the exceptional growth of the hedge funds' secondary market, yet another crisis could follow and boost the secondary market again. What direction should Shelley take once the hedge fund industry fully recovered? But what if a second global crisis threw the hedge fund industry into disarray once again?

The Expansion of Ping An

Pozen, Robert C., and Nina J. Yang
September 2011

In June 2010, Mingzhe Ma, chairman and chief executive officer of Ping An Insurance (Group) Company of China ("Ping An" or "the Company"), sat down with Sun Jianyi, vice chief executive officer and executive vice president at Ping An, to discuss the future direction of the Company. They would have to answer questions at the upcoming shareholder meeting about Ping An's financial strategy for diversification within China and globally. Ping An had been founded by Ma in 1988 and had since grown into China's second largest life insurer. While Ping An had achieved past success in insurance, it looked to expand its business going forward. Ping An's ambition was to transform itself into a global financial conglomerate, with banking and investment, as well as insurance operations. Ping An's recent efforts at globalization and diversification had been challenging. In a highly publicized transaction, Ping An made an untimely investment in Fortis, a large European bank, which failed in the global financial crisis in 2008. Ping An spent close to 24 billion Chinese yuan (RMB) or 3.4 billion U.S. dollars ($) on Fortis. In the aftermath of the Fortis acquisition, Ping An had halted overseas expansion and focused on opportunities at home in mainland China.

Fraunhofer: Innovation in Germany

Comin, Diego, Gunnar Trumbull, and Kerry Yang
September 2011

Fraunhofer is one of the largest applied research organizations in the world. With 17,000 employees and a 1.6 billion euros budget, Fraunhofer has 60 institutes in Germany that cover most fields of science. The case examines the consequences that Fraunhofer has for the competitiveness of the German economy. It also explores whether the organization of R&D is affected by the size distribution of firms as well as by institutions in labor and financial markets.

Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism

Jones, Geoffrey G., and Christina Lubinski
September 2011

This case examines the management of home and host country risk by Beiersdorf during the interwar years. It can be used both in business history courses and more generally to teach political risk management by multinational corporations. Beiersdorf, a German personal products company, expanded globally before 1914, but had its foreign factories and intellectual property expropriated during World War I. After 1919 CEO Willy Jacobson rebuilt the international business and sought to protect it by "cloaking" the ultimate ownership. Following the appointment of Adolf Hitler, as German Chancellor in 1933, Beiersdorf and Jacobson personally also came under attack by the anti-Semitic Nazi regime in its home country. The case can be used as a vehicle to understand the rise of both host and home country risk by companies during the interwar years and, more generally, to explore the strategies that firms can follow to attempt to manage such risks.

Knowledge Creation at Eisai Co., Ltd.

Takeuchi, Hirotaka, Ikujiro Nonaka, and Mayuka Yamazaki
August 2011

Eisai has used knowledge creation as the engine of growth for its operation in Japan and was wondering if it can be utilized on a global scale.

a-connect: In Search of Talent Partners (A) and (B)

Eccles, Robert G., and Penelope Rossano
August 2011

a-connect was started in 2002 by three former McKinsey partners who wanted to develop an alternative business model consulting firm which they have positioned as a high-end staffing company. The company has been very successful, growing to revenues of CHF 30 million with offices in Zurich, Dusseldorf, Boston, San Francisco, Hong Kong, and Singapore. Instead of hiring full-time employees, the company uses a pool of 700 independent professionals (IP) who are typically former consultants from firms like Bain, BCG, and McKinsey. These professionals are managed by Talent Partners who match up IPs with client needs. One of the biggest challenges the firm faces is finding people who can fill this Talent Partner role since it requires a wide range of interpersonal and business development skills. As a way of instilling discipline in processes and procedures, from the very beginning the company set the objective of doing an IPO as a staffing company, thereby hoping to get the multiple of that category. Achieving this will require substantial growth in order to get to revenues of CHF 100 million, which they think is the size they need to be. Through the "Crystal Initiative" the company reviewed the three strategic choices of leveraging the operating platform, expanding the service portfolio, and focusing on the Global Sliver. They chose the latter, which means they decided to focus on getting deeper penetration into their existing large accounts. At the end of the case the founders are wondering if an IPO is still the right thing to do.

Addleshaw Goddard LLP

Eccles, Robert G., and Penelope Rossano
August 2011

Addleshaw-Goddard (AG), the 15th largest law firm in the U.K., is seeking ways to serve larger clients on more important legal matters. Part of this strategy involves its "Client Development Centre (CDC)," an innovative idea and set of services launched by Dr. Jim Hever who holds a Ph.D. in Strategic Leadership Development. The mission of the CDC is to improve the capabilities of clients' in-house legal departments, such as by making them better partners with the business units and improving their leadership skills. The CDC has adopted an innovative pricing structure. Rather than charging direct fees for these consulting services, it proposed to the client that it contract with the firm for five times this amount in legal fees that might otherwise have gone to another law firm. It is in this way that AG hopes to increase its position in its larger clients. AG has also developed a very systematic program for identifying and serving its key clients, developed in collaboration with Cranfield School of Management. It is these clients that will be the focus of the efforts for the CDC. In addition, the firm has co-developed a training program with Cranfield to improve the skills of its own partners. The case explores whether these initiatives will lead to a long-term competitive advantage. The firm believes what really will produce competitive advantage is its "Me-To-You-Mindset" initiative that encourages partners to look at the world through their clients' eyes. At the end of the case Hever is reflecting on a proposal he submitted for providing CDC services to one of the largest U.K. companies. The general counsel wants to pay for these services in cash should he decide to accept the proposal, rather than hiring AG for more legal work. Hever is wondering if this is a good way to take advantage of recent reforms allowing law firms to provide other professional services, like consulting, or if this is "off-strategy" for the mission of the CDC.

Accounting for Catastrophes: BP PLC and Union Carbide Corporation (A)

Hawkins, David F.
August 2011

The IASB and FASB propose new contingency loss recognition, measurement, and disclosure rules.

Global Diversity and Inclusion at Royal Dutch Shell (A) and (B)

Sucher, Sandra J.
August 2011

Royal Dutch Shell has been among the early players to implement diversity and inclusion policies in the 1990s, first in the U.S. and then globally. In May 2009, Peter Voser, CFO and soon-to-be CEO, wants to adjust the company's business, headcount and cost levels to adapt to changing economic conditions after one of the worst economic downturns in decades. His all-male Executive Committee has raised eyebrows since it is a step back from that of his predecessor, and he must decide whether to continue to promote the firm's emphasis on global diversity and inclusion while it restructures its business and reduces its managerial workforce.

L'Oréal: Global Brand, Local Knowledge

Henderson, Rebecca M., and Ryan Johnson
August 2011

Worldwide, and in the U.S. marketplace in particular, the French cachet of L'Oréal was one of its most powerful marketing tools. However, with the opening up of emerging markets, L'Oréal had to cater to a diverse customer base: an aging population in the West, ethnic groups, aspiring and younger customers in the East, emerging markets, and growing interest in health and beauty care among men all over the world. Employing both traditional and innovative marketing techniques, L'Oréal worked to double its customer base to two billion by 2020 and increase to half from a third its share of sales from emerging markets.

Reckitt Benckiser: Fast and Focused Innovation

Henderson, Rebecca M., and Ryan Johnson
August 2011

Since its 1999 merger Reckitt Benckiser (RB), a global consumer goods company, led by its CEO Bart Becht, developed a reputation for rapid product innovation and industry leading profit margins. RB's stated strategy was to focus on its Powerbrands and high growth categories and to nurture the Powerbrands with innovation and roll them out globally. The Powerbrands had steady double digit growth year over year, attracted a devoted customer base, and typically grabbed high margins. This case examines the Powerbrands strategy, RB's devotion to fast and focused innovation, and its execution of that strategy.

Shifting the Diversity Climate: The Sodexo Solution

Thomas, David A., and Stephanie J. Creary
August 2011

This case profiles the evolution of Sodexo's diversity initiative. Diversity became a key priority for Sodexo, North America in 2001 after a class-action lawsuit was filed and certified in Washington, D.C. against Sodexo Marriot Services, Inc., the food services division that Sodexo had merged with in 1998. In 2002, Dr. Rohini Anand was hired by Michel Landel, CEO of Sodexo, North America. Soon thereafter, Anand was instated as chief diversity officer for Sodexo, North America. Anand and Landel worked with several executives to develop and implement systems that were conducive to a diversity strategy. The team started to build the human resource processes that would address many of the concerns in the lawsuit: training systems, selection systems, and a career posting center. By 2010, Sodexo, North America was continuing to gain traction on its diversity strategy, and a global diversity initiative for the group was underway. In addition, the company had developed diversity priorities focused on five different dimensions of difference from a global perspective: gender, race/ethnicity, sexual orientation, disabilities, and age. However, more work still needed to be done to engage employees around the world in the company's diversity initiatives.

Mittel Technologies, AG

Hawkins, David F.
July 2011

CFO of German heavy equipment manufacturer examines through company examples potential impact of proposed changes to revenue recognition rules.

Wealth Management Crisis at UBS (A)

Healy, Paul M., George Serafeim, and David Lane
July 2011

The case describes the challenges that UBS faced as a result of the U.S. Department of Justice investigation for tax fraud, which claimed that UBS had helped some 52,000 U.S. residents hide billions of dollars in untaxed assets in secret Swiss accounts between 2000 and 2007, depriving the U.S. Treasury of hundreds of millions of dollars in taxes.

Wealth Management Crisis at UBS (B)

Healy, Paul M., George Serafeim, and David Lane
July 2011

The case describes the resolution of the U.S. Department of Justice investigation for tax fraud and the increasing pressure on the wealth management business.

La Fageda

Casadesus-Masanell, Ramon, Joan Enric Ricart, and Jordan Mitchell
July 2011

La Fageda is a manufacturer of high-quality, naturally made yogurts in northern Catalonia, Spain. La Fageda is substantially different from its main competitors such as multinational Danone in that it is a 270-person workers' cooperative with 60 percent of its membership made up of mentally disabled individuals. Since its establishment in 1982, the organization has aimed to integrate the mentally disabled by providing meaningful jobs and dignified salaries. As of March 2010, La Fageda has opened up a new production facility to make ice cream in an urban area outside of its well-known agricultural farm. Students are faced with understanding La Fageda's business model and how it competes against multinationals.

Vehbi Koç and the Making of Turkey's Largest Business Group

Jones, Geoffrey , and Asli M. Colpan
July 2011

The case describes the creation of Turkey's largest business group by Vehbi Koç. The foundation of this group in the interwar years, and its subsequent diversification into many industries, including automobiles, household goods, and services, is analyzed. The case serves as a vehicle to explain why diversified business groups are so important in emerging markets such as Turkey. It explores the role of market imperfections, government policies, and entrepreneurial ambition in their creation, as well as the organizational challenges posed by managing such diversified firms owned by a family. Much of the firm's growth came from licensing and joint venture agreements with multinational firms that were unable, or unwilling, to invest directly in Turkey because of political risk and government restrictions. The case ends in 1988 when the founder received a report from the management consultancy Bain calling for the firm to reduce the range of activities it undertakes because of the competitive challenges resulting from the liberalization of the Turkish economy.

Fiat-Chrysler Alliance: Launching the Cinquecento in North America

Pisano, Gary P., Phillip Andrews, and Alessandro Di Fiore
July 2011

Fiat ended its 27-year absence in the North American automobile market when the first Cinquecento (500)-a very small, iconic Italian car that had strong sales in Europe-was delivered on March 10, 2011. The Italian automaker re-entered the market through an alliance with Chrysler, the American automaker Fiat acquired in April 2009. For Laura Soave, Chrysler Group's head of Fiat Brand North America, the first delivery marked a watershed in a journey that began 12 months before when she first took responsibility for re-launching the Fiat brand in North America. As the first product of the Fiat-Chrysler alliance, the outcome of the Cinquecento launch would indicate how the integration of operations, and in particular the sharing of technology, platforms, components, manufacturing plants, and distribution networks, would drive the long-term health of both Fiat and Chrysler. This case looks at the various strategic and operational challenges Soave faced throughout the process.

Shell Nigeria: The WikiLeaks Cables

Sucher, Sandra J., Rebecca Henderson, and Matthew Preble
July 2011

In November 2010, WikiLeaks began releasing the first of hundreds of thousands of U.S. diplomatic cables that it had obtained. Among the thousands of cables published by early 2011 were several that shed light on Royal Dutch Shell's operations in Nigeria and its relationship with the Nigerian government.

Vehbi Koç and the Making of Turkey's Largest Business Group

Jones, Geoffrey , and Asli M. Colpan
July 2011

The case describes the creation of Turkey's largest business group by Vehbi Koc. The foundation of this group in the interwar years, and its subsequent diversification into many industries, including automobiles, household goods, and services, is analysed. The case serves as a vehicle to explain why diversified business groups are so important in emerging markets such as Turkey. It explores the role of market imperfections, government policies and entrepreneurial ambition in their creation, as well as the organizational challenges posed by managing such diversified firms owned by a family. Much of the firm's growth came from licensing and joint venture agreements with multinational firms which were unable, or unwilling, to invest directly in Turkey because of political risk and government restrictions. The case ends in 1988, when the founder has received a report from the management consultancy Bain calling for the firm to reduce the range of activities it undertakes because of the competitive challenges resulting from the liberalization of the Turkish economy.

Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard

Kaplan, Robert S.
July 2011

A new management team at VW do Brazil develops and deploys a strategy map and Balanced Scorecard to accomplish a turnaround and cultural change after eight consecutive years of financial losses and market share declines. The team uses the strategy map to align financial and project resources to the strategy, and to motivate its more than 20,000 employees by communicating the strategy in multiple ways and installing reward and recognition programs. It also establishes new programs to align the extensive networks of suppliers and dealers to the strategy. But after a sharp decline in sales triggered by the global financial crisis of 2008, the executive team faces a dilemma: should cut back production levels and funding for strategic initiatives until sales recover, or should it continue to invest for the future?

Mandatory Environmental, Social, and Governance Disclosure in the European Union

Eccles, Robert G., George Serafeim, and Phillip Andrews
July 2011

In 2011, the European Commission was deciding on how to best modify the existing European Union policy on corporate disclosure of environmental, social, and governance (ESG) information. Previous directives had recommended that European companies report ESG information, but now the EC was deciding if organizations should be required to disclose nonfinancial information. The EC had to determine what types of organizations would be required to disclose, which international framework would serve as a standard reporting guideline, and if ESG disclosure would be integrated with financial material in one annual report. This case outlines the history and trends of corporate social responsibility reporting to encourage a discussion around the decision points and implications of reporting regulations.

Suntech Power

Vietor, Richard H.K.
July 2011

Suntech, a Chinese manufacturer of photovoltaic cells and solar panels, is the third largest solar company in the world. About 90 percent of its sales have been in Europe - especially Germany and Spain. But with its new "pluto" technology, and with new governmental subsidies in China, Japan and the USA, Suntech is shifting its focus - first to the USA, and then to China and Japan. And it has recently moved down-stream in the USA, into systems integration and independent power. The case reviews the structure of competition in solar power, and evaluates Suntech's new strategy.

BP's Macondo: Spill and Response

Rotemberg, Julio J.
July 2011

This case starts by reporting various factors that may have contributed to the massive Macondo oil spill, noting that BP, its partners, and the government all made decisions that helped cause the accident. It then discusses the response to this spill by BP and the government. This helps provide some context for the decision by the Obama administration to request $20 billion for a fund from BP and for BP's willingness to go along with this request. The case also depicts BP's safety record before this spill, which may also have contributed to the creation of this fund. After this, the case describes the various ways in which the U.S. government is involved in offshore oil, starting from the leasing of tracts, the regulation of drilling and the assessment of fines and damages. To provide a contrast with BP's payments, the case depicts the payments made by Exxon after the Exxon Valdez spill. The U.S. regulatory regime is then briefly compared with regimes in other countries. After a brief description of the way the fund set up by BP sought to distribute funds and of the temporary moratorium that followed the spill, the case ends with discussion of possible regulatory responses.

BP's Macondo: Spill and Response

Rotemberg, Julio J.
July 2011

This case starts by reporting various factors that may have contributed to the massive Macondo oil spill, noting that BP, its partners and the government all made decisions that helped cause the accident. It then discusses the response to this spill by BP and the government. This helps provide some context for the decision by the Obama administration to request $20 billion for a fund from BP and for BP's willingness to go along with this request. The case also depicts BP's safety record before this spill, which may also have contributed to the creation of this fund. After this, the case describes the various ways in which the U.S. government is involved in offshore oil, starting from the leasing of tracts, the regulation of drilling and the assessment of fines and damages. To provide a contrast with BP's payments, the case depicts the payments made by Exxon after the Exxon Valdez spill. The U.S. regulatory regime is then briefly compared with regimes in other countries. After a brief description of the way the fund set up by BP sought to distribute funds and of the temporary moratorium that followed the spill, the case ends with discussion of possible regulatory responses.

Global Knowledge Management at Danone (B)

Edmondson, Amy C., Ruth Dittrich, and Daniela Beyersdorfer
July 2011

The (B) case gives an update on the development of knowledge management at Danone two years after the (A) case: The Networking Attitude spread throughout the company and the question is posed whether Danone should move to virtual networking in addition to face-to-face networking.

Global Knowledge Management at Danone (C)

Edmondson, Amy C., Ruth Dittrich, and Daniela Beyersdorfer
July 2011

The (C) case provides an update on the B-case decision and describes the introduction of Dan 2.0, an internal social virtual network for the purpose of knowledge sharing in a company that was only used to face-to-face networking.

The Greek Crisis: Tragedy or Opportunity?

Roscini, Dante, Jonathan Schlefer, and Konstantinos Dimitriou
June 2011

After its 2009-2010 fiscal crisis shook the euro, could the Greek government stabilize debt, avoid default, and stay on the euro? This case looks at the Greek social and political road to fiscal crisis; the economics of that crisis and efforts to recover from it; the danger the crisis posed to the euro; cooperation and conflict among European states, the European Central Bank, and the International Monetary Fund to try to help Greece emerge from crisis; and the role financial markets played in these events.

Globant

Khaire, Mukti, Gustavo A. Herrero, and Cintra Scott
June 2011

The case deals with an IT company born in Argentina in 2003 to provide software services to established companies in the developed world. After reaching sales of $57 million in 2010, the company ponders its next steps to achieve $500 million in revenues by 2015.

Nanda Home: Preparing for Life after Clocky

Ofek, Elie, and Jill Avery
June 2011

Gauri Nanda, the inventor of Clocky, the alarm clock that rolls off the bed stand and forces its owner to find it, has to make critical decisions regarding the future of her nascent company. As sales of Clocky show signs of declining, she must decide whether to continue her focus on the alarm clock category or to branch out into new categories. If the former, the question is which segments to pursue and what features to develop, and, if the latter, the question is whether the concept of "humanizing technology" is something consumers would value in other domains. In addition, Nanda must decide how to continue marketing Clocky and its successors, given the potential for cannibalization. Clocky's success was largely attributable to the media's intense interest and coverage, and it is not clear such attention would carry over to other new product endeavors. Students are presented with a number of new product concepts and the findings from both qualitative and quantitative market research. This allows for a rich discussion of how managers can think creatively about consumer experiences to inform their innovation strategies.

Drilling Safety at BP: The Deepwater Horizon Accident

Kaufman, Stephen P., and Laura Winig
June 2011

Following the 2010 Gulf of Mexico explosion and oil spill on the Deepwater Horizon, public attention focused on BP's safety record, practices, and management culture as the primary cause of the disaster. Drawing on public sources, this case traces the circumstances surrounding the accident, including not only the role of BP, but also of the two principle subcontractors hired to actually do the drilling and capping of the oil well (Transocean Ltd and Halliburton Energy Services). The case examines BP's safety record and prior accidents at a refinery in Houston in 2005 and along a pipeline in Alaska in 2006 and describes managerial changes imposed by the Board of Directors and safety programs instituted by Tony Hayward, the new CEO installed in 2007.

Poweo: David and Goliath in the French Electricity Market

Maurer, Noel, and Elisa Farri
June 2011

Charles Beigbeder, the president and founder of Poweo, an alternative electricity and gas operator in France, needs to decide on the company's strategy in light of electricity deregulation and the dominant position of Électricité de France (EDF) in the French market. Can Poweo successfully compete against EDF, with its giant installed nuclear base, and will competition bring benefits to French consumers?

Government Policy and Clean-Energy Finance

Nanda, Ramana, Sanjay Aggarwal, and Nilam Ganenthiran
June 2011

What leads to market failures in finance of clean energy startups? How do different governments approach this issue?

The Eleganzia Group

Ofek, Eli, Elena Corsi, Bharat Sajnani, Sorina Casian-Botez, and Francesco Tronci
June 2011

Eleganzia Group management faces tough decisions heading into the summer of 2010. With tourism on the decline due to the global economic recession, General Manager Giannuzzi must decide how to set prices at the Forte Village Resort, the Group's most well-known property. His management team is further divided on whether the pricing model at the resort should change to being all-inclusive (as opposed to one where guests are charged for each additional activity or dining option on a pay-as-you-go basis) and whether to convert a large number of the 4-star rooms into 5-star suites. Recently acquired properties, such as the Castel Monastero in Tuscany and the Maddalena Hotel & Yacht Club in north Sardinia, pose a branding challenge. Can all the properties, including the Forte Village, be successfully brought under one umbrella brand, namely, Eleganzia? Moreover, what should the character of each of these new properties be?

The Dutch Flower Cluster

Porter, Michael E., Jorge Ramirez-Vallejo, and Fred van Eenennaam
June 2011

Describes the Dutch flower cluster, or the group of interconnected growers, suppliers, service providers, and flower-related institutions located in The Netherlands. Examines the role of the FloraHolland auction in the value chain. Also describes the flower clusters in China, Colombia, Ecuador, and Kenya, the four other major international competitors.

The Dutch Flower Cluster (Teaching Note)

Porter, Michael E. and Jorge Ramirez-Vallejo
June 2011

No abstract available

Risk Management at Wellfleet Bank: All That Glisters Is Not Gold

Mikes, Anette
June 2011

Inspired by one of the few banks that successfully weathered the 2007-2009 credit crisis, the case illustrates risk management in the world of corporate lending. Chief executive Alastair Dowes has to decide if the risk governance process is adequate to uncover mega-risks, based on reflections on the risk assessment and sanctioning of a $1 billion credit proposal. Students will be invited to assess and review the risks in the proposal and to arrive at a decision (whether Wellfleet should accept it or not). At the same time, students will learn that gray-area risk decisions and, in particular, risk-adjusted performance measurement can rarely be automated. Risk governance requires executives to strike a balance between risk modeling and qualitative business judgment-a holistic (rather than silo-based) view of risks.

Risk Management at Wellfleet Bank: All That Glisters Is Not Gold (Teaching Note)

Mikes, Anette
June 2011

No abstract available

Risk Management at Wellfleet Bank: Deciding about 'Megadeals'

Mikes, Anette
June 2011

Inspired by one of the few banks that successfully weathered the 2007-2009 credit crisis, the case illustrates risk management in a corporate finance business. Chief executive Alastair Dowes has to decide whether the risk governance process is adequate to uncover mega-risks in the portfolio, based on reflections of the risk assessment and sanctioning of two $1 billion credit proposals. Students will be invited to assess and review the risks in the two proposals and to arrive at a decision (whether Wellfleet should accept them or not). At the same time, students will learn that gray-area risk decisions and, in particular, risk-adjusted performance measurement can rarely be automated. Risk governance requires executives to strike a balance between risk modeling and qualitative business judgment-a holistic (rather than silo-based) view of risks.

Risk Management at Wellfleet Bank: Deciding about 'Megadeals' (Teaching Note)

Mikes, Anette
June 2011

No abstract available

Marlin & Associates and the Sale of Riverview Technologies

Ruback, Richard S., and Royce Yudkoff
May 2011

Riverview Technologies was a Stockholm, Sweden-based company that had developed software hedge funds. After spending more than a year in an organized sale process, the winning bidder had become increasingly difficult to work with, and the closing had been substantially delayed. Despite the late stage of the process, the selling shareholders were considering walking away.

Innovation and Growth at Actelion Ltd

Pisano, Gary P., Daniela Beyersdorfer, and Ruth Dittrich
May 2011

In late 2010, Jean-Paul Clozel, CEO of the Swiss biotech pharmaceuticals firm Actelion, looks back on a successful decade. The small venture that he had started with a few of his scientist colleagues in the late 1990s to discover novel medicine in a research-driven organisation had grown into one of Europe's largest biotech firms by revenues. Their success was mainly founded on their orphan indication drug Tracleer, which Actelion sold and marketed worldwide. However, Tracleer's looming patent expiry in a few years and recent late-stage pipeline setbacks had put the company under pressure from investors. While Clozel was confident in their ability to deliver future drugs that could secure further growing revenue streams, he wondered how to maintain their entrepreneurial culture that he saw as a prerequisite for this-particularly their lean hierarchy and researchers' freedom to follow innovation where it led them-in a company of more than 2,400 people that continued to grow.

Utilis: Designing, Producing, and Selling Rapid Deployment Shelters for a Troubled World

Leonard, Herman B., Daniela Beyersdorfer, and Simon Harrow
May 2011

How can a company that supplies disaster response and humanitarian agencies best handle the intrinsically unpredictable and highly volatile demand for its products? Utilis is a French supplier of rapid-deploy high-end tent solutions for civilian and military uses (such as camps and field hospitals). In 13 years it developed from a start-up garage business into a successful firm of global reach and reputation. In 2010 its founder and CEO Philippe Prévost must decide the product and market strategy for the next phase of development allowing the company to remain competitive in terms of price and cutting edge products. Should they outsource some of their production to Eastern Europe? Market their products to new customers like non-governmental organizations? Diversify into new shelter product areas? So far their small size and nimbleness had allowed the company to thrive-but would their deeper penetration into the market of disaster and emergency response (where contracts were smaller and peaks and troughs in demand larger) still be compatible with their business model?

Vodafone Qatar: Building a Telco in the Gulf

Alcacer, Juan, and Andrew Goodman
May 2011

Shar Matin (A)

Thomas, David A., and Elisa Farri
May 2011

The head of the subsidiary of a U.S. company faced the decision to present an aggressive growth plan despite his CFO's lack of support.

Shar Matin (B)

Thomas, David A., and Elisa Farri
May 2011

Supplements the (A) case

Shar Matin (C)

Thomas, David A., and Elisa Farri
May 2011

Supplements the (A) case

ABICI

Khaire, Mukti, Elena Corsi, and Elisa Farri
May 2011

The co-founder of an Italian design based bicycle manufacturer evaluates if reducing costs by outsourcing would impact its brand. The company was founded in 2005 in Italy by three friends, and in its first five years it had enjoyed steady growth and built a strong reputation for producing high-quality city bicycles, appreciated for their retro look and style. Its country of origin had probably helped them exporting their products as their bicycles were 100% made in Italy, and the Made in Italy label had a reputation for high quality, craftsmanship, and creativity. Yet profit margins were relatively low as manufacturing costs were very high. Should they outsource their production? If so, to China or to Eastern Europe? Was there some other way to improve the profitability of the company?

Vereinigung Hamburger Schiffsmakler und Schiffsagenten e.V.(VHSS): Valuing Ships

Esty, Benjamin C., and Albert Sheen
May 2011

After booming for more than five years, the global shipping (maritime) industry experienced a dramatic crash in late 2008 as the global financial system froze and the global economy slid into recession. Ship charter rates (revenue) fell by as much as 90% causing prices of used ships to fall by as much as 80%. As ship prices (values?) fell, ship owners began to default on loans and new purchase contracts while banks holding loans secured by ships faced the possibility of increasing defaults (violations of loan-to-value covenants), foreclosures, and write-offs. In the midst of this crisis, VHSS, the German Shipbroker's Association, introduced a proposal to value ships using discounted cash flow analysis (to determine a long-term asset value, LTAV) rather than market prices from comparable transactions. Thomas Rehder, the chairman of VHSS, argued this approach was necessary because market prices did not reflect fundamental values in the current environment. After announcing the alternative valuation methodology in September 2009, he must convince industry participants-ship owners, appraisers, and bankers-to adopt the new valuation methodology and bank regulators and auditing firms to approve its use.

Hermitage's Russian Quandary (A)

Werker, Eric, Ray Fisman, and Lauren Weber
May 2011

In June 2007, the offices of Russian hedge fund Hermitage Capital were raided by Moscow police; in the months that followed, Hermitage founder Bill Browder found himself banned from Russia and fending off efforts to expropriate the fund's Russian assets. This case describes the challenges faced by Hermitage in responding to these threats, and more broadly discusses the perils of doing business in a business environment with weak legal and political institutions.

Hermitage's Russian Quandary (B)

Werker, Eric, Ray Fisman, and Lauren Weber
May 2011

Supplements the (A) case.

Raptor Oil Company: An Exercise

Gavetti, Giovanni
April 2011

The exercise, which adapts a famous experiment by experimental psychologist Thomas Gilovich, is designed to show both the ubiquity of analogy or associative thinking more generally and its potential perils. Students are presented with a scenario in which an oil company is deciding which of two investment options it should pursue. The first focuses on a location that involves technically difficult and costly R&D and production (e.g., Gulf of Mexico). In the second option, these costs are lower and yields are higher, but the firm has to deal with potentially corrupt parties (e.g., Russia). Half the class is presented with a standard or "neutral" problem. The other half is presented with a problem identical to the standard one except for a few differences that are irrelevant to the problem's structure. These differences involve superficially similar cues that are associated with Enron. For instance, the location of the meeting in the neutral problem is Atlanta, but it is Houston, where Enron was headquartered, in the Enron problem; the name of the oil company is Fleet in the neutral case and Raptor (named after one of Enron's many special purpose entities) in the Enron case. Students who are given the Enron problem often unconsciously associate the problem they face with the Enron debacle, which causes them to favor the technically challenging option more than do students who are given the neutral problem.

Fleet Oil Company: An Exercise

Gavetti, Giovanni
April 2011

The exercise, which adapts a famous experiment by experimental psychologist Thomas Gilovich, is designed to show both the ubiquity of analogy or associative thinking more generally and its potential perils. Students are presented with a scenario in which an oil company is deciding which of two investment options it should pursue. The first focuses on a location that involves technically difficult and costly R&D and production (e.g., Gulf of Mexico). In the second option, these costs are lower and yields are higher, but the firm has to deal with potentially corrupt parties (e.g., Russia). Half the class is presented with a standard or "neutral" problem. The other half is presented with a problem identical to the standard one except for a few differences that are irrelevant to the problem's structure. These differences involve superficially similar cues that are associated with Enron. For instance, the location of the meeting in the neutral problem is Atlanta, but it is Houston, where Enron was headquartered, in the Enron problem; the name of the oil company is Fleet in the neutral case and Raptor (named after one of Enron's many special purpose entities) in the Enron case. Students who are given the Enron problem often unconsciously associate the problem they face with the Enron debacle, which causes them to favor the technically challenging option more than do students who are given the neutral problem.

Sherritt Goes to Cuba (B): Dealing with Political Risk Under Raul Castro

Musacchio, Aldo, and Jonathan Schlefer
April 2011

Supplements the (A) case.

Energy Security in Europe (B): The Southern Corridor

Abdelal, Rawi, and Sogomon Tarontsi
April 2011

Nabucco natural gas pipeline, initiated by a group of European energy companies, was intended to connect the broad gas-rich region of the Middle East and Central Asia to Europe for the first time, which would diversify supply sources. At the same time, an Italian-Russian consortium announced South Stream natural gas pipeline, which would diversify transport routes for the delivery of Russian gas to Europe. To win support, backers of Nabucco and South Stream insisted that their projects were aimed at fulfilling goals of the EU's energy policy (reducing the use of fossil fuels to combat climate change and guaranteed physical availability and affordability of imported fossil fuels). But, as the case demonstrates, both projects progressed slowly, encountering many technological and commercial challenges, which, however, were eclipsed by the extreme politicization of Nabucco and South Stream: pipelines became a factor in domestic politics of several European nations and figured prominently in relations between the EU, EU states, Russia, Turkey, former Soviet republics in Caucasus and Central Asia, and the United States. Although they would comprise only a small part in the overall architecture of Europe's energy security, the case of Nabucco and South Stream reveals the limits of the ambitious energy policy of the EU.

Cosmeticos de Espana, S.A. (E)

Hawkins, David F.
April 2011

Spanish parent company must decide on the Euro/BsF exchange rate to translate its Venezuelan subsidiary's financial statements into euros.

a-connect: In Search of Talent Partners (B)

Eccles, Robert G., and Penelope Rossano
April 2011

This (B) case updates company changes since the (A) case. Key updates include leadership and management appointments and organizational changes.

BBVA Compass: Marketing Resource Allocation

Gupta, Sunil, and Joseph Davies-Gavin
April 2011

BBVA Compass, the 15th largest commercial bank in the U.S., is a part of the BBVA Group of Spain, the second largest bank in Spain with $755 billion in assets. In December 2010, Frank Sottosanti, Chief Marketing Officer of BBVA Compass, was reviewing the marketing performance of the company and deciding how to allocate next year's marketing budget across various offline and online channels.

Barceló Hotels and Resorts (A)

Gourville, John T.,and Marco Bertini
April 2011

Barceló Hotels and Resorts must decide whether to allow its many hotels to continue to undertake separate promotional campaigns or to run, for the first time, a broad corporate-level promotion. Complicating the decision is the fact that the many hotels in its portfolio vary greatly in their character, clientele, positioning, and locations.

Logoplaste: Global Growing Challenges

Alcácer, Juan, and John Leitao
April 2011

In 2010, Logoplaste, a top 10 manufacturer of rigid plastic containers, was debating a more dramatic expansion strategy as a means to guarantee the company's continued success. The company, which began with a few plants in Portugal in the 1990s, now had 60 plants across five continents and was a valued partner to large multinational consumer goods companies, many of whom were pressuring Logoplaste to expand.

Deferred Tax Assets in Basel III: Lessons from Japan

Hawkins, David F., Karthik Ramanna, Nobuo Sato, and Mayuka Yamazaki
April 2011

In a controversial decision, the Bank for International Settlements includes deferred tax assets as part of a bank's core capital.

Suntech Power

Vietor, Richard H.K.
April 2011

Suntech, a Chinese manufacturer of photovoltaic cells and solar panels, is the third largest solar company in the world. About 90% of its sales have been in Europe-especially Germany and Spain. But with its new "pluto" technology, and with new governmental subsidies in China, Japan, and the U.S., Suntech is shifting its focus-first to the U.S., and then to China and Japan. And it has recently moved downstream in the U.S., into systems integration and independent power. The case reviews the structure of competition in solar power and evaluates Suntech's new strategy.

The IASB at a Crossroads: The Future of International Financial Reporting Standards

Ramanna, Karthik, Karol Misztal, and Daniela Beyersdorfer
April 2011

What are the major challenges to the continued growth of IFRS worldwide? Should countries be encouraged to pursue "full adoption" of IFRS, or should each country determine its own IFRS "convergence" strategy? Given the limitations of governance and information-intermediation institutions worldwide, should IFRS limit the use of fair-value accounting? How should the IASB respond to the growing power of emerging markets such as China in international standard setting? What lessons can be learned from the growth and development of IFRS for international harmonization of corporate governance standards more broadly? This case first describes the IASB's major accomplishments over the 2001-2010 period and then outlines the major challenges to the continued growth of IFRS as it enters its second decade.

Countrywide plc

Gilson, Stuart C., and Sarah Abbott
April 2011

One of the world's leading investors in distressed companies, Oaktree Capital Management, is contemplating a "loan to own" investment in the debt of Countrywide plc, a financially troubled residential real estate agent based in the U.K. Only sixteen months earlier, Countrywide was acquired by private equity investor Apollo Management L.P. in a leveraged buyout. Although Countrywide is the largest real estate agent in the U.K., and has a strong portfolio of assets, its economic fortunes have declined suddenly with the widespread collapse of global financial and real estate markets, putting it in danger of defaulting on its debt and having to restructure under a U.K. Scheme of Arrangement.

ActionAid International: Globalizing Governance, Localizing Accountability

Ebrahim, Alnoor, and Rachel Gordon
April 2011

As a global NGO working in 45 countries, ActionAid International aims to eradicate poverty by addressing its underlying causes such as injustice and inequality. This case follows a series of radical transformations implemented by the organization's CEO, Ramesh Singh-a power shift from its headquarters in London to an international secretariat in Johannesburg; a new federated governance structure that increases the influence of units in Africa and Asia; and innovations in accountability and transparency to the poor communities with which it works. But as Singh gets ready to step down after seven years, he is confronted with challenges from newly empowered country units that he feels risk taking the organization in the wrong direction. How will the divisions between the northern and southern units play out? Will they tear the organization apart, just when it is becoming a global player?

Cherie Blair: Inventing Herself

Groysberg, Boris,Robin Abrahams, and Lindsay Tanne
April 2011

Cherie Blair was famous, or infamous, in the United Kingdom as first lady from 1997 to 2007. Her marriage to Tony Blair, however, was the result of her own groundbreaking career in law-a career she fought to keep during the 10 years of her husband's tenure as prime minister, even though it meant bringing suit against his government at times. Blair balanced multiple roles and expectations.

Emergia: Driving Profitability on Help Desk Contracts

Martínez-Jerez, F. Así, and Lisa Brem
April 2011

Emergia, a Spanish call center company, is trying to improve the margins from its Help Desk contract with Fonaveu, a large, strategically important customer. Emergia is considering tactics such as overdelivering on calls that incur lower costs (while underdelivering on high cost calls), offshoring the service to a country with lower labor costs, and sharing equipment and operators with other clients. However, Emergia also needs to think about how Fonaveu will react and whether these tactics will endanger the collaborative relationship the couples have been working toward.

Todovino: Can Your Rival Be Your Friend?

Martínez-Jerez, F. Así, and Lisa Brem
April 2011

Todovino sells Spanish wines through wine clubs and websites. Founder-CEO Gonzalo Verdera has partnered with many companies to create cobranded wine clubs, but now he is pondering a joint venture with one of his rivals, a brick-and-mortar wine chain, where Todovino would provide the online presence for the chain. Should Verdera help his rival? What are the risks and benefits for Todovino?

Energy Security in Europe (A): Nord Stream

Abdelal, Rawi E., and Sogomon Tarontsi
April 2011

Russian and German energy firms initiated the Nord Stream natural gas pipeline project with strong political support from their home governments but encountered resistance from other states. Although the pipeline would connect Russia with Germany directly, the project was not simply a bilateral matter. First, a need to secure construction permits in multiple jurisdictions around the Baltic Sea involved other countries. And second, Germany's membership in the European Union entailed compliance with goals and values of the entire union, which stressed the imperative of collective action in energy matters and dangers of succumbing to "national reflexes." Thus the implications of the project became a matter of concern to the entire European Union, but Europeans struggled to articulate the meaning of Nord Stream: was it a "separate peace" between Russia and Germany to the detriment of the rest, or was it a pan-European deal to the benefit of all? As the case chronicles, the success of Nord Stream depended on the ability of its creators to ensure that the latter view prevailed over the former.

MorphoSys AG: The Evolution of a Biotechnology Business Model

Pisano, Gary P., Ryan Johnson, and Carin-Isabel Knoop
April 2011

In the biotech world, the 18-year-old Munich-based company MorphoSys was a rarity: it was profitable. The company achieved this profitability not by developing and selling its own drugs, but by licensing access to its proprietary library of human antibodies. Recently, the company decided to deviate from this model, and attempt to develop its own proprietary products. The case allows analysis of "license vs. vertically integrate" business model decisions, and can be used to teach principles of business model design and the functioning of markets for know-how.

Kepak and the Future of the Irish Beef Industry

Bell, David E., Damien P. McLoughlin, and Mary Shelman
March 2011

As Ireland's third largest beef processor, Kepak faces new opportunities as well as significant challenges from the collapse of the "Celtic Tiger." The government has identified food and agriculture as one way the country could significantly grow exports. However, the beef industry is suffering from overcapacity and from an inefficient farming structure. CEO John Horgan is considering the best way to position Kepak for success, including the possibility of an umbrella Irish beef brand, opportunities for "co-opetition" within the industry, and how to expand the firm's successful convenience foods business to more countries.

Herborist

Deighton, John, Leora Kornfeld, Yanqun He, and Qingyun Jiang
March 2011

Global brands such as L'Oreal and Oil of Olay dominate China's skin care market. A Chinese domestic brand, after some success in partnership with Sephora in Europe, aspires to challenge the French and U.S. brands' hold on the China market. It must decide how to segment the market, how to position against global assurances of quality and purity, and how to balance its Chinese heritage claims with claims of modernity. The China skin care market is growing extraordinarily fast. Is that an asset or a liability?

Leadership in Corporate Reporting Policy at Tata Steel

Ramanna, Karthik
March 2011

The case describes the challenges faced by Tata Steel, India's largest private sector steel company, as it transitions from Indian GAAP to IFRS. It first describes those challenges in the context of the institutional voids that make IFRS adoption difficult in India. The case then focuses on how companies in emerging markets might represent their interests at the IASB, the standard setting body for IFRS.

GLOBIS

Khaire, Mukti, Akiko Kanno, and Nobuo Sato
March 2011

Yoshito Hori, dean of the Graduate School of Management, GLOBIS University, was planning to launch a full-time English MBA program in September 2012. GLOBIS University was already offering successful part-time MBA programs in English and Japanese. The full-time English program was a necessary step to fulfill Hori's ambition to make GLOBIS the number one business school in Asia; however, it remained to be seen whether the school could attract international students who needed to relocate to Japan and compete with other world-class international business schools.

Investcorp and the Moneybookers Bid

Rhodes-Kropf, Matthew, and Carin-Isabel Knoop
March 2011

In January 2007, Hazem Ben-Gacem, managing director and co-head of Investcorp Technology Partners (ITP), needs to decide what to bid at an auction for Moneybookers Limited, one of the top three e-payment solution providers in Europe. However, approximately 70% of Moneybookers revenues were related to transactions from online gaming sites (down from 100% in 2002). Although the thesis was that e-commerce transactions would soon make up a much larger chunk of the company's revenues, high gaming revenue still raised some questions. Between now and when Ben-Gacem had first submitted a bid of 60 million for Moneybookers back in November 2006, the U.S. Congress had enacted the Unlawful Internet Gambling Enforcement Act putting pressure on e-payment firms with gambling exposure. How would investors in ITP view this transaction? Ben-Gacem also worried about whether Moneybookers could manage the growth of its business and the evolution of regulation around monetary transactions. Moneybookers had effectively become a type of bank with deposit accounts and capital adequacy requirements and all the reporting that went along with it. But could an Internet startup maintain the compliance and accounting standards necessary to handle such scrutiny? Could it succeed-and if it did-what would it be worth?

Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring

Sucher, Sandra J., and Daniela Beyersdorfer
March 2011

The (B) case describes the actions taken by Royal Dutch Shell's CEO and his management team to maintain their commitment to diversity and inclusion (D&I), as introduced in the (A) case, during a major restructuring of the whole organization.

Zopa: The Power of Peer-to-Peer Lending

Piskorski, Mikolaj Jan, Isabel Fernandez-Mateo, and David Chen
March 2011

Zopa, a U.K.-based peer-to-peer lending company, connected individual lenders and borrowers via an online interface. The company charged a small fee for completed loan transactions but has not turned a profit. Zopa offered two platforms: Markets and Listings. Markets was an automated system that assembled loans by combining lowest loan offers from different Zopa lenders. Zopa Listings allowed prospective borrowers to post eBay-like listings explaining who they were, how much money they needed, and how they would use it. Lenders then made offers specifying how much they were willing to lend and at what rate. Neither platform met with much success. In February 2009, the CEO of Zopa is considering withdrawing from Listings and focusing on Markets, even though a company in the U.S., Prosper, had attracted many users with a product akin to Zopa Listings.

International Lobbying and The Dow Chemical Company (A) & (B)

Daemmrich, Arthur A.
March 2011

This case explores company strategy, business-government relations, and collective action challenges associated with international and domestic lobbying regarding regulation of the chemical industry. In the fall of 2006, a five-year legislative process for a major new law regulating chemicals in the European Union appeared to be nearing its conclusion. REACH, the Registration, Evaluation, Authorization, and Restriction of Chemicals, would create a new European Chemicals Agency, require companies to submit testing data on existing and new compounds, and restrict the manufacture of hazardous substances. Andrew Liveris, CEO of the Dow Chemical Company, has to decide whether the company should engage in direct discussions with the European Parliament and Commission, with the implication that the company can influence the regulations but also would have to support the final outcome. The case summarizes Dow's history, competitive dynamics in the sector, and regulation of the chemical industry before describing the REACH legislative process and various approaches to lobbying used by chemical companies, trade groups, and environmental NGOs.

Gucci Group: Freedom within the Framework

Martínez-Jerez, Francisco de Asís
March 2011

Gucci Group's CEO had to decide if his decentralized management style was the most effective philosophy in an economic downturn. The sharing of customer information across units and its use in the creative process are key initiatives analyzed in the case. CEO Robert Polet joined the high-end fashion Gucci Group in 2004, after 26 years at one of the largest consumer goods companies. Since his arrival, the Group had grown both in revenues and profitability. Part of his secret was his decentralized and empowering management style. In 2008, in the midst of the economic downturn following the credit crunch crisis, Polet learned that after four years of growth the Gucci brand--the Group's largest business--would report a slowdown for the year's first semester. He knew that according to his management philosophy he should leave the primary decisions for the Gucci brand to Gucci's CEO. Yet, given the urgency of the situation, Polet wondered if it would be more effective to become directly involved in the brand's decision-making process. To anchor the discussion on Polet's management style, the case discusses how customer information is used in the creative process and whether it would be beneficial for the group to share customer information across stores, regions, and brands.

Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard

Kaplan, Robert S., and Ricardo Reisen de Pinho
March 2011

A new management team at VW do Brazil develops and deploys a strategy map and Balanced Scorecard to accomplish a turnaround and cultural change after eight consecutive years of financial losses and market share declines. The team uses the strategy map to align financial and project resources to the strategy and to motivate its more than 20,000 employees by communicating the strategy in multiple ways and installing reward and recognition programs. It also establishes new programs to align the extensive networks of suppliers and dealers to the strategy. But after a sharp decline in sales triggered by the global financial crisis of 2008, the executive team faces a dilemma: should it cut back production levels and funding for strategic initiatives until sales recover, or should it continue to invest for the future?

Vestas' World of Wind

Steenburgh, Thomas, Elena Corsi
March 2011

The wind turbine manufacturer Vestas launched the industry's first highly localized and customized new product launch campaigns which used also new tools such as web 2.0 platforms. Used to operate in a market where demand exceeded supply, Vestas had lost contact with its customer base and had a limited marketing budget, mainly used to finance global media advertisement campaigns. The world economic downturn which followed the U.S. credit crunch crisis of 2008 and the increased competition in the wind turbine market had brought about a sudden drop in Vestas orders of new turbines. Vestas thus decided to focus more on marketing and developed a new department, Global Marketing and Customer Insights. Morten Albaek was hired to manage and develop the department and to transform Vestas into the undisputed most customer focused company in the industry by 2012 and among the most customer centric B2B brand by 2015. He tested his new approach for the first time with the launch of their new V112 turbine for which he developed 72 customized campaigns targeting its main existing and potential customers and major stakeholders. Yet, had the campaign been effective in bringing Vestas closer to its customer base? Were they using the right tools?

Oriflame S.A. (A)

Hawkins, David F., Karol Misztal, and Daniela Beyersdorfer
February 2011

A direct-selling cosmetics company involved in emerging markets exhibits significant foreign exchange risk exposure and profitability swings in the wake of the 2008 financial crisis. Students must review the company's use of derivative instruments and other hedging techniques to establish whether it pursues the right FX risk mitigation strategy.

Oriflame S.A. (B)

Hawkins, David F., and Karol Misztal
February 2011

Exercise for recording derivative hedging transactions, accompanied by a technical note on IFRS derivative accounting.

Oriflame S.A. (C)

Hawkins, David F., and Karol Misztal
February 2011

Notes from Oriflame's 2009 annual report relevant to the assessment of the monetary impact of Oriflame's FX risk-management actions.

Back to the Future: Redeveloping Unilever House

Kohn, A. Eugene,, Arthur I Segel, and Andrew Terris
February 2011

Steve Williams, general counsel of Unilever PIc, has two key decisions to make prior to commencing construction on the redevelopment of Unilever House, the company's London corporate headquarters. The purpose of the redevelopment is to reinvigorate the corporate culture by making the company's workspace more collaborative, transparent, and efficient. Steve has to decide how to finance the project and whether the current design proposed by his architects achieves the project's goals.

BonneSante S.A.

Hawkins, David F.
February 2011

IASB and FASB propose new lease accounting rules, and the owner of a French chain of fast food outlets is concerned about the impact on his company's balance sheets.

European Union: The Road to Lisbon

Trumbull, Gunnar, and Diane Choi
February 2011

In 2010, the European Union faces the challenges of the global financial crisis. With 27 member states, each facing different challenges, can new EU institutions respond effectively? Will its new currency, the euro, survive?

Hungerit

Bell, David E., Sarah Morton, and Mary Shelman
February 2011

Hungary's top producer of poultry products is deciding the company's future strategy in the face of new opportunities in Central and Eastern Europe, a changing retail market in Hungary, and the possibility of increased global competition.

Growing Pains at Stroz Friedberg

Garvin, David A., and Carin-Isabel Knoop
January 2011

In late spring 2009, Stroz Friedberg co-presidents Edward Stroz and Eric Friedberg had to set growth targets for 2010. The leading global consulting firm they had built specialized in managing digital risk and uncovering digital evidence and had grown very rapidly. With the firm's CFO, they believed that the firm could grow from $58 million to $72 million, a growth rate of 27% over the preceding year. However, the firm's 11 offices had submitted first draft FY 2010 plans that together added up to firm-wide revenues of only $53 million, a growth rate of negative 10.2%. The preceding years of rapid growth had been successful but challenging, and a thorough review of the firm's culture, systems, structure, and processes in late 2008 had resulted in a significant set of changes to which the organization was still adjusting. Stroz and Friedberg wondered whether to push for continued, aggressive growth.

2010

Global Expansion at Sanford C. Bernstein

Hill, Linda A., and Dana M. Teppert
December 2010

Sanford C. Bernstein, a premier sell-side research firm, is expanding globally and has recently opened an office in Hong Kong. Global Director of Research Robert van Brugge must consider how best to organize the firm's research department to enhance cross-sector and cross-geography collaboration among the senior research analysts in order to adapt to the challenging realities of global expansion in the financial services industry.

Robin Bienenstock at Sanford C. Bernstein

Hill, Linda A., and Dana M. Teppert
December 2010

Robin Bienenstock, a senior sell-side equity research analyst at Sanford C. Bernstein, considers how to build her research franchise given the changing nature of the industry and the firm. A collaborative research paper called "Computer in Your Pocket" was recently published by four of her colleagues, but she was not consulted or asked to contribute. As clients call Bienenstock asking for her response to the investment conclusions in the paper, Bienenstock wonders 1) how she should respond to the report and 2) how she can increase her collaborative work in the future. As she continues to grow her franchise in terms of both the number of companies under coverage and team members, she wonders how she can best organize her team in order to leverage herself effectively.

Electro, Inc.

Hawkins, David F.
December 2010

CFO of U.S. company preparing for U.K. analyst meetings reviews his company's 2008 earnings per share calculations.

Rupert Murdoch: The Last Tycoon

Jones, Geoffrey G., and Hari Balkrishna
December 2010

The case examines the entrepreneurial career of Rupert Murdoch and the growth of News Corporation from a small Australian newspaper to a global media giant. It shows how he expanded geographically to Europe, the United States, and Asia and from newspapers to the film and television industries. The case identifies the personal role of Murdoch in this growth and the role of his family in its management. The case considers the political impact of News Corporation's newspapers and other media and their alleged role in shaping political opinion.

Hôpital de Pontoise

Bohmer, Richard, Daniela Beyersdorfer, and Simon Harrow
December 2010

In 2010, Andre Razafindranaly, managing director of a large French public hospital, considers which organizational structure will help them adjust to the changing health sector environment. The move from global budget to activity-based funding has led his and many other public hospitals to suffer losses in recent years. Appointed two years previously, Razafindranaly introduced increasing financial control and encouraged organizational changes such as multidisciplinary wards differentiated by patients' lengths of stay. To what extent should he (and can he) reinforce these measures, which have increased efficiency and reduced the deficit but also generated push-back from his doctors and staff?

Santander Consumer Finance

Trumbull, Gunnar, Elena Corsi, and Andrew Barron
December 2010

A Spanish company has to decide if they should expand into the fragmented European consumer finance market and has to make important organizational strategy decisions in the midst of the world economic downturn that followed the 2007 U.S. credit crunch. Since 2002, the consumer finance branch of the Spanish banking Grupo Santander, Santander Consumer Finance (SCF), had grown into one of the largest European consumer finance companies capturing the recent growth in Europe of the consumer finance market. Against a background of growing concern about the sustainability of household debt levels in Europe and the United States, in 2008 the new CEO, Magda Salarich Fernández de Valderrama, had to decide if this was the right time to expand or, if instead, she should focus on consolidation. She was also facing important organizational strategy decisions. Which functions should be left to national affiliates to decide, and which should be centralized at headquarters? What processes should be standardized, and which left to local initiatives?

Dow's Bid for Rohm and Haas

Esty, Benjamin C., and David Lane
December 2010

This case analyzes Dow Chemical Company's proposed acquisition of Rohm and Haas in 2008. The $18.8 billion acquisition was part of Dow's strategic transformation from a slow-growth, low-margin, and cyclical producer of basic chemicals into a higher-growth, higher-margin, and more stable producer of performance chemicals. Simultaneously, Dow had signed a joint venture agreement with Petrochemical Industries Company (PIC) of Kuwait, a deal that would generate $7 billion in cash that could be used to finance the all-cash offer to buy Rohm and Haas. Dow and Rohm announced the Rohm merger on July 10, 2008, just before the financial crisis in September 2008. The focus of the case is on what happened after the financial crisis turned into a global economic crisis. Dow, like all chemical producers, suffered as the global economy fell into recession during the second half of 2008 and as financial markets froze. To make matters worse, PIC cancelled the joint venture with Dow in December 2008. As a result, Dow was hurt on three fronts: first, it lost an important funding source for the proposed acquisition; second, Dow's financial condition and internal cash flow deteriorated dramatically (its stock price was down more than 70% during 2008); and third, Rohm's forecast sales, earnings, and value declined precipitously thereby reducing its attractiveness as an acquisition target. Given this confluence of events, Dow sued to cancel the merger agreement with Rohm in January 2009. Rohm responded with its own lawsuit to force consummation of the deal. As of February 2009, Dow's board of directors and its CEO Andrew Liveris have to decide what to do first and foremost about the Rohm acquisition and the pending lawsuits, but also about the firm's declining financial performance and the PIC joint venture.

Capital for Enterprise UK: Bridging the SME Early-Stage Finance Gap

Lerner, Josh, Eli Talmor, Ananth Vyas Bhimavarapu, and Thibaud Simphal
November 2010

The CEO of the company set up to manage a British government effort to promote the venture capital industry considers the progress made to date, as well as how the program can be adjusted.

Cosmeticos de Espana, S.A. (A)

Hawkins, David F.
November 2010

Management must decide which exchange rate to use to consolidate the company's Venezuelan subsidiary.

Cosmeticos de Espana, S.A. (B)

Hawkins, David F.
November 2010

Second case in the Cosmeticos de Espana case series. What should management's accounting response be to a devaluation of the Bolivar?

Cosmeticos de Espana, S.A. (C)

Hawkins, David F.
November 2010

The third case in the Cosmeticos de Espana case series. What should management's accounting response be to a further devaluation of the Bolivar?

Cosmeticos de Espana, S.A. (D)

Hawkins, David F.
November 2010

The fourth case in the Cosmeticos de Espana case series. What should management's accounting response b to the imposition of foreign currency controls?

Grameen Danone Foods Ltd., a Social Business

Rangan, V. Kasturi and Katharine Lee
November 2010

Grameen Danone is a joint venture between the Grameen Group (a sister company of Grameen Bank) and Groupe Danone, a $2 billion (revenues) French food company. The company's goal was to provide nutritional yogurt (brand name Shoktidoi) for the nearly 50 million Bangladeshi children using an innovative social business model. The case describes the progress as of 2008 and poses questions regarding how the company might achieve sustainability.

Post-Crisis Compensation at Credit Suisse (A)

Rose, Clayton S., and Aldo Sesia, Jr
October 2010

On October 20, 2009, Brady Dougan, the CEO of Credit Suisse Group, announced a new compensation plan for the bank. The announcement had followed quickly on the heels of the G-20 meeting the prior month where, in the wake of the financial crisis, the major governments had laid out a set of guidelines for compensation in the financial industry. Credit Suisse Group was the first firm to adopt the G-20 guidelines and did so a year ahead of the suggested timetable. While responsive to the concerns of regulators and politicians, Credit Suisse's program was more than a knee-jerk reaction; the new compensation plan had been the result of a "10-year journey" to reshape the culture of the firm. After a significant investment of senior leadership time to explain the new program to employees, a significant new challenge arose. On December 9, the U.K. government announced it would impose a one-time 50% tax on bankers' bonuses greater than £25,000. Dougan and the executive team had to decide how best to fund this tax. Was it fair or appropriate to have the shareholders shoulder the burden of the tax? Similarly, was it fair to ask the U.K. employees to suffer relative to their peers in other countries?

Post-Crisis Compensation at Credit Suisse (B)

Rose, Clayton S., and Aldo Sesia, Jr
October 2010

The (B) case describes how Credit Suisse management allocated the cost of the 25% U.K. banker's tax among shareholders, U.K. managing directors, and the other employees globally.

Post-Crisis Compensation at Credit Suisse (C)

Rose, Clayton S., and Aldo Sesia, Jr
October 2010

The (C) case describes the results of Credit Suisse's PIP I program, the value of PAF, shareholders' vote on the new compensation plan supported by management, and the impact of the company's approach to the U.K. banker's tax.

Société Générale (A): The Jerome Kerviel Affair

Brochet, François
September 2010

This case illustrates the tension/balance that firms with complex and risky business models must consider in designing their internal controls. It describes the environment in which a derivatives trader engaged in massive directional positions on major European stocks and indexes without being detected for over a year. Although the case could be used to teach the basics of internal controls, it is likely to be more effective by eliciting a debate about how predictable the incident was, and whether or not there was anything fundamentally flawed about the company's choices in terms of strategy, control systems, and culture. It also provides an opportunity to discuss the challenges of dealing jointly with a market-wide crisis (subprime) and a company-level crisis.

Société Générale (B): The Jerome Kerviel Affair

Brochet, François
September 2010

Supplements the (A) case

Vitalia Franchise

Herzlinger, Regina E., Beatriz Munoz-Seca
September 2010

Cathy Hoffmann has rapidly grown her novel facilities for day care therapy for elders with mild cognitive and physical problems. But she needs to decide whether to franchise or own the next expansion.

Werner von Siemens and the Electric Telegraph

Jones, Geoffrey G., Bjoern von Siemens
September 2010

This case describes the nineteenth century founding by Werner Siemens of the Siemens electrical business in Germany. Werner's dual role as inventor and entrepreneur is explored as he created one of the world's first multinational enterprises, whose growth initially rested on its pioneering role in the new telegraph industry. Werner sent his brothers to open businesses in Great Britain and Russia, and the case explores the advantages and disadvantages of family business as a form of organization, as well as the challenges growing it poses for such family firms.

Note: Regulation of Hedge Fund Managers in the U.K. Before and After the Global Financial Crisis

Pozen, Robert C., Melissa Hammerle
September 2010

This note will examine the regulatory framework for hedge funds in the United Kingdom (UK) before and after the financial crisis of 2008. First, it will discuss European Union (EU)-level regulation that applies to the UK as an EU member state. Second, it will discuss UK-specific regulation. Finally, this note will cover anticipated changes to regulation, both at the EU-level and within the UK, resulting from the financial crisis.

Emerging Nokia?

Alcacer, Juan, Tarun Khanna, Mary Furey, Rakeen Mabud
September 2010

By late 2009, Nokia was grappling with the decision of whether to recover its leading position in the high-profit developed markets, where they were losing market share to the likes of Apple and Samsung, or defend its market leadership in the low-margin, high-volume emerging markets. This case poses the following questions: Should Nokia stay the course, operating in both the developed and emerging markets, or should they forego one for the other? And what would this imply for the types of handsets and services they would need to offer?

Vereinigung Hamburger Schiffsmakler und Schiffsagenten e.V. (VHSS): Valuing Ships

Esty, Benjamin C., and Albert Sheen
August 2010

After booming for more than five years, the global shipping (maritime) industry experienced a dramatic crash in late 2008 as the global financial system froze and the global economy slid into recession. Ship charter rates (revenue) fell by as much as 90% causing prices of used ships to fall by as much as 80%. As ship prices (values?) fell, ship owners began to default on loans and new purchase contracts while banks holding loans secured by ships faced the possibility of increasing defaults (violations of loan-to-value covenants), foreclosures, and write-offs. In the midst of this crisis, VHSS, the German Shipbroker's Association, introduced a proposal to value ships using discounted cash flow analysis (to determine a long-term asset value, LTAV) rather than market prices from comparable transactions. Thomas Rehder, the chairman of VHSS, argued this approach was necessary because market prices did not reflect fundamental values in the current environment. After announcing the alternative valuation methodology in September 2009, he must convince industry participants-ship owners, appraisers, and bankers-to adopt the new valuation methodology and bank regulators and auditing firms to approve its use.

One Firm One Future at Davis Langdon (A)

Eccles, Robert G., and Kaitlyn A. Simpson
August 2010

Senior Partner Rob Smith just led construction consultancy firm Davis Langdon through a major organizational change in Europe and the Middle East. In the past, compensation arrangements had not incentivized partners to collaborate across the firm to serve clients' increasingly global and complex needs. In 2007, under Smith's leadership, the partnership agreed to implement holistic change. This included a shift from geographical to sector structure and a new profit-sharing system that encouraged partners to work together for the benefit of the firm as a whole. Amidst the global economic crisis, Smith must decide how to extend on a global basis the alignment the firm has begun to achieve in Europe and the Middle East.

One Firm One Future at Davis Langdon (B)

Eccles, Robert G., and Kaitlyn A. Simpson
August 2010

Supplements the (A) case

One Firm One Future at Davis Langdon (C)

Eccles, Robert G., and Kaitlyn A. Simpson
August 2010

Supplements the (A) case

Tesco PLC: Fresh & Easy in the United States

Quelch, John A.
August 2010

Tesco, the world's third largest retailer, is facing problems with its launch of a new retail chain in the U.S.

Heidrick & Struggles and Standard Chartered Bank: Managing Global Key Accounts

Eccles, Robert G., and Kerry Herman
August 2010

Daren Kemp, a partner at leadership consultancy and executive search firm Heidrick & Struggles, is responsible for the firm's relationship with Standard Chartered Bank (Standard Chartered). Standard Chartered is one of 94 companies in Heidrick's strategic partners program (SPP). The purpose of the SPP is to build strategic, value-based relationships with clients. Kemp joined Heidrick in 2008 and by 2010 has successfully built a strong relationship with Standard Chartered. The case describes how Kemp and his team grew this relationship and raises questions about what can be learned from this experience and applied to the other accounts in the SPP.

Baltic Beverages Holding: Competing in a Globalizing World (A)

Alcácer, Juan, Rasmus Molander, and Rakeen Mabud
July 2010

The Finnish brewer Hartwall and the Swedish brewer Pripps had to decide how to react to the rapidly changing European political, economic, and business environment in 1989-1990.

Baltic Beverages Holding: Competing in a Globalizing World (B)

Alcácer, Juan, Rasmus Molander, and Rakeen Mabud
July 2010

In 1991, Hartwall and Pripps made the decision to found Baltic Beverages Holding (BBH) and invest in the former USSR by buying Estonia's biggest brewery, Saku.

Central Europe after the Crash: Between Europe and the Euro

Comin, Diego, Dante Roscini, and Elisa Farri
July 2010

This note briefly reviews the financial crisis in central Europe in late 2008 and summarizes how four central European countries-Poland, the Czech Republic, Hungary, and Slovakia-have coped with the economic downturn.

An Overview of Project Finance and Infrastructure Finance-2009 Update

Esty, Benjamin C., and Aldo Sesia Jr.
July 2010

Provides an introduction to the fields of project finance and infrastructure finance and gives a statistical overview of project-financed investments over the years from 2005 to 2009. Examples of project-financed investments include the $1.4 billion Mozal aluminum smelter in Mozambique, $4 billion Chad-Cameroon pipeline, $6 billion Iridium global satellite telecommunications system, $900 million A2 Toll Road in Poland, $20 billion Sakhalin II gas field in Russia, and the $28 billion Dabhol power project. Globally, firms financed $240 billion of capital expenditures using project finance in 2009, down from $409 billion in 2008 as the financial crisis hit the Western markets. The use of project finance has grown at a compound rate of 0% over the last five years, 4% over the past 10 years, and 12% over the past 15 years. This note focuses primarily on private sector investment in industrial and infrastructure projects and contains four sections. The first section defines project finance and contrasts it with other well-known financing mechanisms. The second section describes the evolution of project finance from its beginnings in the natural resources industry in the 1970s, to the U.S. power industry in the 1980s, to a much wider range of industry applications and geographic locations in the 1990s, and most recently to infrastructure finance in the 2000s. The third section provides a statistical overview of project-financed investment over the last five years (2005 to 2009) and looks at industry, project, and participant specific data. The third section also provides recent data on infrastructure investments and public-private partnerships. The final section discusses current and likely future trends.

Looking for Opportunity in Adversity: Iqbal Quadir and Grameenphone (A)

Chakravorti, Bhaskar, and David Lane
July 2010

Iqbal Quadir, a former New York investment banker, set about to bring universal telecommunications to his native Bangladesh. He was convinced that GSM, the same advanced wireless technology that penetrated developed countries in Europe, was also the right solution for Bangladesh. He assembled a critical group of partners in a venture, GrameenPhone, which included Scandinavian telecom operators; Grameen Bank, the microfinance pioneer; Bangladesh Railways; as well as a Japanese investment firm. Each partner brought a different capability to the venture, but the coalition was fundamentally unstable. Quadir was facing roadblocks no matter which way he turned in his quest to assemble the venture. He came to a point where the rational decision seemed to be to abandon the venture and return to his secure investment banking job. This case highlights the role of bottlenecks and constraints in sparking innovations in business models by the creative entrepreneur.

Looking for Opportunity in Adversity: Iqbal Quadir and Grameenphone (B)

Chakravorti, Bhaskar, and David Lane
July 2010

Supplements the (A) case.

Roche's Acquisition of Genentech

Baldwin, Carliss Y., Bo Becker, and Vincent Dessain
July 2010

Franz Humer, CEO of the Roche Group, must decide whether to mount a hostile tender offer for the publicly owned shares of Roche's biotechnology subsidiary, Genentech. The case provides opportunities to analyze Roche's strategy with respect to Genentech, the pros and cons of merging the two companies with different cultures, the value of Genentech, and the tactics of a hostile tender offer.

The Credit Crisis of 2008: An Overview

Narayanan, V.G., Fabrizio Ferri, and Lisa Brem
July 2010

This case examines the causes and consequences of the credit crisis of 2008 from a national and global perspective and explores the actions taken and proposed by the U.S. and European governments.

Dassault Systèmes

Thomke, Stefan, and Daniela Beyersdorfer
June 2010

Dassault Systèmes, a leader in product lifecycle management software, has enjoyed a very profitable business model in 3D engineering design. In the past, it has successfully managed market disruptions and opportunities through acquisition and organic innovations. Its latest brands, 3DVIA, offers 3D models and lifelike experiences to a new non-professional client category, the consumer. In November 2009, President and CEO Bernard Charlès has to decide how to best address this new market segment, characterized by rapidly expanding open communities and new pricing models. What is the right business model for the new brand, and how will it affect the future of Dassault Systèmes?

Highland District County Hospital: Gastroenterology Care in Sweden

Porter, Michael E., Jennifer F. Baron, and Martin Rejler
June 2010

Sweden's Highland District County Hospital, similar to a community hospital in the U.S., undertook a major restructuring to integrate care delivery for medical conditions served by the Department of Medicine. Each subspecialty within the department would form a single, co-located unit with its own budget that encompassed both inpatient and outpatient care. This case examines the experience of the Highland Gastroenterology Unit, comparing the delivery model for inflammatory bowel disease in 2001 and 2009, before and after the reorganization. The case can be used to examine health care provider strategy, integrated care delivery, and quality measurement. The case also profiles Sweden's single-payer health care system, allowing for a discussion of national health systems and health policy.

Danatbank

Moss, David A., Cole Bolton, and Andrew Novo
June 2010

In the summer of 1931, Germany was struggling with a deepening economic crisis. Production had fallen, unemployment was high, and bank deposits and gold were being withdrawn from the country at a rapid pace, threatening the value of the German mark. The country's third largest bank, the Danatbank, was especially hard hit by the flagging economy and the flight of capital. By July, the Danatbank was on the verge of collapse, and the bank's charismatic and controversial senior partner, Jakob Goldschmidt, appealed personally to the government, the central bank, and his private banking rivals for a lifeline.

The Vitality Group

Herzlinger, Regina E.
June 2010

Vitality is part of a $2 billion start-up South African and U.K. health insurance firm. It has achieved excellent results in rewarding people for promoting their health. It is now contemplating how to enter the U.S. market.

Chrysler's Sale to Fiat

Foley, C. Fritz, Lena G. Goldberg, and Linnea Meyer
June 2010

This case provides students with an opportunity to analyze the restructuring of Chrysler in the midst of the financial crisis of 2008-2009. It describes how debtors can use section 363 of the U.S. Bankruptcy Code to sell assets quickly. It allows for discussion of who benefits and who loses in such restructurings, and it also raises a variety of policy issues concerning 363 sales and the appropriate role of government entities in restructurings.

Global Diversity and Inclusion at Royal Dutch Shell

Sucher, Sandra J., and Elena Corsi
June 2010

Royal Dutch Shell has been among the early players to implement diversity and inclusion policies in the 1990s, first in the U.S. and then globally. In May 2009, Peter Voser, CFO and soon-to-be CEO, wants to adjust the company's business, headcount, and cost levels to adapt to changing economic conditions after one of the worst economic downturns in decades. His all-male executive committee has raised eyebrows since it is a step back from that of his predecessor, and he must decide whether to continue to promote the firm's emphasis on global diversity and inclusion while it restructures its business and reduces its managerial workforce.

Nestlé's Milk Districts: Case Supplement

Goldberg, Ray A., and Kerry Herman
May 2010

Nestlé, as the largest milk company in the world, has a history of economic development, nutrition, health, and food safety in all the major countries of the world. Each milk model is tailor-made to the needs of each country's political, social, and economic priorities. Supplements the case "Nestlé's Milk District Model: Economic Development for a Value-Added Food Chain and Improved Nutrition."

NFL U.K.

Ofek, Elie, and Peter Wickersham
May 2010

The NFL faces a decision on how to continue efforts to grow its fanbase in the U.K. The decision needs to take into account lessons learned from previous NFL activities in Europe, market research on the U.K. sports fan, and the implications of any move on the U.S. fan. Moreover, the decision should be couched within the broader context of the NFL's goal to expand internationally. Alistair Kirkwood, head of NFL U.K., and Chris Parsons, VP of NFL International, must propose a course of action that the London-based team can both execute and that will receive the approval of the NFL's commissioner and owners.

Mercadona

Ton, Zeynep, and Simon Harrow
May 2010

This case presents the predicament of a company trying to do right by its customers and its employees as the economic crisis of 2008 hits home. Fifteen years earlier, this Spanish supermarket chain had adopted its own version of total quality management, called the Total Quality Model, switching from the industry's traditional high-low pricing to "always low prices" and continuous improvement. These changes called for a well-trained, empowered, and enthusiastically engaged workforce dedicated to providing the best products and service to their customers, who were always and seriously referred to as "the Bosses." The Total Quality Model had been a success in terms of company growth and profitability, sustained by the success of Mercadona's unusually high investment in employee training and satisfaction. Nevertheless, when sales growth slowed down in 2008, CEO Juan Roig concluded that Mercadona had let its customers down by not keeping prices low enough for such hard times. Mercadona set about lowering its prices, reducing product variety, and lowering its financial targets for 2009. Of the 9,200 SKUs in an average store, the company decided to eliminate 1,000. But Roig still had to decide what to do about employee bonuses. Since Mercadona did not meet its 2008 targets, the company policy was that no one-not even top management-would get a bonus. But Roig knew that his employees worked hard and well in 2008 and could not be held totally responsible for the downturn or for management's failure to react quickly enough.

Zotter-Living by Chocolate

Khaire, Mukti, Stefan Aichinger, Monika Hoffmann, and Maximilian Schnoedl
May 2010

This case is about a boutique chocolate manufacturer's decision to grow. Zotter, an Austrian company that was a pioneer in the organic and Fairtrade chocolate movement, uses the traditional confit technique to make premium hand-scooped chocolates in unusual and innovative flavor combinations. Having done many novel things to educate the market about the value of premium organic and Fairtrade chocolate, Zotter consolidated its market position within the premium segment of the Austrian market for chocolate. The company only recently started to sell its product outside Austria. However, the time- and labor-intensive manufacturing process and the high prices of Zotter chocolates limit the scalability of the company, even though the founder desires to grow. While the founder has many ideas for the firm, it is not clear which path would be optimal for the kind of growth he desires. The case provides students an opportunity to discuss how entrepreneurs create markets for novel products, and how they can consolidate their position.

Russia: Revolution and Reform.

Abdelal, Rawi, and Sogomon Tarontsi
May 2010

The collapse of central authority in the Soviet Union in 1991 ushered in a period of revolutionary transformations for the states that emerged in its wake. The leaders of Russia, the USSR's successor, since then have struggled to reestablish central authority while seeking to avoid further disintegration, establish a democratic polity, and institute a market economy. The case contrasts different approaches adopted by Presidents Boris Yeltsin and Vladimir Putin and concludes with a vision outlined by Russia's third post-Soviet president, Dmitry Medvedev. The case focuses on problems of state authority, fiscal capacity, institutionalization of political parties, relations between the federal center and provincial governments, relations between the state and big business, economic policy, and models of economic development.

Foreign Direct Investment and Ireland's Tiger Economy (B)

Alfaro, Laura, and Matthew Johnson
May 2010

Supplements the (A) case

Living PlanIT

Eccles, Robert G , Amy C. Edmondson, Susan Thyne, and Tiona Zuzul.
April 2010

Living PlanIT is a start-up company that has developed a new, innovative business model for sustainable urbanization. This model reflects the software and technology backgrounds of its founders, Steve Lewis and Malcolm Hutchinson, and is in vivid contrast to other models for green or smart cities that are variations on a massive real estate development project. The main economic engine driving Living PlanIT's model is a partner channel strategy adopted from the high technology industry. The case shows how the Living PlanIT business model has evolved from the original vision of Lewis and Hutchinson to radically transform the construction industry to a go-to-market partnership model using the real estate as a "showroom" for evolving sustainable urban technology-a $3 trillion global market over the next 20 years. Living PlanIT is developing its first project, a new city called PlanIT Valley, outside of Porto, Portugal. The company has clarified its vision and is moving into the implementation phase, which involves fundraising, signing up channel partners, and negotiating various issues with the Portuguese government for its pilot project. Success in PlanIT Valley will translate into a strong market position as global population and demand for new cities increases, particularly in developing countries such as China and India.

Ebro Puleva

Bell, David E., Antonio Garcia de Castro, Rocio Reina Paniagua, and Mary Louise Shelman
April 2010

Once Spain's largest sugar company, Ebro Puleva has been transformed through a series of international acquisitions into the world's largest package rice company and second largest pasta company. In 2009, Chairman Antonio Hernandez Callejas must decide how to proceed now that the firm's sugar business has been sold. A specific question is whether the firm should sell its dairy business, which is limited to Spain. The case discusses the firm's branding strategy, approach to integration, and organizational structure used to manage a global business. The case also describes several changes in consumer behavior and the retail food market brought on by the global financial crisis.

International Lobbying and The Dow Chemical Company (A)

Daemmrich, Arthur A.
April 2010

This case explores company strategy, business-government relations, and collective action challenges associated with international and domestic lobbying regarding regulation of the chemical industry. In the fall of 2006, a five-year legislative process for a major new law regulating chemicals in the European Union appeared to be nearing its conclusion. REACH-the Registration, Evaluation, Authorization, and Restriction of Chemicals-would create a new European Chemicals Agency, require companies to submit testing data on existing and new compounds, and restrict the manufacture of hazardous substances. Andrew Liveris, CEO of the Dow Chemical Company, has to decide whether the company should engage in direct discussions with the European Parliament and Commission, with the implication that the company can influence the regulations but also would have to support the final outcome. The case summarizes Dow's history, competitive dynamics in the sector, and regulation of the chemical industry before describing the REACH legislative process and various approaches to lobbying used by chemical companies, trade groups, and environmental NGOs.

International Lobbying and The Dow Chemical Company (B): Regulatory Reform in the USA?

Daemmrich, Arthur A.
April 2010

No abstract available.

Lyondell Chemical Company

Gilson, Stuart C., and Sarah L. Abbott
April 2010

Hit with an industry recession and the global financial crisis of 2008, in January 2009 LyondellBasell Industries AF S.C.A., one of the world's largest internationally diversified chemical companies headquartered in The Netherlands, placed its U.S. operations and a German subsidiary under U.S. Chapter 11 bankruptcy protection. To successfully reorganize as a going concern, the company sought to raise over $8 billion in a super-priority "Debtor-in-Possession (DIP)" loan from a group of 13 financial institutions, including commercial banks, investment banks, hedge funds, and private equity funds. Representing one of the largest DIP loans in history, this financing was considered critical to the company's survival. One unique and controversial feature of the financing was a $3.25 billion "roll-up" facility, under which a number of Lyondell's pre-bankruptcy lenders were allowed to significantly elevate the priority of debts they were already owed (so that they ranked ahead of all other pre-bankruptcy debts owed by the company), provided the lenders advanced new loans to the company to help finance its restructuring. With a costly liquidation as the alternative, various creditor groups objected to the DIP financing package, putting Lyondell's reorganization, and survival as a going concern, at significant risk.

IFP, Indonesia

Shapiro, Roy D.
April 2010

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.

The EC Rains on Oracle/Sun

Goldberg, Lena G.
March 2010

The re-occurring phenomenon of sovereign default has prompted an enormous theoretical and empirical literature. Most of this research has focused on why countries ever chose to pay their debts (or why private creditors ever expected repayment). The problem originates from the fact that repayment incentives for sovereign debts are minimal since little can be used as collateral and the ability of a court to force a sovereign entity to comply has been extremely limited, especially given the lack of a supranational legal authority capable of enforcing contracts across borders. In this paper we contrast the market reaction to attempts to enforce sovereign debt contracts via U.S. "dollar diplomacy" in Latin America in the pre-World War II period and by legal action in the 1990s and early 2000s. We argue that dollar diplomacy created an effective and credible enforcement regime while legal actions by creditors, conversely, do not appear to have done so.

SIPEF: Biological Assets at Fair Value under IAS 41

Riedl, Edward J., and Kristin Meyer
March 2010

We investigate financing constraints in a large cross-country data set covering most of the European economy. Firm-level investment sensitivity to cash flow is used to identify financing constraints. We find that the sensitivities are significantly positive, on average, controlling for country and industry fixed effects, as well as firm-level controls. Most importantly, the cash flow sensitivity of investment is lower in countries with better-developed financial markets. This suggests that financial development may mitigate financial constraints. This effect is weaker in conglomerate subsidiaries, which are likely to have access to internal capital markets and depend less on the outside financial environment, and possibly for firms in industries with highly liquid assets as well. This result sheds light on the link between financial and economic development.

Managing Drugs on the Forefront of Personalized Medicine: The Erbitux and Vectibix Story

Hamermesh, Richard G., Raju Kucherlapati, and Rachel Gordon
March 2010

Stable category meanings act as institutions that facilitate market exchange by providing bases for comparison and valuation. Yet little is known about meaning construction in new categories or how meaning translates into valuation criteria. We address this gap in a descriptive study of these processes in an emerging category-modern Indian art. Discourse analysis revealed how market actors shaped the construction of meaning in the new category by reinterpreting historical constructs in ways that enhanced commensurability and enabled aesthetic comparisons and valuation. Analysis of auction transactions revealed greater inter-subjective agreement about valuation over time, as the new category institutionalized.

NovoCure Ltd.

Sahlman, William A, and Sarah Greene Flaherty
February 2010

Venture capitalist William Doyle must raise $35 million for a portfolio company with a promising, novel cancer therapy, just as global capital markets are imploding in the fall of 2008. NovoCure, Ltd., has developed an electrical-field-based therapy, called Tumor Treating fields, for the treatment of cancerous tumors. The therapy has shown significant efficacy with no side effects after five years of testing in human patients. Doyle believes NovoCure has the potential to become an important company with a major new cancer therapy platform but must complete pivotal (Phase III) clinical trials and receive FDA approval. Doyle's venture capital firm, WFD Ventures, has invested $25 million in three rounds to fund pilot clinical trials for glioblastoma and other non-small cell lung cancer, and the first pivotal clinical trial for glioblastoma. Additional financing is needed to proceed with the strategically important second pivotal trial. In the fall of 2008 Doyle was negotiating the final terms of an investment by two prominent hedge funds when the liquidity crisis caused the hedge funds to withdraw from the transaction. Dole must now reevaluate his options for securing the needed financing for this promising young company.

Barclays Wealth: Reignite WAR or Launch AlphaStream?

Goldberg, Lena G., and Elisa Farri
February 2010

In late January 2009, Thomas Fekete, Managing Director at Barclays Wealth in London, redeemed the most illiquid positions in the so-called Wealth Absolute Return Fund (WAR), one of Barclays Wealth's most promising offshore funds of hedge funds, and halted the Fund's investment activities. For Fekete, the decision to declare the WAR funds a ''failed experiment" marked a turning-point. In May 2009, money from the redeemed underlying funds would become available, and by that date, he had to develop a new investment strategy. Fekete faced two options. Option one was to revive the WAR Fund. Option two was to shelve the WAR Fund and launch a new fund of UCITS regulated funds domiciled in Europe with UCITS qualification. Which strategy would be the best way to invest during this period of crisis, to the benefit of both Barclays Wealth and its clients?

Gilead Sciences Inc.: Access Program

Rangan, V. Kasturi, and Katharine Lee
February 2010

Gilead Sciences, the U.S. leader in HIV/AIDS medicines, with global sales of $5.4 billion in 2009, had undertaken several innovative actions to make its anti-viral products available to over 100 low- and middle-income countries. Having reached nearly 680,000 patients by the middle of 2009, the company's senior managers contemplated how to reach 2 million patients by 2012.

Messer Griesheim (A)

Lerner, Josh, Ann-Kristin Achleitner, Eva Lutz, and Kerry Herman
February 2010

In 2001, Allianz Capital Partners and Goldman Sachs acquired a majority stake in Messer Griesheim, a European industrial gas concern held by Hoechst. The dealmakers faced several challenges, including delicate corporate governance issues due to partial family ownership and a consolidating market for industrial gases. Aiming to make Messer Griesheim a more attractive potential acquisition, Messer Griesheim management had drawn up a restructuring plan as early as 2000. By late 2003 the private equity players were ready to exit and the Messer family agitated for further control. Several factors were in play: the family had a buy-back option, the window of which was quickly closing; there were few possible strategic buyers, given the anti-trust issues facing a European player interested in buying the firm; and the family made no secret of its desire to retain a piece of the firm, at the very least, and some measure of control. The case explores the steps taken by the private equity investors to restructure the firm, and the relationship the partners forged with the family owners, to bring about a favorable exit for the private equity partners and ownership for the Messer family.

Messer Griesheim (B)

Lerner, Josh, Ann-Kristin Achleitner, Eva Lutz, and Kerry Herman
February 2010

Supplements the (A) case

Zara: Managing Stores for Fast Fashion

Ton, Zeynep, Elena Corsi, and Vincent Dessain
February 2010

Pablo Isla, the CEO of Zara, wanted to improve operational efficiencies in managing its store network. In particular, he wanted to improve labor productivity at the stores. He considered outsourcing certain store operations to third parties, changing the way store managers were compensated, and creating formal operating procedures for store operations. But he knew he had to be careful. Could an emphasis on improving labor productivity hurt other aspects of store operations?

Philips versus Matsushita: The Competitive Battle Continues

Bartlett, Christopher A.
January 2010

Describes the development of the global strategies and organizations of two major competitors in the consumer electronics industry. Over four decades, both companies adapt their strategic intent and organizational capability to match and counter the competitive advantage of the other. The case shows how each is faced to restructure as its competitive advantage erodes.

Managing Talent at Bertelsmann AG (A)

Groysberg, Boris, Nitin Nohria, Mark C. Maletz, and Kerry Herman
January 2010

Bertelsmann's EVP HR Immanuel Hermreck and his team were focused on four key HR issues. Three of these were somewhat discreet: improving Bertelsmann's employer brand; managing Bertelsmann talent across the firm's decentralized businesses; and ensuring early identification and appropriate development of Bertelsmann's top 100 high potential managers (hi-pos) to better seed the company's future top management. The fourth issue-recruitment and retention-played an integral role across all three challenges and had to be strengthened and made consistent across the firm, not an easy prospect given Bertelsmann's highly decentralized structure. Hermreck knew navigating these issues would pose significant challenges, but getting them right was critical to Bertelsmann's competitive advantage and survival as a robust media company. He had some good results in from his early efforts, but as he looked forward, what should his action plan set out to do?

Akin Ongor's Journey

Kanter, Rosabeth Moss
January 2010

A retired bank CEO, one of Turkey's most admired leaders, wants to start a leadership institute to develop emerging leaders in the eastern Mediterranean region. Describes his biography and values, the models he established for excellent financial performance and corporate social and environmental responsibility at the bank, and his attempt to partner with an American university to establish the institute. His first approach did not work; what should he do now?

2009

Nanosolar, Inc.

Steenburgh, Thomas, and Alison Berkley Wagonfeld
December 2009

Nanosolar is a start-up company in the clean tech sector. It expects to be one of the first manufacturers to produce thin-film solar panels using copper indium gallium (di)selenide (CIGS) technology. Although this technology is less efficient in producing electricity than polysilicone, it is much less costly too. As it is about to enter the market, Nanosolar is facing the decision on which market to enter. Should it attempt to go into the European market which has established feed-in tariffs? Or should it enter the nascent, but growing, U.S. market?

VF Brands: Global Supply Chain Strategy

Pisano, Gary P., and Pamela Adams
December 2009

This case examines VF Brands global supply chain strategy. Historically, VF has used a combination of in-house manufacturing and traditional arms-length sourcing arrangements. At the time of the case, the company is considering a third approach to supplier relations that involves much closer cooperation and partnerships. The goal of this "third way" approach is to create a sourcing relationship that combines some of the virtues of vertical integration with the flexibility of sourcing. Such arrangements are increasingly discussed in the operations literature and in practice. This case provides students an opportunity to do an in-depth analysis of such an arrangement and develop an understanding of the trade-offs involved.

GE Money Bank: The M-Budget Card Initiative

Tushman, Michael L., Sebastian Raisch, and Christian Welling
December 2009

The M-Budget Card case study is about mastering the challenges of an exploratory strategic initiative in a context marked by time pressure and frequent change. M-Budget was the first of a series of highly successful projects that established GE Money Bank as a leader in the Swiss credit card market. The business concept was to cooperate with the country's leading retailer MIGROS to develop an innovative credit card offering, the M-Budget card. The M-Budget card was launched a mere six months later and was an immediate success. The demand for the card exceeded expectations by far and the bank was inundated by more than 100,000 applications in the first weeks. The road to the successful market launch, however, was a rocky one and the team around Pierre had to master numerous challenges. Pierre, who took the lead in the initiative, had to select the right people to compose a team that had all the expertise and knowledge required to develop an entirely new market offering. A competitive move by the second largest retailer COOP forced the team to change its initial value proposition while working under intensive time pressure. Finally, the team had to overcome a series of operational problems after the initial market launch. The case study retraces the initiative's development over time and describes the leadership and organizational challenges faced by the team on its way to the successful creation of an entirely new business segment.

Stolt-Nielsen Transportation Group

Paine, Lynn S., and Lara Adamsons
December 2009

Richard Wingfield considers whether to continue a cooperative agreement with industry peers in the deep-sea parcel tanker shipping industry. What are the economic and strategic implications of ending the agreement? What are the legal implications of continuing? Where is the line between cooperation and conspiracy, and what should a company do if the legality of a long-standing business practice comes into question?

Stolt-Nielsen Transportation Group (B)

Paine, Lynn S., and Lara Adamsons
December 2009

Supplements the (A) case

Stolt-Nielsen Transportation Group (C)

Paine, Lynn S., and Lara Adamsons
December 2009

Supplements the (A) case

Stolt-Nielsen Transportation Group (D)

Paine, Lynn S., and Lara Adamsons
December 2009

Supplements the (A) case

Stolt-Nielsen Transportation Group (Supplement)

Paine, Lynn S., and Lara Adamsons
December 2009

Supplements the (A) case

The London 2012 Olympic Games

Gourville, John T., and Marco Bertini
October 2009

It's 2009 and Paul Williamson, Head of Ticketing, must finalize ticket prices for the 2012 London Olympic Games. Yet, there are many criteria to consider. First, given the importance of ticketing to the Games' bottom line, he has a strong incentive to maximize revenues. Second, because the entire world will be watching, he wants to maximize attendance-not just at the Opening Ceremony and swimming finals, which are easy sells, but also at events such as handball and table tennis, which are not. Third, he wants to fill seats with the right people-knowledgeable fans who add to the energy and atmosphere of the event. Finally, tickets have to be accessible not only to the world's elite but also to average Londoners, many of whom live around the corner from the Olympic Park.

Transworld Auto Parts (A)

Narayanan, V.G., and Lisa Brem
October 2009

Transworld Auto Parts had to implement its new strategy flawlessly to survive the auto industry upheaval. The new CEO asked her leadership team to craft strategy maps and balanced scorecards to help each division implement its strategies.

Transworld Auto Parts (B)

Narayanan, V.G., and Lisa Brem
October 2009

Supplements the (A) case

Tenova: Mining for Growth in an Economic Crisis

Pisano, Gary P., Elena Corsi, and Elisa Farri
October 2009

In December 2008, Gianluigi Nova, CEO of Tenova SpA, a technology and equipment supplier to the metals and mining industry, had to choose between two options. The first was to continue growing in the company's core business: equipment for the steel production. The second option offered growth in a related, but nearly new business for Tenova: the equipment for mining, mineral processing, and extractive metallurgy. They only had a small presence in this market. Yet, Nova had to cope with the worldwide economic crisis whose destructive power hit every area of the metals and mining industry. Nova had to decide which option offered the best opportunity to grow in the worst economic crisis since 1929.

Publicis Groupe 2009: Toward a Digital Transformation

Kanter, Rosabeth Moss, and Matthew Bird
October 2009

After a series of acquisitions, Maurice Levy, the Chairman and CEO of Publicis Groupe, had created the fourth largest marketing and communications company in the world. His next major challenge was managing the firm's digital transformation. In December 2006, the company acquired Boston-based Digitas, a leading digital agency headed by David Kenny. After the initial merger, which included the unbundling of Digitas capabilities and the global expansion of its agency network, Publicis Groupe launched VivaKi, a new company-wide digital platform, to spearhead the firm's total transformation. But since the June 2008 launch, the global economy had taken a turn for the worse. Could Levy, Kenny, and other leaders change the holding company quickly and effectively enough to make the new model work?

Gucci Group: Freedom within the Framework

Martinez-Jerez, F. Asís, Elena Corsi, and Vincent Dessain
October 2009

Gucci Group's CEO had to decide if his decentralized management style was the most effective philosophy in an economic downturn. The sharing of customer information across units and its use in the creative process are key initiatives analyzed in the case. CEO Robert Polet joined the high-end fashion Gucci Group in 2004, after 26 years at one of the largest consumer goods companies. Since his arrival, the Group had grown both in revenues and profitability. Part of his secret was his decentralized and empowering management style. In 2008, in the midst of the economic downturn following the credit crunch crisis, Polet learned that after four years of growth the Gucci brand-the Group's largest business-would report a slowdown for the year's first semester. He knew that according to his management philosophy he should leave the primary decisions for the Gucci brand to Gucci's CEO. Yet, given the urgency of the situation, Polet wondered if it would be more effective to become directly involved in the brand's decision-making process. To anchor the discussion on Polet's management style, the case discusses how customer information is used in the creative process and whether it would be beneficial for the group to share customer information across stores, regions, and brands.

Procter & Gamble in the 21st Century (A): Becoming Truly Global

Kanter, Rosabeth Moss, and Matthew Bird
October 2009

Since the 1980s, Procter & Gamble had leveraged its purpose, values, and principles (PVP) to create a global company. When P&G faced difficult times in 2000, the new CEO, A.G. Lafley, leveraged the PVP to drive P&G's turnaround, integrate global operations, and guide decision making in all facets of the business. But the Gillette acquisition posed a new challenge.

Procter & Gamble in the 21st Century (C): Integrating Gillette

Kanter, Rosabeth Moss, and Matthew Bird
October 2009

P&G had used its purpose, values, and principles (PVP) to prepare for the physical integration of Gillette prior to the change of control. The execution of these plans posed numerous challenges in global business units as well as in individual country organizations. While managers sought to maintain business momentum during the transition, corporate leaders were intent on continuing to use Gillette as a catalyst of change.

Western Union: Our World, Our Family®

Marquis, Christopher
October 2009

In 2006, Western Union spun-off from its former parent, First Data Corporation, and began the process of defining itself as a stand-alone organization. Part of that effort was the creation of a strategic corporate social responsibility program called Our World, Our Family. The case tracks Western Union's earlier CSR initiatives and how they resulted in the creation Our World, Our Family. Key elements of the case focus on understanding the Western Union business model focused on financial remittances, and how its corporate citizenship efforts bring value to the company by satisfying the diverse needs of Western Union's stakeholders.

Verne Global: Building a Green Data Center in Iceland

Steenburgh, Thomas, and Nnamdi Okike
October 2009

Verne Global, a pioneering startup created to build the first large-scale data center in Iceland, faces critical challenges regarding its green strategy. Verne Co-Founder Isaac Kato is tasked with evaluating how the company can most successfully market and sell the green components of its service offering. Using only renewable energy in its data center facility, Verne can drastically reduce customers' carbon emissions, enabling customers to meet emerging government regulations and to capture the financial benefit of public goodwill arising from green initiatives. But how valuable are Verne's green benefits, and are they sufficient to compel customers to pay a premium for Verne services? Further, how can Verne best integrate its green strategy into its marketing and sales message? Finally, will Verne's green benefits enable the company to overcome obstacles in the sales process, or will they alternatively overcomplicate an already complex sales message? Kato's decision allows discussion of the emerging role of green marketing and sales and helps to identify how a product or service which is good for the environment can also be good for the bottom line.

Eden McCallum: A Network-Based Consulting Firm

Gardner, Heidi K., and Robert G. Eccles
October 2009

Eden McCallum pioneered the network-based ("virtual") consulting firm model in the U.K. Contracting freelance consultants on a per-project basis keeps overheads lean so that Eden McCallum's fees are a fraction of the big firms' rates. Their flexible, low-cost model has attracted top-notch corporate clients, resulting in steady double-digit annual growth in its first nine years. In January 2009, however, the global economic crisis has dramatically reshaped the competitive landscape and the founders must decide between pursuing their high-growth strategy versus retrenching-including cutting costs and pulling out of their first international expansion that they had launched the prior year. This case explores how the elements of a firm's innovative model reinforce each other and what happens when the environment changes.

Airbus A380-Turbulence Ahead

Raman, Ananth, William Schmidt, and Vishal Gaur
September 2009

Multiple delays of the Airbus A380 have shocked analysts and investors alike. What are the causes of these delays and how should investors respond to the signals they may be sending about the company's outlook?

The Blackstone Group: Merlin Entertainment

El-Hage, Nabil N., and Brenda Chia
September 2009

The Blackstone Group had conducted a roll-up of theme parks and attractions business in Europe. It was considering how to generate liquidity for its investors. Blackstone entered the theme parks and attractions business in Europe by acquiring a majority stake in U.K.-based Merlin Entertainment in 2005. In 2005 and 2006, Merlin Entertainment acquired two other similar businesses, LEGOLAND based in Denmark, and Gardaland based in Italy. At the end of 2006, Blackstone's team was weighing its options for generating liquidity for its investors. The options were to conduct a dividend recapitalization of Merlin Entertainment or to acquire The Tussauds Group. The acquisition, if successful, would result in the second-largest theme parks and attractions business in the world after Disney. The Tussauds Group was owned by another private equity firm, Dubai International Capital (DIC). Blackstone's goal was to make a minimum of 3x on its initial Merlin investment through the dividend recapitalization and at least 5x through the Tussauds acquisition. A third option arose while Blackstone was in negotiation with DIC. This was the opportunity to perform a sale-leaseback of the underlying real estate assets owned by Merlin and Tussauds. Based on the facts and financials provided, it is clear there were tradeoffs between the size of the potential returns for each option, timing, and the risks that have to be managed. What should the Blackstone team do?

Radiant Cosmetics: What's in a Pout?

Pozen, Robert C., and Mary Ellen Hammond
September 2009

In 2006, Radiant Cosmetics president and CEO, Margaret Clark, was contemplating the launch of a new, lip-plumping product called "Four Carat Pout." Clark faced many decisions concerning the launch: marketing the product as a luxury brand or a retail item; how to position the product as a possible starting point for an expanded anti-aging line; and how to market and distribute the product internationally, particularly in France. Issues of intellectual property were also essential to the launch-in the past, Radiant had faced problems with cosmetic counterfeits. With the launch of the new product, Four Carat Pout, Clark needed to decide whether to pursue patents, copyrights, and/or trademarks for various aspects of the new product. The case focuses on the interplay between marketing strategies and intellectual property issues in international fashion products.

Who Broke the Bank of England?

Ferguson, Niall, and Jonathan Schlefer
September 2009

In the summer of 1992, hedge fund manager George Soros was contemplating the possibility that the European Exchange Rate Mechanism (ERM) would break down. Designed to pave the way for a full-scale European Monetary Union, the ERM was a system of fixed exchange rates linking together twelve members of the European Union, including Britain, France, Germany, and Italy. However, the impact of German reunification after 1989 had created significant strains within the system. Moreover, financial deregulation and the growth of cross-border flows of "hot" money increased the likelihood that a speculative attack on one or more ERM currencies might succeed. Soros had to decide which currencies to bet against. The Italian lira? The British pound? The French franc? Or all three? The result could determine the success or failure of the project for a single European currency.

Spain: Can the House Resist the Storm?

Comin, Diego
August 2009

On September 16, 2008, President Rodriguez Zapatero recognized the severity of Spain's macroeconomic situation and clearly pointed to the culprit in front of the Spanish Congress: "Let nobody doubt it; there is already a wide consensus about the origin of the crisis: [It is] in the U.S. and its subprime mortgages." During the last eight years, Spain had gone through a phenomenal expansion that has had many important ingredients: immigration, housing boom, banking and financial market regulation, current account deficit, and productivity growth. This case analyzes how they interacted during the period 2000-2007 and what drove the Spanish recession in 2008.

Christian Dior: A New Look for Haute Couture

Jones, Geoffrey G., and Veronique Pouillard
August 2009

The case describes the foundation of Christian Dior, the leading Parisian fashion house, in 1946 and its subsequent globalization strategy. After explaining the historical origins of France's preeminence in upscale fashion, the case explores the challenges to this position from New York after World War 2, and the importance of Christian Dior's New Look in restoring French fashion to world leadership. The case examines, in particular, Dior's innovative strategy to combine a high-fashion business in Paris with a ready-to-wear business in New York, and his subsequent pursuit of licensing opportunities in jewelry and other luxury products. The case provides an opportunity to explore the role of creativity in the luxury fashion industry, and the challenges and opportunities of globalizing such an industry.

Alacra, Inc.

Applegate, Lynda M., and Aldo Sesia Jr.
August 2009

Description: In 2009, the CEO of Alacra, a venture-backed information services firm that provides customized data primarily to financial services firms, must decide how to respond to the global economic crisis.

Geographical Indications: I Say 'Kalamata,' the EU Says 'Black Olive' (A)

Pozen, Robert C., and Ani Satchcroft
July 2009

In April 2005, Alexandra was the owner of an Australian farm that produced olives, including Kalamata table olives. Alexandra had invested in the expansion of her farm in anticipation of the evolution of her market from domestic trade in Australia to international export. There was, however, a disruptive dispute before a WTO tribunal between Australia and the EU regarding the protection of Geographical Indications (GIs), which identify a product's origins and are treated as trademarks in some respects by international trade rules. Though Alexandra prepared her Kalamata olives in the traditional Kalamata technique, her use of the regionally specific name was threatened by the intellectual property rights provided by GIs. The case focuses on what should be the legal outcome of the WTO dispute, as well as possible business strategies by Alexandra in the event of an adverse outcome to Australia.

Geographical Indications: I Say 'Kalamata,' the EU Says 'Black Olive' (B)

Pozen, Robert C., and Ani Satchcroft
July 2009

Supplements the (A) case

Philips versus Matsushita: Competing Strategic and Organizational Choices

Bartlett, Christopher A
July 2009

Traces the evolving competition between two major multinationals over 40 years. Different strategic postures are reflected-and embedded-in different organizational postures. In 2009 the CEOs of both companies face new global strategic and organizational choices.

The DiagnoFirst Opportunity

Pozen, Robert C., Rukmini Balu
July 2009

John Mason, a principle at Oldwell Partners, was facing a decision of whether or not to invest in DiagnoFirst, a molecular diagnostics firm. DiagnoFirst's key product was a genetic test that identified a subset of prostate cancer patients with a high risk of clinical progression and death. DiagnoFirst had applied for patents, in both the U.S. and EU, for the sequence of 40 genes, the new methodology for gene amplification, and the specific mechanics of the genetic tests. Mason's decision to invest in DiagnoFirst was based in part on the likelihood of obtaining patents and in part on the projected cash flows of the business under various scenarios. This case examines issues of intellectual property in science, international differences in patent law, and the decision-making process of venture capital in biotechnology deals.

Denmark: Globalization and the Welfare State

Daemmrich, Arthur A, and Benjamin Kramarz
July 2009

This case describes how Denmark has balanced the impacts of globalization, including outsourcing and movement of labor, with its social welfare offerings. Reforms implemented during the past two decades drove down unemployment, promoted new company formation, and put the country at or near the top of international polls on the ease of doing business. The case describes how Danes forged a consensus that embraced international trade and outsourcing while supporting continuous upgrading of workplace skills. In April 2009, the new Prime Minister, Lars Løkke Rasmussen, is balancing short-term responses to a global recession against longer-term planning for the Danish labor market and macroeconomy. Can Denmark keep its borders open to the free movement of goods, services, and labor while also sustaining the breadth of its welfare offerings?

Executive Remuneration at Royal Dutch Shell (A)

Lorsch, Jay W., and Kaitlyn Simpson
July 2009

The remuneration committee at Shell decided to exercise their discretionary power to award five top executives a bonus for 2008, even though they had not met the necessary performance measures under the compensation plan. Proxy advisors RiskMetrics and the British Association of Insurers advise their clients to vote against the plan at the upcoming 2009 annual meeting. The Shell remuneration committee wonders how the shareholders will react.

Executive Remuneration at Royal Dutch Shell (B)

Lorsch, Jay W, and Kaitlyn Simpson
July 2009

At the 2009 Shell annual meeting, the majority of shareholders vote against the exclusive pay package. The B case compares the remuneration committee perspective (and their rationale for using discretion to award the bonuses) as well as the shareholder perspective (and their rationale for reacting so strongly against the pay package).

Actis: January 2008

Hardymon, Felda G., Josh Lerner and Ann Leamon
July 2009

Paul Feltcher, the CEO of Actis, a leading private equity investor in emerging markets, is preparing for an executive retreat at which the management team will consider how best to position the firm for the future. Actis could move in a number of different directions by expanding into new geographies, asset classes, or deal sizes. Choices made along these dimensions all have different implications for the degree of cohesion between the regions and the headquarters in London, the types of funds the firm will raise, and the skills required of employees. One of the final challenges is whether Actis, which has produced a very good track record, even needs to change its business model at this point.

Moods of Norway

Austin, Robert D., Shannon O'Donnell, and Dorte Krogh
July 2009

Describes a young fashion company competing in a variety of unconventional ways, many "experience economy" related. Moods fronts their brand with the "boy band" images of its three founders and designs eccentric features into their clothes as a way of gaining mindshare among customers even though they cannot spend on marketing the way their competitors do. The case invites students to explore an unusual business model in both concept and execution.

Symbian, Google & Apple in the Mobile Space (A)

Edelman, Benjamin G., Fernando Suarez and Arati Srinivasan
May 2009

Symbian, maker of a leading mobile smartphone operating system, faces new competition from Google and Apple. Symbian evaluates changes to its software and its relationships with distributors in order to meet these competitors.

Symbian, Google & Apple in the Mobile Space (B)

Edelman, Benjamin G., Fernando Suarez and Arati Srinivasan
May 2009

Supplements the (A) case

Note: Restructuring Distressed Companies-Cross National Comparisons

Fruhan, William E. Jr.
May 2009

This note briefly describes bankruptcy regimes and out-of-court restructuring in five countries: the U.S., the U.K., Germany, France, and Japan.

Brummer and the bracNet Investment

Ebrahim, Alnoor, Michael Pirson, and Patricia Mangas
May 2009

bracNet, a for-profit/nonprofit partnership, aims to establish Internet connectivity throughout Bangladesh. Venture capitalist Patrik Brummer invested in a first round of funding to connect major cities. Should he invest again, this time in a rural roll-out, which may have lower financial returns but greater social returns?

Sanctuary Soft, Inc.

Groysberg, Boris, Geoff Eckman Marietta, Tim Marshal, and Adam Hartley
May 2009

A U.S.-based security software company considers its options to expand. Different labor-market and labor-law situations are analyzed for the U.S., U.K., Germany, China, and India.

Supply Chain Optimization at Hugo Boss (A)

Raman, Ananth, Nicole DeHoratius, and Zahra Kanji
May 2009

We evaluate the impact of a supply chain pilot implemented at Hugo Boss. This pilot entailed altering the way in which Hugo Boss orders from its suppliers. We explore the challenge of assessing the impact of supply chain change, the link between operational performance and firm performance, and the relationship between sales, inventory, and product availability.

Supply Chain Optimization at Hugo Boss (B)-The M Ratio

Raman, Ananth, Nicole DeHoratius, and Zahra Kanji
May 2009

We evaluate the impact of a supply chain pilot implemented at Hugo Boss. This pilot entailed altering the way in which Hugo Boss orders from its suppliers. We explore the challenge of assessing the impact of supply chain change, the link between operational performance and firm performance, and the relationship between sales, inventory, and product availability.

Generation Investment Management

Sucher, Sandra, J., Daniela Beyersdorfer, and Ane Damgaard Jensen
May 2009

Examines the investment process of Generation Investment Management, a "sustainable" investing firm established in 2004 by David Blood and U.S. Vice President Al Gore. Places students in the position of David Lowish, director of global industrials, who must decide whether to recommend an investment in ABB India. The decision pits economic development-supplying energy to impoverished rural areas in India, against environmental damage-caused by the use of coal-fired power plants.

Addleshaw Goddard LLP

Eccles, Robert, G., Amy C. Edmondson, James Weber
April 2009

Addleshaw-Goddard (AG), the 15th largest law firm in the U.K., is seeking ways to serve larger clients on more important legal matters. Part of this strategy involves its "Client Development Centre (CDC)," an innovative idea and set of services launched by Dr. Jim Hever who holds a Ph.D. in Strategic Leadership Development. The mission of the CDC is to improve the capabilities of clients' in-house legal departments, such as by making them better partners with the business units and improving their leadership skills. The CDC has adopted an innovative pricing structure. Rather than charging direct fees for these consulting services, it proposed to the client that it contract with the firm for five times this amount in legal fees that might otherwise have gone to another law firm. It is in this way that AG hopes to increase its position in its larger clients. AG has also developed a very systematic program for identifying and serving its key clients, developed in collaboration with Cranfield School of Management. It is these clients that will be the focus of the efforts for the CDC. In addition, the firm has co-developed a training program with Cranfield to improve the skills of its own partners. The case explores whether these initiatives will lead to a long-term competitive advantage. The firm believes what really will produce competitive advantage is its "Me-To-You-Mindset" initiative that encourages partners to look at the world through their clients' eyes. At the end of the case Hever is reflecting on a proposal he submitted for providing CDC services to one of the largest U.K. companies. The general counsel wants to pay for these services in cash should he decide to accept the proposal, rather than hiring AG for more legal work. Hever is wondering if this is a good way to take advantage of recent reforms allowing law firms to provide other professional services, like consulting, or if this is "off-strategy" for the mission of the CDC.

Orange: Read&Go

Eisenmann, Thomas, Toby Stuart, Bhaskar Chakravorti, Vincent Dessain, Simon Harrow, and Elena Corsi
April 2009

In late 2008, Orange (aka France Telecom) must decide if launching Read&Go, an electronic newsstand built around an e-paper reader, would be successful. The case describes (1) Orange's strategy; (2) the company's new product development process; (3) e-paper technology, which simulates the appearance of printed paper on a screen; (4) consumer demand for e-paper services; (5) potential competitors, including Amazon's Kindle; (6) business model options for Orange's service; and (7) the reactions of French newspapers-crucial content partners-to Orange's proposal.

Putting Sparkle into Soda-Club's European Partnerships

Isenberg, Daniel J.
April 2009

Daniel Birnbaum, new CEO of Soda-Club, has taken charge of a company with significant market penetration, brand equity, and revenues in certain European markets. The company is also plagued with hostile relationships with major distributors. He needs to decide how to turn the situation around and create opportunity out of crisis.

SAP AG: Orchestrating the Ecosystem

Iansiti, Marco,
Lakhani, Karim R.,
April 2009

Business ecosystems require careful orchestration and strategic choices regarding make/buy/partner decisions and membership access. This case examines the strategic and technological issues related to managing SAP's thriving ecosystem of user communities, software vendors, integration partners, and technology providers. It details how the ecosystem gets developed and the challenges in meeting the needs of the internal organization, large partners, and small up-and-coming firms. SAP executives, in this case, have to make a decision if a relatively small startup firm should be elevated to the highest strategic partnership level, normally reserved for very large firms.

UBS and Auction Rate Securities (A)

Daniel Baird Bergstresser, Shawn Cole, Shinai Siddharth
April 2009

UBS, a global financial services company, must decide whether to continue to support the market for Auction Rate Securities in the face of a growing financial crisis. These instruments, underwritten by UBS, were marketed to clients as highly liquid and safe alternatives to cash. UBS' decision becomes urgent when Citigroup, another leading underwriter of ARS, decides to let their auctions fail, leaving clients with illiquid assets of uncertain value. The case explores theoretical and practical aspects of liquidity risk, and challenges students to evaluate the benefits of honoring implicit commitments to customers against the costs of acquiring billions of dollars in illiquid assets. The (B) and (C) cases consider the implications of UBS decision

UBS and Auction Rate Securities (B)

Daniel Baird Bergstresser, Shawn Cole, Shinai Siddharth
April 2009

Supplement to the (A) case

UBS and Auction Rate Securities (C)

Daniel Baird Bergstresser, Shawn Cole, Shinai Siddharth
April 2009

Supplement to the (A) case

Gucci Group in 2009

Yoffie, David, Renee Kim
April 2009

The Gucci Group had transformed itself into the world's third largest luxury retailer with multiple brands. The company had performed well even after the departure of star designer Tom Ford and former CEO Domenico De Sole. However, the challenging global economic times in 2009 raised the question whether it was time, again, to re-adjust Gucci's portfolio, especially as YSL continued to lose money.

Financial Management of Family and Closely Held Firms: Overview of the Course

Villalonga, Belen
April 2009

Most companies around the world are controlled by their founding families, including more than half of all public corporations in the U.S. and Europe and more than two thirds of those in Asia. These companies are the subject of the Financial Management of Family and Closely Held Firms course, an elective MBA course at Harvard Business School. The course introduces students to the unique finance, governance, and management issues faced by family firms and to the ways in which these issues can be addressed. The course provides students with a framework for analyzing how family ownership, control, and management affect value and whether and how more value can be created for the various stakeholders in family firms. The course is designed for students who may be involved with these companies in a variety of roles, including those of founders, shareholders, or managers of their own family's firm, as well as those of non-family managers and employees, investors or business partners (e.g., private equity investors), and advisors of various kinds (e.g., investment bankers, board members, or consultants).

South Pole Carbon Asset Management-Going for Gold?

Reinhardt, Forest, L., Jost Hamschmidt, Mikell Hyman
April 2009

In late 2008, Christoph Sutter, CEO of South Pole Carbon Asset Management, reflects on his firm's early success at originating carbon credits in developing nations and selling them to governments and firms that seek to offset their greenhouse gas emissions voluntarily or to fulfill regulatory obligations. South Pole's early strategy has focused on being a first mover in the niche market for premium quality carbon credits. But as the market evolves in the face of significant policy uncertainty, Sutter wonders what South Pole's strategy should be for the future. This case study can facilitate discussions about environmental markets, about opportunities for entrepreneurship raised by new environmental regulations, and about challenges in markets for tradable pollution permits.

VOSS Artesian Water from Norway

Moon, Youngme E., Gail McGovern, Daniela Beyersdorfer and Vincent Dessain
April 2009

VOSS is a Norwegian bottled water company that produces one of the world's purest drinking waters, sold at an ultra-premium price in a sleek cylindrical glass bottle of minimalist design. In the U.S. (the company's primary market), VOSS's high-end brand presence is strongest in on-premise locations-specifically, top-of-the-line restaurants, hotels, and clubs. The brand has only recently begun penetrating the off-premise channel. In June 2007, Ole Christian Sandberg, VOSS's founder and head of U.S. operations, is considering how to grow the brand. The key question is whether VOSS should increase its distribution in the off-premise channel. Will this diminish VOSS's high-end brand cachet? A related question is whether VOSS should begin expanding its portfolio by offering, for example, flavored water for the rapidly evolving U.S. bottled water market.

Targanta Therapeutics: Hitting a Moving Target

Daemmrich, Arthur A.,
April 2009

This case explores regulatory, product testing, and business strategy at Targanta Therapeutics, a biotech company preparing its first new drug application to the FDA. In October 2007, Mark Leuchtenberger, president and CEO of Targanta-which has just held a successful IPO-weighs options for the approximately ten-month review period after the company submits to the Food and Drug Administration. The case reviews Targanta's origins and "de-risking" of oritavancin, an antibiotic therapy for drug-resistant infections that was first invented at Eli Lilly and then spun out to InterMune before Targanta acquired it in late 2005. To highlight the impact of regulatory policy on business strategy, the case then describes a set of choices facing the firm, including staffing a marketing and sales group, carrying out additional clinical testing to expand the approved indications, applying for European market approval, or keeping funds in reserve in the event that the FDA requests further data.

Neck & Neck: Leveraging the Club Neck Information

Martinez-Jerez, Francisco de Asis, Jasmijn Bol, Christopher Ittner, Katherine Miller
April 2009

Commercial Director Prado wonders how to leverage the loyalty card information to prepare the fall 2008 budget. The case discusses the value of subjective and objective information for profit-planning purposes. Spanish children's apparel retailer Neck & Neck uses loyalty card information for tactical purposes, such as promotional campaigns. Its management team is thinking about how to incorporate that information to the budgeting (profit-planning) process. From an analytical standpoint the case looks at the surprising results of a mailing campaign that reveals the consequences of inadequate updating of the customer database. Also, the budgeting data in the case may be used to teach regression model selection and R-squared.

Groupe Eurotunnel S.A. (A)

Gilson, Stuart C., Vincent Dessain, Sarah Abbott
April 2009

In the summer of 2006, the chairman and CEO of Eurotunnel Group is faced with the decision whether to file for bankruptcy protection, after having failed to gain creditor approval of an ambitious out-of-court restructuring plan. The company, which has been attempting to restructure its debt and operations for the last ten years, faces a number of daunting challenges. Eurotunnel is jointly listed in the U.K. and France, and its shareholders, who are largely based in France, face the prospect of significant dilution under any restructuring plan. The current chairman and CEO has been with the company for only a year and a half, following a decade of senior management turbulence in which the company has seen nine different CEOs and chairmen. Eurotunnel's capital structure is staggeringly complex, and a large fraction of its debt has come to be held by U.S.-based hedge funds that specialize in investing in distressed companies. Finally, Eurotunnel's business is extremely challenging to value and is faced with significant competition. If the current chairman/CEO decides to file for bankruptcy, he faces the additional choice of whether to file for bankruptcy in the U.K. or in France, which take quite different approaches to restructuring troubled companies.

Groupe Eurotunnel S.A. (B): Restructuring Under the Procedure de Sauvegarde

Gilson, Stuart C., Dessain Vincent, Sarah Abbott
April 2009

In mid-2007 the chairman and CEO of Eurotunnel Group, having elected to file for bankruptcy under a newly-enacted French insolvency law, awaits the outcome of a vote by creditors and shareholders. At least 50% of the shareholders must approve the plan, however they face significant dilution of their ownership interests in Eurotunnel. If the vote fails to pass, the possibility that the company may have to be liquidated becomes increasingly likely.

Perfect Storm over Zurich Airport (A)

Tushman, Michael L., and David Kiron
March 2009

Josef Felder, CEO of Zurich Airport, faces several crises as he tries to transform the Airport from a slow-moving, conflict-ridden, government-owned entity into a privatized, world-class airport.

Perfect Storm over Zurich Airport (B)

Tushman, Michael L., and David Kiron
March 2009

Supplements the (A) case

Solvay Group: International Mobility and Managing Expatriates

Groysberg, Boris, Nitin Nohria, and Kerry Herman
March 2009

Marcel Lorent, head of International Mobility at Brussels-based Solvay Group, faces decisions on the expatriation status of four of his firm's talented executives. Each decision will impact the candidate's professional and personal life and will have implications for effective management and growth in Solvay's global markets. The case explores these issues, with a close look at Solvay's attempts to develop talent management and mobility processes that allow the firm to align its strategic needs with the complexities of its individual employees' needs and lives.

One Firm One Future at Davis Langdon

Eccles, Robert G., and Kaitlyn Simpson
March 2009

Rob Smith, senior partner of construction consultancy Davis Langdon, has just led the firm through a major organizational change in Europe and the Middle East. In the past, the firm's compensation arrangements did not encourage partners to collaborate across the firm to serve clients' increasingly global and complex needs. In 2007, under Smith's leadership, the partnership agreed to implement holistic change, which included shifting from geographical to sector structure and creating a profit-sharing system that rewarded more than just financial contribution and encouraged partners to work together for the benefit of the firm as a whole. In the midst of the global economic crisis, Smith must decide whether and how to extend on a global basis the alignment the firm achieved in Europe and the Middle East.

GLOBALGAP: Food Safety and Private Standards

Bell, David E., and Mary Shelman
February 2009

In response to new laws governing liability and several food safety scares in the 1990s, European retailers drove the creation of a universal production standard based on Good Agricultural Practices (GAP) for fresh fruit and vegetables and a third-party certification system to monitor compliance. By 2008, the GLOBALGAP standard had expanded to cover coffee, tea, livestock, and aquaculture. Over 90,000 producers in 87 countries had been certified. Looking ahead, GLOBALGAP's board and management were discussing a number of questions, including the following: should GAP include environmental and social aspects beyond food safety; what was GLOBALGAP's role outside of Europe; and how GLOBALGAP is a 'hidden asset' compared to ethical labels such as Fair Trade.

Marks and Spencer: Plan A

Bell, David E., Nitin Sanghavi, and Laura Winig
February 2009

Marks & Spencer initiated a comprehensive approach to sustainability (reduction of waste, carbon emissions, fair trade) called Plan A. Does it offer a competitive advantage?

Altoona State Investment Board: December 2008

Lerner, Josh
February 2009

Rod Calhoun, the head of the Altoona State Investment Board's private equity investment program, considered the communication he had just received. It was from Permira, the leading European buyout fund, and concerned its fourth fund, to which Altoona had made a $100 million commitment. The memorandum offered investors a chance to reduce their commitment to Permira IV. This potential offer was an attractive one, as it would allow the state pension to address its "over-commitment problem," one that plagued many institutional investors. But the terms of the arrangement gave Calhoun pause.

Columbus Tubing: Steel Is Real

Snow, Daniel C., Gary P. Pisano, Elena Corsi, and Gudrun Urfalino Kristinsdottir.
February 2009

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.

a-connect: In Search of Talent Partners

Eccles, Robert G., and Dilyana Karadzhova
February 2009

a-connect was started in 2002 by three former McKinsey partners who wanted to develop an alternative business model consulting firm, which they have positioned as a high-end staffing company. The company has been very successful, growing to revenues of CHF 30 million with offices in Zürich, Düsseldorf, Boston, San Francisco, Hong Kong, and Singapore. Instead of hiring full-time employees, the company uses a pool of 700 independent professionals (IP) who are typically former consultants from firms like Bain, BCG, and McKinsey. These professionals are managed by Talent Partners who match up IPs with client needs. One of the biggest challenges the firm faces is finding people who can fill this Talent Partner role since it requires a wide range of interpersonal and business development skills. As a way of instilling discipline in processes and procedures, from the very beginning the company set the objective of doing an IPO as a staffing company, thereby hoping to get the multiple of that category. Achieving this will require substantial growth in order to get to revenues of CHF 100 million, which they think is the size they need to be. Through the "Crystal Initiative" the company reviewed the three strategic choices of leveraging the operating platform, expanding the service portfolio, and focusing on the Global Silver. They chose the latter, which means they decided to focus on getting deeper penetration into their existing large accounts. At the end of the case the founders are wondering if an IPO is still the right thing to do.

Note on Medical Travel

Herzlinger, Regina E., and Sara Green
January 2009

Background notes for MedVal and Fortis case studies.

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2008

Hrad Technika

Upton, David M, and Bradley R. Staats
December 2008

Examines a struggling IT outsourcing project from the perspective of the IT services provider-Hrad Technika. When used in conjunction with "Tegan c.c.c." (9-609-038), it provides an opportunity to see both sides of the issue. When Hrad enters into a contract to create a new accounts payable system for Welsh toy distributor, Tegan, the outsourcing firm from the Czech Republic views the project as another step in its progression towards delivering higher value services. Unfortunately the project goes poorly, and Hrad is left with the decision of how to rescue the relationship and avoid a similar problem in the future. The case allows the examination of how to manage an outsourcing project and permits a general discussion about IT outsourcing.

Tegan c.c.c.

Upton, David M., and Bradley R. Staats
December 2008

Examines a struggling IT outsourcing project from the perspective of the customer-Tegan. It should be used in conjunction with "Hrad Technika" (9-609-039), which illustrates the supplier's point of view. When Tegan, a Welsh toy distributor, outsources the development of a new accounts payable system to Hrad Technika, a growing outsourcing firm from the Czech Republic, Tegan believes they are getting a problem off their hands. Unfortunately the project goes poorly, and Tegan is left with the decision of how to prevent a failure in accounts payable from halting the entire company's operations. The case allows the examination of how to manage an outsourcing project and permits a general discussion about IT outsourcing.

Finland's S Group: Competing with a Cooperative Approach to Retail

Casadesus-Masanell, Ramon, Tarun Khanna, Samuli Skurnik, and Jordan Mitchell
December 2008

The case looks at the two dominant Finnish retailers: S Group and Kesko. S Group is a customer-owned cooperative, which has a unique holding structure whereby 1.7 million residents (or 70 percent of Finnish households) own 22 regional cooperatives. In turn, the regional cooperatives own SOK, a centralized company that provides services to the regional cooperatives. Throughout the 1980s and 1990s, S Group lagged far behind the market leader, Kesko. However, since 2005, S Group has held the leadership position; in 2007, it had captured 41 percent market while Kesko's was 33.9 percent. Kesko Plc is publicly traded and pursues a model whereby retailer entrepreneurs use their personal funds to invest in stores and operate them completely. The case requires that students consider sources of competitive advantage that arise from the companies' markedly different business models.

Nestlé in 2008

Bell, David E., and Mary Shelman
December 2008

In April 2008, Paul Bulcke took over as CEO of the world's largest food and beverage company. His predecessor, Peter Brabeck, had delivered 12 years of outstanding results while moving the company toward a new vision of health, nutrition, and wellness. Bulcke's challenge was to swiftly execute the vision and deliver the organic growth and improved margins necessary to meet the "Nestlé model."

BMW's Project Switch (A): Importers vs. National Sales Companies

Narayandas, Das, and Kerry Herman
October 2008

BMW is faced with potential channel conflicts across several EU country markets. The case highlights BMW's approach to redesigning its channel in Greece. The case provides details on both headquarter and country head perspective on BMW's channel strategy.

BMW's Project Switch (B): Importers vs. National Sales Companies

Narayandas, Das, Kerry Herman, and Laura Winig
December 2008

BMW is faced with potential channel conflicts across several EU country markets. The case concludes the (A) case's exploration of BMW's approach to redesigning the channel in Greece. The case provides details on both headquarter and country head perspective on BMW's channel strategy.

Clifford Chance: Repotting the Tree

Segel, Arthur I., A. Eugene Kohn, and Nhat Nguyen
December 2008

Clifford Chance, LLP, a global law firm headquartered in London, needs to make a decision whether to stay in the central business district of London or move to a redeveloped business park at Canary Wharf, three miles outside of central London. Peter Charleton, head of the London Office, is proposing to move to Canary Wharf and building a single, landmark headquarters with all the necessary amenities and premium fit-outs that are appropriate for an elite law firm. The tension surrounding the case is the choice to move from the hub of commerce in central London to a relatively obscure site whose owners (Olympia & York) have a history of financial bankruptcy. What business elements (clients, operations, employees, etc.) should they consider if they move the firm and how much relative weight do they place on each element? How do they frame the advantages and disadvantages between central London and Canary Wharf? What type of items should they program into the new facility (cellular or open floor plans, ceiling heights, common space, dining facilities, gymnasiums, etc.)? How should they prioritize these items?

Copyright Law in the U.S. and EU

Pozen, Robert C., and Elizabeth M. Leonard
November 2008

This note reviews the basic rules for copyright protection in both the U.S. and the EU. It outlines the works and rights protected, the fair use and first-sale limitations on copyright, as well as the application of these rules to software, video, recordings, and Internet service providers.

The Amsterdam World Trade Center

Kohn, A. Eugene, Hans van Tartwijk, Nhat Nguyen, Brent Kazan, and David Lane
November 2008

Late in September 2001, Hans van Tartwijk, president of Trimp & van Tartwijk Property Development (TvT) of Amsterdam, Holland, was deeply worried about the status of his largest ongoing project: the Amsterdam World Trade Center (WTC). As the discretionary developer, van Tartwijk needed to present his firm's recommendations to WTC owners and municipal stakeholders on how best to manage problems in the renovation of the 27-floor, 60,000 square meter complex. The WTC owners, two Dutch financial institutions, had hired TvT in 1995 to advise how to best handle their property's underperformance, which stood 20% empty and had prematurely aged. 1. Should the Owners sell, perform minimum upgrades, or perform a major upgrade with construction and expansion? 2. What emphasis-commitment made to Green Technologies?

Iceland (A)

Musacchio, Aldo
October 2008

In May of 2008, a team of sovereign debt analysts at Moody's had to decide whether to downgrade the country's sovereign long-term debt from Aaa to Aa1 or lower. Investor sentiment toward Iceland had changed radically in March, and the Moody's team was fearful that the situation could spiral out of control. The Moody's team knew that carry traders increased Iceland's vulnerability to a confidence crisis because they were quick to liquidate their holdings at the first sign of distress. The plunge in the Icelandic Krona since the beginning of 2008 also forced the Icelandic people to confront a decision: would joining the European Union (EU) protect Iceland from capricious swings in investor sentiment? What, if anything, should Iceland do to avoid a future crisis?

Iceland (B): Redefining Aaa-Rated Sovereigns

Musacchio, Aldo
October 2008

Supplement to the (A) case

Dogus Group: Weighing Partners for Garanti Bank

Khanna, Tarun, Krishna G. Palepu, and Richard J. Bullock
October 2008

In August 2005, the leadership of Turkey's Dogus Group considered opportunities for its flagship enterprise, Garanti Bank, to partner with a foreign financial institution. The case describes the Turkish banking industry and Garanti Bank's position within it, and asks students to consider whether partnership makes sense for Garanti and, if so, which bidder it should select.

Betfair vs. UK Bookmakers

Casadesus-Masanell, Ramon, and Neil Campbell
October 2008

Betting exchanges provide an electronic platform that allows ordinary consumers to not only back teams to win, but also to lay odds for other punters to back. This business model allows punters to cut out the middleman of the bookmaker and leads to a much more efficient two-sided market. Betfair.com's domination of the betting exchange has threatened to undermine the core of the traditional bookmakers' business model. The case examines two aspects of the industry: (1) What specific choices did Betfair make to become the dominant betting exchange, winning the competitive battle over Flutter.com? (2) At what stages do Betfair.com's business model and those of the bookmakers interact? Will Betfair.com naturally come to dominate the industry, and if so how should the bookmakers react?

Gazprom (A): Energy and Strategy in Russian History

Abdelal, Rawi, Sogomon Tarontsi, and Alexander Jorov
October 2008

Critics have accused Gazprom, the world's largest natural gas producer, of eschewing market principles in favor of the foreign policy priorities of the Russian government, ever since the energy giant cut off the supply to Ukraine in January of 2006. The purported motive for the decision, however, seems to indicate the opposite: the company claimed that it had no other choice because the sides failed to conclude a contract on the terms of future trade. The case takes a look back in history for clues that may resolve this paradox. It highlights how politics shaped the economics of natural gas trade in the former Soviet Union and Europe since the late 1960s until the end of the 1990s; sketches the story of the creation of Gazprom by the first post-Soviet government of Russia; and describes how the erection of new sovereign borders in the wake of the dissolution of the Soviet Union, coupled with political and economic transition, created major problems in the gas trade between the former Soviet republics, emerging with the greatest intensity in the Russian-Ukrainian relations.

Gazprom (B): Energy and Strategy in a New Era

Abdelal, Rawi, Sogomon Tarontsi, and Alexander Jorov
October 2008

President Putin publicly stated that Gazprom, the largest natural gas producer in the world, was a powerful political lever of the Russian state in the world and a keystone in the foundation of the country's energy security. Thus the top leadership of Russia has charted the course of the company's future away from the seemingly imminent dismemberment, privatization, and, by implication, de-monopolization toward a challenging combination of strengthened state control, professional, transparent management, and a major expansion. The case explores how in 2000-2008 Gazprom's management has pursued the strategy defined by the politicians. Gazprom's impressive expansion strategy envisioned diversification of markets, products, transportation routes, and modes of delivery. The challenges were equally formidable: massive investment needs, a possibility of a production shortfall, and a chronic problem with the transit state of Ukraine, to name a few. In fact, Gazprom's ambitiousness fully reflected the ambitiousness of Russia as a whole, characteristic of the Putin era.

Gazprom (C): The Ukrainian Crisis and Its Aftermath

Abdelal, Rawi, Sogomon Tarontsi, and Alexander Jorov
October 2008

The case describes the resolution to the January 2006 gas crisis, precipitated by the decision of Gazprom, the largest natural gas producer in the world, to cut off gas supply to Ukraine because of disagreement on the terms of future trade. The case also narrates the events that have followed: the adoption by Gazprom of a comprehensive policy to renegotiate prices with the rest of the former Soviet states; the erratic relationship with Ukraine, dependent on the internal political configuration in the latter at any given time; and a persistence of Gazprom's negative image in the world.

Supergrid

Vietor, Richard H.K.
October 2008

Supergrid is a mammoth wind-power development scheme for Europe, recently proposed by Airtricity. This firm, founded in 1997, is a fast-growing power-development company focused on wind. Already having built about 600 megawatts of wind turbines in Scotland and Ireland, Airtricity has now expanded to the United States. But its "Supergrid" proposal, to build offshore wind turbines with capacity of 30,000 megawatts of power, would change the face of European energy networks, use new technology, and help several European countries meet their Kyoto targets for reducing CO2. The issues are whether a small company like Airtricity has the human and capital resources to pull this off, and whether the U.K., Germany, the Netherlands, and the EU can be made to cooperate on such a project.

Global Talent Management at Novartis

Siegel, Jordan
September 2008

This case tackles the topic of global talent management. It can be used to analyze the performance measurement, incentive, and talent development system used at a major multinational company. This case can also be used to analyze the extent to which this system should or should not be adapted for China and other emerging economies.

Leading Citigroup (A)

Paine, Lynn Sharp, Aldo Sesia Jr., and Carin-Isabel Knoop
September 2008

The (A) case describes a series of controversial events and alleged misdeeds that placed Citigroup in the public spotlight and launched investigations into the company's business practices by regulators in Japan and Europe in the fall of 2004. CEO Chuck Prince must decide what to do to right the company and restore its reputation.

Leading Citigroup (B)

Paine, Lynn Sharp, Aldo Sesia Jr., and Carin-Isabel Knoop
September 2008

The (B) case describes the actions taken by Citigroup CEO Chuck Prince and his management team to right the company in the wake of the controversies and alleged misdeeds described in the (A) case.

North Goes East

Retsinas, Nicolas P., Daniela Beyersdorfer, and Elena Corsi
September 2008

In August 2006, Magnus Lofgren and Robert Provine, managing directors and co-founders of the "North Real Estate Opportunities Fund," need to decide which real estate investment the Fund should pursue as its first project. The Fund's target region, Central and Eastern Europe, was changing rapidly and returns in some of the more developed regions started to resemble those generated in Western Europe. Yet, the two partners had managed to identify several projects in different countries that promised to generate the Fund's targeted Internal Rates of Return at or above 20% annually. They now had to decide which opportunity was the best match to the Fund's investment profile and showed the highest economic promise.

Arcelik Home Appliances: International Expansion Strategy

Ghemawat, Pankaj, and Catherine Thomas
September 2008

The Turkish home appliances firm Arcelik is revisiting its growth strategy. Options for growth include continuing to promote currently owned brands in international markets, acquiring new brands, expanding OEM or private-label contracts, and/or diversifying into other businesses within Turkey. Details Arcelik's position within various markets and relevant features of the home appliances industry.

Launching Telmore (A)

Casadesus-Masanell, Ramon, Celso Fernandez, and Moritz Jobke
September 2008

When the Danish mobile phone service provider Telmore entered the market in October 2000, few people took notice. Its business model was not perceived as particularly aggressive or threatening to the industry. Less than three years later, Telmore's creative adaptation of the well-known, no-frills model of the airline industry had taken the Danish market by storm. With a combination of rock-bottom prices, simplicity, and a focus on customer satisfaction backed by a unique low-cost infrastructure, Telmore's business model, with its powerful virtuous cycles, proved to be the most successful innovation the industry had seen in many years.

Launching Telmore (B)

Shih, Willy
September 2008

Supplement to the (A) case

Launching Telmore (C)

Shih, Willy
September 2008

Supplement to the (A) case

elBulli: The Taste of Innovation

Norton, Michael, Julian Villanueva, and Luc Wathieu
September 2008

Ferran Adriá, chef at elBulli, the highest-ranked restaurant in the world for two consecutive years, faces two related decisions. First, Adriá and his team must continue to develop new and different dishes for the ground-breaking cuisine at elBulli to guarantee a continuous stream of innovation, the cornerstone of the restaurant's success. In addition, they are also faced with the challenge of growing the business, exploring whether the core concepts from elBulli- this "taste of innovation"-can be applied to domains ranging from consulting to fast food. The case walks readers through an evening at elBulli by using the rave reviews of former patrons to capture the full experience, from the long trip required to get to the restaurant, to the tour, to descriptions of the meal itself.

AREVA T&D

Raman, Ananth, Vincent Marie Dessain, Ane Damgaard Jensen, and Gudrun Urfalino Kristinsdottir
September 2008

The case explores the rapid and highly effective turnaround at AREVA's transmission and distribution (T&D) business by focusing on the division's operations. The division was struggling in 2004 when newly-appointed CEO Philippe Guillemot and his team improved performance substantially by focusing on four levers- industrial footprint realignment, competitive sourcing, process efficiency, and a competitive product offering. In 2008, the case challenges students to identify the best path forward. How can the progress achieved from 2004 to 2007 be sustained? AREVA T&D hopes to surpass ABB and Siemens in sales and profitability by focusing on superior product offerings, through "customer intimacy" (e.g., involving customers in new product development) and developing a reputation for environmentally friendly behavior. What is the role of operations management in this context?

AMD Dresden: Copy Inexactly!

Shih, Willy
September 2008

The establishment and growth of AMD's Dresden, Germany manufacturing site illustrates how processes develop in an organization and how those processes get institutionalized into a unique culture. Located in the Free State of Saxony in the eastern part of Germany (the former GDR), AMD's investment in the region leverages a historic and rather unique skill base in engineering and the sciences and catalyzes the rebirth and growth of one of the largest semiconductor clusters in Europe. Contrary to conventional wisdom in the semiconductor industry, the Dresden team only copied from its home corporate locations in the United States those processes and practices that it felt would work in Germany rather than follow a "copy exactly" strategy. Dresden becomes AMD's sole worldwide manufacturing location for microprocessors, but now the company is faced with the question of whether it can successfully transplant the highly successful culture to other global locations because of favorable investment incentives.

Philipp Justus at eBay Germany (C)

Hill, Linda A., and Emily Stecker
September 2008

This case traces the development of eBay Germany, eBay Inc., and the career of eBay Germany's first country manager, Philipp Justus. The case covers from 2000 through the fall of 2007. This case details how eBay Germany, once a small start-up, became one of eBay's most successful locations. The case reveals how Justus added seasoned leaders and structure to the group, while allowing for improvisation. The case also traces Justus's career, as he moved to running eBay Europe and ultimately, the auctions group, which took him to headquarters. Like eBay Germany, eBay itself grew tremendously, in part from acquisitions like PayPal and Skype. But, growth in core areas, like auctions, had slowed. This case explains how eBay Inc. and eBay Germany tried to keep their "secret sauce."

Greg James at Sun Microsystems, Inc.: Managing a Global Team

Beyene, Tsedal, Thomas J. DeLong, and Alison Comings
September 2008

Greg James, a global manager at Sun Microsystems, Inc., sets out to meet with his entire 43-member customer implementation team spread across India, France, the United Arab Emirates, and the United States of America to resolve a dire customer system outage as required by a service agreement. Rather than finding a swift resolution to the rapidly escalating customer situation that motivated his trip, he finds himself facing distributed work, global collaboration, conflict, and management issues that are threatening to unravel his team.

Given Imaging Ltd. - First We Take Manhattan, Then We Take Berlin?

Isenberg, Daniel J
August 2008

GI has developed a revolutionary video pill for imaging the small bowel in the gastro-intestinal tract. The development has required the integration of a wide variety of technologies. GI founder and CEO Gabriel Meron must determine GI's marketing strategy and prioritize GI's initial target markets: either the United States, Europe, or Japan, or any combination. He is also faced with the immediate decision if to make offers to U.S. and European regional managers. Cash resources are scarce, and GI hopes to raise additional capital soon.

Corruption in Germany

Abdelal, Rawi, Rafael Di Tella, and Jonathan Schlefer
August 2008

Why do managers become corrupt? Does corruption ever pay? When do friendly relations cross into bribery? How can CEOs manage and prevent outbreaks of corruption? These and other questions are raised by three short case studies of corruption in Germany: at the global engineering firm Siemens, the automaker VW, and the chemical giant BASF. While German law not only permitted overseas bribery but even made it tax deductible until 1999, it was not welcomed in some nations where Siemens did business such as the United States-or in Germany after 2000-but old practices continued. Cooperative management-labor relations, often seen as key to the post-World War II German industrial powerhouse, went sour at VW, as a top manager secured key concessions by paying for union leaders' lavish foreign travel and visits to prostitutes. After vitamin prices sagged in the late 1980s, BASF and the Swiss chemical firm Hoffmann-La Roche plotted a global cartel that lasted a decade and raised the prices of many vitamins 50 percent or more. In the end, even after record criminal fines and jail time for some executives, some observers argued, such practices were likely to recur.

Università Bocconi: Transformation in the New Millennium

Gavetti, Giovanni, and Anna Canato
August 2008

Since its foundation in 1902, Bocconi has been a teaching institution with a dominant domestic presence. The case examines the currently unfolding attempt at transforming Bocconi University into a research powerhouse with the ambition to build a strong position among Europe's leading business schools. The case offers a detailed analysis of Bocconi's transformational journey and illustrates the challenges of changing the mindset of a large portion of the faculty.

Bernd Beetz: Creating the New Coty

Jones, Geoffrey G., and David Kiron
August 2008

Considers the creation of the world's largest fragrance company by Bernd Beetz, appointed chief executive of Coty Inc. in 2001. In 1990 the German consumer goods company Benkiser began acquiring fragrance and cosmetics brands with the intent of developing a beauty business. These included the long-established, but relatively small, U.S. fragrance company Coty. In 1996 the beauty business was spun off under the name Coty. When Beetz was hired as chief executive, it was still a fragmented collection of recently acquired brands. The case describes how Beetz re-ignited the dormant celebrity fragrance business with the successful launch of a new Jennifer Lopez fragrance line. Fashioning a new entrepreneurial culture based on the principles of "faster, further, freer," Coty hired longstanding executives from other firms and liberated their entrepreneurial capabilities, refreshing brands which had been tarnished into a global mass color cosmetics brand. In 2005 the acquisition of Calvin Klein from Unilever, and its renewal, catapulted Coty into the position of the world's largest fragrance company. The case provides an opportunity to examine the entrepreneurial, cultural, and organizational factors which enable acquired brands and employees to be re-invigorated and molded into a dynamic new global business. It asks if the cultural and other factors behind its rapid growth can sustain the company as it seeks growth much further as a top-five beauty company.

The Coartem Challenge (A)

Spar, Debora L., and Brian DeLacey
July 2008

In November 2005, Novartis, a major global pharmaceutical firm, is reviewing its Coartem program, an ambitious attempt to deliver life-saving malaria drugs, at cost, to millions of poor Africans. The company is deeply committed to the project, but it is also struggling with the organizational issues involved in dealing with international institutions like the World Health Organization and fitting nonprofit objectives into a for-profit structure.

The Coartem Challenge (B)

Spar, Debora L., and Brian DeLacey
July 2008

Supplements the (A) case.

The European Union in the 21st Century

Trumbull, Gunnar
July 2008

Focuses on the challenges facing the European Union in 2006. Following the French and Dutch referendums in 2005, the fate of the European Constitution is in jeopardy. Ten new accession countries have just joined the EU, with Turkey in the beginning stages of the accession process. New member states and additional future members have provoked widespread debate on financial, political, and social issues. Growth within the EU has been sluggish, with high unemployment and low investment in R&D. The EU has launched a set of reforms to create a "single passport" system of mutual recognition within the EU for capital, services, and people. Still, terrorist attacks, an upsurge in domestic violence, budgetary problems, and foreign policy, enlargement, and immigration issues plague the EU. In light of these problems, what will be the future of the EU and its constitution?

Tad O'Malley: The Investment Conundrum

Hardymon, G. Felda, Josh Lerner, and Ann Leamon
July 2008

Tad O'Malley has just started as an associate with Empire Investment Group. He must evaluate three investment opportunities facing the big leveraged buyout firm. All are global, but each pertains to different offices and each deal has different strengths and weaknesses. Which should he recommend to the partners for additional resources and what does a recommendation mean for his career?

Corruption at Siemens (A)

Healy, Paul M., and Maria Loumioti
July 2008

No description.

Corruption at Siemens (B)

Healy, Paul M., and Maria Loumioti
July 2008

Supplements the (A) case.

Corruption at Siemens (C)

Healy, Paul M., and Maria Loumioti
July 2008

Supplements the (A) case.

Corruption at Siemens (D)

Healy, Paul M., and Maria Loumioti
July 2008

Supplements the (A) case.

Thomas J. Watson, IBM and Nazi Germany

Jones, Geoffrey G., and Adrian Brown
July 2008

Considers the strategy of U.S.-owned IBM, then a manufacturer of punch cards, in Nazi Germany before 1937. Opens with IBM CEO Thomas J. Watson meeting Adolf Hitler in his capacity as President of the International Chamber of Commerce. IBM had acquired a German company in 1922 and, like other American companies, found itself operating after 1933 in a country whose government violently suppressed political dissent and engaged in intimidation and discrimination against Jews. Explores the tensions between IBM's German affiliate and its parent and provides an opportunity to explore the options and responsibilities of multinationals with investments in politically reprehensible regimes.

House of Tata: Acquiring a Global Footprint

Khanna, Tarun, Krishna G. Palepu, and Richard J. Bullock
July 2008

Chronicles the globalization of the Tata Group, one of India's largest business groups. Since 2000, many Tata Group operating companies have aggressively built international businesses, particularly through overseas acquisitions. After describing the globalization rationales and approaches of the major Tata Group companies, the case asks students to consider whether Tata Motors should pursue the acquisition of the Jaguar and Land Rover brands owned by US-based Ford Motor company.

Radiohead: Music at Your Own Price (A)

Elberse, Anita, and Jason Bergsman
June 2008

In October 2007, the British band Radiohead caused a stir when it announced it would allow customers to decide how much to pay for its new album, released exclusively as a digital download and available only from the band's own website. The pricing plan represented a significant break from the industry standard of fixed prices for music, typically 99 cents for individual songs and upward of $9.99 for complete albums. How viable is such a "name-your-own-pricing" plan? And what does Radiohead's move say about the future of the music industry?

Ra diohead: Music at Your Own Price (B)

Elberse, Anita, and Jason Bergsman
June 2008

Supplements the (A) case.

Note on the Bus Industry

Casadesus-Masanell, Ramon, and Jordan Mitchell
June 2008

Supplements the "Irizar in 2005" case. Briefly documents key points in the motor coach industry such as market size, categories of buses, reasons for purchasing, and the basis for competition amongst motor coach manufacturers.

Finansbank 2006

Foley, C. Fritz, and Linnea Meyer
June 2008

How do financial policy requirements and benefits of ownership concentration affect the need for and process of corporate restructuring? This case provides students with an opportunity to analyze the restructuring of a Turkish multinational business group by way of a merger. Finansbank A? is a bank headquartered in Turkey with additional operations in Holland, Switzerland, Russia, Romania, and Ukraine. It was founded by Hüsnü Özye?in in 1987 and in April 2006, the National Bank of Greece (NBG) offered to buy part of the bank. Students can consider which factors contributed to Finansbank's growth and success. In order to then assess the terms of NBG's offer, they can evaluate given valuations of the bank and analyze why the proposed deal is structured so the Özye?in retains a stake and buys back the non-Turkish operations. Students can also consider the offer from the perspective of minority shareholders.

Can PACIV (Puerto Rico) Serve European Customers?

Isenberg, Daniel
May 2008

Jorge Rodriguez-Gonzalez, PACIV's (Puerto Rico) founding CEO, is considering expanding PACIV's pharmaceutical manufacturing compliance services company to the U.K. and Europe. He has to decide whether to hire Wayne Snelgrove and how to define the scope of his responsibilities.

Global Climate Change and BP

Reinhardt, Forest, and Mikell Hyman
May 2008

Following the sudden resignation of Sir John Browne, Tony Hayward, BP CEO, must decide how global climate change management will figure into BP's corporate strategy. Climate change management was a major part of BP's strategy under Browne: In 1997 Browne broke from his colleagues, publicly declaring that global climate change was a serious problem and pledging BP to play a significant role in the search for solutions. BP successfully reduced its own carbon emissions, and championed cap-and-trade style regulation over taxation or command-and-control. Despite this progress, as the climate issue gains in political prominence and the Kyoto Protocol nears expiration, Hayward must consider what actions to take in BP's business strategy and in the political arena to manage ongoing climate risk.

Indesit Company: Does Global Matter?

Bower, Joseph L.
April 2008

In 2007, the leadership of the Indesit Company is focused on long-term corporate strategy. After three decades, the company has emerged as the number two home appliance producer in greater Europe. Should they invest further to be number one, or should they now focus on the global market, and if so, which part of the world? A subordinate issue is what to do with their multiple brands. Should they consolidate? This case has extensive data on global markets.

Novartis AG: Science-Based Business

Bowen, H. Kent, and Courtney Purrington
April 2008

Novartis is a science-based drug company, which has important implications for its business strategy. It is one of the largest pharmaceutical companies in the world with over $38B in sales in 2007. Pharmaceuticals account for slightly over $24B of that total. In 2007, corporate R&D spending was $6.43B, or almost 17% of net sales. Novartis executive leaders believe in scientific progress and that large-scale investments in science will therefore result in long-term pay-offs in terms of profits and discoveries that benefit mankind. Novartis' business strategy is closely tied to its research strategy, which emphasizes extensive internal discovery and development capabilities leading to organic growth along with explicit external alliances and collaborations to supplement its core capabilities. Like its competitors, Novartis faces many challenges in terms of moving research from the bench to the bedside. Five years after undertaking the restructuring of the discovery research organization, CEO Daniel Vasella is pleased with its progress, including many more development projects in the pipeline and new molecular entities. Nevertheless, the company faces a number of challenges, including generic drugs, patent infringements in developing countries, and pricing pressure from governments and health insurers in the United States. Given these challenges, Novartis must decide how much to spend on R&D overall, how to arrive at the right mix between organic growth and external collaboration and in-licensing, and how to measure success when it takes so many years to develop and launch a successful drug.

Opening Dot EU (A)

Edelman, Benjamin
April 2008

EURid considers possible market mechanisms to allocate initial domain names within the Internet's newly-created "dot EU." European Union regulations and community norms substantially constrain EURid's approach, preventing the use of the most natural economic mechanisms (such as auctions).

Opening Dot EU (B)

Edelman, Benjamin
April 2008

Supplements the (A) case.

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?

The Deutsche Bank (A)

Moss, David
April 2008

Founded in 1870 to help finance surging German exports and imports, the Deutsche Bank soon moved into domestic banking. In fact, its founders aimed to create both a commercial bank and an investment bank under one roof-that is, a "universal bank." By the end of the nineteenth century, the Deutsche Bank was not only the largest bank in Germany, but also a strategic actor in the broader European market and, indeed, in the world economy. Over the first half of the twentieth century, however, the bank faced a series of national crises: defeat in WWI (1914-1918), revolution in 1919, hyperinflation in 1923, economic depression in the early 1930s, the rise of Hitler in 1933, another world war in 1939, and then total defeat in 1945. At the end of WWII, the Soviets closed the Berlin headquarters of the Deutsche Bank as part of their denazification effort. Meanwhile, the United States, Britain, and France, occupying the western portion of Germany, attempted to implement a policy of economic decentralization and broke what remained of the bank into small pieces. By 1950, facing a proposal from leading German bankers to allow the big banks to begin reconstituting themselves, the Allied powers and the new German legislature had to decide whether to accept this proposal or reject it.

Capital Field: A Room with a View

Retsinas, Nicolas P., and Joshua Wyatt
April 2008

Jerzy Peters, Managing Director of Patron Capital Partners, must decide the best investment option on the development of the Odra Polish theater chain and the associated real estate. Capital Field was a company formed by U.S.-educated Polish natives involved in real estate and cinema who worked to privatize Odra. There is potential in reinvigorating the former state-owned and operated Odra theater chain and also redeveloping portions of the associated real estate to retail, office, or residential.

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?

INSEAD

Datar, Srikant, David Garvin, and Carin-Isabel Knoop
March 2008

In the spring of 2008, INSEAD offered a one-year MBA, PhD, executive MBA, and non-degree management education programs to nearly 900 MBA students, 64 PhD candidates, and over 8,500 executive education students. With two campuses, one in Europe and one in Asia, INSEAD had been a pioneer in setting up a secondary campus as a way to push the internationalization of its faculty and curriculum. The case explores INSEAD's approach to business education in a global context and how it functions with a dual-campus setting.

Italy: If Not Now, When?

Vietor, Richard H.K., and Julia Galef
March 2008

Describes Italy's main macroeconomic problems: low productivity growth, stagnant GDP growth, and high public debt. As of early 2007, the country's global competitiveness has plummeted and its debt remains well above the level allowed by the EU's Maastricht treaty. Historical and structural reasons for the current situation are explored, and Italy's possible strategies are discussed in the context of the country's challenging political climate. A replacement of an earlier case done in 2003.

Studio Moderna--A Venture in Eastern Europe

Isenberg, Daniel
March 2008

Sandi Cesko, CEO, has built Studio Moderna to be the leading electronic retailer in 20 countries in and around Central and Eastern Europe, evolving an unusual multi-channel strategy, organizational structure, and IT systems. Serious conflicts cause Cesko to question his in-sourcing strategy.

Subprime Meltdown: American Housing and Global Financial Turmoil

Rotemberg, Julio J.
March 2008

This case focuses on the financial difficulties faced in the U.S. from August to December 2006 as well as their roots in subprime lending. After briefly discussing how mortgages were structured and traded in the pre-1990 period, it describes subprime mortgage lending, as well as other innovative mortgages issued in the 1990s. It also discusses how these mortgages were packaged into securities, and who ultimately came to own these claims and their attendant risk. The case then describes the pain inflicted by raising foreclosures, as well as the financial market ramifications of the rise in mortgage delinquencies. It also chronicles the response of the U.S. and European central banks to the unfolding financial difficulties. Lastly, the case lays policies that have been proposed to deal with either the consequences or the causes of the crisis. These include policies for reforming the supervision of the financial system, changing bankruptcy rules and regulating mortgage finance. Some attention is paid to the role of credit rating agencies in the crisis, and in the financial system as a whole.

Metro International S.A.

Khanna, Tarun, Felix Oberholzer-Gee, Vincent Dessain, Ane Damgaard Jensen, and Anders Sjøman
February 2008

Explores the business model of Metro International, a company publishing 70 editions of its free newspaper in 20 countries. Metro had been a pioneer in the free newspaper market, fighting incumbent publishers distributing traditional paid-for newspapers. Looks at the decision facing top management of Metro International in 2007 regarding the future strategy of the company. The company had become profitable after years of losses, but other problems had surfaced; competition had increased heavily in many markets and advertising-the free newspaper's only source of income-was quickly shifting from newspapers to the Internet. Spain was a particular case in point. What had Metro International learned from experiences elsewhere on the globe and would they allow the company to make the Spanish unit profitable? What strategy should the Spanish country manager adopt?

The South Sea Company (A)

Moss, David A., Eugene Kintgen, and Agnieszka Rafalska
February 2008

In early 1720, the South Sea Company and the Bank of England were competing for the right to issue new shares and to exchange those shares for government bonds that were then in the hands of the public. The British government had already executed two such debt conversions with the South Sea Company. Most individuals who had converted bonds for shares in 1711 and 1719 had seen their South Sea shares appreciate in the meantime, and the government had lowered its debt-servicing costs as a result of these two conversions. The conversion under consideration in 1720, however, would be on a much larger scale. In time, the South Sea Company won the bidding war, and the House of Commons approved its debt conversion plan. Now it was up to the House of Lords to approve or reject the deal.

Vegpro Group: Growing in Harmony

Bell, David E., Brian Milder, and Mary L. Shelman
February 2008

Vegpro, a horticulture company, is Kenya's largest exporter of fresh vegetables and flowers to top supermarkets in the U.K. and Europe. In 2007, Vegpro's business is threatened by growing consumer concern about the environmental impact of food production and transport, including "food miles". The case describes the company's growth, which includes the use of owned land and outgrowers for production, the addition of value-added processing to obtain premium prices, and the introduction of global certification to ensure food safety and meet retailer and consumer requirements. The case also discusses the potential impact of increased consumer awareness of ethical sourcing and introduces the potential trade-off between local production and economic development.

European Integration: Meeting the Competitiveness Challenge

Ketels, Christian H.M. and Michael E. Porter
February 2008

The case discusses the origins and development of the European Integration process up to 2004, focusing in particular on the Lisbon Agenda for upgrading Europe's competitiveness. It discusses the different policy areas that have been approached at the European level over time, and provides background on the architecture of European institutions. The case enables students to understand how European integration has affected competitiveness across the continent's regions. It provides a platform to discuss why the Lisbon Agenda has up to 2004 failed to achieve its goals and what European integration experience can serve as a model for other world regions.

"Uria Menendez (A)"

Eccles, Robert G., and Partha P. Bose
February 2008

Uria Menendez, the pre-eminent law firm in Iberia, is at a critical point in its long and distinguished history. Its newly appointed second generation co-managing partners are facing some critical strategic decisions concerning how the firm should position itself in Iberia, geographical expansion to serve the needs of its clients, and its "Best Friends Network" with leading law firms in other countries. The firm must also address critical issues regarding the hiring, development per in work/life balance, and compensation of the top law school graduates the firm needs to maintain its position and reputation.

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.

Differences at Work: Will (A)

Sucher, Sandra J., and Rachel Gordon
January 2008

A colleague makes a stereotypical remark about gays that Will, an out gay man, knows to be wrong. He struggles with how to correct the senior colleague.

Differences at Work: Jenny (A)

Sucher, Sandra J., and Rachel Gordon
January 2008

Accompanied by her boss, Jenny is pitching a marketing engagement, but the prospective client keeps making comments about how attractive he finds her. She wonders how she should handle the situation.

Differences at Work: Jenny (B)

Sucher, Sandra J., and Rachel Gordon
January 2008

Supplements the (A) case

ISS A/S (A)

Rose, Clayton S.
January 2008

An offer to buy ISS A/S is contemplated by two leading private equity firms, and their financing plan calls for the addition to the company's balance sheet of a significant amount of new debt. The increased leverage will negatively affect the rating and value of ISS's investment grade debt, and the private equity firms need to anticipate the reaction of bondholders and decide how best to respond. The case provides an opportunity to examine the nature and extent of a company's responsibilities to its bondholders, to develop an enhanced understanding of the challenges of managing contractual obligations, and circumstances under which business leaders might agree to terms outside of the contract.

ISS A/S (B)

Rose, Clayton S.
January 2008

Supplements the (A) case

ISS A/S (C)

Rose, Clayton S.
January 2008

Supplements the (A) case

Real Madrid Club de Fútbol in 2007: Beyond the Galácticos

Elberse, Anita, and John Quelch
January 2008

Supplements the (A) case

Russian Standard

Deshpandé, Rohit, and Seth Schulman
January 2008

In September 2006, Russian billionaire Roustam Tariko, founder and owner of Russian Standard, needed to develop a strategy for introducing Russia's most popular brand of premium vodka (RSO) to American consumers. In the past year, he had introduced Imperia, the firm's flagship ultra-premium vodka, in the U.S. market; lined up American importation and distribution partners for Russian Standard; and had worked hard to build excitement for the brand. Beyond establishing RSO's stylishness, Tariko needed to carve out a space for the brand in the crowded American market. Imperia's marketing had emphasized two attributes, superior quality and Russian-ness. In articulating RSO's advertising strategy and tagline, Tariko would need to decide once and for all which attribute to emphasize. He would also need to decide how to articulate this attribute so as to develop discrete identities for each of the two brands. Would Americans respond better to a claim of authenticity, or to a claim of unparalleled purity? And which were RSO and Imperia best equipped to exploit?

TH!NK: The Norwegian Electric Car Company

Lassiter, Joseph B., and David Kiron
January 2008

On August 1, 2007, 61-year-old Jan-Olaf Willums' plane was flying along the Greenland coastline on his way back to Norway after intense discussions with several prominent U.S. venture capital investors, among them Kleiner Perkins and Rockport Capital Partners, about investing in a plan to accelerate his company's entry into the North American market. A successful engineer, entrepreneur, and sustainable development champion, Willums was CEO of Think Global AS (TH!NK), a privately held Norwegian maker of electric vehicles (EVs). Having already raised $85 million in venture backing, TH!NK was just a few months away from the broad European launch of its line of EVs, the first commercially available, highway-safe cars in the world that produced zero greenhouse emissions.

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2007

Iceland: Small Fish in a Global Pond

Porter, Michael E., and Christian H.M. Ketels
December 2007

Describes the economic development of Iceland since 1945, focusing in particular on the years since 2000, when Iceland experienced strong growth and Icelandic companies aggressively internationalized.

British Land

White, Lucy
December 2007

British Land's shares traded below NAV. Laxey investments tried to force British Land into share buybacks and criticized its corporate governance. Laxey voted borrowed shares at the AGM.

Millions of Customers and the Search for a Business: The Challenge of IRC-Hispano

Martínez-Jerez, Francisco de Asís, Fernando Barrajo, and Joshua Bellin
December 2007

Like many online services, IRC-Hispano, the world's largest Spanish-language chat organization, has many customers but sees few revenues. As an association, its structure presents many limitations and hurdles to overcome involving investing in technology platform updates and generating ideas and initiatives to monetize the use community

Allianz AG: Becoming a European Company

Lorsch, Jay W., and Alexis Chernak
November 2007

Focuses on the decision made by leadership at Allianz AG, the German insurance and financial services company, to complete a cross-border merger with the Italian insurance and financial services company, RAS. Allianz, however, could not complete the cross-border merger by remaining a German corporation under the current German statutes. Allianz, however, could conduct the cross-border merger as a European company according to the Statute of the European Community (Societas Europaea, or SE), which was recently passed by the European Union and adopted into German law. Examines the rationale for the decision made by the Allianz supervisory board and the board of management in addition to the process of becoming an SE, including the change in the composition of the supervisory board as a result of the merger and the conversion to an SE.

PlaNet Finance: Broad Scope in Microfinance

Hagiu, Andrei, and Elena Corsi
November 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, rating of microfinance institutions and management, and advisory services to microfinance investors and investment funds. Furthermore, it was creating a network of microfinance banks through a microfinance holding company. However, 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 fulfill 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.

The Hertz Corporation (A)

Luehrman, Timothy A., and Douglas C. Scott
November 2007

Examines the leveraged buyout of Hertz in 2005, a complex, high-profile deal and a good example of cutting-edge practice in private equity. The first of a two-part series on the Hertz LBO, adopts the perspective of Clayton, Dubilier & Rice, the leader of a private equity consortium bidding to buy Hertz from Ford in an auction. Set at the final round of the auction, the immediate problem for the consortium is how much to raise its previous bid. A reasonable bid must be based upon how much value the private equity consortium can create through improvements in Hertz's global operations on the one hand, and a more efficient capital structure on the other. Presents detailed descriptive information on both topics, but does not include detailed financial projections, which must be formulated by students or supplied, for discussion purposes, by the instructor.

The Hertz Corporation (B)

Luehrman, Timothy A., and Douglas C. Scott
November 2007

Supplement to the (A) case

The Transformation of Thomson

Collis, David J., and Troy Smith
November2007

Thomson, a French multinational, went through a decade of dramatic change in the early years of the 21st century. From a state-owned enterprise earning 97% of its revenue from television sets and other analog consumer electronics, Thomson had become a publicly traded company providing digital video services and equipment to major movie studios, broadcast networks, and retailers, as well as satellite, cable, and telecom operators. The Group had just met its financial targets for 2006 and had achieved organic growth of 6% in the first half of 2007. Yet even as he reflected on these successes, CEO Frank Dangeard knew that much remained to be done to secure the company's leadership position against aggressive competition in a rapidly shifting and uncertain technological environment. Traces the evolution and transformation of the company and highlights the difficult choices Thomson faces in an ever-evolving high-tech industry.

Dove: Evolution of a Brand

Deighton, John A.
November 2007

Examines the evolution of Dove from functional brand to a brand with a point of view after Unilever designated it as a masterbrand and expanded its portfolio to cover entries into a number of sectors beyond the original bath soap category. The development causes the brand team to take a fresh look at the clichés of the beauty industry. The result is the controversial Real Beauty campaign. As the campaign unfolds, Unilever learns to use the Internet, and particularly social network media like YouTube, to manage controversy.

Norway Sells Wal-Mart

Pozen, Robert C., and Aldo Sesia Jr
November 2007

In June 2006, Norway's Pension Fund decided to divest its position in Wal-Mart Stores, Inc. after an investigation by the Fund's Ethics Council. According to a spokesperson of Norway's Finance Ministry, "The recommendation to exclude Wal-Mart cites serious and systematic violations of human rights and labor rights." Before making its recommendation to the Ministry to divest Wal-Mart, the Council sent its findings to the retailer for comment, but received no response. While Wal-Mart did not respond, the company had taken several steps to strengthen its ethical standards worldwide in recent years.

Gianna Angelopoulos-Daskalaki and the 2004 Athens Olympic Games (A)

Marquis, Christopher, Doug Guthrie, and Yannis Katsarakis
October 2007

Gianna Angelopoulous-Daskalaki led the bidding organization that secured the 2004 Olympics for Athens and then later the preparations for those Games. Tracks her leadership style and how she and her team won the bid. After substantial planning problems threatened to cost Greece the Olympics, Angelopoulos was asked to take over the preparations, with only 4 of the 7 years remaining. Ends with the question of what she needs to consider in making the decision to take over the Games' preparations, what role she should play, and where she should start.

Gi anna Angelopoulos-Daskalaki and the 2004 Athens Olympic Games (B)

Marquis, Christopher, Doug Guthrie, and Yannis Katsarakis
October 2007

Supplements the (A) case.

Unilever as a 'multi-local multinational' 1945-1979

Jones, Geoffrey G., and Stephanie Decker
October 2007

Explores the opportunities and threats to Unilever's global business in 1978 based on the commercial and political challenges faced by three of its subsidiaries, Lever Brothers in the United States, Hindustan Lever in India, and United Africa Company in West Africa. Management faced several problems: criticism of multinational companies, anti-trust legislation, expropriations, and rising competition from international and local rivals. Focuses on developing a new global strategy for a company that placed a premium on a consensual management style and local autonomy.

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.

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, Feliz 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.

E.ON Corporate Strategy

Reinhardt, Forest L., and Sebastian Frankenberger
September 2007

Examines the corporate strategy of German energy giant E.ON. The firm is vertically integrated, horizontally diversified across electricity and natural gas, and active in numerous countries in Europe as well as in the United States. Explores the costs and benefits of the company's choices about its vertical, horizontal, and geographical scope. Considers the risks of economic regulation, increasing concerns about environmental externalities from carbon emissions and nuclear power, and political and price risks in upstream markets for fossil fuels.

Marie Trellu-Kane at Unis-Cite (A)

Anteby, Michel J., Julie Battilana, and Anne-Claire Pache
September 2007

Marie Trellu-Kane is trying to decide how Unis-Cite should respond to French President Jacques Chirac's announcement in 2005 of a new national voluntary civil service program. Since 1994, Trellu-Kane and her co-founders had been creating and overseeing a civil service program called Unis-Cite, in which youth, particularly from the disadvantaged immigrant population, volunteered nine months of their time to work on community projects. Based in Paris, France, Unis-Cite had begun to expand to other areas. With the announcement that the government would provide funding to mobilize thousands of youth volunteers, Trellu-Kane needed to decide how Unis-Cite would proceed.

BT Plc: The Broadband Revolution (B)

Tushman, Michael L., David Kiron, and Adam M. Kleinbaum
September 2007

Supplements the (A) case

Royal DSM N.V.: Information Technology Enabling Business Transformation

Applegate, Lynda M., Edward Watson, and Mara E. Vatz
August 2007

Describes how Royal DSM NV, an $8 billion dollar global corporation, leveraged information technology to enable a major corporate portfolio transformation between 2000 and 2006.

Nordic Telephone Company's Bid for TDC

El-Hage, Nabil, Mark Lurie, and Leslie Pierson
August 2007

Nordic Telephone Company, formed by a consortium of private equity firms, has made a public tender offer for Denmark's leading telecommunications company, TDC. TDC's board of directors approved the take-private transaction, and 88% of shareholders have accepted the offer. Nordic Telephone must gain 90% of TDC's shares to force compulsory redemption under Denmark law. However, a pension fund that held 5.5% of the outstanding stock has rejected the offer. Should Nordic Telephone lower its 90% acceptance threshold and purchase TDC without a guarantee of full ownership, or should TDC walk away from the table?

BBC Worldwide: Global Strategy

Quelch, John A., and Carin-Isabel Knoop
August 2007

In January 2007, John Smith, chief executive officer of BBC Worldwide (BBC WW), the commercial arm of the British Broadcasting Corporation (BBC), was preparing to meet with his senior managers to discuss BBC WW's global strategy options. BBC WW exploited and exported BBC-branded content around the globe through all formats, including magazines, television, books, DVDs, audio books, merchandise, mobile phones, downloads, and other emerging digital media (such as Internet Protocol TV). BBC WW delivered its profits back to the BBC. Since 2004, BBC WW profits had more than doubled.

Grosvenor Group Ltd

Perold, André F., Arthur I. Segel, Oliver Corlette, and Soyoun Song
August 2007

A global real estate investment firm is trying to decide whether to enter into a property-derivative transaction to help it effect a change in asset allocation. The market for real estate derivatives is beginning to grow quite rapidly and the firm is trying to understand how to use these instruments in managing its business.

Ericsson: Leading in Times of Change

Narayandas, Das, Vincent Dessain, Daniela Beyersdorfer, and Anders Sjøman
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, Vincent Dessain, Daniela Beyersdorfer, and Anders Sjøman
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?

Bert Twaalfhoven: The Successes and Failures of a Global Entrepreneur

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

Bert Twaalfhoven (HBS '54) is faced with two offers to acquire the manufacturing holding company he had built up over 40 years. Despite the attractive price, which would net Twaalfhoven and his family $70 million, he is reluctant to sell the company because his original vision was to create a family-owned conglomerate which would last for generations. Of his eight children, two are appropriate successors, but neither shows much interest in following in their father's footsteps.

Rovná Dan: The Flat Tax in Slovakia

Alfaro, Laura, Rafael M. 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?

Bancaja: Developing Customer Intelligence (A)

Martínez-Jerez, Francisco de Asís, and Katherine Miller
June 2007

In 1996, CEO Fernando Garcia Checa wanted to make customer analytics a part of Bancaja's new strategy. Bancaja, a savings bank based in Valencia, Spain, was expanding and wanted to exploit customer information to increase commercial effectiveness. At the same time, it was pushing for innovation in the nascent Spanish credit card market. To avoid the considerable investments of time and money that a large-scale customer relationship management (CRM) project would require, the bank decided to explore its benefits with a smaller pilot project. It appointed a CRM project team to design and implement a project focused on credit cards. Describes the challenges of the Spanish credit card market at the time, the methods for profiling credit card customers, and the variables involved in designing an optimal credit card. Concludes with a consideration of the decisions the CRM team had to make in designing the project, including whether to use conjoint analysis or implement a mini campaign.

Bancaja: Developing Customer Intelligence (B)

Martínez-Jerez, Francisco de Asís , and Katherine Miller
June 2007

Supplements the (A) case.

Academia Barilla

Bell, David E., and Mary Shelman
June 2007

Barilla, the world's largest pasta company, has introduced a new high-quality, high-priced product line that features a range of authentic Italian food products sourced from artisan producers. Management believes the line will appeal to consumers seeking healthier foods and convenience, and will help extend Barilla's brand identification beyond pasta. However, the new line is a bold departure from Barilla's core competencies of high-volume production and sales of fast moving, low-priced goods. Provides an opportunity to discuss trends in consumer eating habits, supply chains for locally-produced goods, and changes in retail formats. In addition, provides an opportunity to discuss the difference in investment philosophy between a family-owned company and a publicly-traded company.

Wal-Mart in Europe

Trumbull, Gunnar, and Louisa Neissa
June 2007

Presents challenges facing Wal-Mart during its move into Germany. Explores the dynamics of the German retail market.

Bankinter: Deploying the Mortgage Simulator to the Branches

Martínez-Jerez, F. Asís, and Katherine Miller
May 2007

Describes how Bankinter, a mid-sized Spanish bank, altered the information set available to its customer-facing employees. In the spring of 2003, Bankinter introduced an Excel-based program called the Mortgage Simulator that helped branch managers calculate the price of a mortgage and estimate the customer lifetime value (CLV). Facilitates a discussion of the impact of such a change in the information set for employees when the incentives and decision rights remain unchanged. Also examines the tradeoffs front-line employees face as they divide their efforts between reaching new customers and increasing the amount of cross-selling to existing customers.

French Unemployment: The Crisis Continues

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

Supplements the (A) case

Latvia: Economic Strategy after EU Accession

Porter, Michael E., and Christian H.M. Ketels
May 2007

Describes the economic development of Latvia, a small eastern European country on the shores of the Baltic Sea, from regaining independence in 1991 to European Union (EU) accession in 2004 and is set on May 1st, 2004, the day Latvia became an EU member. Latvia had achieved strong growth since regaining independence from the Soviet Union in 1990. Describes Latvia's economic development over this period, discussing the economic policy efforts that have taken place and includes general information on the country, its history and politics, and the business environment that companies faced in 2004. A special focus is the influence that the EU accession process has on the Latvian economy and on economic policy choices in the country. Challenges students to discuss how the environment changes as EU membership is achieved, and which new priorities the country might need to define for its economic policy.

Actigall: Managing the Divestement of Mature Drugs

Gilson, Stuart C., and David Kiron
May 2007

A company must decide whether to divest itself of a mature drug brand.

The West German Headache Center: Integrated Migraine Care

Porter, Michael E., Clemens Guth, and Elisa Dannemiller
May 2007

Describes the joint efforts of the German health plan KKH and Essen University Hospital to develop an integrated practice unit (IPU), and the West German Headache Center's efforts to improve the quality of migraine care. Provides an overview of the German health care system detailing its provider, health plan, and reimbursement structure. Following new legislation in 2004, which allowed health plans and selected providers to contract outside of the regular group purchasing scheme, KKH and Dr. Deiner of Essen University Hospital developed a novel delivery structure for migraine care. Challenges and hurdles to implementation are described for both the health plan and the IPU. Provides detailed data to allow students to evaluate success, identify current challenges, and recommend improvements to the integrated care system.

Schibsted

Anand, Bharat N., and Sophie Hood
May 2007

In 2006, newspaper firms in developed markets were severely threatened on three fronts: the growth of online news, online classified advertising, and free newspapers. Schibsted, however, had managed to cope with these challenges successfully, and had become something of a legend in the newspaper community. The case describes the evolution of Schibsted's strategy from print media towards electronic media starting in 1995, including their choices around the internal structuring of new ventures. In September 2006, the management team confronted a few salient questions: first, should Schibsted allow Google to crawl its online news sites in Scandinavia? Second, were Schibsted's successes within Scandinavia repeatable outside it? Indeed, how far could Schibsted's competitive advantage travel?

Fritidsresor Under Pressure (A): The First 10 Hours

Margolis, Joshua D., Vincent Dessain, and Anders Sjøman
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 D., Vincent Marie Dessain, and Anders Sjøman
May 2007

Supplements the (A) case.

Fritidsresor Under Pressure (C): After the Tsunami

Margolis, Joshua D., Vincent Marie Dessain, and Anders Sjøman
May 2007

Supplements the (A) case.

NCH Capital and Univermag Ukraina

Lerner, Josh, and John Didiuk
April 2007

NCH Capital is considering whether to sell its Ukrainian company Univermag Ukraina, which it has held and built up over the past decade.

Common Agricultural Policy and the Future of French Farming

Trumbull, Gunnar, Vincent Dessain, and Elena Corsi
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.

Ice-Fili (Abridged)

Wells, John R., Pai-Ling Yin, and Michael G. Rukstad
March 2007

Designed as an overview of all aspects of the strategy process: industry analysis, positioning, dynamics and sustainability, and scope issues of corporate strategy, including vertical integration, horizontal diversification, and location issues. Ice-Fili is the largest ice cream producer in Russia in 2002, but is facing strong competition from Nestle despite its success over other multinational competitors. Contains detailed exhibits, allowing deeper analyses. A rewritten version of an earlier case.

Tiberg Co

Beer, Michael, and Isenberg, Daniel J.
February 2007

Describes the efforts of a vice president of purchasing to coordinate and centralize purchasing procedures in a multinational company. He encounters a lack of active cooperation. A rewritten version of an earlier case by G. Lombard.

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.

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