2009

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.

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.

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.

Groupe Eurotunnel S.A. (A)

Gilson, Stuart C., Dessain Vincent, 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.

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.

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2008

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

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.

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?

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?

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.

Moët Hennessy España

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

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

Global Knowledge Management at Danone

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

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

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2007

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

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

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

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

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

Supplements the (A) case.

Using Investor Relations Proactively

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

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

HBS Working Knowledge

Moulin Rouge (A)

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

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

Moulin Rouge (B)

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

Supplements the (A) case.

Metro International

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

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

PlaNet Finance: Broad Scope in Microfinance

Hagiu, Andrei, and Elena Corsi
August 2007

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

Ericsson: Leading in Times of Change

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

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

Reinventing Ericsson

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

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

Rovná dan: The Flat Tax in Slovakia

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

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

SAP: Industry Transformation

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

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

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