Global Reach. Global Knowledge.

2011

Haier: Taking a Chinese Company Global in 2011

Khanna, Tarun, Krishna G. Palepu, and Phillip Andrews
December 2011

In 2011, Haier, China's leading appliance manufacturer, had over $20 billion in worldwide sales and had just been named the leading refrigerator manufacturer worldwide. Describes Haier's rise over three decades from a defunct refrigerator factory in China's Qingdao province to an international player with $5.5 billion in overseas sales. Haier had followed a nontraditional expansion strategy of entering the developed markets of Europe and the United States as a niche player before venturing into Middle Eastern and neighboring Asian markets. Looking ahead to the next decade, Haier CEO Zhang Ruimin saw opportunities for Haier to grow through product diversification and additional market penetration in both developed and emerging markets. He and his colleagues would depend on their experience of acquiring numerous companies, entering and retaining new markets, restructuring the organization, and managing hundreds of subsidiaries around the world. They would need to determine which of the lessons learned from Haier's international operations should be implemented in China and which skills learned at home could best be applied abroad.

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?

Language and Globalization: 'Englishnization' at Rakuten

Neeley, Tsedal
December 2011

Hiroshi Mikitani, the CEO of Rakuten, (Japan's largest online retailer), is at the helm of an organization that is rapidly expanding into global markets. In a critical stride toward becoming the world's No. 1 Internet services company, Mikitani announces Englishnization - a highly publicized aggressive two-year English proficiency mandate for all 7,100 of Rakuten's Japanese employees. Mikitani's goal is not only to ensure the success of the organization, but also to break down linguistic and cultural boundaries in Japanese society. At the time, only an estimated 10% of the Japanese staff could function in English. The stakes are high: those who do not reach their target score by the deadline risk being demoted. As Englishnization progresses, loss of productivity, lack of time to study, and conflicted views among managers impede staff success. Some employees even question the relevance of Englishnization, particularly for staff working exclusively in Japan. Fifteen months since the announcement, the vast majority had not yet reached their target English proficiency scores. With the deadline rapidly approaching, Mikitani must decide how to proceed to ensure the success of Englishnization, the continued global rise of his organization, and even the future of Japan.

Silver Lake and Private Equity in Brazil: Carnaval or Calamity?

Musacchio, Aldo, and Stephen J. Goldstein
December 2011

This case describes the recent boom in Brazil and recent developments in the private equity industry in that country. At the center of the case is Dave Roux, partner of the technology-focused, private equity firm Silver Lake, who is examining whether to open an office in Brazil. His decision will depend on the state of the Brazilian economy, of the private equity industry, and, ultimately, on the value proposition of Silver Lake. Is the current boom in Brazil a sign of a structural change or is it a bubble? Is it too late for a private equity firm to go to Brazil? Is the Brazilian market too saturated? How do private equity firms add value in Brazil? What's the right entry strategy for a private equity firm in Brazil? Should Silver Lake open an office in Brazil?

Ganesh Natarajan: Leading Innovation and Organizational Change at Zensar (A)

Tushman, Michael L., and David Kiron
December 2011

In 2005, Ganesh Natarajan, CEO of Zensar, a Pune, India-based software company, and his senior management team are considering consolidating staff and resources at the firms. Natarajan proposes an additional, possible controversial business unit to the proposed new structure. The additional unit would explore new markets for the firm's promising innovation-Solution BluePrint (SBP). While he knew that some on his team would resist his proposal, he was eager to get the new technology into the field and felt he had the right manager to lead the proposed group. Natarajan felt sure a group dedicated to SBP led by one of the firm's most respected technologists would help spur adoption.

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.

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?

Veracity Worldwide in Syria: Assessing Political Risk in a Volatile Environment

Musacchio, Aldo
November 2011

No abstract available

Veracity Worldwide: Evaluating FCPA-Related Risks in West Africa

Musacchio, Aldo
November 2011

No abstract available

Longtop Financial Technologies (A)

Hawkins, David F., Annelena Lobb, and Aldo Sesia
November 2011

No abstract available

Longtop Financial Technologies (B)

Hawkins, David F., Annelena Lobb, and Aldo Sesia
November 2011

No abstract available

Longtop Financial Technologies (C)

Hawkins, David F., Annelena Lobb, and Aldo Sesia
November 2011

Chinese government raises barriers to U.S. Public Company Accounting Oversight Board auditing Deloitte's Chinese auditing firms.

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.

Hassina Sherjan

Eccles, Robert G., George Serafeim, and Pippa Eccles
October 2011

Hassina Sherjan was born in Afghanistan but grew up and was educated in the United States. A trip to Afghanistan when she was an adult inspired her to move back to her home country with two missions. The first was to educate young women through a non-profit organization she started called Aid Afghanistan for Education and a for-profit company, Boumi, that manufactures and distributes products for the home such as curtains, cushion covers, tea cozies, coasters, bedclothes, and bathroom accessories. The mission of Boumi is to create jobs in Afghanistan, especially for women, based on traditional Afghani designs and using only locally grown cotton. Sherjan wants to grow Boumi so that it can be a substantial, if not major, funding source for Aid Afghanistan for Education. In order to grow Boumi, Sherjan must confront a number of challenges including funding, finding and managing skilled workers, and getting distribution for Boumi products in major markets such as Europe and the United States.

Two Key Decisions for China's Sovereign Fund

Pozen, Robert C, and Xiaoyu Gu
October 2011

The China Investment Corporation (CIC) was China's sovereign wealth fund (SWF), established with $200 billion of registered capital in September 2007 to diversify China's foreign exchange holdings and increase risk-adjusted returns on those assets. CIC was unusual in that it had a strictly commercial orientation and market-driven investment mandate to invest in foreign assets but also served as the parent company of a 100%-owned subsidiary, Huijin, which invested solely in key state-owned financial institutions in China. Moreover, the fact that CIC was a SWF presented broader political challenges for it, its shareholder the Chinese government, its direct investments and their governments, and the world economy generally. This case involved two decisions CIC faced in early 2011: The first was how to best and accurately articulate the relationship between CIC, Huijin, and Industrial and Commercial Bank of China (ICBC) to the Federal Reserve Board (the Fed) so that ICBC could expand its business in the United States while exempting CIC and Huijin from certain types of Fed oversight. The second was whether to appoint a board director to Morgan Stanley, a company in which CIC had directly invested close to $ 6 billion and held 9.9% ownership. Additionally, the case discussed SWFs generally and their rights and responsibilities to the global community.

Khosla Ventures: Biofuels Gain Liquidity

Lassiter, Joseph B., William A. Sahlman, Alison Berkley Wagonfeld, and Evan Richardson
October 2011

Samir Kaul, a partner at Khosla Ventures, looked out his office window. It was late June 2011, and like almost every day in Menlo Park, the sun was shining. Kaul was reflecting on what had been a very positive 10 months in the venture capital business. Over that span, he had helped three of his portfolio companies through IPOs and helped Khosla Ventures raise its third fund, bringing the total outside capital raised by the group to more than $2.1 billion.

China or the World? A Financial Reporting Strategy for Hong Kong's Capital Markets

Ramanna, Karthik, Gwen Yu, and G.A. Donovan
October 2011

Set in 2010, the case discusses the strategic directions Hong Kong could pursue, particularly vis-a-vis China, as it seeks to preserve its preeminence in the region. In 2010, the Hong Kong Exchange announced that it would allow listed Chinese companies to report using Chinese GAAP without reconciliation to IFRS. The exchange was responding to the demands of its largely Chinese clientele and also coping with increased global competition to attract listings from Chinese companies. However, there were concerns around whether this change would undermine Hong Kong's position as a financial center in the long-term. Hong Kong's position as a global financial powerhouse was due in part to its rigorous emphasis on compliance and enforcement-allowing companies to report under Chinese GAAP, the practice of which was highly variable, could compromise Hong Kong's high corporate governance standards.

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.

Cargill (B)

Goldberg, Ray A., and Jose Miguel Porraz
October 2011

Supplements the (A) case.

Scotty Smiley

Snook, Scott A., and Doug Crandall
October 2011

U.S. Army Lieutenant Scotty Smiley faces the biggest challenge of his young life. What will he do after learning that the wounds he received from a car bomb in Iraq have left him permanently blinded? On April 6, 2005, Lieutenant Scotty Smiley was grievously wounded by a suicide bomber while leading his infantry platoon during a combat patrol in Iraq. This is a biographical case that outlines who Scotty was prior to this incident and asks readers to consider the following fundamental question: What does this tragic event mean for who he is and how he will lead his life? And by extension, what role do life crucibles play in helping to shape who we are and how we lead?

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.

The Offshore Drilling Industry in 2011

Casadesus-Masanell, Ramon, Kenneth Corts, and Joseph McElroy
September 2011

After booming in 2007 and early 2008, the offshore drilling industry slumps in 2009. Lower oil prices lead oil companies to reduce drilling budgets, and rig utilization falls from essentially 100% to 70% in some markets. Day rates-the prices paid for a rig's services-fall by as much as 68%. The case illustrates how supply and demand work together to determine prices and utilization in the short run, as well as how long-run supply is determined in an industry where capacity additions take several years. Also describes how advances in deep-water drilling technology are changing industry structure.

Global Business School Network

Marquis, Christopher, and Rwitwika Bhattacharya
September 2011

The mission of the Global Business School Network (GBSN) is to strengthen business education for the developing world. The organization was transitioning out of its start-up phase and wants to shift its focus from capacity building activities driven by the organization to empowering the network to carry out GBSN's mission. The case asks, what is the best way to accomplish this objective?

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.

IBM China Development Lab Shanghai: Capability by Design

Shih, Willy, Kamen Bliznashki, and Fan Zhao
September 2011

When IBM shifted from a traditional territory-based multinational organization to what it called a globally integrated enterprise, it established its headquarters for "Growth Markets" in Shanghai and "Established Markets" in New York. This positioned its China Development Labs (CDL) in Shanghai as a key platform for serving growth markets including the BRIC countries and other rapidly developing regions. Though quite young, CDL Shanghai had grown to become one of IBM's largest labs. The case examines IBM's early-mover establishment of its corporate research lab and CDL, and through the examination of three product development vignettes looks at the systematic approach taken to the development of lab personnel and capabilities.

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?

Post-Crisis Compensation at Credit Suisse (A), (B), and (C)

Rose, Clayton, and Sally Canter Ganzfried
September 2011

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 they would impose a one-time 50% tax on bankers' bonuses greater than 25,000 pounds. 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 UK employees to suffer relative to their peers in other countries?

Wal-Mart Update, 2011

Yoffie, David B. and Renee Kim
September 2011

In 2011, Wal-Mart was the world's largest company with $420 billion in sales and operations in 14 countries. Yet it found itself searching for the right growth strategy moving forward. U.S. same-store sales had declined for eight consecutive quarters, and Wal-Mart was increasingly becoming dependent on international sales. Meanwhile, intense competition came from various players, ranging from general discounters to dollar stores to online retailers. What should Wal-Mart do as its traditional markets and core competencies no longer ensured the kind of growth that it had enjoyed for decades in the past?

Wii Encore?

Hagiu, Andrei
September 2011

Nintendo faced huge difficulties in July 2011. Sony's PlayStation and Microsoft's Xbox had caught up with the innovative motion-sensing controllers of the original Wii. And the new Nintendo 3DS handheld console had experienced a very disappointing start. Moreover, videogame consoles (particularly handheld ones) were facing increasing substitution from online and mobile games played on social networks and/or mobile phones (e.g. Zynga's Farmville). First, could Nintendo come up with a novel and innovative console once again (a Wii Encore) in order to escape head-to-head competition against its two larger rivals (Sony and Microsoft)? Second, how could Nintendo fend off the new substitutes, which were competing for a large portion of its customers?

Fighting a Dangerous Financial Fire: The Federal Response to the Crisis of 2007-2009

Moss, David, and Cole Bolton
September 2011

By the summer of 2009, many observers concluded that a catastrophic financial collapse-which seemed all but imminent the previous fall and winter-had been averted. Although the recession had still yet to be declared over, and the economy's footing remained far from solid, many believed that the worst of the crisis was over. With the global financial system no longer spiraling into an abyss, government officials, business leaders, and American taxpayers could now take stock of where they had been and where they should be headed. In particular, many wondered how the disaster had happened in the first place: what exactly had caused the brutal financial crisis of 2007-2009?

China and the Yuan-Dollar Exchange Rate

Musacchio, Aldo
September 2011

This note explains how the People's Bank of China (PBOC) manages (some say manipulates) the dollar-yuan exchange rate. It discusses briefly the process of sterilization in China and the possible costs for the PBOC. Therefore, the note summarizes some of the main challenges the PBOC faces to contain inflation in China and to keep Chinese exports competitive.

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.

FIJI Water: Carbon Negative?

Gino, Francesca, Michael W. Toffel, and Stephanie van Sice
September 2011

Seeking to go beyond global best practices in reducing environmental impacts, FIJI Water, a premium artesian bottled water company in the United States, launched a Carbon Negative campaign that would offset more greenhouse gas emissions than were released by the company's operations and products. The case examines the controversies surrounding this program as well as the program's impacts on the environment and FIJI Water's brand image. The company also faced decisions regarding how to best manage its relationship with the Fijian government, which recently dramatically raised imposed export taxes and could limit FIJI Water's access to water, its primary raw material. The case enables students to better understand the challenges of implementing an environmental strategy and of negotiating with parties that control raw materials and invites discussion of the effectiveness of various approaches and the general lessons for the management of companies seeking to operate in an environmentally responsible manner.

Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B)

Khanna, Tarun, and Tanya Bijlani
September 2011

Narayana Hrudayalaya (NH) has expanded into a multi-specialty health city in Bangalore and has grown to twelve locations across India. The hospital plans to build 300-bed secondary-care hospitals in smaller cities across India, with a goal to operate 30,000 beds in seven years, which will make it comparable with the world's largest hospital chains. NH operates the world's largest tele-cardiology network, which provides consultations to people in 800 locations across the world, including 53 African countries. Management also plans to open a 2,000-bed hospital in the Cayman Islands to provide underinsured Americans with tertiary care procedures at 40% below U.S. prices, thereby bringing Dr. Shetty's model of compassionate care at affordable prices to the developed world.

Language and Globalization: 'Englishnization' at Rakuten

Neeley, Tsedal
September 2011

Hiroshi Mikitani, the CEO of Rakuten (Japan's largest online retailer), is at the helm of an organization that is rapidly expanding into global markets. In a critical stride toward becoming the world's No. 1 Internet services company, Mikitani announces Englishnization-a highly publicized aggressive two-year English proficiency mandate for all 7,100 of Rakuten's Japanese employees. At the time, only an estimated 10% of the Japanese staff could function in English. The stakes are high: those who do not reach their target score by the deadline risk being demoted. As Englishnization progresses, loss of productivity, lack of time to study, and conflicted views among managers impede staff success. Some employees even question the relevance of Englishnization, particularly for staff working exclusively in Japan. Fifteen months since the announcement, the vast majority had not yet reached their target English proficiency scores. With the deadline rapidly approaching, Mikitani must decide how to proceed to ensure the success of Englishnization and the continued global rise of his organization.

Barrick Gold: Implementing a Transition to IFRS

Hawkins, David F., and Angel R. Solis
September 2011

Barrick Gold must change from Canadian GAAP to IFRS. Case covers the transition.

Amil and the Health Care System in Brazil

Herzlinger, Regina E., and Ricardo Reisen de Pinho
September 2011

Dr. Edson Bueno created Amil, Brazil's largest health insurer. Unlike many others, it is vertically integrated. Dr. Bueno has two opportunities for growth. Which, if any, should he pursue?

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.

CFW Clinics in Kenya: To Profit or Not for Profit

Rangan, V. Kasturi, and Katherine Lee
September 2011

Ten years after having launched a chain of non-profit health clinics, its founder is now debating the merits of scaling the operation by converting to a for-profit enterprise.

Albert 'Jack' Stanley in Nigeria (A)

Goldberg, Lena G., and Chad M. Carr
September 2011

An international joint venture successfully bid for contracts to build six LNG trains on Nigeria's Bonny Island but, before the final train came on stream, became entangled in a widening corruption probe triggered by an unrelated accusation against an employee of Technip, the French JV partner. The (A) case discuss the JV's "business as usual" approach to doing business in the context of Nigeria's political culture and the predicament of the JV's alleged manager, Albert "Jack" Stanley, after being terminated in 2004 by Halliburton, parent of the U.S. JV partner, for taking kickbacks.

Albert 'Jack' Stanley in Nigeria (B)

Goldberg, Lena G., and Chad M. Carr
September 2011

The case describes Albert "Jack" Stanley's response to actions initiated against him by the U.S. Department of Justice and the SEC.

What Happened at Citigroup? (B)

Rose, Clayton, and Aldo Sesia
September 2011

The (B) case provides information on actions taken by Citigroup management in 2009-2010 in the aftermath of the financial crisis and massive government intervention to save the bank. It is a supplement to the (A) case.

What Happened at Citigroup? (A) and (B)

Rose, Clayton, and Sally Canter Ganzfried
September 2011

In 1998, the Travelers Group and Citicorp merged to create Citigroup Inc., considered the first true global "financial supermarket," and a business model to be envied, feared and emulated. By year-end 2006 the firm had a market capitalization of $274 billion, with $1.9 trillion in assets and $24.6 billion in earnings. But ten years after the merger it ended in tears. In July of 2009, the firm was effectively nationalized, with billions of dollars in bailout money converted into a 34% ownership stake for the U.S. government. Citigroup was worth less than $16 billion, having lost more than $250 billion in value from its peak. This case examines Citi's business model, challenges it faced, its leadership and key decisions to better understand what contributed to the failure of one of the most powerful financial firms in the world.

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.

Leading by Values: Sam Palmisano and IBM

George, William W.
August 2011

No abstract available

Carbon Footprints: Methods and Calculations

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

Describes methods to calculate the carbon footprint (greenhouse gas emissions) of an organization's operations and supply chain, and a product or service. Illustrates concepts with examples of calculating the carbon footprint of an organization (Harvard Business School) and a product (a newspaper). Provides data necessary for carbon footprint calculations.

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.

Miles Everson at PricewaterhouseCoopers

Eccles, Robert G., and Penelope Rossano
August 2011

Miles Everson, a partner at PricewaterhouseCoopers (PwC), is the Global Engagement Partner (GEP) for a large U.S. financial institution and about to take over this role for a much larger global financial institution. The GEP role is a critical one at PwC. GEPs have responsibility for the firm's largest and most important clients. They must manage a vast external network of client employees and an equally vast internal network of the firm's employees. The GEP needs to have a deep understanding of the client and its industry in order to identify opportunities and problems where the firm's resources can be brought to bear and to match the firm's capabilities to the client's needs. GEPs must be able to simultaneously manage a larger number of tasks, often under great time pressure. This case describes how a very effective GEP--Miles Everson who was named one of the top 25 consultants for 2006 by "Consulting Magazine" --performs this role and provides insights into the attitudes, skills and subject matter expertise necessary to be successful in this role. Insights into how Everson does this job are provided by both PwC and client personnel. As is often the case, Everson is responsible for a business (in his case Governance, Risk and Compliance) and so he has substantial internal management responsibilities as well. The case raises questions about whether he will be able to retain these internal management responsibilities when he takes over a much larger and more complex global client and becomes the Senior Engagement Partner (SEP) on his current client. (SEPs perform an oversight role for the work being done by the GEP and his or her team and are typically very senior members of the firm.) The case also raises areas where Everson can improve.

Weber Shandwick: The Client Relationship Leader Program

Eccles, Robert G., and Penelope Rossano
August 2011

In 2002 Weber Shandwick, a leading global public relations agency, instituted a Client Relationship Leader (CRL) Program for its top 32 global accounts. The purpose of the program is to ensure that all of the firm's resources across geographies, practice areas, and specialty areas are coordinated and effectively delivered to Weber Shandwick's most important clients. Each of these clients is assigned a "Client Relationship Leader" and the case discusses the skills and abilities that are needed to be successful in this role in a very complex multidimensional organizational structure. There are two basic types of CRLs: hunters whose job is growing accounts with a lot of potential and farmers whose job is to maintain strong and broad-based relationships. CRLs must walk a fine line between being close to the client, even considered part of their team, and not being too close by "going native" and ignoring their responsibilities as Weber Shandwick employees. Unlike office managers, who are measured based on the bottom line, CRLs are measured on top-line growth. Another objective of the CRL program is to enable Weber Shandwick to differentiate itself in a highly competitive environment where it is very difficult for PR firms and their holding company media conglomerate parents to do so. The public relations industry in the broadest sense has undergone a tremendous amount of consolidation through acquisitions over the past 20 years. It is also being challenged to adapt to new technologies like blogging and social networking, which both change and enhance existing service offerings. Another way that Weber Shandwick is adapting to new technologies is through an Internet-based platform called WeberWorks (3.0) that fosters communication and collaboration between the firm and the client and within the client team.

MindTree: A Community of Communities

Garvin, David A.
August 2011

MindTree is a mid-sized Indian IT services company known for its knowledge management practices, its collaborative communities, and its strong culture and values. The CEO has set a goal of becoming a $1 billion company by 2014; to reach that goal, employees must create several new businesses. The head of knowledge management must decide how his function should change in order to become more supportive of innovation and new business development.

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.

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

Hawkins, David F., and Aldo Sesia
August 2011

The BP Mexican gulf oil spill requires BP to recognize or at least disclose investor-relevant information.

Accenture's War for Talent in India

Eccles, Robert G. and Erin McFee
August 2011

No abstract available

Mistry Architects (A), (B), and (C)

Eccles, Robert G., and Penelope Rossano
August 2011

Describes an architecture firm founded and run by a husband and wife team, Sharukh and Renu Mistry, that emphasizes "green" building. The firm presents an unusual mix of projects - spanning the spectrum from larger corporate projects to small private homes. The mix also includes more profitable work and projects deliberately selected for social good, including the design of orphanage communities for SOS Childrens International and other non-profit organizations. The mix engages teams of young architects in different kinds of learning opportunities, and allows them to manage these projects with an unusually high level of independence. The firm's founders are dedicated to being both very client-oriented and environmentally responsible. This can lead to some difficult choices and the case illustrates one example. The firm has been commissioned by SOS to design homes for some villages destroyed in the December 24, 2004 tsunami. The preferred design is thatch roofs which is in keeping with the local environment. However, the villagers want a more functional (and more expensive) reinforced cement concrete roof. Sharukh must decide which of his principles is to dominate in this situation. A (B) case presents and explains the decision. A (C) case discusses future plans for the firm.

BANEX and the ,,No Pago" Movement (A)

Cole, Shawn, and Baily Blair Kempner
August 2011

This case examines Grassroots Capital's decision of whether or not to continue investing in a Bolivian microfinance bank that is suffering financial distress.

BANEX and the ,,No Pago" Movement (B)

Cole, Shawn, and Baily Blair Kempner
August 2011

This case examines Grassroots Capital's decision of whether or not to continue investing in a Bolivian microfinance bank that is suffering financial distress.

Ultimate Fighting Championship: License to Operate

Serafeim, George , and Kyle Welch
August 2011

The case describes the challenges that Ultimate Fighting Championship (UFC) faced as a result of regulatory opposition and loss of the license to operate. The genesis of the business idea, the subsequent growth, and the fall of the UFC are described. The case concludes with Lorenzo Fertitta deciding whether to invest in the company.

Zensar: The Future of Vision Communities

Garvin, David A.
August 2011

Zensar is a rapidly growing, mid-sized Indian IT services company with a collaborative management philosophy and innovative HR policies. One of its practices, Vision Communities, is an inclusive forum for innovation and strategy formulation. As the company grows, managers must decide how to scale the Vision Community process so that it retains its spirit of employee involvement and engagement while encompassing a larger, more geographically dispersed group of participants.

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.

Colgate-Palmolive: Staying Ahead in Oral Care

Henderson, Rebecca M., and Ryan Johnson
August 2011

In 2011, Colgate-Palmolive (Colgate) was the global leader in oral care, with a dominant market share lead in toothpaste and a growing presence in toothbrushes and mouthwash. However, the firm faced stiff competition with perennial rival P&G increasing its focus on the oral care and emerging markets where Colgate had traditionally been untouchable. To defend its lead Colgate attempted to cover all fronts, leveraging brand equity, fostering close relationships with dental professionals, innovating in underutilized markets, using its global network to quickly move products to market, and reinvesting steadily in its brand.

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.

Nestlé SA: Nutrition, Health and Wellness Strategy

Henderson, Rebecca M., and Ryan Johnson
August 2011

In 1997 Nestlé committed to a strategic vision of becoming the leading nutrition, health, and wellness (NHW) company in the world. Over the next 13 years, the NHW strategy guided strategic decisions and choices at Nestlé including merger and acquisition choices, strategies for improving products, and packaging innovations that helped Nestlé built credibility with the consumer in NHW, raised profit margins, continued strong growth, and differentiated the firm.

Procter & Gamble: Marketing Capabilities

Henderson, Rebecca M., and Ryan Johnson
August 2011

P&G had become known and recognized as a marketing machine. It was the largest advertiser in the world, with 2010 spending of $8.68 billion. From the company's early exploitation of broadcast media (radio and television) for its soap products to more recent experiments in digital media for its men's hygiene brand Old Spice, P&G was a seasoned marketer with strong consumer research, a powerful innovation network, and the world's largest financial commitment to advertising.

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.

sweetriot 2.0

Marquis, Christopher, Donna Khalife, and Bobbi Thomason
August 2011

In the fall of 2010, Sarah Endline, CEO and founder of sweetriot, an organic chocolate company, was deciding the best way to grow her organic chocolate company, while keeping her chocolate physically and conceptually on the shelf. She wanted to grow the offerings and profits of her company, while maintaining its social mission and unique flair. The case tracks the origins of sweetriot from Sarah's formative early career experiences, to the company's launch and beyond as Sarah prepares future products, establishes production channels, and seeks future funding. Sarah was not content to just be a small New York City candy company. Her goal was for sweetriot to be the number one natural chocolate company in the world and to thus be a vehicle to drive change globally. How can she meet that objective while also keeping the company true to its social roots?

Renewing GE: The Africa Project (B)

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

This case continues the story of the evolution of GE's business initiatives Africa. Between November 2010 and March 2011 several significant structural changes and leadership appointments were announced at GE, which reflected the company's commitment to global growth in all its regions outside the U.S., including its business in sub-Saharan Africa. In November 2010, John Rice, vice chairman of GE and president and CEO of GE Technology Infrastructure, was named vice chairman of GE and president and CEO of Global Growth and Operations (GGO). In this new role, Rice was based in Hong Kong and in charge of GE's growth in regions outside the U.S. In March 2011, Jay Ireland, a 31-year GE veteran and corporate officer, was appointed president and CEO for GE Africa, effective April 15, reporting to Rice. Additionally, three senior executives were appointed to Ireland's team: Lazarus Angbazo was promoted from president and CEO, sub-Saharan Africa, to president and CEO, GE West, East & Central Africa and Africa commercial leader; Thomas Konditi, a native of Kenya, rejoined GE as CFO for Global Growth and Operations, GE Africa; and Tamla Oates-Forney was promoted from human resources leader for sub-Saharan Africa, GE Energy, to senior human resources manager, GE Africa. While many were optimistic about GE's future in Africa, several issues still needed to be considered.

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.

Bridge International Academies: A School in a Box

Rangan, V. Kasturi, and Katharine Lee
August 2011

Bridge International was founded in 2007 as a for-profit social enterprise to address the educational needs of poor children in Africa. Ten schools were operational in Kenya by 2010. The plan was to franchise nearly 3,000 schools all over Africa. The case is meant to discuss the challenges of scaling.

Mibanco: Meeting the Mainstreaming of Microfinance

Chu, Michael
August 2011

Mibanco, Peru's leading microfinance bank, faces intense competition as the banking industry rushes into low income segments. Companion video clips bring into the classroom the contemporary reality of a world-class microfinance institution, where the unpaved streets and cluttered markets of the loan officer coexist with the sophistication of technical financial analysis and premier professional management. Rafael Llosa, the General Manager of Mibanco, must find the way to maintain the financial performance of one of Peru's most profitable banks and meet the strategic growth goals set by his board while facing the most aggressive competitive scenario in the 25-year history of microfinance in Peru. Courseware No. 9-309-701, "Microfinance: An Operating Perspective," contains five chapters filmed at Mibanco: Introduction, Competition, Marketing, Operations and Human Relations.

Heidrick & Struggles International, Inc

Eccles, Robert G. , Erin McFee
August 2011

As CEO of leading executive search firm Heidrick & Struggles for the past 18 months, Kevin Kelly was pleased with his accomplishments so far but concerned about threats he perceived to Heidrick's position at the highest levels of the executive search business. In response, Kelly had begun making strategic investments in firms offering technology-based solutions, but had not yet made significant progress convincing Heidrick's search consultants about the significance of the threats, or the risks and opportunities being created by information technology and the Internet. The increased emphasis Kelly placed on building leadership consulting services was itself a big change. The case asks what levers Kelly can use, from culture to compensation, to make the challenges to Heidrick's traditional business model understood, and how to implement the strategic initiatives he has launched.

Patagonia Sur: For-Profit Land Conservation in Chile

Segel, Arthur I.
August 2011

Warren Adams founded Patagonia Sur in 2007 as one of the world's first for-profit land conservation businesses. His goal was to purchase over 100,000 acres of land in southern Chile and to run a variety of sustainable businesses to generate annual returns for investors. Patagonia Sur planned to derive various streams of revenue from the land-including eco-tourism, sustainable land development, carbon credits, water rights and eco-brokerage-thereby giving a financial return to investors on top of achieving a positive environmental impact. By 2011, Warren had raised over $20 million from high net worth individuals and Patagonia Sur had over 60,000 acres in Patagonia under management. However, institutional investors seriously questioned whether Patagonia Sur could ever do more than break even on an annual basis. Further, they worried that in fact the risk of the investment went up significantly as the company spent both its capital and management time on so many different revenue streams. In addition, some investors felt that for-profit conservation was morally wrong. Warren needed to convince both individual and institutional investors that his vision would succeed in both generating returns and preserving the natural beauty of Patagonia.

Aman Resorts and Aman Resorts (B)

Soltes, Eugene
August 2011

Aman Resorts (B) describes how employees are rewarded and compensated which is used to supplement Aman Resorts (A).

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.

The Israeli-Palestinian Negotiating Partners: 2010 Strategic Re-assessment

Sebenius, James K., and Shula Gilad
July 2011

A network of influential Israelis and Palestinians, jointly trained in negotiation at Harvard since 2002, faces organizational, strategic, and funding challenges in 2010. Unlike "people-to-people" or "Track II" initiatives, the Israeli-Palestinian Negotiating Partners (IPNP) consists of relatively senior people on both sides of the conflict who have undergone advanced negotiation training together and now constitute a unique network in the region. IPNP's academic sponsor, the Harvard Negotiation Project, is helping to assess this unique negotiation initiative and to assist the organization to conduct a basic re-assessment in the face of changes in regional politics, the conflict, and the funding environment.

Patagonia Sur: For-Profit Land Conservation in Chile

Segel, Arthur I., Nicolas Ibanez, and Jay Verjee
July 2011

Warren Adams founded Patagonia Sur in 2007 as one of the world's first for-profit land conservation businesses. His goal was to purchase over 100,000 acres of land in southern Chile and run a variety of sustainable businesses to generate annual returns for investors. Patagonia Sur planned to derive various streams of revenue from the land-including eco-tourism, sustainable land development, carbon credits, water rights and eco-brokerage-thereby giving a financial return to investors on top of achieving a positive environmental impact. By 2011, Warren had raised over $20 million from high net worth individuals, and Patagonia Sur had over 60,000 acres in Patagonia under management. However, institutional investors seriously questioned whether Patagonia Sur could ever do more than break even on an annual basis. Further, they worried that in fact the risk of the investment went up significantly as the company spent both its capital and management time on so many different revenue streams. In addition, some investors felt that for-profit conservation was morally wrong. Warren needed to convince both individual and institutional investors that his vision would succeed in both generating returns and preserving the natural beauty of Patagonia.

Zespri

Alvarez, Jose B., and Mary Shelman
July 2011

Grower-owned Zespri is the sole exporter of New Zealand-grown kiwifruit outside of Australia and New Zealand. Facing growing international competition, Zespri invested in consumer branding and innovation, which has led to new types of kiwifruit that taste better and are protected with patents. Consumer response has been positive and Zespri has begun to grow kiwifruit outside of New Zealand in order to have the product on retail shelves year round. Is this the right strategy for the future?

Differences at Work Series

Sucher, Sandra J., and Rachel Gordon
July 2011

In Differences at Work: Sameer (A) HBS Case No. 9-609-053 Sameer, an Indian Muslim, is a summer intern in a small, predominantly Jewish firm. Prompted by a conflict in the Middle East, members of the organization make a number of anti-Muslim jokes. Sameer wonders whether he should surface his discomfort; he otherwise enjoys the firm, and is hoping to be given a full-time job offer following his internship.

Internet Securities, Inc.: Path to Sustainability

Applegate, Lynda M., William R. Kerr, and Ryan Johnson
July 2011

Founded in 1994 when the Internet was still a "toy for techies," the case is set in 1998 when Internet IPOs were red-hot. Internet Securities provides hard-to-find financial, business, economic, and political information on emerging markets. Information from over 600 information suppliers in more than 25 emerging markets (e.g., China, Russia, Poland, Venezuela, Argentina, Chile, Turkey) is provided to over 650 institutional clients, including J.P. Morgan, Deutsche Morgan Grenfell, KPMG, and ING Barings. After ruling out seeking another round of VC financing, the cash-strapped founder of this Internet information service provider must decide whether to IPO or accept an offer to be acquired by Euromoney, a global publishing and information content provider that is eager to launch an Internet information service. The case contains a term sheet that can be reviewed to support analysis and decision making.

BlackRock Solutions

Froot, Kenneth A. , and Scott Waggoner
July 2011

The BlackRock Solutions case examines the different functions and economics of a global asset manager's value chain, with particular emphasis on the "money management" and the "investment systems platform" businesses. Students analyze why BlackRock decided to unbundle its Aladdin investment platform and if the firm should consider expanding the platform in the future. Students also explore the resulting "dual-mission" challenges of servicing both internal and external Aladdin clients during a period of rapid growth within BlackRock and significant change in the global financial landscape.

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.

Nike Football: World Cup 2010 South Africa

Ofek, Elie, and Ryan Johnson
July 2011

Nike's Football Division needs to devise a strategy to excel at the 2010 World Cup games in South Africa. Nike has gone from a niche player in the market for football apparel and footwear in 1994 to a formidable competitor to Adidas in 2008 (with revenues of over $1 billion for the sport). The case traces how Nike has gone about making this transformation and its activities at each of the World Cups since 1994. For the upcoming World Cup in South Africa, Nike has decided to change its target market focus and to use digital and social media platforms to connect more extensively with consumers. In addition, Nike plans to launch innovative new boots and engage in corporate responsibility and sustainability initiatives. The company has to do so in light of competition from archrival Adidas and the pressure of succeeding on the biggest stage in football, with billions of people around the world watching. The case allows students to analyze how a company can best integrate several value propositions into a cohesive plan and how it can best communicate with its chosen target market. It also allows for a rich discussion of the brand image the company needs to portray to leverage success beyond the World Cup event.

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?

Internet Securities, Inc.: Path to Sustainability.

Kerr, William R.
July 2011

Founded in 1994 when the Internet was still a "toy for techies," the case is set in 1998 when Internet IPOs were red-hot. Internet Securities provides hard-to-find financial, business, economic, and political information on emerging markets. Information from over 600 information suppliers in more than 25 emerging markets (e.g., China, Russia, Poland, Venezuela, Argentina, Chile, Turkey) is provided to over 650 institutional clients, including J.P. Morgan, Deutsche Morgan Grenfell, KPMG, and ING Barings. After ruling out seeking another round of VC financing, the cash-strapped founder of this Internet information service provider must decide whether to IPO or accept an offer to be acquired by Euromoney, a global publishing and information content provider that is eager to launch an Internet information service. The case contains a term sheet that can be reviewed to support analysis and decision making.

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.

Marshall & Gordon: Designing an Effective Compensation System (A)

Gardner, Heidi K., and Kerry Herman
July 2011

CEO Kelly Browne wrestles with the design of a new compensation system to promote the collaboration and cross-selling necessary for supporting her firm's new strategy. Marshall Gordon International, a global public relations (PR) firm, has recently expanded its service offering to include Executive Positioning, which requires significantly more teamwork, higher-level client interaction, and more strategically minded consultants than their traditional PR work. The CEO is pressured to find a compensation system that helps retain and motivate the firm's valued PR consultants, attract new talent, and get all professionals aligned behind the new strategy.

Marshall & Gordon: Designing an Effective Compensation System (B)

Gardner, Heidi K., and Kerry Herman
July 2011

CEO Kelly Browne wrestles with the design and roll-out of a new compensation system to promote the collaboration necessary for supporting her firm's new strategy. Marshall Gordon International, a global public relations (PR) firm, has recently expanded its service offering to include Executive Positioning, which requires significantly more teamwork, higher-level client interaction, and more strategically minded consultants than their traditional PR work. The (B) case focuses on the choices the firm needs to make about roll-out, including how to measure aspects of consultants' performance, what performance management systems and processes need to support the compensation system, and who should have decision rights about consultants' variable compensation.

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.

Jones Lang LaSalle 2005-2008

Gulati, Ranjay, and Luciana Silvestri
July 2011

The case traces the evolution of Jones Lang LaSalle's organization and strategy between the years 2005-2008, as it transitioned from a modular to an integrated structure. The case protagonist, CEO Peter Roberts, deals with the challenges of creating an organization that pursues multiple logics and requires both focus and collaboration among individuals and groups.

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.

The Changing Face of Angel Investing

Sahlman, William A., and Evan Richardson
July 2011

Angel investors Ram Shriram, Mike Maples, Eric Paley, James Geshweiler, and Jim Southern discuss their investment philosophies and the changing landscape of angel investing. Questions include the following: How has angel investing changed in the last few years? How do you evaluate a prospective investment's attractiveness? How do you think about risk and reward in angel investing? Is it possible for angel funds to be too big?

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.

Fixed Income Arbitrage in a Financial Crisis (A): U.S. Treasuries in November 2008

Taliaferro, Ryan D., and Stephen Blyth
June 2011

Investment manager James Franey confronts an apparent arbitrage opportunity during the global financial crisis of 2008 when he notices a wide yield spread between two U.S. Treasury bonds that mature on the same date. Franey must decide if there is an opportunity, how to structure a trade to exploit it, and how much of his fund's capital to allocate. Case exposition includes considerable detail on financing arrangements, particularly short-selling, margin lending, and repurchase agreements, that support relative-value strategies. Careful attention is paid to the bond math calculations that support the protagonist's analysis and decision. All quoted prices in the case are real and historical, and corresponding Bloomberg commands are provided for each as footnotes.

Aluar: Aluminio Argentino S.A. (A)

Hawkins, David F., Hernan Etiennot, Gustavo A. Herrero, and Cintra Scott
June 2011

Argentine government claims inflation rate is 8 percent but others claim it is double that rate. Analysts' attempts to adjust the company's financial statements for inflation.

Aluar:Aluminio Argentino S.A. (B)

Hawkins, David F., Hernan Etiennot, Gustavo A. Herrero, Hugo Pentenero
March 2011

Analyst restates Aluar's financial statements to account for inflation. Students are asked to critique the method used.

Caterpillar, Inc. (A)

Hawkins, David F
June 2011

2010 Healthcare Reform Act eliminates Medicare Part D subsidy and Caterpillar recognizes a $100 million change

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.

Aman Resorts

Soltes, Eugene, and Aldo Sesia
June 2011

Aman Resorts describes the operating model and philosophy of this high-end set of global properties. Aman relies on employees taking considerable initiative to deliver the highest quality personalized service in the hospitality industry. The case also highlights Aman's strategy and operations which differ in many ways from industry standards.

Caterpillar, Inc. (B)

Hawkins, David F
June 2011

Analyst must identify role of management and actuarial judgment in measuring corporate post-employment benefit obligations and assets.

Caterpillar, Inc. (C)

Hawkins, David F
June 2011

IASB proposes new defined benefit plan accounting standard

Aman Resorts (B)

Soltes, Eugene, and Aldo Sesia
June 2011

This case describes how employees are rewarded and compensated and is a supplement to "Aman Resorts."

Fixed Income Arbitrage in a Financial Crisis (B): U.S. Treasuries in November 2008.

Taliaferro, Ryan D., and Stephen Blyth
June 2011

The (B) case briefly recounts the action that investment manager James Franey takes in the matter of two U.S. Treasury bonds with identical maturity dates but widely different yields. He must decide what to do next.

Fixed Income Arbitrage in a Financial Crisis (C): TED Spread and Swap Spread in November 2008

Taliaferro, Ryan D., and Stephen Blyth
June 2011

Investment manager Albert Mills confronts an apparent arbitrage opportunity during the global financial crisis of 2008 when he notices an unusually low-and briefly negative-30-year U.S. dollar fixed-floating swap spread. Mills must decide if there is an opportunity, how to structure a trade to exploit it, and how much of his fund's capital to allocate. Case exposition includes descriptions of fixed-floating swaps, important interest rates and spreads (LIBOR, TED spread, swap spread), and financing arrangements, particularly repurchase agreements, that support relative-value strategies. Attention also is paid to bond math calculations that support the protagonist's analysis and decision. All quoted prices in the case are real and historical, and corresponding Bloomberg commands are provided for each as footnotes.

Fixed Income Arbitrage in a Financial Crisis (D): TED Spread and Swap Spread in May 2009

Taliaferro, Ryan D., and Stephen Blyth
June 2011

The (D) case briefly recounts the action that investment manager Albert Mills takes in the matter of an unusually low U.S. dollar fixed-floating swap spread. He must decide what to do next.

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.

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

Online Research Guide

Applegate, Lynda M., William R. Kerr, Ann Cullen, and Alexis Brownell
June 2011

This note provides students with an approach to using online databases to analyze companies, industries, and markets, including country markets.

Semiconductor Manufacturing International Company in 2011

Shih, Willy, and Jia Cheng
June 2011

When David Wang took over as the CEO of Semiconductor Manufacturing International Company (SMIC), he knew that if he were to capitalize on the company's strategic location in the China market, he would have to transform the company mindset and its operating structure from its roots in the manufacturing of DRAMs to the service orientation that was necessary to support the customer promise of being a foundry. This meant transforming from a high volume continuous flow manufacturer of commodities chips to a job shop structure that focused on custom manufacturing services. This entailed more than rearranging the manufacturing lines; it meant a dramatic shift in the company culture. Wang also had to ensure the firm's ability to offer the most advanced process technologies. Having fallen behind in previous generations, his predecessor had chosen to license process technology from IBM. Now he faced the question of whether his rapidly changing and maturing organization had the ability to go it alone on future process technology development, or whether it still had to depend on IBM, at least for the time being.

Kumon India in 2007

Takeuchi, Hirotaka, and Yoshinori Fujikawa
June 2011

Kumon is wondering how to expand its student base in India.

Online Research Guide

Applegate, Lynda M., William R. Kerr, Ann Cullen, and Alexis Brownell
June 2011

This note provides students with an approach to using online databases to analyze companies, industries, and markets, including country markets.

LG Display

Campbell, Dennis, and Rui Lu
June 2011

No abstract available

1366 Technologies: Scaling the Venture

Lassiter, Joseph B., III, Nanda, Ramana, David Kiron, and Evan Richardson
June 2011

For some time, 1366's co-founders, Frank van Mierlo and Ely Sachs, had faced a choice, which was now made all the more stark: 1366 could expand to produce silicon wafers itself, raising the required capital from "friendly" investors and building shipment volume slowly, or 1366 could accelerate its market entry dramatically by partnering with the Asian manufacturers that had begun to dominate the worldwide solar industry. While accelerated growth was attractive to 1366 and its current investors, the company believed that it would face considerable risks if it were to expose its intellectual property to the "wrong" partners. 1366 had no intention of losing control of its technology, but given the pace of innovation and the active role of governments in the solar industry, van Mierlo and Sachs feared this might not be a race that could be won by the cautious.

Paul Bremer at the Coalition Provisional Authority in Iraq

Kaplan, Robert Steven
June 2011

No abstract available

Stock Reform of Shenzhen Development Bank

Jin, Li, Li Liao, Aldo Sesia, and Jianyi Wu
June 2011

Shenzhen Development Bank, China's first publicly traded company, was undergoing the non-tradable share reform. Its current controlling shareholder, private equity firm Newbridge Capital LLC, needs to negotiate with its diverse minority shareholders to find a compromise on the terms of the conversion of the non-tradable shares held by Newbridge into tradable shares. Further delay in implementing this reform will put Shenzhen Development Bank into jeopardy as the bank will not be allowed to raise the additional capital it very much needed, but the negotiation between Newbridge and other shareholders was breaking down. The case discussed the non-tradable share reform in China, its causes and its implications, and from the perspective of one private equity play, discussed the issues of corporate governance, conflicts of interest, and the fiduciary duty of corporate managers in an emerging market.

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.

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?

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

Cipla 2011

Deshpandé, Rohit, Sandra J. Sucher, and Laura Winig
June 2011

Dr. Yusuf Hamied, head of the Indian pharma and generics manufacturing company Cipla, is weighing options for how to continue to support the global fight against HIV/AIDS while positioning his company for growth in a changing regulatory landscape.

Dharavi: Developing Asia's Largest Slum (B)

Iyer, Lakshmi, and John D. Macomber
June 2011

In July 2009, as investors prepared to submit financial bids for the $3 billion Dharavi slum redevelopment project, considerable economic and political risks remained.

Angels in British Columbia

Lerner, Josh, Thomas Hellman, and Ilkin Ilyaszade
May 2011

The case study provides an overview of the angel investment practices and describes government policies towards angel and venture capital investing in British Columbia, Canada. It focuses in particular on the Equity Capital Program (BCECP), which provides tax credits to private equity investors that meet several eligibility criteria. The case study is written from the point of view of a policy maker, with a perspective on the entire ecosystem. It provides an overview of the existing structure of the tax credit program, its history, and the lessons learned to date. It discusses the current challenges faced by policy makers wanting to further improve the program.

Bling Nation

Sahlman, William A., and Liz Kind
May 2011

Bling Nation, a Palo Alto, California startup, was founded in 2007 as a mobile payment service provider that bypassed industry participants such as Visa and MasterCard. Bling Nation partnered with local community banks and merchants in small towns. The banks provided their consumers with Bling Nation "tags"-microchip stickers that could be placed on any mobile phone device. The tags allowed users to make payments directly from their checking accounts and functioned similarly to a debit card. While Bling Nation had already raised $33 million, and its founders were confident of the market potential for mobile payments, they recognized the challenges they faced in scaling their current business model.

Renewing GE: The Africa Project

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

This case profiles the evolution of General Electric's African American Forum (AAF), an employee affinity group, and its efforts to increase the company's involvement in Africa. The AAF formed in 1991 to help advance GE's recruitment, retention, and development of black employees. By 1995, members of the AAF started asking Jack Welch whether the company was planning to develop business in Africa. After Welch invited the group to conduct due diligence, it was concluded that the timing was not right for GE to make a significant investment in Africa. Yet, when Jeffrey Immelt began attending the AAF Symposia in 2001, the question about GE's involvement in Africa resurfaced. In 2004, Immelt pledged $20 million to fund "The Africa Project" (later renamed, "Developing Health Globally")-a GE philanthropic effort sponsored by the GE Foundation and the AAF to improve healthcare outcomes in Africa.

Bridging the GAAPs

Yu, Gwen
May 2011

Inconsistencies in accounting treatment across countries are a major obstacle for global equity investment. Adoption of a single accounting standard (IFRS) has been received with much excitement, where apples to apples comparison across countries will become easier. However, adopting a global accounting standard may not necessarily mean that financial reporting in all countries will become standardized. Taking an example from HOLT, a private sector that offers standardized data for global portfolio investment, the case examines i) HOLT's adjustment process for differences in local accounting standards and ii) how IFRS adoption could change HOLT's global valuation framework. The case offers an interesting setting to examine how harmonizing accounting standards can affect global equity valuation.

A123 Systems: Power. Safety. Life.

Vietor, Richard H.K.
May 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.

ASAHI Net: Bringing Innovation to Education

Takeuchi, Hirotaka
May 2011

ASAHI Net developed a cloud-based platform for higher education institutions to use in Japan and was wondering if that platform can be accepted in the U.S. as well.

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

EMC2: Delivering Customer Centricity

Steenburgh, Thomas, and Jill Avery
May 2011

This case introduces the concept of customer centricity and traces its development at EMC, the world's leading data storage hardware and information management software company. EMC's customers had historically relied on EMC salespeople to guide them through the complex, consultative buying process. However, with the rise of social media, prospective customers are getting more of the information they require earlier in the purchase process online. As they do so, their physical interactions with EMC salespeople are decreasing, while their digital interactions are increasing. Given the changing business environment, BJ Jenkins, senior vice president of Global Marketing, faces significant challenges as he tries to maintain EMC's culture of customer centricity. These include 1) translating EMC's platinum service levels, designed to appeal to the world's largest companies, to small businesses and B2C customers, 2) understanding how the replacement of physical interaction with digital interaction in the consultative selling process affects EMC's business, and 3) managing a VAR sales model that distances EMC from its customers.

Aman Resorts

Soltes, Eugene, and Aldo Sesia
May 2011

This case describes the operating model and philosophy of this high-end set of global properties. Aman relies on employees taking considerable initiative to deliver the highest quality personalized service in the hospitality industry. The case also highlights Aman's strategy and operations, which differ in many ways from industry standards.

Aman Resorts (B)

Soltes, Eugene, and Aldo Sesia
May 2011

The (B) case describes how employees are rewarded and compensated and is used to supplement 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?

Leaders Who Make a Difference: Sam Palmisano's Smarter IBM: Day 2

Bower, Joseph L., and Sonja Ellingson Hout
May 2011

Sam Palmisano became CEO of IBM in 2002. He dramatically energized the organization through portfolio changes and a values driven approach to managing the company. The "Day 1" case describes the strategic and organizational changes that transformed the company. The Day 2 case focuses on Sam Palmisano as a strategist, organization builder, and driver of action. The case should be used together with video that shows Palmisano commenting on the work that was accomplished.

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.

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.

Magna International, Inc. (A)

Luehrman, Timothy A., and Yuhai Xuan
April 2011

Magna International, Inc., a Canadian-based automotive parts manufacturer, is considering whether and how to unwind its dual-class ownership structure. A family trust controlled by the founder owns a 0.65% economic interest in the company but has 66% of the votes via a super-voting class of shares. Officers of the company are considering how to fashion a transaction that will end the family's control and win the approval of both classes of shareholders. The Magna (A) case asks the students to weigh the costs and benefits of dual-class ownership and the best way to convert to single-class. The Magna (B) case describes the proposal that Magna's board put to a shareholder vote. Students are asked to evaluate it and decide whether they would approve it.

Magna International, Inc. (B)

Luehrman, Timothy A., and Yuhai Xuan
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.

Hindustan Unilever's 'Pureit' Water Purifier

Rangan, V. Kasturi, and Mona Srivastava
April 2011

The case asks students to formulate a strategy to respond to various competitive threats to its Pureit water purifier, launched in 2008, targeted at millions of low-income Indian consumers who did not have access to safe drinking water. The case describes in detail the product development and launch process that required HUL, the $3.5 billion Indian subsidiary, to innovate on many different fronts. It details competitive actions since the launch to set the stage for what the company should do next.

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.

Sherritt Goes to Cuba (A): Political Risk in Unchartered Territory

Musacchio, Aldo, and Jonathan Schlefer
April 2011

Ian Delaney, CEO of Sherritt, primarily a mining company, visited Cuba in the early 1990s to negotiate a deal to export nickel for its Canadian refineries. The case describes the difficulties of doing business in Cuba and the challenges Delaney overcame to turn Sherritt into a large diversified holding company that operates in mining, oil, utilities, telecomm, hotels, and others. Delaney did this while managing a relationship with an authoritarian regime with an anti-capitalist discourse.

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

Musacchio, Aldo, and Jonathan Schlefer
April 2011

Supplements the (A) case.

"Sherritt Goes to Cuba (C): Cuba Country Data"

Musacchio, Aldo, and Jonathan Schlefer
April 2011

Supplements the (A) case.

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.

ALAC International

Ruback, Richard S., and Royce Yudkoff
April 2011

ALAC was a small importer of specialty industrial chemicals. The case explores the different financing alternatives to facilitate the company's explosive growth in working capital. At the end of 2009, the company was awarded the United States distributorship for the specialty chemical di-isononyl phthalate (DINP) from a large Taiwanese producer and had almost tripled its sales in 2010. It expected to double its sales in 2011 and to dramatically increase its profits. ALAC critically needed to obtain financing for the explosive growth in its inventory and accounts receivable balances.

Gold in 2011: Bubble or Safe Haven Asset?

Greenwood, Robin, and Benjamin Steiner
April 2011

Case explores the pricing of gold in 2011. Is the pricing justified, or are we in a speculative bubble? What data are useful in determining a view on this question?

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?

Porsche: The Cayenne Launch

Deighton, John, Jill Avery, and Jeffrey Fear
April 2011

Can an online discussion forum supply insight into the evolution of brand meaning? In 2003 Porsche launched a sport utility vehicle, dividing Porsche purists from newcomers to the brand. Vocal members of online and offline Porsche communities ridiculed the Cayenne SUV and disapproved of the new breed of driver. Some opposed offering Porsche club membership to them, and some even refused to extend the fraternal Porsche "wave" or headlight flicking to them on the road. Porsche's values of speed, luxury, and a certain masculine zeal resonated strongly with its devotees, while drivers of the Cayenne (which came to be known as 'the SUV for soccer moms') tended to be safety-conscious, family-oriented, and conservative. Evolving debates on forums allow a class to debate whether the brand had strayed too far from its core values and was at risk.

Leaders Who Make a Difference: Sam Palmisano's Smarter IBM: Day 1

Bower, Joseph L., and Sonja Ellingson Hout
April 2011

Sam Palmisano became CEO of IBM in 2002. He dramatically energized the organization through portfolio changes and a values-driven approach to managing the company. The case describes the steps he took to build a new strategy. Video is referenced that provides Palmisano's views of each step in the process. A second case will soon be in the system that describes Palmisano's approach as a strategist, organization builder, and driver of performance. Again, video clips supplement the reading of the case.

Cree, Inc.: Which Bright Future?

Collis, David J., and Mary Furey
March 2011

When global warming concerns caused governments around the world to ban the incandescent light bulb, many manufacturers began scrambling to produce products to fill the gap. Compact fluorescent light bulbs, already on the market, seemed the obvious replacement. But light-emitting diodes (LEDs) were attracting attention as a more efficient alternative in lighting, steadily working their way up the value chain from winky blinky applications into the now flourishing backlighting market. Into this changing market entered Cree, Inc., a North Carolina-based LED chip and component manufacturer. This case explores whether Cree should pursue the LED monitor and television backlighting markets or abandon them to focus on the potential "greenfield" market in general lighting.

Cree, Inc.: An Update

Collis, David J., and Mary Furey
March 2011

Supplements the (A) case

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.

oDesk: Changing How the World Works

Groysberg, Boris, David A. Thomas, and Jennifer M. Tydlaska
March 2011

It is 2010, and Gary Swart, CEO of oDesk, is contemplating the next steps for his organization. Founded in 2004 in California, oDesk operates an online marketplace that matches Employers with Contractors. oDesk provides fact-based information on Contractors, including experience, skills, and certifications, to Employers who use this information as a basis for interviewing and hiring Contractors. oDesk's online marketplace also includes a payment platform and tools that allow Employers to audit and verify Contractors' work and time sheets. oDesk collects commissions, approximately 10% of gross services, on all work that goes through its platform. oDesk has enjoyed robust growth since its inception and, to date, has focused on a very distinct market segment: small- and medium-sized employers, Contractors who provide computer programming services, and U.S.-based employers hiring overseas Contractors. Swart believes that the time has come for oDesk to expand beyond this niche, but he is concerned about maintaining oDesk's strong reputation and market positioning, and, as such, he wants to grow in a very focused manner. Should oDesk expand its customer focus to include large employers? Broaden the services its marketplace offers beyond computer programming? Or, widen its geographic reach? Each of these growth options offers opportunities and entails costs. Swart considers each of these in turn.

Intellectual Property intermediaries

Hagiu, Andrei
March 2011

During the past 5 to 10 years, several different intermediation business models have emerged for the intellectual property (IP) market. This note describes the most prominent ones: non-practicing entities (or patent trolls), defensive patent aggregators, online IP platforms, live IP auctions, and IP exchanges.

Intellectual Ventures

Hagiu, Andrei
March 2011

Intellectual Ventures creates and acquires intellectual property, which it then seeks to monetize through non-exclusive licensing. In early 2009, as an increasing number of companies were trying to position themselves as leading intermediaries in the market for intellectual property, IV was looking for the best business model to become such a leading intermediary. Its model was predicated on making it easy for small inventors to monetize their inventions and IP (by selling it to IV) and then using its scale and aggregate IP portfolio to extract revenues from potential licensees (usually technology companies).

IP intermediaries & Intellectual Ventures

Hagiu, Andrei
March 2011

During the past 5 to 10 years, several different intermediation business models have emerged for the intellectual property (IP) market. This note describes the most prominent ones: non-practicing entities (or patent trolls), defensive patent aggregators, online IP platforms, live IP auctions and IP exchanges.

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?

Hollywood in India: Protecting Intellectual Property (A)

Iyer, Lakshmi, and Namrata Arora
March 2011

In January 2010, Fox Star Studios is preparing to release the Bollywood film "My Name is Khan" in Indian and international markets. What strategies should the company adopt to protect their intellectual property? How much should the company invest in anti-piracy initiatives? Should releases be restricted only to more secure digital screens? Should the company be concerned about the frequent comparisons of the movie with Forrest Gump, in light of several recent cases of Hollywood studios suing Bollywood producers for plagiarism?

Hollywood in India: Protecting Intellectual Property (B)

Iyer, Lakshmi, and Namrata Arora
March 2011

Supplements the (A) case

Rebranding Gallagher

Deshpande, Rohit, and Keith Chi-ho Wong
March 2011

Steve Tucker, the Deputy CEO of Gallagher Group Limited (GGL), the world's largest electric fence company, was about to present a new branding strategy to the company's senior managers and Bill Gallagher, Jr., CEO. After spending more than 18 months with brand consultants, Tucker devised an umbrella brand strategy that would instill a uniform brand across all three business units: Animal Management Systems, Security Management Systems, and Fuel Pumps, which marketed themselves under the respective brand names of Gallagher, Cardax, Powerfence, and PEC. However, Tucker knew that the unit heads believed the differences in their clienteles, product categories, and distributor relationships made it impractical to adopt one single brand. GGL's overseas distributors had also raised concerns about a uniform brand. In many cases, GGL only owned minority interests in these distributors and retained limited control over their activities.

PureCircle

Bell, David E., and Aldo Sesia
March 2011

In December 2008, the U.S. Food and Drug Administration (FDA) determined that high-purity Rebaudioside A (Reb A), a natural and calorie-free product that a young company named PureCircie manufactured from the Stevia plant, could be used in beverages, foods, and as a table top sweetener in the U.S.-the largest market for sugar and sweeteners in the world. While the FDA's determination was the breakthrough the company had hoped for, much remained uncertain-most obvious, would consumers accept Reb A as a substitute for sugar or the myriad sweeteners already established in the marketplace? The potential seemed high given consumers' growing concerns about obesity and diabetes. Yet, nothing was certain. What worried the company's leadership was the prospect of Reb A taking off-that is, being widely accepted by consumers and used by food and beverage (F&B) companies in mainstream mass-market products such as carbonated soft drinks-and the timing of the take off. If Reb A did go mainstream, PureCircle would need to at least double its capacity to secure its position in the industry. If leadership overbuilt the company's capacity and Reb A ultimately remained a niche product, they would severely jeopardize PureCircle's viability. Yet if leadership waited too long, the opportunity to create substantial wealth for the company's shareholders would be lost. As it was, the company's founder and CEO had already gambled by investing in enough production capacity for acceptance in the niche beverage market-before a market for Reb A had been established.

TripAdvisor

Gupta, Sunil, and Kerry Herman
March 2011

By 2010, TripAdvisor (TA) was the largest travel site in the world operating in 24 countries and 16 languages, with listings for 455,000 hotels, 92,000 attractions, and 564,000 restaurants in over 71,000 destinations worldwide. It had over 40 million reviews from 35 million unique monthly visitors who were contributing 21 new reviews every minute. Known for its hotel reviews, TA expanded into flights, vacation rentals, and international markets like China. Each of these expansion paths provided unique opportunities as well as new challenges. In August 2010, Stephen Kaufer, CEO, was debating how to prioritize his growth plans for the company.

PureCircle

Bell, David E.
March 2011

In December 2008, the U.S. Food and Drug Administration (FDA determined that high-purity Rebaudioside A (Reb A), a natural and calorie-free product that a young company named PureCircie manufactured from the Stevia plant, could be used in beverages, foods, and as a table top sweetener in the U.S.-the largest market for sugar and sweeteners in the world. While the FDA's determination was the breakthrough the company had hoped for, much remained uncertain-most obvious would consumers accept Reb A as a substitute for sugar or the myriad sweeteners already established in the market place? The potential seemed high given consumers' growing concerns about obesity and diabetes. Yet, nothing was certain. What worried the company's leadership was the prospect of Reb A taking off-that is, being widely accepted by consumers and used by food and beverage (F&B) companies in mainstream mass-market products such as carbonated soft drinks-and the timing of the take off. If Reb A did go mainstream PureCircle would need to at least double its capacity to secure its position in the industry. If leadership overbuilt the company's capacity and Rebaudioside A ultimately remained a niche product they would severely jeopardize PureCircle's viability. Yet if leadership waited too long, the opportunity to create substantial wealth for the company's shareholders would be lost. As it was the company's founder and CEO had already gambled by investing in enough production capacity for acceptance in the niche beverage market -- before a market for Reb A had been established.

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.

Hollywood in India: Protecting Intellectual Property (A) and (B)

Iyer, Lakshmi
March 2011

In January 2010, Fox Star Studios is preparing to release the Bollywood film My Name is Khan in Indian and international markets. What strategies should the company adopt to protect their intellectual property? How much should the company invest in anti-piracy initiatives? Should releases be restricted only to more secure digital screens? Should the company be concerned about the frequent comparisons of the movie with Forrest Gump, in light of several recent cases of Hollywood studios suing Bollywood producers for plagiarism?

China Construction America (A): The Road Ahead

Abrami, Regina M., and Weiqi Zhang
March 2011

How did a Chinese state-owned construction company strike one deal after another in South Carolina despite political backlash and in New York where well-established competitors dominate? The case examines the U.S. market entry strategy of the CSCEC, China's leading state-owned construction company. It does so by way of the CEO of its U.S. subsidiary and his challenge to sustain the company's exceptional growth in the face of an unprecedented slowdown in the U.S. construction industry. The case also offers a window into the processes and related issues associated with the accelerated overseas expansion of Chinese state-owned businesses.

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.

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.

Recruiting Andrew Yard (A)

Hall, Brian J., Nicole S. Bennett, and Sara del Nido
March 2011

This case describes a compensation negotiation between a global HR director and a candidate for a high-level executive position. The situation becomes awkward when the candidate feels insulted because he is given a monetary incentive to join the company more quickly than originally planned. The case provides an opportunity to analyze negotiation strategy and the importance of emotional intelligence and effective interpersonal communication during a negotiation.

Recruiting Andrew Yard (B)

Hall, Brian J., Nicole S. Bennett, and Sara del Nido
March 2011

Supplements the (A) case

Recruiting Andrew Yard (C)

Hall, Brian J., Nicole S. Bennett, and Sara del Nido
March 2011

Supplements the (A) case

Assembling Smartphones: Takt Time =/= Cycle Time?

Shih, Willy, and Ethan S. Bernstein
March 2011

The case was prepared to be used as part of a process review in the first year Technology and Operations Management course at HBS. It offers students an opportunity to discuss the context of a manufacturing process choice, and then examine actual production numbers that resulted from a series of choices. While there isn't a traditional case issue, the discussion should focus on the gap between theoretical process designs and the reality of practical implementations, with the impact of operator variability in pace and the complex intertwining with work scope. The case only meant for one discussion pasture to review the Hayes-Wheelwright product-process matrix and the impact of variability on line performance. While comparative numbers for the process choices are provided, the hope would be to develop students' intuition around why the numbers change so much.

Assembling Smartphones: Takt Time =/= Cycle Time?

Shih, Willy C.
March 2011

The case was prepared to be used as part of a process review in the first year Technology and Operations Management course at HBS. It offers students an opportunity to discuss the context of a manufacturing process choice, and then examine actual production numbers that resulted from a series of choices. While there isn't a traditional case issue, the discussion should focus on the gap between theoretical process designs and the reality of practical implementations, with the impact of operator variability in pace and the complex intertwining with work scope. The case only meant for one discussion pasture to review the Hayes-Wheelwright product-process matrix, and the impact of variability on line performance. While comparative numbers for the process choices are provided, the hope would be to develop students' intuition around why the numbers change so much.

China Construction America (B): The Baha Mar Resort Deal

Abrami, Regina M., Malcolm Riddell, and Weiqi Zhang
March 2011

Why is a Chinese state-owned construction company building the largest mega-resort and casino in the Caribbean? This case examines the intricate dealmaking by which CSCEC, China's leading global engineering and construction contractor, emerged as a key market player. Having beat out Harrah's and other contenders for a stake in the Baha Mar Project, CSCEC now also has an equity stake in the Bahamas' gaming and resort industry. The case explores the growing role of project financing by way of China's Export-Import Bank and its implications for business dealmaking and the competitiveness of China's increasingly globalizing businesses.

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?

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.

Yum! China

Bell, David E., and Mary Shelman
February 2011

Since the first KFC opened in China in 1987, Yum-under Sam Su's leadership-had built the largest restaurant company by far in mainland China. Averaging one new restaurant opening a day for the past five years, in 2010 Yum ran over 3,600 restaurants in 650 cities and employed over 250,000 people, many of them college students in their first jobs. In the third quarter of 2010, Yum China's revenues surpassed U.S. revenues for the first time, and many analysts expected that Yum's China business-driven by a rapidly growing middle class-would be twice as large as its U.S. business within five years. But before rushing out to open thousands more stores, Su wondered what the company should do to forestall some of the problems plaguing the fast food industry in the West.

China 'Unbalanced'

Comin, Diego A., and Richard H. K. Vietor February 2011

In 2010, Wen Jiabao looked back at the financial crisis with some satisfaction. Using aggressive fiscal and monetary policy, China had weathered the crisis successfully, growing 8.7% annually in 2010. Most of the unemployed workers had returned to work, often demonstrating for higher wages or better working conditions. Wen, however, was really focused on his new development strategy - shifting away from export-led growth to ease domestic and international pressures. But many institutional challenges seemed to hamper domestic demand, and Wen was particularly concerned with pressures from America, on China's policies for trade, exchange rates, energy and investment.

CHS Inc.: Cooperative Leadership in a Global Food Economy

Goldberg, Ray A., and Matthew Preble
February 2011

CHS- the largest farm cooperative in the US- was planning its 2020 vision statement and the role the cooperative should play in the food system.

Citigroup's Exchange Offer

Greenwood, Robin
February 2011

Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C cases, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.

Intercorporate Investments

Hawkins, David F.
February 2011

Background note for cases dealing with intercorporate investments.

The Risk-Reward Framework at Morgan Stanley Research

Srinivasan, Suraj, and David Lane
February 2011

The case describes the Risk-Reward framework that Morgan Stanley analysts use as a systematic approach to communicate a broader range of fundamental insights about a company rather than the traditional single point estimates. The goal of the framework is to focus the analysts' work on critical uncertainties and model a limited number of scenarios relevant to key investment debates. By outlining a bear, base, and a bull case, the analysts can present the risk surrounding the expected outcome over the forecast horizon. The case outlines the key elements of the methodology and the process Morgan Stanley undertook to implement the framework on a worldwide basis starting in 2007 and discusses the challenges and opportunities that managers of the research department face as the framework is increasingly identified with their firm.

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.

The Creative Industries: Managing and Marketing Talent

Elberse, Anita
January 2011

This module note examines issues concerning the management and marketing of talent in the creative industries. It describes the characteristics of the market for creative talent; discusses how individual talent creates and captures value; and explores how professional firms can best recruit, develop, manage, and market creative talent.

Stalemate at the WTO: TRIPS, Agricultural Subsidies, and the Doha Round

Daemmrich, Arthur A.
January 2011

This note analyzes disputes over intellectual property enforcement and agricultural trade barriers at the center of the Doha Round of World Trade Organization (WTO) negotiations. Fundamental principles of intellectual property rights and agricultural subsidies are described, along with the challenges of creating and operating multilateral institutions. The note begins with a brief history of multilateral negotiations under the General Agreement on Tariffs and Trade (GATT), then describes key events of the Doha Round that began in 2001, and the WTO's dispute settlement process. A stalemate has developed between developed and developing countries in WTO talks, leading to the proliferation of bilateral agreements. The note challenges readers to develop an informed position on global trade governance and the economic benefits and political tradeoffs associated with reduced trade barriers and the elimination of domestic subsidies.

Leadership, Culture, and Transition at lululemon

Tushman, Michael L., and David Kiron
January 2011

The case examines leadership and organizational change within a strong culture context through a multimedia study of lululemon, a specialty retailer of high-end athletic apparel. Video segments trace the company's history from its founding in 1998 as a single retail store in Vancouver, Canada, through its IPO and expansion across Canada and the United States. The case is set at a crossroads for the company, as incoming CEO Christine Day prepares to take the helm in mid 2008. At that time, lululemon was publicly traded $350 million company with close to 100 stores, including 56 in the United States, and nearly 3,000 employees. the mission from the board was to continue the company's growth trajectory by opening more stores and, ultimately, increasing sales to $1 billion. Among the challenges that Day would inherit were outperforming stores. According to Day, mismanagement of the real estate strategy had resulted in high-cost locations in many new U.S. markets with little to no demand. Lululemon was struggling to implement new inventory systems to keep pace with the demands of its expanding marketplace. Day also observed that cross-functional barriers had eroded the sense of teamwork within what was originally a strong values-led organization, resulting in an inability to achieve compromise. "The whole organization slowed down." said Day, "because people weren't aligned. "Leadership, Culture, and Transition at Lululemon" highlights the fundamental tensions that entrepreneurial companies and their leaders face when going to scale: balancing rapid growth and the need to leverage their organization architecture (and associated cultures) as the firm evolves.

The Global Sight Network Initiative

Herzlinger, Regina E
January 2011

How to replicate a 'one of' social entrepreneurship effort: To cure blindness, Seva took the Aravind Eye Hospital and scaled it up to 100 hospitals globally.

CHS Inc.: Cooperative Leadership in a Global Food Economy

Goldberg, Ray A., and Matthew Preble
January 2011

CHS-the largest farm cooperative in the U.S.-was planning its 2020 vision statement and the role the cooperative should play in the food system.

Toyota Recalls (A): Hitting the Skids

Quelch, John A., Carin-Isabel Knoop, and Ryan Johnson
January 2011

In the fall of 2009, Toyota Motor Corporation, once revered for its commitment to quality and reliability, faced a highly publicized series of recalls in the U.S. representing approximately a year's worth of sales in one of its most important markets. While the first Toyota recall was met with widespread disbelief but continuing support for the brand, subsequent revelations and recalls tested the brand's resilience in the U.S. The firm's initial public response to the problems-a mixture of silence from top executives and vague, misleading public statements-frustrated U.S. government officials and the public. Not until weeks after the news first broke did Toyota organize a clear message around its commitment to return to quality. In late February 2010 Toyota President Akio Toyoda reluctantly accepts an invitation to testify to the U.S. Congress, 148 days after the first recall announcement. He has to decide what to say.

Toyota Recalls (B): Mr. Toyoda Goes to Washington

Quelch, John A., Carin-Isabel Knoop, and Ryan Johnson
January 2011

Case describes the testimony to the U.S. Congress of the Toyota CEO and the head of its U.S. motor sales.

Toyota Recalls (C): Bumpy Road Ahead

Quelch, John A., Carin-Isabel Knoop, and Ryan Johnson
January 2011

Between February and July 2010, Toyota sales recover thanks to the use of extensive PR and sales incentives. Yet recalls continue. Can Toyota stem the tide and correct its organizational flaws to address the underlying issues?

Talent Recruitment at frog design Shanghai

Eccles, Robert G., Amy C. Edmondson, and Yi Kwan Chu
January 2011

This case illustrates the complexity and importance of hiring decisions in the Chinese operation of a global design and innovation firm.

Angola and the Resource Curse

Musacchio, Aldo, Eric Werker, and Jonathan Schlefer
January 2011

Since emerging from decades of conflict in 2002, Angola has been growing at a scorching double-digit rate, led by its oil industry. But the nation remains beset with seemingly intractable problems: immense inequality, low life expectancy, a non-diversified economy, and constant grumblings of corruption. The global financial crisis and subsequent fall in state oil revenue drives a loan-seeking Angola toward either the IMF, that demands extensive reforms, or the Chinese, who seek to take a direct stake in the nation's recovery. The case explores the dynamics of post-conflict recovery as well as the challenges associated with a reliance on oil wealth, including the resource curse and Dutch disease.

2010

VeeV on the Rocks?

Marquis, Christopher, Joshua D. Margolis, and Bobbi Thomason
December 2010

Three pressing challenges (equity split, extent of commitment to social responsibility, and product discoloration) confront VeeV, the world's first alcoholic beverage infused with acai berries. Brothers Courtney and Carter Reum founded VeeV in 2007 and the firm has experienced rapid growth since then. The case documents the backgrounds of the young founders, details the launch and early phase of the company, and presents three challenges the founders must address: how to split the equity of the new company, how far to go in their efforts to be a "green" and socially responsible brand; and an unexpected potential product quality issue.

Farmland Investing: A Technical Note

Goldberg, Ray A., Arthur I Segel, Gustavo A. Herrero, and Andrew Terris
December 2010

This note seeks to provide an overview of farmland investing, the investment thesis behind investing in agriculture, how and why investors would choose farmland, and the general risks and return characteristics of this asset class. In recent years, a growing number of individual and institutional investors have allocated a portion of their capital into agricultural farmland. Private investors, public companies, and sovereign wealth funds are now all currently purchasing and selling large amounts of farmland for profit.

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.

Toni Sacconaghi at Sanford C. Bernstein

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

Toni Sacconaghi, a senior sell-side equity research analyst at Sanford C. Bernstein covering U.S. IT hardware companies, thinks about the challenges and opportunities presented by the firm's new office in Hong Kong. Sacconaghi was previously the only analyst covering IT hardware companies for Bernstein. However, the firm has recently hired an analyst to cover Asian IT hardware companies in Hong Kong. Sacconaghi thinks about the best way to work collaboratively with the new Asian analyst.

AdMob (A)

Piskorski, Mikolaj Jan, Samuel Cohen Mobily-Guitta, and Nithya Vaduganathan
December 2010

AdMob's CEO is deciding between international expansion and increasing the number of publishers to strengthen the company's advantage in the mobile advertising industry. AdMob displayed advertising on global devices, powered 6,000 websites and 1,000 applications, and served over 6 billion advertising impressions a month to 25 million unique visitors. AdMob's success attracted numerous competitors, such as Millennial Media and Quattro Wireless, both of which were expanding quickly and had raised considerable capital. The company now needs to allocate its limited resources wisely to position it for long-term success.

Reverse Engineering, Learning, and Innovation

Shih, Willy
December 2010

This background reading looks at reverse engineering in the context of piracy and knock-offs in emerging markets like China. It first considers legal aspects of reverse engineering in strong property rights regimes like the United States as a way of unpacking the legal issues. It considers the importance of tacit or unexposed knowledge, and whether modularizing a system facilitates the recovery of design intent. Finally we look at the role of reverse engineering in the development of capabilities and how it enhances a firm's absorptive capabilities. It is intended to be used as a background reading for the case "From Imitation to Innovation: Zongshen Industrial Group," HBS No. 610-057.

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.

Belco Global Foods

Foley, C. Fritz, and Matthew S. Johnson
December 2010

This case introduces students to the fundamental issues that managers face when deciding what international trade finance terms to use when transacting with other firms. In late 2009, Pam Arnold, the Head of Global Credit at Belco Global Foods must decide which trade finance terms to offer to two new customers and how to pursue a claim against a customer who has missed a payment deadline.

Hikma Pharmaceuticals (B)

Quelch, John A.
December 2010

By 2009, Hikma Pharmaceuticals operated 13 manufacturing plants in 8 countries of which 5 were approved by the U.S. Food and Drug Administration. Hikma tracked its sales revenues over the period to show from where the largest contributors were from...

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.

The Export-Import Bank of the United States

Foley, C. Fritz, and Matthew Johnson
December 2010

In the fall of 2009, Fred Hochberg, chairman of the Export-Import Bank of the United States (Ex-Im), and his team struggled to find a way to help finance the sale of Boeing aircraft to Emirates. Ex-Im responds to the challenges in the credit market with an innovative offering. This case provides students with an opportunity to analyze the structure and activities of an export credit agency and to value the expected costs of issuing a loan guarantee.

Note on International Trade Finance

Foley, C. Fritz, Matthew Johnson, and David Lane
November 2010

This note provides an introduction to the financing terms and payment arrangements that support international trade. It describes the principal instruments of trade finance, the limited evidence on their relative use, and the international trade dispute resolution mechanisms that form the backdrop against which traders select financing terms.

The International Criminal Court

Di Tella, Rafael, and Natalie Kindred
November 2010

This Case describes a controversial 2010 decision by the International Criminal Court (ICC) and alludes to some of the broader challenges of building international institutions. The case briefly highlights certain milestones in international relations preceding the ICC's formation; provides an overview of the ICC and its activities as of March 2010; and outlines Kenya's post-election crisis in 2007-2008 and the ICC's decision to intervene. The ICC's involvement was a divisive issue: some argued it would destabilize Kenya, while others claimed it was an important step towards lasting peace. The Kenya scenario presents many aspects for consideration, including the wisdom of the ICC's involvement (given the complex historical, economic, and cultural issues underlying the 2007-2008 crisis), as well as the likelihood that Kenyan officials will cooperate with the ICC. Students can also weigh the broader implications for the ICC as it seeks to establish itself as a legitimate, fair, and just institution.

California's Budget Crises, Tax Reform, and Domestic and International Tax Competition

Weinzierl, Matthew C. and Jacob Kuipers
November 2010

How do (and how should) governments design fiscal policies to compete in a globalized economy while meeting internal policy priorities including redistribution? In 2009, Governor Arnold Schwarzenegger repeatedly declared fiscal emergencies as California's state budget deficit reached all-time highs. The Governor and legislative leaders established the Commission on the Twenty-first Century Economy to recommend tax reforms that would improve the state's fiscal health and competitiveness. But when the Commission issued its recommendations, many of which were consistent with domestic and international trends in taxation, legislative leaders were highly critical and the prospects for reform dimmed. The case describes the political and economic contributors to California's persistent fiscal deficits and the reforms recommended by the Commission. It summarizes recent trends in taxation by U.S. states and OECD nations, relating the empirical trends to tax theory. Finally, it engages the issue of inter-jurisdictional tax competition from both positive and normative perspectives.

Taj Hotels, Resorts and Palaces

Deshpandé, Rohit, and Mona Srivastava
November 2010

The Taj Hotels, Palaces, and Resorts introduced a new brand architecture to counter lack of differentiation and confused positioning of its mixed bag of brands. After launching an economy and an upscale brand, it dithered over the launch of its upper upscale and luxury brands. The case illustrates the marketing and organizational challenges of a hybrid brand extension strategy that lies in between a "house of brands" and a "branded house."

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.

The Political Economy of Carbon Trading

Reinhardt, Forest L., J. Gunnar Trumbull, Mikell Hyman, Patia McGrath, and Nazli Zeynep Uludere
October 2010

Global climate change is an increasingly prominent political and business problem. Design of market-based systems to reduce carbon emissions has proven difficult. More broadly, national attempts to comply with the provisions of the Kyoto Protocol present both governments and firms with significant challenges. The design of international institutions that will be useful for managing change after the Kyoto period is a challenge both for Kyoto ratifiers and for countries like the United States that have not ratified the agreement. Creation of a post-Kyoto treaty on climate change requires agreement by China and the United States, the world's largest carbon emitters. The case summarizes the science and economics of climate change and encourages readers to contemplate the strategic and risk management problems that it presents to government officials and to business leaders in developed countries and in the developing world.

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.

Belco Global Foods

Foley, C. Fritz, and Matthew Johnson
October 2010

This case introduces students to the fundamental issues that managers face when deciding what international trade finance terms to use when transacting with other firms. In late 2009, Pam Arnold, the head of global credit at Belco Global Foods, must decide which trade finance terms to offer to two new customers and how to pursue a claim against a customer who has missed a payment deadline.

JP Morgan Private Bank: Risk Management during the Financial Crisis 2008-2009

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

Mary Erdoes, the CEO of JP Morgan's asset management business, and three colleagues provide insights into risk management issues faced by the firm's private bank during the financial crisis in 2008-2009. The case provides perspective on the philosophy with which they approach risk management, issues of greatest concern, tools and processes used in practice, the benefits and limitations of quantitative models and balance between the use of models and exercising judgment, and lessons learned from the crisis about risk management.

Paul Bremer at the Coalition Provisional Authority in Iraq

Kaplan, Robert S., and Nicholas Taranto
October 2010

Since becoming the President's envoy responsible for post-war Iraq, Paul Bremer endured many sleepless nights, struggling with the decision of how to hand over sovereignty to the Iraqi people. Despite daily assassination attempts, tribal warfare, growing violence, and political pressure-at home in Washington, D.C. and abroad-the CPA undertook the difficult task of handing over power to an Iraqi civil society that was simultaneously being rebuilt from the ground up.

Batson International, S.A. (A)

Hawkins, David F.
October 2010

Management seeking to make up a shortfall in interim period earnings is seeking an accounting solution to close the gap.

Batson International, S.A. (B)

Hawkins, David F.
October 2010

A surprise internal audit of a division's accounting practices reveals a number of possible earnings management and accounting irregularities.

Batson International, S.A. (C)

Hawkins, David F.
October 2010

Senior management must sign a management letter. An internal audit reveals a number of questionable accounting practices (B case). How should senior management respond?

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?

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.

Tesco PLC: Fresh & Easy in the United States

Quelch, John A., Carin-Isabel Knoop, and Ryan Johnson
August 2010

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

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

Google in China (C)

Quelch, John A.
August 2010

Supplements the (A) case.

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.

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.

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.

In the Spotlight: The Market for Iron Ore

Musacchio, Aldo, Tarun Khanna, and Jenna Bernhardson
July 2010

This note discusses the structure and functioning of the market for iron ore. This market has traditionally functioned using a benchmark pricing mechanism, in which large steel mills in Japan (now in China) negotiate the benchmark price with the largest of the big three iron ore producers (Vale do Rio Doce). Yet this market is changing rapidly-with the rise of China as the main consumer of iron ore, the rules seem to be changing. The note examines the increasing importance of the spot market for iron ore and the advantages and disadvantages of abandoning the benchmark price system for both consumers and miners.

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.

Vale: Global Expansion in the Challenging World of Mining

Khanna, Tarun, Aldo Musacchio, and Ricardo Reisen de Pinho
July 2010

In 2009 the management of Vale, a Brazilian diversified mining company and the largest iron ore producer in the world, was under pressure from at least two fronts. First, the emergence of China as the most important consumer of iron ore in the last few years had changed the pricing system for iron ore from long-term contracts based on negotiated "benchmark prices" to contracts based on spot prices, usually forcing mining companies to pay for shipping. Second, for Brazil's charismatic president, Lula, a former union leader, Vale's layoffs during the global financial crisis and its perceived move away from Brazil (as Vale increased its exports to China and purchased Chinese vessels to ship iron ore to Asia) were reasons to start an open campaign to pressure Vale and Roger Agnelli to invest in integrated steel mills in Brazil. In October of 2009, the CEO of Vale, Agnelli was going to meet with Lula and had to decide what to do to attenuate these political pressures. What could Agnelli do to deal with political pressures at home? Was the purchase of large vessels to ship iron ore to Asia a good decision at a time when the shipping industry had spare capacity?

Arup: Building the Water Cube

Eccles, Robert, Amy C. Edmondson, and Dilyana Karadzhova
July 2010

Arup, an engineering firm, collaborated with PTW Architects and China Construction Design Institute to develop a design for the 2008 Beijing Summer Olympics Aquatics Center design competition. Their winning concept for the Water Cube combined elements of Chinese culture with innovative materials and sustainability requirements. The multidisciplinary and cross-company team, based in Sydney, Australia with counterparts in Beijing, faced project management challenges and cultural differences. The Water Cube became an iconic image during the Olympics, and managers at Arup now wonder how to leverage the impact within the company.

Globalization at Komatsu

Yoshino, Michael Y.
July 2010

The case captures the challenges Komatsu, the second largest manufacturer of earth-moving equipment, faced during the past five decades as it sought to globalize its operations. By 2007, it had become the second largest manufacturer of earth-moving equipment with more than 80% of its sales coming from outside of Japan. It has built a network of plants, distributors, and service centers around the world. Senior management is convinced that a major reason for its success is its culture, recently articulated as the Komatsu Way. The central issue in the case is how to transmit and embed it to its far flung operations throughout the world.

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.

Mirae Asset: Korea's Mutual Fund Pioneer

Khaire, Mukti, Michael Shih-Ta Chen, and G.A. Donovan
June 2010

Park Hyeon-Joo, the founder and chairman of Korea's earliest and largest mutual fund company, plans to expand internationally. After first offering emerging market funds to its Korean customers, the company then began selling local-currency funds in India and Brazil. Now Hyeon-Joo has to decide his next steps. Should he build on his emerging market expertise and focus his business expansion in developing countries? If so, where should he concentrate his efforts-India, Brazil, China, or other countries? Or should he instead focus on expanding into developed markets through operations in New York and London?

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.

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.

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.

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."

Amyris Biotechnologies: Commercializing Biofuel

Pisano, Gary P., and Alison Berkley Wagonfeld
May 2010

In 2009, Amyris Biotechnologies was building a plant in Brazil that used synthetic biology to convert sugarcane into both renewable fuels and renewable chemicals. The Amyris' marketing team was investigating the commercial interest for both types of products, while the research and development team and the operations group were building processes that could accommodate both as well. CEO John Melo hoped to have commercial product available in 2011; however, he realized that pursuing both chemicals and fuels added even more complexity to a business that was already executing multiple development steps in parallel. The case looks at the various strategic and operational decisions facing Melo as he planned the company's optimal commercialization strategy.

Ergo: Open Sourcing Research on Complicated Markets

Chakravorti, Bhaskar, and Natalie Kindred
May 2010

In 2009, Ergo, a primary source research and consulting firm founded in 2006 with offices in New York, Washington, and Baghdad, was considering growth options. Clients came to Ergo for in-depth research into complex questions, usually pertaining to obscure industries, opaque markets, and complicated geographies. To meet its clients' information needs, Ergo's research staff interviewed members of Ergo's 7,000-strong expert network comprised of former government officials, scientists, scholars, business leaders, and other individuals with specialized expertise or rare access to information. Ergo staff then synthesized the experts' input into a report for the client. In November 2009, Ergo founder RP Eddy was working on a joint-venture deal with a foreign sovereign wealth fund, which would boost Ergo's visibility (and revenues) in international markets and represent a major step for the young firm. To Ergo's leadership team, the move highlighted the need to revisit some major strategic questions. Would the joint venture be seen as a conflict of interest by Ergo's sovereign wealth fund clients? Should Ergo pursue a growth strategy based on regional joint ventures? Aim to be acquired? Or perhaps develop into large, diversified consultancy? To what extent was Ergo's model of open-sourced expertise even scalable?

Monsanto: Helping Farmers Feed the World

Bell, David E., Carin-Isabel Knoop, and Mary Shelman
May 2010

Monsanto has led the effort to bring biotechnology to bear on food production. Through some management missteps and consumer resistance the company had difficulties in its early years. But since Hugh Grant became CEO the picture has brightened with widespread adoption of the company's products. This case focuses on the company's product pipeline and the galvanizing effect of the CEO's promise to substantially improve global food production by 2030.

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.

Cognizant 2.0: Embedding Community and Knowledge Into Work Processes Embedding

Eccles, Robert G., and Thomas H. Davenport
May 2010

Since its inception, Cognizant Technology Solutions has placed a high priority on knowledge management because its global delivery model requires the global sharing of knowledge. Its first major tool was called the Knowledge Management (KM) Appliance, but as Web 2.0 tools came into wider use, this evolved into what the company called "Cognizant 2.0" (C2), which was designed to ensure that the KM Appliance capabilities for storing documents and participative tools such as blogs and wikis were directed towards supporting business goals. This required developing a set of structured work process guidelines and tasks for each major type of work performed internally and for clients. Increasing awareness of C2 among its clients has led the company to consider whether it should turn this into a client-facing service offering itself. As its clients become more interested in knowledge management within their own companies, the interest in a C2-based offering could grow.

Google in China (B)

Quelch, John A.
May 2010

In a January 2010 public statement, Google threatened to stop censoring its search results on its Google.cn website, as required by Chinese authorities. Should Google exit China? Or attempt a compromise with the Chinese government?

Dollarama Inc.

Pérold, Andre F.
April 2010

Dollarama is the leading operator of dollar stores in Canada. The firm performed extraordinarily well after a leveraged buyout in 2004 and recently executed a highly successful IPO. The company sources its goods primarily from Asia. It has strong brand recognition and competitive advantages in operations, purchasing, and merchandising. In the face of margin pressures, Dollarama recently took the risky decision to move from the single one-dollar price point to multiple price points. The additional price points offer some flexibility, but customers' appetite for purchasing products priced above one dollar has yet to be fully determined. Dollarama is on a fast growth track but remains chiefly concerned about its vulnerability to supply disruptions and to increases in merchandise costs from higher input prices. The firm appears quite overvalued based on a multiples analysis but considerably undervalued based on a discounted cash flow analysis.

International AIDS Vaccine Initiative

Grossman, Allen, and Catherine Ross
April 2010

Dedicated to accelerating the development of a safe, effective, accessible, preventive HIV vaccine, the International AIDS Vaccine Initiative (IAVI) pioneered ways of addressing the inadequate incentive structures that prevented progress toward vaccines for AIDS and other diseases predominantly affecting poor populations in tropical countries. As an intermediary nonprofit organization, IAVI brought together partners with different perspectives and motivations from nonprofit, industry, government, and scientific research sectors toward developing vaccines. IAVI played several roles: honest broker, integrator, and communicator of knowledge regarding AIDS vaccine research; passionate advocate for AIDS vaccines at national and international levels; and coordinator and manager of research and development initiatives. In 2008, IAVI invested further in its own laboratories and research infrastructure, moving a step upstream in vaccine development partnerships and clinical research. How should IAVI manage tensions between what is necessary to achieve its mission and what is necessary to build new incentive structures that enable key actors to work together effectively?

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.

Real Blue? Viagra and Intellectual Property Rights Law in China

Abrami, Regina, and Tracy Yuen Manty
April 2010

On July 5, 2004, Pfizer's China team received disappointing news. China's patent review board just invalidated the company's existing patent on one of its most successful drugs, Viagra. Making matters worse, a Guangdong-based pharmaceutical company laid claim to Viagra's street name "Wei Ge" (Great Brother), arguing that the term was not a well-known trademark in China. With two lawsuits related to intellectual property rights now pending in China, Pfizer wondered whether trade politics or the rule of law would prevail.

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.

Miles Everson at PricewaterhouseCoopers

Eccles, Robert G., and David Lane
February 2010

Miles Everson, a partner at PricewaterhouseCoopers (PwC), is the Global Engagement Partner (GEP) for a large U.S. financial institution and about to take over this role for a much larger global financial institution. The GEP role is a critical one at PwC. GEPs have responsibility for the firm's largest and most important clients. They must manage a vast external network of client employees and an equally vast internal network of the firm's employees. The GEP needs to have a deep understanding of the client and its industry in order to identify opportunities and problems where the firm's resources can be brought to bear and to match the firm's capabilities to the client's needs. GEPs must be able to simultaneously manage a larger number of tasks, often under great time pressure. This case describes how a very effective GEP-Miles Everson who was named one of the top 25 consultants for 2006 by Consulting Magazine-performs this role and provides insights into the attitudes, skills, and subject matter expertise necessary to be successful in this role. Insights into how Everson does this job are provided by both PwC and client personnel. As is often the case, Everson is responsible for a business (in his case governance, risk, and compliance) and so he has substantial internal management responsibilities as well. The case raises questions about whether he will be able to retain these internal management responsibilities when he takes over a much larger and more complex global client and becomes the Senior Engagement Partner (SEP) on his current client. (SEPs perform an oversight role for the work being done by the GEP and his or her team and are typically very senior members of the firm.) The case also raises areas where Everson can improve.

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

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.

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.

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

VIZIO, Inc.

Palepu, Krishna G., and Liz Kind
November 2009

William Wang, CEO of VIZIO, Inc., was proud of his company's success in providing affordable flat screen TVs. Since its founding in 2002, VIZIO had grown to over $2 billion in revenue and was one of the top three flat panel TV brands, along with Samsung and Sony. Faced with intensifying price pressure from the industry leaders and an unprecedented economic recession, Wang wondered how VIZIO could best sustain its growth and finance its business.

One South: Investing in Emerging Markets (A)

Retsinas, Nicolas P., and Justin Ginsburgh
November 2009

A United States private equity fund, The Saboput Group, must decide whether to invest in a new technology park development in Chennai, India. The case provides the reader with a detailed investment memorandum from the local Indian operating partner, and the reader must review the memo and financial model to make an investment recommendation to Saboput's investment committee.

One South: Investing in Emerging Markets (B)

Retsinas, Nicolas P., and Justin Ginsburgh
November 2009

A United States private equity fund, The Saboput Group, must decide whether to invest in a new technology park development in Chennai, India. The case provides the reader with a detailed investment memorandum from the local Indian operating partner, and the reader must review the memo and financial model to make an investment recommendation to Saboput's investment committee.

Noble Group

Foley, C. Fritz, Michael Shih-Ta Chen, Matthew Johnson, and Linnea Meyer
November 2009

What role does trade finance play in facilitating global supply chain management? Richard S. Elman, founder and CEO of Noble Group Ltd., a global commodities trading company based in Hong Kong, must raise capital to support the firm's working capital and investment needs. In evaluating by which means Elman should raise capital, students must consider issues relating to the payment terms and financing arrangements used in world trade, as well as the risk management and operating decisions of a trade intermediary.

Intellectual Ventures

Hagiu, Andrei, David B. Yoffie, and Alison Berkley Wagonfeld.
November 2009

Intellectual Ventures (IV) creates and acquires intellectual property (IP), which it then seeks to monetize through non-exclusive licensing. In early 2009, as an increasing number of companies were trying to position themselves as leading intermediaries in the market for intellectual property, IV was looking for the best business model to become such a leading intermediary. Its model was predicated on making it easy for small inventors to monetize their inventions and IP (by selling it to IV) and then using its scale and aggregate IP portfolio to extract revenues from potential licensees (usually technology companies).

Kim Park (A): Long-lived Nonmonetary Assets

Hawkins, David F.
November 2009

A series of caselets exploring the accounting for long-lived nonmonetary assets.

ZINK Imaging: "Zero Ink™"

Sahlman, William A., and Sarah Greene Flaherty
November 2009

ZINK Imaging describes the issues confronting CEO Wendy Caswell as she uses a partnership model to commercialize ZINK's disruptive printing technology platform, ZINK Paper. The case focuses on the frameworks ZINK has used to decide which markets to target and which business partners to choose. Caswell contemplates changes to the partnership model in an effort to speed product introduction to manage the company's burn rate and reach profitability. The context for the case is the company's imminent need to raise an additional $25 million.

Wiwa v. Royal Dutch/Shell

Paine, Lynn S., and Lara Adamsons
November 2009

On the eve of trial, and after nearly 14 years of pre-trial litigation, the parties in Wiwa v. Royal Dutch/Shell jointly announced that the four U.S. lawsuits stemming from the execution of the Ogoni Nine in 1995 had been settled.

Choosing a GAAP for Canada

Ramanna, Karthik, and Beiting Cheng
November 2009

Explores Canadian regulators' decision to adopt International Financial Reporting Standards (IFRS). The Canadian decision in 2005 to adopt IFRS is particularly interesting because Canada had well-developed domestic accounting standards and because a significant fraction of Canadian industry was lobbying for the adoption of U.S. Generally Accepted Accounting Principles (GAAP) and not IFRS. The case positions the student as an advisor to an important local politician. Based on cultural, economic, and political information available in 2005, the case requires the student to choose between (1) retaining Canadian GAAP, (2) adopting U.S. GAAP, or (3) adopting IFRS.

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 (B): Welcoming Gillette

Kanter, Rosabeth Moss, and Matthew Bird
October 2009

A.G. Lafley and P&G leaders decided to approach the Gillette integration differently from previous mergers. Using P&G's purpose, values, and principles (PVP) it treated the acquisition as a merger that sought to take the "best of both" from each company. In the integration's first phase, prior to the change of control, the strategy achieved successes while creating some unexpected challenges. How should the integration leaders address these challenges moving forward?

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.

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.

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

Root Capital

Rangan, V. Kasturi, and Katharine Lee
October 2009

Founded in 1999, Root Capital had loaned $150 million to nearly 250 small and growing businesses, mainly in Latin America. In 2009, as the organization launched a five-year, $55 million capital campaign, it had to determine a strategic path going forward in keeping with its goal of achieving financial sustainability by 2013

Endeavor: Creating a Global Movement for High-Impact Entrepreneurship

Sahlman, William A.
October 2009

This case describes a critical inflection point in the growth of an international development "mentor capitalist" nonprofit, Endeavor. As Endeavor aims to scale its high-impact entrepreneurship model globally, founder Linda Rottenberg must determine what success looks like for the organization and which growth option will most effectively take Endeavor in that direction. The case begins with a panel of business leaders selecting a new class of Jordanian entrepreneurs to join the ranks of Endeavor's prestigious portfolio. Their decision forces them to wrestle with the following questions: "What is high impact entrepreneurship, and how will it contribute to the economic development of a country like Jordan?"

Acumen Fund: Measurement in Venture Philanthropy (A)

Ebrahim, Alnoor, and V. Kasturi Rangan
October 2009

Acumen Fund is a global venture capital firm with a dual purpose: it looks for a return on its investments, and it also seeks entrepreneurial solutions to global poverty. This case examines Acumen's new projects in Kenya. The organization's investment committee and its chief investment officer, Brian Trelstad, must decide whether or not to fund two for-profit ventures. The first provides clean and accessible shower and toilet facilities in urban areas, serving a critical need for low-income populations-its financial sustainability, however, is less clear. The second investment is a network of successful private health clinics that primarily serve middle-income populations but which have the potential to reach low-income markets. On what basis should Acumen decide whether or not to invest? What performance metrics should it use? As the investment committee nears a decision, political and social unrest breaks out in Kenya following a highly contested presidential election. Acumen Fund must now also consider the political risks of investing.

Consumer Lending in Japan: Citi CFJ (B)

Trumbull, J. Gunnar, and Akiko Kanno
October 2009

As the regulatory environment for consumer lending evolves, CFJ has to decide how to respond.

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.

Citigroup's Exchange Offer (A)

Greenwood, Robin, and James Quinn
October 2009

Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C cases, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.

Citigroup's Exchange Offer (B)

Greenwood, Robin, and James Quinn
October 2009

Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C case, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.

Citigroup's Exchange Offer (C)

Greenwood, Robin, and James Quinn
October 2009

Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C case, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.

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.

Citigroup-Wachovia-Wells Fargo

Subramanian, Guhan, and Nithyasri Sharma
October 2009

In late September 2008, amidst the spiraling financial crisis, many firms on Wall Street were in a precarious position. One such institution was Wachovia, which entered acquisition talks with Citigroup and Wells Fargo. This case describes the development of these negotiations throughout the week of September 26-October 3, 2008 and explores the role of a company's Board of Directors and the role of government regulators, particularly the FDIC, during times of crisis.

CEMEX (A): Building the Global Framework (1985-2004)

Kanter, Rosabeth Moss, Pamela Yatsko, and Ryan Raffaelli
October 2009

CEMEX grew through acquisitions from a Latin American to a global company under the leadership of a CEO who believed in the importance of a "one enterprise" culture and benchmarking against world standards. As the CEO ponders an acquisition that would double the company's size and take it to new geographies, he wonders if the right capabilities are in place for what should be changed to manage the integration process effectively.

CEMEX (B): Cementing Relationships (2004-2007)

Kanter, Rosabeth Moss , Pamela Yatsko, and Ryan Raffaelli
October 2009

Supplements the (A) case

CEMEX's Foundations for Sustainability

Kanter, Rosabeth Moss , Pamela Yatsko, and Ryan Raffaelli
October 2009

No abstract available

Jones Lang LaSalle: Reorganizing around the Customer

Gulati, Ranjay, and Lucia Marshall

September 2009

Peter Roberts, CEO of Jones, Lang, LaSalle (JLL) Americas division, has been charged with expanding the company's presence in its core geographic markets while simultaneously growing its corporate account business. Roberts and his task force have narrowed their options to two proposals. The first is an enhancement of the account management model put in place in 2001 where independent service units co-existed with an account management group. The second is a realignment of the firm's operations around geography and key accounts. By examining the tradeoffs required by each option, the case illustrates the tensions involved in structuring an organization around product, geography, and key customers. It also explores the importance of aligning strategic choices with organizational architecture.

Wal-Mart's Use of Interest Rate Swaps

Kimbrough, Michael D., Michael Faulkender, Nicole Thorne Jenkins, and Rachel Gordon
September 2009

Wal-Mart's Use of Interest Rate Swaps recounts Wal-Mart's use of interest rate swaps to hedge the fair value of its fixed-rate debt against changing interest rates. This case provides students with a foundation for understanding the use of and accounting for more complex derivatives. Specific issues raised include (1) the financial statement impact of hedge accounting; (2) motivations for using derivatives, including the potential role of accounting standards; and (3) the degree to which financial statement and MD&A disclosures are sufficiently informative about the risks associated with financial instruments.

Meeting the Diversity Challenge at PepsiCo: The Steve Reinemund Era

Thomas, David A., and Stephanie J. Creary

September 2009

This case profiles PepsiCo's diversity journey under the leadership of former chairman and CEO Steve Reinemund who instituted diversity as one of the company's strategic imperatives. It demonstrates the ways in which Reinemund partnered with his leadership team and employees throughout the organization to make diversity a key factor in PepsiCo's culture and performance. It also reveals how, regardless of the success, PepsiCo employees were openly speculating what it would mean for the diversity strategy that Reinemund would be turning the helm of PepsiCo over to Indra Nooyi, a 50-year old Indian-born woman, who would need to find her own voice and approach to leading the company and its diversity efforts.

Managing Creativity at Shanghai Tang

Chua, Roy Y.J., and Robert G. Eccles
September 2009

Shanghai Tang is a luxury brand that focuses on Chinese-inspired fashion, accessories, and home decoration products. In fall 2008, amidst a growing global economic crisis, Raphael Ie Masne, executive chairman of Shanghai Tang, had to decide what to do with the recently vacant creative director position. Did Shanghai Tang need to hire a new creative director at this uncertain economic time? Or could he take on the role of the creative director himself? In addition, Ie Masne had to grapple with balancing the perennial tensions between business imperatives and the creative aspirations of his designers. How could he better manage employees who see themselves as artists?

Nomura's Global Growth: Picking Up Pieces of Lehman

Foley, C. Fritz, and Linnea Meyer

September 2009

What issues commonly arise in international financial management? Kenichi Watanabe and Takumi Shibata, CEO and COO of Nomura Holdings Inc., one of the leading investment banks in Asia, have the opportunity to expand their firm internationally through the acquisition of various parts of Lehman Brothers, an insolvent global investment bank. In evaluating this opportunity, students must consider the complexities of such expansion, including the challenges posed by a multinational insolvency, the difficulties of post-merger integration in a cross-border acquisition, and more general issues related to currency hedging and international taxation.

Genzyme's CSR Dilemma: How to Play Its HAND

Bartlett, Christopher A., Tarun Khanna, and Prithwiraj Choudhury
September 2009

Genzyme, a global biotechnology company, launches a program to develop therapies for neglected diseases (e.g., malaria, TB), giving away the intellectual property. This case focuses on the decision of which diseases, which partnerships, and which markets should management decide to fund. But the bigger issue is how this program, developed under the umbrella role Genzyme's corporate social responsibility, fits into its global competitive strategy.

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.

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?

What Happened at Citigroup?

Rose, Clayton S., and Aldo Sesia Jr.
August 2009

What went wrong at Citigroup? In 1998, the Travelers Group and Citicorp merged to create Citigroup Inc., considered the first true global "financial supermarket" and a business model to be envied, feared, and emulated. By year-end 2006 the firm had a market capitalization of $274 billion, with $1.9 trillion in assets and $24.6 billion in earnings. But, ten years after the merger, it ended in tears. In July 2009, the firm was effectively nationalized, with billions of dollars in bailout money converted into a 34% ownership stake for the U.S. government. Citigroup was worth less than $16 billion, having lost more than $250 billion in value from its peak. This case examines Citi's business model, the challenges it faced, its leadership, and key decisions to better understand what contributed to the failure of one of the most powerful financial firms in the world.

VeeV on the Rocks?

Margolis, Joshua D, Christopher Marquis, and Laura Winig
August 2009

Three pressing challenges (equity split, extent of commitment to social responsibility, and product discoloration) confront VeeV, the world's first alcoholic beverage infused with acai berries. Brothers Courtney and Carter Reum founded VeeV in 2007 and the firm has experienced rapid growth since then. The case documents the backgrounds of the young founders, details the launch and early phase of the company, and presents three challenges the founders must address: how to split the equity of the new company, how far to go in their efforts to be a "green" and socially responsible brand, and an unexpected potential product quality issue.

iZumi

Higgins, Robert F., Jacob Ian Broder-Fingert, Eliot Sherman, and Sidhartha Palani
August 2009

Presents the issues faced while building an innovative company in an emerging space with new intellectual property from the perspective of a venture capitalist. Beth Seidenberg, a partner at the venture capital firm Kleiner Perkins Caufield & Byers (KPCB), had helped create iZumi Bio, a company with ambitious prospects that she believed had the potential to become "the" definitive stem cell company. iZumi sought to bring under its banner key intellectual property (IP) from the nascent field of stem cell technology. As such, iZumi would need to acquire the rights to several groundbreaking scientific developments that had recently occurred in labs around the world. Seidenberg needed to decide whether to commit to the next major tranche of the investment. Charged with finalizing her decision in less than 24 hours, Seidenberg weighed the pros and cons of the next round of financing. Was it really possible to pull together such a broad range of IP under one umbrella? Was the international mix of IP going to be too difficult to manage? Was it too early for stem cell technology to be successfully commercialized?

Intuit

Cespedes, Frank V.,
August 2009

This case study provides an overview of Intuit's growth and, in particular, the sales and service initiatives that historically fueled the company's growth from start-up to a corporation. It also outlines certain processes and cultural values, as well as specific employee and leadership behaviors, that provided the foundation for those initiatives.

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.

The Millennium Challenge Corporation and Ghana"

Ebrahim, Alnoor, and V. Kasturi Rangan
August 2009

A U.S. government agency, the Millennium Challenge Corporation (MCC), provides aid to developing countries, focusing on poverty reduction through economic growth. It measures results through an economic rate of return based on increases in farmer incomes anticipated over twenty years. As MCC and Ghana finalize a $547 million grant for agriculture and transportation infrastructure, they come up against an accountability and measurement problem: how to address an urgent request from Ghana to fund community services-such as schools and drinking water-for which the results will be more difficult to measure.

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.

Goldman Sachs: The 10,000 Women Initiative

Marquis, Christopher , V. Kasturi Rangan , and Catherine Ross
July 2009

Describes the conception, development, and implementation of Goldman Sachs' five-year, $100 million philanthropic initiative to provide practical business and management education to 10,000 women around the globe. The initiative recently celebrated its first anniversary, and over 1,200 women were either enrolled in, or graduated from, sponsored certificate programs. The case addressees some key strategic decisions facing the firm as they rollout the program over the coming years. These include how to organize the network of schools that deliver the educational services, how to determine the best outside partners to provide additional services for the women entrepreneurs, how to best assess the impact of the program, and finally the extent to which the initiative provides contributions to the long-term strategy of the firm.

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.

Tokyo Electron Ltd.

Shih, Willy and Andrew King
July 2009

Tokyo Electron Ltd. operates in a constrained innovation environment, defined by modular boundaries that are long standing in the industry that it serves, the global semiconductor manufacturing industry. While the original motivation for these boundaries was division of labor and partitioning of a complex problem into manageable pieces, the company is now faced with a new innovation that crosses these boundaries and offers the opportunity to significantly improve the yield and performance of the manufacturing process. While the technical solution is straightforward, it is not clear that the company's customers are prepared to accept such a change because it would cross organizational lines that manufacturers have established for control purposes. The case frames the technical question and poses the organizational question.

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

Pfizer: Letter from the Chairman

Simons, Robert L., and Natalie Kindred
July 2009

This case explores maximizing shareholder value as a goal in executive decision making. Over a period of nine years, three different Pfizer CEOs make critical decisions intended to increase shareholder value. But the results are disappointing. To allow students to examine these decisions, the case provides excerpts from four Chairman's letters to shareholders from Pfizer's annual reports, followed by a description of the circumstances behind each letter. In the 2000 annual report, then-CEO Bill Steere discusses Pfizer's rise to industry prominence with the acquisition of Warner-Lambert. In the 2003 report, new CEO Hank McKinnell discusses Pfizer's performance goals and its acquisition of Pharmacia, which gave it control of the anti-arthritis drug Celebrex. In the 2005 report, McKinnell discusses his decision to keep Celebrex on the market despite health risks. In the 2006 report, new CEO Jeff Kindler barely mentions McKinnell's (controversial) early retirement and describes efforts to reform the company. The case closes in February 2009, just after Pfizer announces plans to acquire competitor Wyeth. Since 2000, Pfizer's tremendous growth in assets through acquisitions has not translated into significant growth in net income or share price. In closing, students are asked what Kindler should write in the letter to shareholders to open Pfizer's 2008 annual report.

Partners in Health: HIV Care in Rwanda

Porter, Michael E., Scott Lee, Joseph Rhatigan, and Jim Yong Kim
July 2009

In 2005, Partners in Health (PIH) was invited by the Rwandan Ministry of Health to assume responsibility for the management of public health care in two rural districts in Eastern Rwanda and create an HIV treatment program at these sites. PIH successfully implemented a comprehensive program focusing on four principles: health systems improvement, HIV prevention and care, accompaniment, and social and economic support. By January 2007, the Rwinkwavu site had conducted 67,137 HIV tests and provided antiretroviral therapy to more than 2,000 patients, of which, fewer than 1% had been switched to second-line drug regimens, 3.8% had died, and only one patient had been lost to follow up. A costing analysis done by the Clinton HIV/AIDS Initiative suggested that the model could feasibly be spread to other districts. Dr. Agnes Binagwaho, Executive Director of Rwanda's National AIDS Control Commission and her colleagues in the Ministry of Health are contemplating how the program could be improved and whether it should be expanded nationally.

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.

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).

The Rejuvenated International Monetary Fund

Abdelai, Rawi, Jonathan Schlefer
May 2009

The International Monetary Fund was dismissed as almost irrelevant to the global economy, but during the 2008 financial crisis, it returned to center stage, providing financial rescues for developing countries.

Fighting Malnutrition and Hunger in the Developing World

Goldberg, Ray A., Djordjija Petkoski and Kerry Herman
May 2009

The millennium objectives of reducing poverty and malnutrition are not being met. How do the private, public, and NGO sectors of society work together to achieve better results and include the recipients in the process?

Managing Your Own Human Capital: Executive Interview Exercise

Groysberg, Boris, Robin Abrahams
May 2009

This note contains instructions for an exercise in which students interview C-level executives on how they have managed their careers.

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.

Note on the Global Wind Industry

Vietor, Richard H.K., Juliana Seminerio
May 2009

This note provides background information on the global wind industry and is meant to accompany HBS cases "The Suzlon Edge" (708-051); "Cape Wind: Offshore Wind Energy in the USA" (708-022); and "Supergrid" (707-016).

The First Global Financial Crisis of the 21st Century

Alfaro, Laura, Renee Kim
May 2009

The global economy was expected to suffer from negative growth for the full year in 2009, a phenomenon not seen since World War II. While the U.S. subprime mortgage disaster was blamed as the original instigator, it was noted that the "global imbalances" of the U.S. current account deficit funded for many years by other nations such as China were also a chief culprit of the crisis. Policymakers around the world recognized that the scope and scale of the financial crisis required a coordinated global response. Yet there were conflicting views on what kind of action was needed to address the first global financial crisis of the 21st century.

Arcadia Biosciences: Seeds of Change

Daemmrich, Arthur A., Forest Reinhardt, Mary Shelman
May 2009

Arcadia Biosciences is an entrepreneurial California agricultural biotech company seeking to earn carbon credits by modifying commodity crops for use in China and India. Eric Rey, Arcadia's CEO, faced a strategic inflection point in early September 2008. The company had a plan to share carbon credits allocated by the United Nations Clean Development Mechanism Executive Board to China, for use of Arcadia's rice varieties, since they enabled farmers to reduce nitrogen fertilizer use, in turn lowering greenhouse gas emissions. But the company's proprietary traits for nitrogen use efficiency, salt tolerance, and water use efficiency also had more conventional paths to market based on licensing deals to large seed companies. Alternatively, Arcadia could acquire a seed company and develop and market its seed directly. A different near-term growth area involved commercializing enriched safflower oil, which had undergone several proof-of-concept tests and for which Rey foresaw a clear market in nutritional supplements and functional foods. The case provides context on the company; describes advances in crops genetics focused to climate change and associated resource issues of fertilizer use, water use, and soil salinity; and poses strategic choices for a start-up company operating at the intersection of business, agriculture, and climate change.

CalPERS' Emerging Equity Markets Principles

Eccles, Robert G., Aldo Sesia Jr
May 2009

The California Public Employees' Retirement System (CaIPERS)-the largest public pension fund in the U.S.-had adopted a new principles-based approach to investing in emerging market equities in November 2007. Previously, CalPERS internal and external money managers were prohibited from investing in certain developing countries because the countries failed to meet certain standards for political stability, human rights, market regulation, etc. The new principles-based approach would allow CalPERS money managers to invest in companies that were financially attractive and competitively positioned provided their business practices were sound from an environmental, social, and governance (ESG) perspective regardless of where they were located. By allowing investment in these types of companies regardless of where they operated, CalPERS had hoped to improve its investment returns. The case is set in January 2009, a little more than a year from the time the principles-based approach had been adopted. It is a good time to review the implementation process and how the new principles-based approach changed CaIPERS' emerging market equities portfolios and their returns. The case focuses on one of CalPERS' external fund managers, Dimensional Fund Advisors (DFA), and a service provider to DFA and CalPERS, KLD Research & Analytics. One question facing CalPERS with this new approach is whether to invest in PetroChina, which had been off-limits previously due to the screening criteria that were used to identify which countries qualified for emerging markets investments. The case also raises the issue of the difference between "value" and "values" investing and the future importance of ESG investing.

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.

The Financial Crisis of 2008

Trumbull, Gunnar
May 2009

This case presents excerpts from the speeches of observers to the 2008 financial crisis, including former and current central bankers, a private banker, and a Nobel-prize winning economist. They present different interpretations of the causes of the financial crisis and make proposals about how a similar crisis might be stopped in the future. The goal of the case is to provide students with alternative perspectives and broad historical data so that they can evaluate both causes of and responses to the crisis.

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.

Bono and U2

Koehn, Nancy F., Katherine Miller, and Rachel Wilcox
May 2009

This case traces the 30-year development of the rock band U2 and the development of its four members as artists, business leaders, and humanitarians (with particular attention paid to lead singer Bono's global humanitarian work). The case examines the beginnings of the band among four school friends and follows the development of the enterprise as a business and as a powerful social and cultural force in its own right. It also investigates the individual journeys of the band members during moments of great success and significant challenges. The case pays particular attention to the four men's evolving identities as musical artists and to the tradeoffs that have accompanied their fame and larger social commitments. The case takes up the evolution of the global music industry in the face of rapid technological and organizational change, examining how U2 and colleagues navigated such change, built a very powerful brand, and created a successful business model. The final part of the case traces lead singer Bono's involvement in political and humanitarian causes and the potential power of such a model as a framework for artistry, entrepreneurship, and effective leadership in the 21st century.

Merck: Global Health and Access to Medicines

Rangan, V. Kasturi, Katharine Lee
May 2009

The case describes the effort of Merck, a global leader in pharmaceuticals, in making available its medicines to the poor. The challenge for the company (or for that matter, any pharmaceutical company) is how to integrate its business strategy with its corporate social responsibility, especially when operating in "lower income" countries.

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?

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.

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.

Miles Everson at PricewaterhouseCoopers

Eccles, Robert G., and David Lane
April 2009

Miles Everson, a partner at PricewaterhouseCoopers (PwC), is the Global Engagement Partner (GEP) for a large U.S. financial institution and about to take over this role for a much larger global financial institution. The GEP role is a critical one at PwC. GEPs have responsibility for the firm's largest and most important clients. They must manage a vast external network of client employees and an equally vast internal network of the firm's employees. The GEP needs to have a deep understanding of the client and its industry in order to identify opportunities and problems where the firm's resources can be brought to bear and to match the firm's capabilities to the client's needs. GEPs must be able to simultaneously manage a larger number of tasks, often under great time pressure. This case describes how a very effective GEP-Miles Everson, who was named one of the top 25 consultants for 2006 by Consulting magazine-performs this role and provides insights into the attitudes, skills, and subject matter expertise necessary to be successful in this role. Insights into how Everson does this job are provided by both PwC and client personnel. As is often the case, Everson is responsible for a business (in his case Governance, Risk, and Compliance), and so he has substantial internal management responsibilities as well. The case raises questions about whether he will be able to retain these internal management responsibilities when he takes over a much larger and more complex global client and becomes the Senior Engagement Partner (SEP) on his current client. (SEPs perform an oversight role for the work being done by the GEP and his or her team and are typically very senior members of the firm.) The case also raises areas where Everson can improve.

Mistry Architects: Innovating for Sustainability (A)

Edmondson, Amy C., Robert G. Eccles, Mona Srivastava
April 2009

Describes an architecture firm founded and run by a husband and wife team, Sharukh and Renu Mistry, that emphasizes "green" building. The firm presents an unusual mix of projects-spanning the spectrum from larger corporate projects to small private homes. The mix also includes more profitable work and projects deliberately selected for social good, including the design of orphanage communities for SOS Children's International and other nonprofit organizations. The mix engages teams of young architects in different kinds of learning opportunities and allows them to manage these projects with an unusually high level of independence. The firm's founders are dedicated to being both very client-oriented and environmentally responsible. This can lead to some difficult choices and the case illustrates one example. The firm has been commissioned by SOS to design homes for some villages destroyed in the December 24, 2004 tsunami. The preferred design is thatch roofs which is in keeping with the local environment. However, the villagers want a more functional (and more expensive) reinforced cement concrete roof. Sharukh must decide which of his principles is to dominate in this situation.

Mistry Architects: Innovating for Sustainability (B)

Edmondson, Amy C., Robert G. Eccles, Mona Srivastava
April 2009

This case is a follow-up of Mistry Architects: Innovating for Sustainability (A) (Case 609-044). In Case (A) Sharukh and Renu Mistry found and run an architectural firm dedicated to being both client-oriented and environmentally responsible. The case uses a difficult design decision in a tsunami rehabilitation project to illustrate the challenges faced by professional services firms, and the role of innovation in meeting the needs of multiple stakeholders. The specific design decision is to make a choice between thatch roofs which are environmentally friendly, versus reinforced cement concrete roofs that the villagers desire for its functionality. Case (B) reveals and explains the firm's choice, while describing how the community rebuilds itself after the tsunami, as well as how the firms evolves. A (C) case discusses the future plans of the firm including growth and succession issues.

Mistry Architects: Innovating for Sustainability(C)

Edmondson, Amy C., Robert G. Eccles, Mona Srivastava
April 2009

This case is a follow-up to "Mistry Architects: Innovating for Sustainability (A)" (Case 609-044) and (B) (Case 609-086). In Case (A) Sharukh and Renu Mistry founded and run an architectural firm dedicated to being both client-oriented and environmentally responsible. The case uses a difficult design decision in a tsunami rehabilitation project to illustrate the challenges faced by professional services firms and the role of innovation in meeting the needs of multiple stakeholders. The specific design decision is to make a choice between thatch roofs, which are environmentally friendly, versus reinforced cement concrete roofs that the villagers desire for their functionality. Case (B) reveals and explains the firm's choice, while describing how the community rebuilds itself after the tsunami, as well as how the firm evolves. The (C) case discusses the future plans of the firm including growth and succession issues.

Aderans

Greenwood, Robin, Rakesh Khurana, Masako Egawa
April 2009

Steel Partners is a U.S.-based hedge fund that has made a large investment in Japan-based wigmaker Aderans. The case is set at the close of the annual meeting in May 2008, when shareholders have voted against all incumbent board members. Steel Partners must act quickly. The case serves as an overview of corporate governance issues in Japan, as well as describing the costs and benefits of the "stakeholder" view of corporate governance.

Washington Mutual's Covered Bonds

Bergstresser, Daniel B., Robin Greenwood, James Quinn
April 2009

Washington Mutual issued 6 billion euro of covered bonds in 2006. The objective of the case is to ask whether these bonds are mispriced in late 2008. The case is set in September 2008, and Washington Mutual is facing considerable distress due to mounting losses in its mortgage portfolio. Following investment bank Lehman Brother's Chapter 11 bankruptcy protection filing in mid-September, the price of Washington Mutual's covered bonds has fallen to 75 per 100 of face value. As these bonds are overcollateralized, the case asks students to evaluate the underlying collateral portfolio in the event of liquidation, as well as assessing the likelihood of different outcomes. The case takes place during a period of considerable uncertainty in the global capital markets.

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.

The Credit Suisse/Gerson Lehrman Group Alliance

Eccles, Robert G., Laura Winig
April 2009

The equity research department of Credit Suisse and the expert network firm of Gerson Lehrman Group, historically competitors, have established a strategic alliance which both believe will give them a competitive advantage. Under the leadership of its head of equity research, Stefano NateIIa, Credit Suisse has responded to the continuing pressures on the sell-side research function with a focus on making it a revenue center. One pressure on sell-side research is the introduction of alternative business models for providing sell-side research, such as from expert networks like the Gerson Lehrman Group (GLG). GLG has established a network of nearly 200,000 experts who provide advice to institutional investors in a different way, which emphasizes private consultations with these experts about questions of very specific interest to the investor. Natella and Saint-Amand have agreed to a two-year alliance which gives the analysts at Credit Suisse access to the experts in GLG's network, as a way of improving the quality of their research. Credit Suisse can also get additional revenues by placing its analysis in the GLG network, although under some severe constraints. GLG gets additional revenues from its contract with Credit Suisse and from introductions to other potential clients that Credit Suisse will make. It also grows its network from the addition of the analysts at Credit Suisse. The alliance has been announced just before the financial markets began their meltdown in October of 2008, and both Natella and Saint-Amand are wondering what this means for the future of the alliance.

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.

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.

Yahoo! in China (A)

Sucher, Sandra J., Daniel Baer
April 2009

In 2007 Jerry Yang, CEO of Yahoo!, was lambasted by U.S. Representative Tom Lantos, chairman of the U.S. House Committee on Foreign Affairs, for Yahoo's role in the arrest and imprisonment of Chinese journalist and democracy advocate Shi Tao. The case describes the actions that Yahoo! had taken to grow its business in China, its handling of a government request for the identity of a Yahoo! user, and subsequent actions by the firm to respond to negative publicity and congressional inquiry. The case raises broad questions about the challenge of complying with domestic law when operating in states that do not consistently respect human rights, and satisfying stakeholders across national boundaries. It allows students to consider the practical steps that a firm can take to protect itself and its stakeholders in states where the law is not always a reliable safeguard.

Yahoo! in China (B)

Sucher, Sandra J., Baer, Daniel
April 2009

Describes the actions that Jerry Yang took to manage the aftermath of the Shi Tao incident following the 2007 Congressional hearing.

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).

Note on Measuring Controlling Shareholders' Ownership, Voting, and Control Rights

Villalonga, Belen
April 2009

Founders and their families can raise equity without relinquishing control of their companies through the use of mechanisms such as dual-class stock, pyramidal ownership, voting agreements, and disproportionate board representation. The use of these mechanisms in publicly traded companies is widespread throughout the world and in the United States. Understanding how the various mechanisms contribute to the separation between economic ownership and control is important for the individuals who set them up because the choice among these mechanisms impacts firm value. It is also important for minority shareholders in these companies and for regulators, for reasons of transparency and investor protection.

Note on Sum-of-the-Parts Valuation

Villalonga, Belen
April 2009

Most large companies operate in more than one business. Valuing a diversified company requires separate valuations for each of its businesses and for the corporate headquarters. This method of valuing a company by parts and then adding them up is known as Sum-of-the-Parts (SOTP) valuation and is commonly used in practice by stock market analysts and companies themselves. However, it is rarely taught in MBA programs or broached in valuation textbooks. Yet the application of the method raises a number of challenges

Note on Valuing Control and Liquidity in Family and Closely Held Firms

Villalonga, Belen
April 2009

Most companies around the world are family controlled and/or closely held. The need to value these companies routinely arises in practice for a variety of reasons, e.g., to buy out minority shareholders; for gift and estate tax purposes; to tie executive compensation to firm performance; to raise outside capital; or to sell the company outright. However, these companies present certain unique characteristics that can make standard valuation methods inappropriate for them.

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.

Chronology of the Asian Financial Crisis

Alfaro, Laura, Rafael M. Di Tella, Renee Kim
April 2009

In July 1997, Thailand became the first Asian "tiger" economy to abandon its fixed exchange rate system in response to speculative attacks on its currency. Investors started to flee Asia, and the crisis rapidly spread to other countries. Central banks spent billions of dollars to try and defend their currencies, only to seek emergency bailouts from the International Monetary Fund. This case presents a chronology of events that unraveled during the Asian financial crisis from 1997 to the end of 1998.

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

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.

Khosla Ventures: Biofuels Strategy

Lassiter, Joseph B., William A. Sahlman, and Alison Berkley Wagonfeld
March 2009

By 2008, a number of the firm's early cleantech investments were showing promise, and the companies were starting to need significantly more money to create the massive scale required in the energy sector. As Khosla thought about the hundreds of millions of dollars required by his portfolio companies, he wondered how he should position his firm at this stage of development. Should Khosla develop a new fund that focused on later-stage investments? Should he seek investments from large industry players such as the major oil companies? Should he try raising money from the managers of the sovereign funds in countries such as Singapore, Kuwait, and China? How should the firm work with its strategic partners? Khosla knew that lining up enough later stage funding would be challenging, as the cleantech industry was still unproven for investors. Nevertheless, he was determined to continue his pattern of making bold investments in this emerging field.

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.

Paresh Patel: Building a Life in the Context of Global Business-October 2007

Stevenson, Howard H., and Shirley Spence
March 2009

This case tells the story of Paresh Patel, born in Boston to an Indian immigrant family, as he develops an entrepreneurial career, participates in the Indian diaspora, and builds a family life. It provides background on Paresh's heritage, describes his youth and education (including HBS), his learning experience as the manager of a large family fund, his decision to launch a hedge fund in India, and the first years of the venture. It also profiles Nirva Patel and describes how they met, married, and managed the transition to a new life in Mumbai, including the impact on her career and personal aspirations. The case issue, set in October 2007, is whether to have their first child in Mumbai, or return to the U.S. for the delivery.

Lawrence Trinh: Venturing to Vietnam

Margolis, Joshua D., and Rachel Gordon
March 2009

Should Lawrence Trinh pursue his aspiration of working in Vietnam-and if so, what set of principles and practices should he adopt if he encounters corruption? These are questions that reverberate for many students who wish to work in emerging markets and other contexts that pose stiff ethical challenges. Trinh seeks to combine his background in financial services with his desire to contribute to Vietnam's economic development, and he has to decide among four job offers with investment firms. But it is a complicated decision. First, none of the job offers fit his selection criteria perfectly. Second, despite growing reforms, Vietnam is still ranked poorly on indices of corruption. Third, Trinh's father (who fled Vietnam following the war) frowns upon doing anything that could contribute to the communist regime. Fourth, Trinh's girlfriend is about to start her next stage of medical training in the United States, which means that pursuing his aspiration now will separate them. All of these considerations raise three questions: (1) Is the timing right for Trinh to embark on his personal mission of contributing to the well-being of Vietnam? (2) Which job offer should he accept? (3) What set of principles and practices should he adopt that will enable him to remain true to his values and sustain his capacity to be a true agent of change, yet not undermine his ability to succeed as an investor?

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.

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.

Lan Airlines in 2008: Connecting the World to Latin America

Casadesus-Masanell, Ramon, Jorge Tarzijan, and Jordan Mitchell
March 2009

Lan Airlines operates three distinct models: low-cost for domestic short-haul flights, full-service for international routes; and an international cargo business, the latter of which makes up 33% of Lan's overall revenues (markedly different from many U.S. legacy carriers that derive 3% to 4% of revenues from cargo). Since a change of ownership in 1994, Lan has grown steadily and quickly at a compound annual growth rate (CAGR) of 19% from $318 million in revenues to $3.5 billion at the end of 2007. Lan is at an interesting point in history as the low-cost model was recently implemented. While early results have been strong, observers wonder if the airline can successfully manage three disparate business models.

WL Ross and Plascar

Foley, C. Fritz, and Linnea Meyer
March 2009

How can distressed investors take advantage of the procedures governing an international bankruptcy? Wilbur L. Ross, chairman and CEO of the private equity firm WL Ross & Co., LLC, has the opportunity to bid for debt and equity claims on Plascar Industria e Comercio Ltda., the Brazilian subsidiary of the bankrupt global auto components company Collins & Aikman Corp. In evaluating this opportunity, students must analyze Ross's strategy to reshape a global industry with significant overcapacity, consider the opportunities created by the legal procedures that govern cross-border insolvencies, study a debt overhang problem, and consider how restructuring alternatives can address this problem.

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.

The Great Moderation

Comin, Diego
February 2009

The Great Moderation is a significant decline in the volatility of fluctuations in most macroeconomic variables that the United States and other developed and developing economies have experienced at least since the mid-1980s. This case describes the basic facts, presents contending explanations, and explores the consequences of the Great Moderation for the likely amplitude of future business cycles.

Londolozi: Towards a Sustainable Business Model and Ecological Integrity in Southern Africa

Abdelal, Rawi, and Thomas Koelble
February 2009

The Londolozi game viewing reserve in South Africa became a defining icon of ecotourism during the 1990s and early 2000s-that is, a tourist business promoting ecological land management and, at the same time, local economic development. The reserve was in a region in the northeastern part of the country, not far from Mozambique, that sorely called out for progress in both these dimensions. The Sabi Sand Game reserve (within which Londolozi was located) was initially created by the government to provide hunters with an area in which to hunt wildlife. The government retained a portion of the reserve as the Kruger National Park, which allowed visitors to view wildlife, but banned hunting, in an effort to boost wildlife populations. The KNP was initially fenced off from the Sabi Sands Game reserve to prevent hunters from moving into the wildlife reserve. The fence, however, also prevented traditional east-west migration of animals across the region. Through the 1980s and 1990s, the farms within the Sabi Sand Game reserve converted their functions from hunting to wildlife viewing, and the fence was taken down. The new challenge for the farms while transforming into wildlife viewing became land management and local economic development.

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.

Winning the Race for Talent in Emerging Markets

Ready, Douglas A., Linda A. Hill, and Jay A. Conger
February 2009

This war for talent is like nothing we've ever seen before, write the authors, who have spent decades studying talent management and leadership development. Recently they interviewed executives at more than 20 global companies to identify strategies for attracting talent in developing economies-where, they learned, brand, opportunity, purpose, and culture play out in particular ways. A desirable brand affiliation in conjunction with inspirational leadership appeals to eager young high potentials suddenly awash in possibilities. Opportunity should imply an accelerated career track-or at least a fast-paced acquisition of skills and experience. Purpose ought to benefit a job candidate's home country and express the value of global citizenship. A company's culture should be meritocratic, value both individual and team accomplishments, and follow through on promises implied in recruitment. The authors claim that emerging markets pose special challenges for foreign multinationals. For instance, talent strategies that work at home will probably need extensive tailoring to succeed in the developing world, and an overreliance on fluency in English may impede spotting talent. It's critical to develop a core of local talent and to embrace and leverage diversity. In the talent race, a local company that creates genuine opportunities and exhibits the desired cultural conditions will often win out over a Western multinational offering higher pay.

Harvard Business Review 86, no. 11 (November 2008).

Grupo Bimbo: Growth and Social Responsibility

Rangan, V. Kasturi, and Regina Garcia-Cuellar
February 2009

Bimbo, headquartered in Mexico with 2008 sales of $7 billion, was one of the largest bakery companies in the world. Even as it had grown spectacularly in the last several decades, the company had earned a stellar reputation for its corporate social responsibility (CSR). As the company set its sights on international expansion, its third generation CFO, Daniel Servitje, wondered how to keep its growth and CSR objectives neatly aligned.

Accenture's War for Talent in India

Eccles, Robert G., David Lane, Namrata Arora, and Prabakar "PK" Kothandaraman
February 2009

No abstract available

The World Food Programme during the Global Food Crisis (A)

Mikes, Anette, Peter Tufano, Eric Werker, and Jan-Emmanuel de Neve
February 2009

Rising food prices threatened an unprecedented number of people around the world with malnutrition or starvation in 2008. The new Executive Director of the United Nations' World Food Programme (WFP)-the world's largest food relief agency-must not only address this challenge but also must rethink the WFP's strategy in the rapidly changing world of humanitarian assistance.

When Supply Is of Public Interest: Roche & Tamiflu

Watson, Noel, Laura Rock Kopczak, and Prashant Yadav
February 2009

The case focuses on the challenges of Roche maintaining a supply network for a global influenza pandemic response initiative based on its antiviral drug Tamiflu. The Roche group is a 40 billion CHF company consisting of a pharmaceutical division and a diagnostic division. The company's antiviral drug Tamiflu dominates the market for prevention and treatment of seasonal influenza (flu). Tamiflu, however, could also play an important role in responding to the first wave of a pandemic caused by a particularly harmful strain of the influenza virus A. Tamiflu was designed to be effective against any strain of Type A or B influenza. Thus, there was the potential to establish a preparedness plan based on creating a stockpile of the drug in conjunction with an appropriate plan for distribution to the affected population. The use of Tamiflu in such a crisis would allow the world to respond immediately, rather than having to wait for development of a vaccine which had limitations in its effectiveness, and the drug had been endorsed by the WHO as a first line of defense. The case focuses on the challenges of Roche maintaining a supply network for a global pandemic response initiative. Managing supply is particularly challenging for three reasons. First, demand for stockpile quantities is spiky and uncertain, and governments placing orders expect lead times to be short. Second, lead times for increasing capacity are long, as are lead times for drug production and encapsulation. Last, media coverage and press releases made by governments and other stakeholders increase the stakes, as negative media coverage may damage Roche's reputation with consumers, leading to lower sales levels for its products.

The Canada Pension Plan Investment Board

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

The Canada Pension Plan Investment Board is one of the largest and fastest-growing pools of investment capital in the world and follows an unusually active program of investment management. In the market turmoil of late 2008, Mark Wiseman, Senior Vice President of the Private Investments Department, must decide if this approach is still the best way to fulfill his organization's goal of protecting and increasing the pension assets of 17 million Canadians.

Olam International

Bell, David E., and Mary Shelman
January 2009

In 20 years, Sunny Verghese had built Singapore-based Olam International from a small Nigerian export company into a $5 billion global leader in agricultural commodities with a core competence in Africa. Olam's growth had come by pursuing product and geographic adjacencies, and its "farm gate to factory gate" approach had been extended to 14 agricultural products, including cashews, sesame, cocoa, and coffee. In mid-October 2008, Olam's stock price declined to $1 a share from a high of $3.71 in early 2007 as part of the global economic crisis. Verghese had to decide whether to change the firm's strategy based on the new economic environment.

JBS Swift & Co.

Bell, David E., and Catherine Ross
January 2009

Brazilian meat packer JBS surprised many in the U.S. beef industry when it acquired Swift & Co.-a company more than five times its size-in 2007, then moved to acquire the U.S.'s fourth and fifth largest beef producers in 2008. The new JBS Swift slashed costs and restructured, turning around a quarterly loss of $99 million to a gain of $140 million within 6 months. JBS aimed to position itself to supply beef markets around the world, but it faced a perfect storm of rising feed and fuel prices, a global credit crisis, and industry analysts skeptical about the company's debt load.

Clutch Group: Should Abhi Shah Grab This Opportunity?

Isenberg, Daniel J.
January 2009

Abhi Shah ('06), co-founding CEO of Clutch Group in the U.S. and Bangalore, must decide whether to risk a law suit by recruiting an entire legal services team from a large U.S. corporation. His decision and how he implements it will have a dramatic impact on the legal process outsourcing startup.

Omron: Sensing Society

Kanter, Rosabeth Moss, and Ethan S. Bernstein
January 2009

Leading profitable growth is only part of the goal. We cannot live without breathing, but we do not live in order to take a breath, said Omron's President and CEO, Hisao Sakuta, in 2008. Omron, a $7 billion global supplier of sensors, control system components, advanced electronics, and related services, had thrived on its ability to spot social needs and innovate. By May 10, 2008 (Omron's 75th Anniversary), Sakuta had led Omron out of a difficult time and into six years of consistently strong results, on the foundation of Omron's unique, socially-focused values: "At work for a better life, a better world for all." His goal now was "continuing to lead profitable, globally-distributed growth" in spite of major shifts in Omron's markets: from components to systems; from products to solutions; from standardized to 'mass customized' products; from longer-cycle to shorter-cycle technologies; from home country-dominated innovation to distributed innovation mediated by the center; and from 'quality' meaning producing a quality input for the next step of the value chain to being held responsible for the quality of the final product (end-to-end responsibility). In each case, management believed customers no longer felt that they were just buying a product. Rather, they were buying expectations of Omron's commitment to solving their problems. In part, they were buying Omron's philosophy. And, Sakuta reflected, "As the company grows larger with a larger number of employees on a global scale, people tend to have more tenuous recognition of who Omron is or why Omron exists." On Omron's 75th anniversary, Sakuta celebrated Omron's past but also recognized that successfully addressing Omron's next challenges involved a further journey along Omron's current path of change. How could Omron maintain the core principles of the past while making them applicable to the global present and borderless future?

Consumer Lending in Japan: Citi CFJ (A)

Trumbull, J. Gunnar, and Akiko Kanno
January 2009

Despite a tradition of high household savings, Japan has supported a dynamic and technically sophisticated consumer-lending sector. The high profitability of the sector has periodically attracted interest from domestic banks as well as international investors. Most recently, in 1998 and 2000 respectively, GE Capital and Citi Financial both acquired Japanese consumer-lending companies. In 2006, when the Japanese Supreme Court rules that one of the big Japanese consumer lenders must repay a borrower for "excess interest payments," the U.S. firms must decide how to respond.

Cola Wars: Going Global

Cespedes, Frank V
January 2009

This case is meant to be used in conjunction with the extant "Cola Wars" case studies. It outlines the global positions of Pepsi and Coca-Cola as of 2008 in the soft drink market, and then provides an overview of their competitive situations in three markets: Mexico, China, and India. The case raises the issue of whether any or all of these markets are a) structurally attractive for soft drink firms, and b) if so, how can Pepsi best "catch-up" with Coca-Cola in a given market.

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

Shaklee Corporation: Corporate Social Responsibility

Marquis, Chris, V. Kasturi Rangan, and Alison Comings
December 2008

Having bought Shaklee Corporation from Yamanouchi, Roger Barnett, its owner and CEO, wrestled with the question of how to grow the company and its reputation for environmental sustainability. In addition to preserving the "network marketing" nature of its sales channel (because it creates jobs and entrepreneurs), Barnett wished to take the business model to sub-Saharan Africa and South Asia.

The Chubb Corporation in China

Jin, Li, Michael Shih-ta Chen, and Aldo Sesia Jr
December 2008

The Chubb Corporation, headquartered in the U.S., was the holding company for a number of property and casualty insurance companies which operated in 29 countries. In 1979, the Chinese government, as part of its "reform and open" policy invited a delegation of Chubb executives to discuss insurance issues. In the mid-1990s, Chubb opened representative offices in Beijing, Shanghai, and Shenzhen to do market research and assess the potential of the Chinese insurance market. In 2000, China authorized Chubb (one of only three foreign insurers) to sell insurance in the country. During the next five years China's non-life insurance industry grew from $8.3 billion in 2001 to $15.9 billion in 2005. Yet in 2007, domestic insurers continued to dominate market share and, Chubb had not realized the profits it had anticipated. The case provides an overview of property and casualty insurance, the Chinese insurance market and the challenges that foreign-based insurers have in entering an emerging market. Students are asked to decide what Chubb's China strategy should be moving forward.

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."

ASUSTek Computer Inc. Eee PC (A)

Shih, Willy, Chintay Shih, Hung-Chang Chiu, Yi-Ching Hsieh, and Ho Howard Yu
December 2008

ASUSTek Computer was the world's largest manufacture of PC motherboards, yet when it tried to launch its new sub-notebook Eee PC, the organization faced challenges in doing things outside of its established processes. Though many of the team members had worked together for years, they had to find new ways of working as they tried to launch the new mobile Internet device category without undermining its existing notebook PC business.

ASUSTek Computer Inc. Eee PC (B)

Shih, Willy and Ho Howard Yu
December 2008

Supplements the (A) case

Rebranding at Oliver Wyman Group

Eccles, Robert G., and Kaitlyn Simpson
December 2008

In 2007, the individual consulting firms loosely held under the name Mercer Specialty Consulting came together more closely to form the $1.5 billion strategy consulting firm Oliver Wyman. CEO John Drzik hoped that this rebranding effort would create greater alignment and collaboration across the firm, resulting in greater client value. With increasingly complex needs, clients sought consultants with deep expertise to solve their most challenging problems-and each firm that formed Oliver Wyman had the deep expertise in a particular field that clients wanted. However, creating a consulting firm based on specialization presented some challenges. For example, to what degree could each of the original firms integrate under a single name without losing the distinct specializations (and in some cases, brand equity) that made each firm so successful in the first place? This case describes the history of Oliver Wyman, the rebranding process, and the resulting changes to organizational structure and recruiting.

International Enforcement of U.S. Patents

Pozen, Robert C., and Jordan Hirsch
December 2008

A company that owns a U.S. patent can enforce its patent protections in three ways: by filing a lawsuit in U.S. federal district court, by bringing action in the International Trade Commission, or through the World Trade Organization. This note discusses the pros and cons of pursuing either of the latter two avenues for recourse.

A Short Explanatory Note on the Credit Crisis

Segel, Arthur I., and Ben Creo
December 2008

This note details the background of the credit crisis, discusses potential causes of it, and considers its ramifications. The exhibits contain a variety of pertinent data regarding the rise of securitization, debt levels, and typical aspects of financial crises. A new matrix is also introduced for thinking about a country's potential economic performance at any point in time

Corporate Solutions at Jones Lang LaSalle

Gulati, Ranjay
November 2008

The CEO of the Corporate Solutions Group at Jones Lang LaSalle Americas (JLL) is executing an organizational redesign to respond to its strategy goal of becoming more customer-centric. This case examines the dramatic corporate reorganization that took place at JLL in 2001 in response to changes in the competitive structure of the global real estate services market mandating that providers become more customer-solutions oriented. The case is set shortly after the announcement of the restructuring which, for the first time, will place the three business units that service the company's corporate clients (i.e., those clients for whom real estate is not their core business) under a single structure, the Corporate Solutions Group, to target the profitable and growing segment of global MNCs who are outsourcing their real estate departments. Peter Barge, the protagonist of the case, has been named the CEO of the new group and has been tasked with coordinating the diverse activities of the three units to achieve JLL's broader goal of "customer excellence." One of Barge's first actions is to move the account management role outside of the traditional business unit structure and augment the role to that of service integrator to achieve his internal objective of business unit collaboration and to provide clients with a single point of contact across the full range of the company's offerings. The organizational restructuring will change the real estate services firm from an autonomous, product-focused model to an account-centered matrix structure and will challenge many elements of the company's current organizational design including accountability, revenue and cost allocation, compensation systems, sales and marketing, and also the corporate culture. The case offers an opportunity to explore the numerous, interconnected elements of an organization's architecture that must be in alignment in order for it to effectively execute its chosen strategy.

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.

Sex, Drugs, and Rock 'n Roll: The MTV Approach to Tackling HIV/AIDS

Khanna, Tarun, Sonali R. Bloom, and David E. Bloom
October 2008

This case explores the role that MTV, with its heavy diet of music and general youth-oriented media content, plays in spreading public-service messaging to contain the scourge of HIV/AIDS worldwide. There is a focus especially on its efforts in several emerging markets, particularly the parts of Africa that have a heavy disease incidence. MTV has developed a DNA of public service announcements that it claims are of central relevance to its high-risk customer base. How core is this to the strategy of a for-profit firm like MTV? What role can a multinational play in helping develop the health care "soft" infrastructure in such emerging markets?

Chi Mei Optoelectronics

Shih, Willy, Chintay Shih, Jyun-Cheng Wang, and Ho Howard Yu
October 2008

Chi Mei is a Taiwanese industrial group that makes a major diversification into the technology intensive TFT-LCD flat panel display industry. Because the diversification is far away from its core competence in petrochemicals, it is an opportunity to examine how the firm was able to become a global leader in the relatively short span of ten years. Such organic diversifications are relatively unusual by Western standards, especially into technologies and markets that have relatively high entry barriers and where there is no deep-rooted national technological or scientific foundation. As such Chi Mei is an interesting vehicle to examine the rise of a major Asian industrial cluster with global scope which has no participants or competitors in the West. The case can also be used to expose students to the global supply chain for key information technology components. Taiwan and Korea are today the major world centers for the manufacture of semiconductors (in particular DRAMs and FLASH memory) and flat panel displays. Taiwan is also the center for notebook computer manufacturing, and Taiwanese companies, through their China-based manufacturing and assembly operations, drive 60% of the IT exports from China. Yet few students even know the identity of these major global players. Taiwan- and Korea-based TFT-LCD flat panels are the critical components in notebook computers, computer monitors, and flat panel televisions from essentially all well known global brands.

Wyoff and China-LuQuan: Negotiating a Joint Venture (B)

Sebenius, James K., and Jason Cheng Qian
October 2008

Through stalled joint venture talks between Pennsylvania-based Wyoff Corp. and Jinan-based China-LuQuan, strategic and cross-cultural negotiation challenges are explored both from American and Chinese perspectives. Wyoff, a leading U.S. chemical company, has been seeking ways to secure the company's foothold in China's emerging market since the late 90s. When approached by China-LuQuan, a major Chinese state-owned chemical producer, in 2000 for a joint-venture opportunity to make a popular chemical catalyst in China, Wyoff, leveraging its superior technology, demanded one-sided terms and played hardball, ruining both the deal and the relationship with China-LuQuan. Seven years later in 2007, Wyoff faced market pressure to again seek a joint venture with China-LuQuan on two other types of products. Both parties had to overcome past distrust to work things out on a series of strategic issues: investment, product slate, marketing, technology, management organization, staffing, etc. In the negotiations, cross-cultural themes (e.g., trust, relationships, communication, time, autonomy, face, etc.) and different negotiation styles created challenges along with the business and strategic issues. The (A) case sets up the negotiations, highlights issue impasses, explores cross-cultural frictions, and poses tactical challenges. The (B) case describes the strategies, tactics, and results of these negotiations.

Crossing Borders: Notes on a Middle Eastern Journey through Africa

Khanna, Tarun, and Ayesha K. Khan
October 2008

This is the story of MTC, a Kuwaiti telecom company that has grown from a sleepy, state monopoly to become one of the fastest growing telecom companies in the world, with the largest regional footprint across the Middle East and Africa. The CEO of the company, Dr. Saad Al Barrak, had been successful in executing an aggressive growth plan that found its crown jewel in the acquisition of Celtel, one of the largest telecom companies in sub-Saharan Africa. However, this acquisition threw MTC into a dynamic new context and marked the beginning of a very different phase. If Dr. Saad was going to lead MTC into the topmost ranks of global telecom, his team would have to successfully grapple with all the growing pains of managing across borders, brand names, and cultures. All against the backdrop of an unpredictable African market with huge growth potential and rapidly increasing competition.

(PRODUCT) RED (A)

Moon, Youngme, Michael Norton, and David Chen
October 2008

Describes the launch and initial results of the (PRODUCT) RED campaign, a social marketing initiative conceived by U2's Bono and Bobby Shriver to combat AIDS in sub-Saharan Africa. The company licensed the (RED) brand to partner companies, which initially included Gap, Apple, Motorola, Armani, and American Express. The business model was structured to benefit partner companies by increasing consumer purchases-of (RED)-branded products such as red iPods and phones-while also resulting in increased donations to the Global Fund.

(PRODUCT) RED (B)

Moon, Youngme, Michael Norton, and David Chen
October 2008

Updates the (PRODUCT) RED (A) case through early 2008, including announcements of new partner relationships (with Hallmark, Microsoft, and Dell) as well as new communications initiatives.

System on a Chip 2008: Ardentec Corporation

Shih, Willy C., Chen-Fu Chien, Chintay Shih, and Ting-Chen Chen.
October 2008

Ardentec Corporation is a specialist in "wafer probing," a highly specialized niche sandwiched between the "front-end" and the "back-end" of semiconductor manufacturing. Because the semiconductor industry uses modular processes and has standard containers for the interchange of work-in-progress, it has evolved to a highly horizontal structure where specialists like Ardentec can carve out unique market opportunities that are less attractive to integrated manufacturers. The company has grown rapidly, but as it starts to occupy a significant percentage of the total available market, its founders are faced with the challenge of how to maintain growth. Do they vertically integrate more into the back-end, or should they try to do acquisitions in adjacent markets? The case is intended to be used in conjunction with the Technical Note, "Horizontal Specialization and Modularity in the Semiconductor Industry" (608-001)

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.

Thoma Bravo-Citect Corporation Take-Private

El-Hage, Nabil N., and Michelle C. Simon
October 2008

In 2006, Citect Corporation, a publicly traded Australian software company, was the target of a takeover battle between a financial sponsor and a strategic buyer. Thoma Bravo, the U.S.-based private equity firm, had to decide on its acquisition strategy in the face of competition from Schneider Electric, a large French multinational. The case allows for a thorough analysis of buyer types (financial vs. strategic), deal strategy, and valuation. Among other topics covered in the 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.

Power Across Latin America: Endesa de Chile

Ghemawat, Pankaj, and Patricio Del Sol
September 2008

Endesa, a privatized Chilean electricity generator, has made significant investments in the privatization of Argentina's electricity sector and is now contemplating an even larger privatization opportunity in Peru. In deciding how much to bid in Peru, Endesa must account for the political context in which privatization is being undertaken, as well as a host of other uncertainties.

World Wildlife Fund US

Wei-Skillern, Jane, and Kerry Herman
September 2008

World Wildlife Fund US is a leading international conservation nonprofit that operates within a global network of WWF organizations. This case examines WWF US's strategy to achieve its mission of protecting natural wildlife and resources. In contrast to traditional approaches in which WWF country programs operated relatively independently, the new strategy involves integrating WWF US more fully within the global WWF network, and fostering longer-term, trust-based relationships among all partner organizations toward their shared conservation goals. The case highlights the Tesso Nilo conservation project, which brought together various WWF partners to stop illegal logging in Sumatra and revive its wildlife environment to illustrate a network approach within a global multisite nonprofit.

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.

Mattel's Long Hot Summer

Wei-Skillern, Jane, Sonia Marciano, and Barbara Passy
September 2008

In the summer of 2007, Mattel performed three major recalls of toys, mostly due to lead paint and other manufacturing issues in China. This case examines specifically how those recalls were perceived by consumers and responded to by Mattel, as well as what effect they had on the toy industry, consumer safety, and manufacturing in China in general.

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?

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.

Sovereign Wealth Funds: For Profits or Politics?

Alfaro, Laura, and Renee Kim
August 2008

On March 21, 2008, the U.S. government secured an agreement from two leading sovereign wealth funds (SWFs) to adopt a new set of investment principles to govern the Funds' activities. SWFs, broadly defined as an investment fund owned by a national or a government, were gaining prominence across the globe, especially with their recent investments in troubled U.S. financial firms that had suffered significant losses from the subprime mortgage crisis. Yet SWFs were viewed with suspicions amid concerns that they could have potential political interests behind their investments. Many SWFs also lacked disclosure or transparency regarding their activities or investment goals. Countries such as the United States felt that some kind of international regulation had to be imposed, but would it be possible?

Arauco (B): 'Papel' in Brazil

Casadesus-Masanell, Ramon, Jorge Tarzijan, and Jordan Mitchell
August 2008

This is Part B to the "Arauco: Forward Integration or Horizontal Expansion?" case. This short case looks at the company in late 2007 after it has decided to invest in a Brazilian joint venture involving forests, saw mills, and a paper mill. The case acts as an epilogue and allows students to revisit the concept of forward integration into paper in the Brazilian context.

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.

Carlyle Japan (A)

Godes, David, Masako Egawa, and Mayuka Yamazaki
August 2008

Tamotsu Adachi, Managing Director of Carlyle Japan, wants to formulate a strategy to improve his firm's ability to source high-quality deals at competitive valuations, or prices. Buyout funds like Carlyle typically have two deal phases: sourcing and monitoring. These correspond to (i) "selling" the benefits to a business owner of going with Carlyle as a buyout partner, and then (ii) increasing the value of that business following the buyout. Since the profitability of a buyout depends on finding high-quality deals, the firm has focused to date on leveraging its contacts in the banking business, which has been a powerful institution in Japan for many years. These contacts have brought to Carlyle a number of good quality companies, but the volume of buyouts done by Carlyle in Japan has not been what they hoped it would be. Students are asked how the firm can improve on this deal sourcing approach.

Carlyle Japan (B)

Godes, David, Masako Egawa, and Mayuka Yamazaki
August 2008

Supplements the (A) case

Carlyle Japan (C)

Godes, David, Masako Egawa, and Mayuka Yamazaki
August 2008

Supplements the (A) case

Danaher Corporation

Anand, Bharat N., David J. Collis, and Sophie Hood
August 2008

Between 1985 and 2007, Danaher has been one of the best-performing industrial conglomerates in the U.S. This case examines the corporate strategy of this diversified, global corporation. It describes the firm's portfolio strategy and the Danaher Business System-a systematic and wide-ranging set of organizational processes the firm has developed to drive growth and create value. In 2008, the firm confronts various challenges in sustaining its impressive historical performance. First, can it continue to balance organic and acquisition-led growth? Second, what will be the impact of increased competition from private equity players? Third, for how long can its strategy of "continuous improvement" continue?

Sony Ericsson WTA Tour (A)

Lorsch, Jay W., and Kaitlyn Simpson
August 2008

Larry Scott, the new CEO of the Women's Tennis Association, arrives amidst turmoil. Players and tournaments clash over opposing interests. As a result, the board members who represent them are equally divided and feel conflicted about their role. They aren't sure how to help their constituents while also fulfilling their duty of oversight of the WTA as a whole. In order to make women's tennis more popular and profitable, Scott must find a way to get the board of directors to resolve their differences and work together for the greater good of the organization.

Sony Ericsson WTA Tour (B)

Lorsch, Jay W., and Kaitlyn Simpson
August 2008

Supplements the (A) case.

Sony Ericsson WTA Tour (C)

Lorsch, Jay W., and Kaitlyn Simpson
August 2008

Supplements the (A) case.

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.

Fortress Investment Group

Baker, Malcolm P., Carlos M. Galvez, and James Quinn
August 2008

CEO Wesley Edens and the five Fortress principals are contemplating a move unprecedented in the industry: Becoming the first hedge fund and private equity firm to complete an IPO on the New York Stock Exchange (NYSE). This case examines potential reasons for a leading alternative investment firm to go public, including the firm's own rationale relating to "people, permanence, currency, and capital," while also providing analyst expectations regarding target valuation and initial stock performance.

Enterprise Risk Management at Hydro One

Mikes, Anette
August 2008

An early adopter of Enterprise Risk Management, energy giant Hydro One anticipated new threats and opportunities in an industry that faced climate change and carbon legislation, the deregulation of electricity markets, and the greater adoption of renewable technologies. CEO Laura Formusa felt Hydro One's risk profile had shifted, to the extent that she had to ask herself -- was the strategy tenable? The case provides a rich description of Enterprise Risk Management in action, and shows how Hydro One executives arrive at a shared understanding of the risk profile of the company. In the narrative a diverse group of managers (the chief executive, the chief financial officer, the head of the public relations and the chief regulatory officer) voice their views on the risks, collectively bringing a multiple stakeholder perspective to the risk profile. The case challenges students to define the problems and risks that the company faces, given its strategic objectives, its evolving risk profile, and the changing environment. The case also offers a discussion ground for defining the role of the chief risk officer, and the relationship between risk management, strategic planning and capital budgeting.

Recent Developments in the Ranbaxy Case

Pozen, Robert C.
August 2008

This brief case describes settlements Indian drug maker Ranbaxy has made with Pfizer and AstraZeneca, as well as Daiichi Kangyo's purchase of a majority shareholding in Ranbaxy in 2008.

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?

Vignettes on Governance of Private Equity Firms

Hardymon, G. Felda, Ann Leamon, and Eugenia Adofo
July 2008

In a series of vignettes, Nigella Hardy-Smyth of an international development agency that invests partners in emerging markets private equity firms must decide how to handle various situations that arise. As a member of the Limited Partner Advisory Board of each of the five firms, she must contend with a fund manager with an indistinct mandate, a manager who wants to exceed the concentration limit in an investment, tension between a star investor and her other partners, a founding partner who wants to fire the rest of his senior team, and a limited partner seeking preferential treatment that might benefit his fund to the detriment of the other limited partners. The process of discussing these helps the class explore the nuanced role of a limited partner in a private equity firm.

Peoplepower, Inc.: The Republic of the Philippines

Maurer, Noel
July 2008

In 2006, the Philippines faces a difficult choice. Japan has offered the country a trade agreement that includes access to the Japanese labor market for Philippine nurses and other professionals. The same trade agreement, however, means opening the country's manufacturing enterprises to Japanese exports, which is bitterly opposed by some of the nation's largest foreign investors. President Gloria Arroyo-embattled by coup attempts and political scandals-must decide whether to advance the nation's three-decade-old strategy of encouraging the export of its labor resources or whether to attenuate that strategy to meet the demands of large foreign investors.

System on a Chip 2008: Global Unichip Corp

Shih, Willy C., Chintay Shih, Chen-Fu Chien, and Yuan-Chieh Chang
July 2008

Though much of the semiconductor industry has shifted to a horizontal model, complexity driven by technological evolution is driving a shift in the perceived boundaries in the value chain. Global Unichip sees itself as a "virtual integrated device manufacturer," a throwback to the vertically integrated model that fell out of favor for most chips. The case offers an opportunity to examine a highly modular industry and the impact of technology shifts on those boundaries, with significant implications for the incumbents.

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.

Unilever as a 'Multi-local Multinational' 1945-1979

Jones, Geoffrey G., and Stephanie Decker
July 2008

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.

Southern Company's Investment in CEMIG

Ghemawat, Pankaj, Raymond Hill, and L.G. Thomas
July 2008

In the spring of 1997, Southern Company had the opportunity to acquire a significant portion of the electric utility in the Brazilian state of Minas Gerais. The shares in the utility, CEMIG, were being sold by the state government as part of a comprehensive privatization of Brazil's electric sector. Brazil's privatization was, in turn, part of a worldwide movement toward deregulation and privatization of the electric sector. Like many of its rivals in the utility sector, Southern had committed itself to a strategy of growth by taking advantage of the significant opportunities for cross-border investment that were being created by this trend. The privatization of CEMIG was a particularly appealing opportunity for Southern. Not only was CEMIG one of the largest utilities in Latin America, but this investment would provide a base in the Brazilian market, which was expected to have the largest potential for further growth on the continent. Brazil was in the process of reforming its system of regulating electric utilities and of introducing competition into Brazil's wholesale generating market. These changes would further enhance the potential profitability of investing in CEMIG. In addition to the attractiveness of the investment, Southern had been able to secure non-recourse financing for half of the required amount. Keeping in mind Brazil's volatile economic history, this financing would substantially limit Southern's downside risk. The state government had set a price of $1.1 billion for the block of shares. Was the investment in CEMIG worth that price?

The Offshoring of America

Vietor, Richard H.K., Jan W. Rivkin, and Juliana Seminerio
July 2008

The movement from jobs in the United States to developing countries, in a process known as offshoring, has become quite a controversial topic. Managers not only need to decide which activities, if any, to move offshore, but where to move them. This case describes the nature of offshoring and its effect on developing countries.

Starbucks Coffee Company in the 21st Century

Koehn, Nancy F., Marya Lisl Hill-Popper Besharov, and Katherine Miller
July 2008

The case explores the opportunities and challenges confronting Starbucks in the early 21st century. For more than 15 years, Starbucks has grown swiftly and successfully, helping create a large, dynamic market for specialty coffee, building one of the world's most powerful brands and forging a new business model based on industry disrepair and responsible global citizenship. In 2008, Starbucks leadership faces a range of issues-inside and out of the company-related to that success. This case examines these issues in the context of a changing economy, increased competition, evolving consumer priorities, and the organization's place on the larger global stage.

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.

The International Monetary Fund in Crisis

Abdelal, Rawi, David Moss, and Eugene Kintgen
June 2008

Wanxiang Group: A Chinese Company's Global Strategy

Abrami, Regina, William C. Kirby, F. Warren McFarlan, Keith Chi-ho Wong and Tracy Yuen Manty
June 2008

With an almost forty-year history as a business in China, the Wanxiang Group has navigated through the significantly different political and economic changes in China to succeed as a global leader in the auto parts industry and to develop into a broad business conglomerate. Beginning in 1994, when it first began its operations in the United States, Wanxiang started to expand its role as a parts supplier into a discerning acquirer of distressed companies in the U.S. While it saw acquisition as an exciting means for growth, company strategy at its Hangzhou, China headquarters also included vertical integration with a goal of developing a full-on electric car. Were these two goals divergent or complementary: mutually supportive or exclusive?

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.

Citigroup: Re-Branding in 2007 (A)

Deshpandé, Rohit, and Carin-Isabel Knoop
June 2008

With its history of growth through acquisition, Citigroup has a conglomeration of sub-brands that need to be integrated and rationalized. Ajay Banga, CEO of Citi's Global Consumer Group International, chairs a task force to work through the process of re-branding the entire Citi house of brands while maintaining a focus on being focused on customers. The case describes the history of branding and re-branding at Citigroup at a time of increasing global competition in financial services.

Citigroup: Re-Branding in 2007 (B)

Deshpandé, Rohit, and Carin-Isabel Knoop
June 2008

Supplements the (A) case.

Heidrick & Struggles International, Inc.

Eccles, Robert G., and David Lane
June 2008

As CEO of leading executive search firm Heidrick & Struggles for the past 18 months, Kevin Kelly was pleased with his accomplishments so far but concerned about threats he perceived to Heidrick's position at the highest levels of the executive search business. In response, Kelly had begun making strategic investments in firms offering technology-based solutions, but had not yet made significant progress convincing Heidrick's search consultants about the significance of the threats, or the risks and opportunities being created by information technology and the Internet. The increased emphasis Kelly placed on building leadership consulting services was itself a big change. The case asks what levers Kelly can use, from culture to compensation, to make the challenges to Heidrick's traditional business model understood and how to implement the strategic initiatives he has launched.

The Blackstone Group's IPO

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

Steven Schwarzman, Chairman of the Blackstone Group, has just learned that an investment group associated with the government of China wants to buy the majority of Blackstone's leveraged IPO. As he considers how to respond to this offer, Schwarzman reviews the firm's proposed structure as a public entity and assesses how he might retain the delicate balance among stakeholders while still maintaining liquidity in the market.

Quanta Computer and the One Laptop Per Child Initiative

Shih, Willy, Chintay Shih, and Jyun-Chen Wang
May 2008

When Quanta Computer, Inc., the world's largest manufacturer of laptop computers, first joined the One Laptop Per Child (OLPC) initiative, it faced a challenge trying to balance the cost objectives of a laptop computer targeted at children of the developing world with the escalating content demands from the marketplace and the non-profit OLPC Foundation. It also had to fit the project into its company business model which served global lead PC brands like Apple as a high volume, low cost ODM provider. The case is a vehicle for discussing new market disruption and the impact of modularity and the evolution of the value network in the global PC supply chain.

China in Africa: The Case of Sudan

Abrami, Regina, and Eunice Ajambo
May 2008

This case examines the relation between China's demand for resources and political risk.

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.

Inner Mongolia Yili Group: China's Pioneering Dairy Brand

Abrami, Regina, William C. Kirby, F. Warren McFarlan, and Tracy Yuen Manty
May 2008

Setting up the goal to become one of the top 20 enterprises in the world dairy industry by 2010, the Inner Mongolia Yili Group had ambitious plans. As one of China's biggest national dairy companies, its main challenge was competing as a local company against joint-venture rivals who benefited from perks granted to "foreign" companies. To set itself apart, Yili focused on research and development and innovative ways to improve the industry. Proving that it could shift industry standards and lead a country not accustomed to dairy consumption, to a point where demand is outpacing supply, the Yili Group is making its mark to go global. As an Official Sponsor of the 2008 Olympic Games in Beijing and the Official dairy supplier of the games, it is betting that the brand can go further beyond China. Will the day that tykes from Topeka have a bottle of Yili milk in their hands be coming soon?

Sony PlayStation 3: Game Over?

Ofek, Elie
May 2008

Outlines the challenges faced by Sony with the launch of its PlayStation 3. Information based on the 2006 and 2007 holiday seasons and the success of rival consoles is outlined. In addition, the case allows examining the costs and revenues associated with a business model based on the sale of the hardware and game titles. Can be used with "Home Video Games: Generation Seven" (505-072), which provides supplementary information on the industry.

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.

Monitor's Opportunities in India (B): Grail Research

Alcacer, Juan, and Jan W. Rivkin
May 2008

Supplements the (A) case. Describes the decision by leaders of a strategy consulting firm to build a business research subsidiary in India. Permits a discussion of how high-end knowledge production can be conducted in an emerging economy, at a distance from buyers of the knowledge.

Microsoft's Unlimited Potential

Rangan, V. Kasturi, and Marie Bell
May 2008

In April 2007, Bill Gates announced Microsoft Unlimited Potential. Its mission was to enable social and economic opportunity for the next five billion people. To deliver against this mission, Microsoft sought to focus its citizenship efforts and its product development efforts in developing markets. This case traces the development of Unlimited Potential on the citizenship side and the business operations side, raising the questions of whether Unlimited Potential is a robust strategy for the company and if so, how the company should organize and execute to achieve its mission.

Apple Inc., 2008

Yoffie, David, and Michael Slind
May 2008

In January 2007, three decades after its incorporation, Apple Computer shed the second word in its name and became Apple Inc. With that move, the company signaled a fundamental shift away from its historic status as a vendor of the Macintosh personal computer (PC) line. Mac sales remained vital to Apple's future, but they now accounted for less than half of its total revenue. The company's line of iPod media players, its iTunes online content store and its newly launched iPhone mobile handset business made up increasingly large shares of its operations. In early 2008, on the strength of sky-rocketing sales in those areas and by resurgent sales of Macintosh products, Apple's revenues and its stock price reached record levels. The case explores the sustainability of Apple's current business model, one that positioned the company simultaneously in the PC industry and the consumer electronics industry. While Apple enjoyed a high market share in digital media players and in online music sales, it remained a niche player in the worldwide PC industry. The case examines the history of Apple's strategic moves under the leadership of CEOs Jobs, Sculley, Spindler, Amelio, and (again) Jobs; places those moves in the context of structural features of the evolving PC industry; and covers the iPod and iPhone businesses at considerable length.

Cadbury Schweppes: Capturing Confectionery (A)

Collis, David J., Toby Stuart, and Troy Smith
May 2008

In late 2002, global confectionery and beverage maker Cadbury Schweppes needed to decide whether or not to make an acquisition bid for Adams, an underperforming gum company which had been put up for sale by pharmaceutical giant Pfizer. Examining the decision from a strategic perspective, the (A) case provides brief histories of the two companies; traces the global confectionery industry, focusing especially on chocolate and gum; and details the analysis of the merger decision. The (B) case explores the specific identified synergies in-depth and provides an opportunity to judge their viability. The (C) and (D) cases conclude the story and update the case with issues facing the global confectionery leader in 2008.

Cadbury Schweppes: Capturing Confectionery (B)

Collis, David J., Toby Stuart, and Troy Smith
May 2008

Supplements the (A) case.

Cadbury Schweppes: Capturing Confectionery (C)

Collis, David J., Toby Stuart, and Troy Smith
May 2008

Supplements the (A) case.

Cadbury Schweppes: Capturing Confectionery (D)

Collis, David J., Toby Stuart, and Troy Smith
May 2008

Supplements the (A) case.

Sealed Air China

Abrami, Regina, William C. Kirby, F. Warren McFarlan, and Tracy Yuen Manty
April 2008

With a 10-year history of doing business in China, Sealed Air was now betting on the country to help propel its growth as a global company. The company identified China as one of the initial investments in the company's Global Manufacturing Strategy that aimed to create efficiencies in its operations across the globe. As Sealed Air's new Shanghai plant starts production in 2008, will its almost $50 million investment pay off? Is 10 years of experience in China enough to know how China works?

Monitor's Opportunities in India (A): Grail Research

Alcacer, Juan, and Jan W. Rivkin
April 2008

The CEO of a strategy consulting firm must decide which of the firm's functions, if any, to move to India. In particular, he wonders whether business research-currently conducted by highly paid consultants in developed countries-can be conducted more efficiently and effectively from an Indian research center.

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.

Shangri-La Hotels

Campbell, Dennis, and Brent Kazan
April 2008

In November 2006, Symon Bridle, the newly appointed chief operating officer of Shangri-La Hotels and Resorts, was thinking about a number of organizational issues that presented challenges to Shangri-La's rapid expansion strategy. There were three major issues at hand: (1) the company was expanding into high-wage economies in Europe and North America; (2) the company was expanding its presence in China-a country where front-line employees were not used to exercising decision-making authority; and (3) newcomers in the Chinese hotel market were poaching Shangri-La's staff and driving up wages in historically low-waged markets. As a COO, Bridle needed to ensure that Shangri-La's signature standards of "Asian Hospitality" were maintained during this expansion.

Avaya (A)

Godes, David
April 2008

Avaya's top management wants to improve demand generation. This requires an improvement in the relationship between Sales and Marketing. This case series (Avaya (A)-(D)) walks the student through each phase of this process. The (A) case begins with background on the firm and asks the students to come up with a strategy to improve the way in which Sales and Marketing work together. In the (B) case, we see their strategy in the form of a "unified funnel" and a demand generation framework. The unified funnel communicates the idea that not only should the marketing funnel and the sales funnel be linked "vertically"-in the sense that Marketing's leads should flow seamlessly into Sales' funnel-but they should also be integrated horizontally. This latter point refers to the idea that Sales and Marketing should each play a role in each phase of the process from e-mail marketing solutions right through to the close. That is, they argue that the two functions are best integrated by encouraging them to work simultaneously, not just sequentially. The demand generation framework, on the other hand, makes explicit what it means for them to work together. For example, they stipulate that Marketing should be included on the weekly sales conference call. The students are then asked to think about how they would implement these ideas. In the (C) case, the implementation plan for a specific market-Brazil-is described. In particular, we are given data that were used in the roll-out process that showed the market's managers how they compared with other markets on a number of dimensions. Finally, the (D) case shows some early data suggesting that this new method of working together has had a significant impact.

Avaya (B)

Godes, David
April 2008

Supplements the (A) case.

Avaya (C): Implementing Demand Generation in Brazil

Godes, David
April 2008

Supplements the (A) case.

Avaya (D): Early Results of the Demand Generation Initiative

Godes, David
April 2008

Supplements the (A) case.

Radical Collaboration: IBM Microelectronics Joint Development Alliances

Shih, Willy, and Gary Pisano
April 2008

IBM's "Radical Collaboration" model has been an innovative approach to meeting the challenges of the huge R&D and capital investments that are needed to stay competitive in the global semiconductor industry. This model has required a rethinking of what is proprietary, and what is shared, and where do the boundaries of cooperation end and competition begin. IBM and its partners have managed to stay competitive at, for example, the 45nm mode, at a far lower cost than firms that "go it alone," and there is a large benefit from a larger funnel of ideas and diverse points of view. It also reshapes what firms can use to build competitive advantage, or it necessitates a rethinking at least.

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.

Innovation at Timberland: Thinking Outside the Shoe Box

Kanter, Rosabeth Moss, and Ryan Leo Raffaelli
April 2008

Innovation was linked to Timberland's heritage. In 2005, CEO Jeff Swartz and COO Ken Pucker hoped the Invention Factory, an advanced concept lab, would develop new breakthrough products and reinvigorate the company's culture of innovation. Since the 1960s, Timberland had relied on innovation, developing the world's first waterproof boot and, in the 1980s, category-defining boat shoes and day hiking boots. Creating variations of these core products, along with expansion into apparel, had sustained Timberland's business for more than 30 years. Timberland's growth in the past six years was due to increased international sales and new customer segments. As Timberland's leaders looked to the future, they hoped Doug Clark, a biomechanist, and his Invention Factory team would bring a scientific approach toward building the next generation of Timberland products and ideas. The team had to convince those in the mainstream business to accept their new ideas and integrate them back into the product line.

The International Finance Corporation's Grassroots Business Initiative

Rangan, V. Kasturi, and Katharine Lee
April 2008

Grassroots Business Initiative was set up to financially assist small enterprises engaged in creating social value. Three years later, Harold Rosen, its creator, wished to explore an alternative funding model to provide it with scale and sustainability.

Wyoff and China-LuQuan: Negotiating a Joint Venture (A)

Sebenius, James, and Cheng Qian
April 2008

Through stalled joint venture talks between Pennsylvania-based Wyoff Corp. and China-based China-LuQuan, strategic and cross-cultural negotiation challenges are explored both from American and Chinese perspectives. Wyoff, a leading US chemical company has been seeking ways to secure the company's foothold in China's emerging market since the late '90s. When approached by China-LuQuan in 2000, a major Chinese state-owned chemical producer for a joint-venture opportunity to make a popular chemical catalyst in China, Wyoff, leveraging its superior technology, demanded one-sided terms and played hardball, ruining both the deal and the relationship with China-LuQuan. Seven years later in 2007, Wyoff faced market pressure to again seek a joint venture with China-LuQuan on two other types of products. Both parties had to overcome past distrust to work things out on a series of strategic issues: investment, product slate, marketing, technology, management, organization, staffing, etc. In the negotiations, cross-cultural themes (e.g. trust, relationships, communication, time, autonomy, face, etc.) and different negotiation styles created challenges along with the business and strategic issues. The (A) case sets up the negotiations, highlights issue impasses, explores cross-cultural frictions, and poses tactical challenges. The (B) case describes the strategies, tactics, and results of these negotiations.

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.

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.

Partners in Health: The PACT Project

Bohmer, Richard M.J., and Josh Friedman
March 2008

Partners in Health (PIH) is a Boston-based, not-for-profit that provides health care to people in some of the poorest regions of the world, including Haiti, Malawi, Rwanda, and Peru. In 1998, PIH established a program (PACT) in Boston to bring care to AIDS and TB patients who were not well served by existing care delivery systems. Describes PIH's programs in the developing world and the way in which lessons learned in these countries informed the design and management of PACT. Examines the balance between customized and standardized approaches to care and challenges students to examine their preconceived notions of the social role of a health care delivery organization. Dr. Heidi Behforouz, PACT's director, must decide whether a service design honed in developing countries can be rolled out more broadly in one the world's richest nations.

Microfinance International Corporation: No, Not Another Microfinance Case

Isenberg, Daniel
March 2008

CEO and founder Atsumasa Tochisako (52) sat in his Washington D.C. headquarters, looking with pride at the copy of a press release that would announce the latest in a broadening line of financial services that Washington D.C.-based Microfinance International Corporation (MFIC) had been providing for two years to a growing number of "unbanked" Hispanic nationals in the United States and their home countries.

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?

World Economic Forum (A)

Khanna, Tarun, Rakesh Khurana, and Forest Reinhardt
February 2008

Covers strategy and leadership. World Economic Forum founder Klaus Schwab has created the world's most famous-and exclusive-global business conference, held annually in Davos, Switzerland, and backed by a formidable membership organization that includes many of the world's most prominent firms. He now must consider how to keep the event and the organization vibrant and valuable, as similar new organizations arise and as the challenges of globalization become more difficult. In the aspirational slogan of the Forum, Schwab remains "committed to improving the state of the world," and readers are invited to ponder how he can use the organization he has created to make good on this promise.

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.

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.

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.

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?

Microsoft in China and India, 1993-2007

Khanna, Tarun, and Prithwiraj Choudhury
January 2008

Relates to Microsoft's expansion in China and India in the period 1993-2007and the strategic issues faced by multinationals in emerging markets.

McDonald's

Quelch, John A., and Kerry Herman
January 2008

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

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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.

Food Security and the Church of Jesus Christ of the Latter Day Saints

Goldberg, Ray, and Eliot Sherman
December 2007

The Mormon Church focuses on self-reliance and being prepared for emergencies. Part of their program encourages each member of the Church to have a reserve food supply on hand at all times. Given U.S. and global food stock levels, is the Church program a good model for the country?

Barclays Global Investors and Exchange Traded Funds

Viceira, Luis M., and Alison Berkley Wagonfeld
December 2007

Provides an overview of the Exchange Traded Funds (EFT) industry and highlights the leadership role that Barclays Global Investors (BGI) has played in this developing asset class. BGI launched its first ETFs under the iShares brand name in 2000, and by mid-2007 BGI was the global leader in the $600 billion ETF market. BGI's success had started attracting the interest of other large asset management firms, and Lee Kranefuss, CEO of BGI's iShares business was thinking about how BGI should compete in the increasingly crowded market. Should BGI expand into Europe and Asia more aggressively? Should BGI, already a large manager of 401(k) assets for corporations, pursue the 401(k) market with its iShares products? Would BGI need to cut its fees as other competitors such as Vanguard started marketing its "low-cost" ETF products?

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.

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.

Colgate Max Fresh: Global Brand Roll-Out

Quelch, John A, and Jacquie Labatt-Randle
November 2007

In February 2005, Nigel Burton, in his third year as president of global oral care at Colgate-Palmolive Company (CP), had every reason to feel optimistic. Worldwide market shares were strong and Colgate Max Fresh (CMF), a new toothpaste that had helped drive Colgate to a record value share in the important U.S. market, was in the global pipeline for 2005. Burton had on his desk the proposed marketing launch plans for CMF in China and Mexico. Each plan sought to maximize the business potential in the local market. Burton had to assess the plans from a global perspective.

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

Marketing the $100 PC (A)

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

In 2002, Professor Nicholas Negroponte, a successful venture capitalist, author, and co-founder and chairman emeritus of the Massachusetts Institute of Technology (MIT) Media Lab, announced his intention to build a PC so cheap as to make it possible to provide Internet- and multimedia-capable machines to millions of children in developing countries. The concept-subsequently often referred to as the "$100 PC"-was launched at the Media Lab in 2003 before being spun into a separate nonprofit association, One Laptop Per Child (OLPC), founded by Negroponte in January 2005. At the time skeptics, including technology industry leaders, argued that it simply could not be done. Through innovative design and technology, Negroponte and his team proved them wrong but struggled to sell the concept and the machines to the world's education ministries, who would be purchasing the laptops for their school-age children. Furthermore, by 2007, many other low-cost PC options had emerged and OLPC had not started shipping yet, leading some observers to wonder if the non-profit should reconsider its strategy and options.

Marketing the $100 PC (B)

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

Supplements the (A) case.

The Transformation of Thomson

Collis, David J., and Troy Smith
November 2007

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.

Will RacingThePlanet Ltd. Reach the Finish Line?

Isenberg, Daniel J.
November 2007

Mary Gadams, founder and CEO of RacingThePlanet is facing one of the many logistical crises that her young Hong Kong-based venture faces as it stages its popular 4Deserts(tm) adventure marathon series in Atacama Chile, Gobi Desert Mongolia, Sahara Desert Egypt, and Antarctica. How can a small company in Hong Kong continue to effectively coordinate such a far-flung, complex, global operation?

A Note on Private Equity in Developing Countries

Lerner, Josh, and Ann Leamon
November 2007

Provides the background and high-level situation of private equity in emerging markets as of the end of 2006.

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.

Procter & Gamble: Organization 2005 (A)

Piskorski, Mikolaj Jan, and Alessandro L. Spadini.
October 2007

In response to a huge crisis in 2000, the new CEO of Procter & Gamble has to decide whether to continue with an unusual organizational design or to revert to the old matrix organization. Describes all the organizational designs used by Procter & Gamble from the 1920s onward, including geographic, product, and matrix architectures. Market development organizations, global business units, and global business services unit, each of which is heavily interdependent with the others and none of which has a clear decision-making advantage, comprise the unusual organizational design. Examination of the different organizational designs, trade-offs associated with each organizational architecture as well as the accompanying implementation problems.

Bunge: Food, Fuel, and World Markets

Khanna, Tarun, Santiago Mingo, and Jonathan West.
October 2007

In 2007, Bunge, an agribusiness company, had over $26 billion in worldwide sales and was considered, along with Cargill and Archer Daniels Midland (ADM), one of three very integrated worldwide agribusiness companies. Headquartered in White Plains, NY, the company has traditionally possessed a strong presence in Brazil. Describes Bunge's tradeoff between efficiency of global operations and local responsiveness in an uncertain business environment. New world developments were effecting Bunge directly: high oil prices, a growing demand in emerging economies like China and India, and the possibility of agribusiness companies competing successfully in the production of biofuels. Bunge had traditionally followed an organizational model that was integrated but decentralized, trying to strike a balance between the efficiency of a global entity and the speed of local businesses. What would be the best strategy for Bunge to respond to the external changes imposed by high energy prices and increasing demand from emerging economies? How aggressively should Bunge invest in the rising biofuels markets?

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.

Michael Fernandes at Nicholas Piramal

Anteby, Michel, and Nitin Nohria
October 2007

Michael Fernandes, the Director of Custom Manufacturing Operations at the pharmaceutical company Nicholas Piramal India Limited (NPIL), schedules a meeting with three of his reports, whose interpersonal conflicts with one another are causing his business development function to falter. He struggles to know how to handle these conflicts and bring the three into a productive working collaboration. Fernandes is in charge of incorporating NPIL's new acquisitions in Canada and the United Kingdom to market NPIL globally. His three direct reports are each involved in different aspects of NPIL-the Canadian operations, the British operations, and the global business development-and the case explores the team dynamics among them. Unless Fernandes can resolve the conflicts, the integration of the acquisitions is in jeopardy.

Baker & McKenzie (A): A New Framework for Talent Management

Groysberg, Boris, and Eliot Sherman
September 2007

Describes the process by which the largest law firm in the world developed a unique framework for personnel management. In 2004, John Conroy is about to take the reigns as the leader of Baker & McKenzie, the largest law firm in the world by employees, with offices in 38 different countries. Facing an intensifying war for talent and associate retention concerns in some offices, Conroy has spearheaded the development of a framework for guiding the hiring, development, and retention of employees. As he is getting ready to introduce his framework at the firm's annual meeting, however, he faces many questions about its implementation. Could a single framework effectively apply to lawyers across so many different regions and cultures? Had this framework properly identified the attributes needed to succeed at Baker & McKenzie? How would the firm's hundreds of partners react? Offers the industry- and firm-specific content necessary for students to explore these questions and more.

Baker & McKenzie (B): A New Framework for Talent Management

Groysberg, Boris and Eliot Sherman
September 2007

Supplements the (A) case

Lightspeed Venture Partners - International Expansion

Palepu, Krishna G. and Alison Berkley Wagonfeld
September 2007

Looks at various international expansion models for a venture capital firm based in Silicon Valley. Lightspeed Venture Partners believed that India had tremendous potential for venture capital returns-the question was how best to tap into that potential while also growing the firm's presence in the U.S., Israel, and China. The venture firm had recently hired partners in Israel and China, and subsequently opened offices in both countries. The firm was contemplating hiring a third international partner in India and potentially opening a third foreign office. This model seemed to be working in the other two countries, but other U.S. venture firms were entering India in a more aggressive manner. Some venture firms were purchasing local firms and raising money for dedicated India funds. Others were hiring a team of two or three local investors at one time. Lightspeed partners wondered which was the best long-term solution for their firm.

NatuRi Corporation

Higgins, Robert F., and Virginia A. Fuller
September 2007

NatuRi Corporation was a start up, founded in 2005, aiming to manufacture a cholesterol-lowering drug made from the byproducts of rice bran oil production. With operations split between Chennai, India and Boston, Massachusetts, NatuRi faced several challenges, including securing funding for the organization. NatuRi had captured the attention of at least four potential investors willing to offer an investment. Its managers were challenged to weigh their options and to determine which of the four potential investors currently interested in their venture would be most appropriate for NatuRi's future growth. In addition, the founders had only a short period of time to decide whether or not to accept a Seed and Series A term sheet from a well known venture capital firm. Poses the question of how the company's financing should be structured and how much equity the founders should relinquish in exchange for the start-up capital.

World Wildlife Fund for Nature (WWF)

Casadedus-Masanell, Ramon, and Jordan Mitchell
August 2007

Nearly all environmental organizations have a similar aim: to stop the degradation of the natural environment. However, the strategies which environmental organizations choose to employ are sometimes starkly different. Compares the models of two dissimilar environmental powerhouses: Greenpeace and World Wildlife Fund for Nature (WWF). Active in 100 countries, WWF works with governments, businesses, other NGOs, and communities to set up conservation programs to preserve natural habitat. In contrast, Greenpeace works to campaign for environmental change against governments and corporations and accepts funding only through individuals and foundation grants. Explores the detailed history and business models of both organizations.

De Beers at the Millenium

Ghemawat, Pankaj, and Sonia Marciano
August 2007

At the time of the millennium, diamond demand was threatened by an increasing awareness among jewelry customers that diamond production and trading in some countries was being linked to growing inequities and human rights violations. This, in turn, had an impact on De Beers' reputation and consumer confidence in the diamond as a product that represented integrity, love, and commitment. In 2000, De Beers' sustainability depends on the ability of its leaders to shift the paradigm of both the firm and its context and embrace a distinctly different strategy.

Cable & Wireless America

Subramanian, Guhan, and Eliot Sherman
August 2007

Describes the auction of Cable & Wireless America (CWA), a bankrupt subsidiary of the British telecommunications company Cable & Wireless. While an initial "stalking-horse" bid valued the assets at $125 million, after a long day and night of bidding between eight groups, the best bid was in the high $60 million range. The sell-side team, comprised of bankers from the Blackstone Group and Greenhill, and lawyers from Wachtell Lipton and Kirkland & Ellis, is forced to regroup and reconsider their options for galvanizing the bidding process. Describes these events in detail, while providing information for students on CWA's history, the nature of Section 363 auctions, and the bidders who were involved in the process.

Lazard LLC

Subramanian, Guhan, and Eliot Sherman
August 2007

Describes Lazard's situation in 2001, and supplies context for the subsequent negotiation between its Chairman and his hand-picked successor. In 2001 Lazard, the last of the great investment houses to remain both private and in the control of its founding family, is in a state of decline. Infighting throughout the 1990s led to a defection of talent that left many wondering if Lazard could compete with the diversified financial behemoths of the 21st Century. It also left Chairman Michel David-Weill looking for a successor. David-Weill believes he has found one in M&A star Bruce Wasserstein: going into their negotiation, what should Wasserstein's strategy be?

Banca Regional Andino: Facing the Globalization of Microfinance

Chu, Michael, and Jean Steege Hazell
July 2007

Three leading Latin American microfinance banks join forces to face the new challenges of globalization, competition, and politics while common shareholder ACCÍON investments considers its options. From an initial project to share costs in the revamping of their IT systems, the Banca Regional Andino develops into the possibility of a common operating platform across three separate institutions, BancoSol of Bolivia, Mibanco of Peru, and Banco Solidario of Ecuador. The Banca Regional is a response to forces that the banks perceive as potentially threatening to their long history of success. In the process, presents the evolution of the national microfinance markets of Bolivia, Ecuador, and Peru within the context of global microfinance.

Maria Sharapova: Marketing a Champion (A)

Elberse, Anita, and Margarita Golod
July 2007

In July 2004, a then 17-year-old Maria Sharapova won Wimbledon, arguably the most prestigious tennis tournament in the world. Max Eisenbud, Sharapova's agent at International Management Group (IMG), knew the championship would lead to a flood of new opportunities. What would be the best approach to the management and marketing of a champion like Maria Sharapova? Which of the various endorsement offers would be worthwhile to pursue? And how could Eisenbud best leverage the resources available to him at IMG? Allows for an in-depth examination of marketing issues and, more specifically, sports endorsement opportunities in the context of a world-class athlete. (As of 2006, Sharapova is one of the world's most recognized sports figures, and its highest compensated female athlete.) Provides unique insights into the world of "team Sharapova," consisting of Sharapova and her advisors at IMG, a leading sports, media, and entertainment agency. Contains rich data on the way in which IMG structures its sales process, and can serve to illustrate best practices and key trade-offs in sports or entertainment marketing initiatives.

Maria Sharapova: Marketing a Champion (B)

Elberse, Anita, and Margarita Golod
July 2007

Supplements the (A) case

Portfolio Investment in Emerging Markets

Khanna, Tarun, Kjell Carlsson, and Krishna G. Palepu
July 2007

Provides distinctive data on investment flows into emerging markets.

Harvard Business School Note.

Choosing Corporate and Global Scope

Piskorski, Mikolaj Jan
July 2007

Introduces students to the study of corporate strategy, while providing an overview framework for understanding international strategy. Focuses on questions of scope and ownership. Examines both horizontal and vertical integration. Underscores the point that economies of scope, or the existence of relationship-specific investments, are insufficient to explain effective corporate strategy unless there are important obstacles to contractual solutions.

Harvard Business School Note.

Nestle's Milk District Model: Economic Development for a Value-Added Food Chain and Improved Nutrition

Goldberg, Ray A., and Kerry Herman
July 2007

Nestle is the largest milk firm in the world. For over a century, it has developed a milk model procurement program that improved the well-being of the small-scale farmer and the ultimate consumer. Can it partner with other firms and institutions to make even greater use of this model and can it do so in a manner that is consistent with host country goals and equally useful to the long-term viability of Nestle?

Warburg Pincus and emgs: The IPO Decision (A)

Hardymon, G. Felda, and Ann Leamon
July 2007

Two partners of Warburg Pincus, a global private equity firm, are trying to decide whether to take a portfolio company public, and on what exchange. The company, Norway-based ElectroMagnetic GeoServices (emgs), has developed a market-leading technology that determines whether an undersea rock formation contains oil-prior to the oil company drilling a hole. With its high-growth characteristics, emgs is very different from the typical oilfield services company, and would be more suitable for floating on the NYSE or LSE, where liquidity and valuations would also be greater than on the Oslo Bors, the other possibility. Yet floating in the U.S. would involve greater compliance expense and might also require the management team to move to New York or Houston, something the team is reluctant to do. The partners need to decide what to do before the IPO window for energy-related companies closes.

Caselets: Bribery and Extortion in International Business (Abridged)

Wells, Louis T.
July 2007

Caselets present several examples of decisions involving bribery or take other actions that could be considered as corrupt.

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?

Digital Divide Data: A Social Enterprise in Action

Leonard, Herman B., Marc J. Epstein, and Wendy K. Smith
June 2007

No description.

Demand and Supply Forecasting at Air Products--Electronics Specialty Materials

Cohen, Shoshanah, Taylor Randall, Zahra Kanji, and Susan L. Kulp
June 2007

Explores the process and inputs behind financial and operational forecasting in the Electronic Specialty Materials unit at Air Products and Chemicals, a global chemical company. The protagonist, John Goldberg, grapples with how to better integrate the two forecasting processes, while also trying to prepare for unexpected urgent orders and natural disasters

Airbus vs. Boeing (A)

Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell
June 2007

Looks at the development of the competitive actions between Airbus and Boeing from 1992 to 2006. Begins with the question of whether Airbus and Boeing should collaborate on the development of a VLCT (Very Large Commercial Transport) or whether Airbus should develop their own. The case series moves through to the events thereafter of Airbus' decision to pursue the A380 and Boeing's decision relating to developing a stretch 747

Airbus vs. Boeing (B): Should Airbus Build the VLCT Alone?

Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell
June 2007

Supplements the (A) case.

Airbus vs. Boeing (C): Developments from 1996 to 1999

Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell
June 2007

Supplements the (A) case.

Airbus vs. Boeing (D): 2000

Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell
June 2007

Supplements the (A) case.

Airbus vs. Boeing (E): 2001

Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell
June 2007

Supplements the (A) case.

Airbus vs. Boeing (F): 2002-2006

Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell
June 2007

Supplements the (A) case.

The Dubai Ports World Debacle and Its Aftermath

Rotemberg, Julio J.
June 2007

Describes the political ramifications in the United States of Dubai-based DP World's acquisition of London-based Peninsular and Oriental Steam Navigation Company (P&O). Because P&O operated some port terminals in the United States, DP World obtained clearance from the Committee on Foreign Investments in the United States before P&O shareholders approved the deal in February 2006. Nonetheless, a ruckus over port security erupted both in Congress and in the press and this ruckus led DP World to promise that it would relinquish the U.S. terminals of P&O. Also contains a brief description of Dubai and its relationship to the U.S., a discussion of issues related to port security, and a brief history of U.S. security concerns with foreign direct investment. Ends with a depiction of the Bills passed unanimously by the U.S. House and Senate to further regulate foreign investment in the wake of the DP World debacle.

An Overview of Project Finance & Infrastructure Finance -- 2006 Update

Esty, Benjamin C., and Aldo Sesia Jr.
June 2007

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 2002 to 2006. Examples of project-financed investments include the $4 billion Chad-Cameroon pipeline, $6 billion Iridium global satellite telecommunications system, $900 million A2 Toll Road in Poland, $1.4 billion Mozal aluminum smelter in Mozambique, and $20 billion Sakhalin II gas field in Russia. Globally, firms financed $328 billion of capital expenditures using project finance in 2006, up from $217 billion in 2001. The use of project finance has grown at a compound rate of 13% over the past 10 years. 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, to infrastructure finance in the 2000s. The third section provides a statistical overview of project-financed investment over the last five years (2002 to 2006), and looks at industry, project, and participant specific data. In addition, provides recent data on infrastructure investments and public-private partnerships. The final section discusses current and likely future trends.

Harvard Business School Note.

Basic Techniques for the Analysis of Customer Information Using Excel: A Step-by-Step Approach

Martinez-Jerez, Francisco de Asis
June 2007

Provides a set of easy, step-by-step guides for some analytical techniques that are useful in the analysis of cases discussed in the course "Competing and Winning Through Customer Information (CWCI)". The instructions that follow use datasets from three of the cases in this course: "Slots, Tables, and All That Jazz: Managing Customer Profitability at the MGM Grand Hotel"; "MercadoLibre.com"; and "Bancaja: Developing Customer Intelligence (A)". These datasets are available upon request from the author.

Harvard Business School Note.

Protecting Foreign Investors

Wells, Louis T.
June 2007

Describes the emergence of several kinds of efforts to assure the safety of foreign investment in emerging markets: international arbitration, expanded official political risk insurance, credit from government agencies, and intervention by investors' home governments. Points out the roles of bilateral investment treaties and regional economic agreements in making arbitration accessible to an increasing number of foreign investors. Views the various arrangements as substitutes for a global agreement on foreign direct investment that would parallel the WTO for trade given that attempts to negotiate a comprehensive arrangement have so far failed. Also, presents several criticisms of the current system.

Harvard Business School Note.

Bert Twaalfhoven: The Successes and Failures of a Global Entrepreneur

Isenberg, Daniel J., and Mark Rennella
May 2007

Bert Twaalfhoven (70; 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 that would last for generations. Of his eight children, two are appropriate successors, but neither shows much interest in following in their father's footsteps. The case chronicles the dozens of successes and failures of this serial global entrepreneur.

PSI: Social Marketing Clean Water

Rangan, V. Kasturi, Nava Ashraf, and Marie Bell
May 2007

Senior management at PSI, arguably the world's largest and most successful social marketer with impressive achievements in the field of family planning, HIV/AIDS, and malaria prevention must determine what to do about their slow-to-take-off clean water initiative. PSI's point-of-use products offered effective protection against water-borne diseases, especially diarrhea, yet the organization found it hard to attract donor funds to sustain the initiative. Its managers must determine how to alter their strategy going forward.

Alleviating Poverty and Malnutrition

Goldberg, Ray A., and Kerry Herman
May 2007

Deals with approaches to alleviating poverty and how firms, governments, and NGOs are able to work together to accomplish these goals.

METRO Cash & Carry

Khanna, Tarun, David Lane, Carin-Isabel Knoop, and Krishna G. Palepu
May 2007

Analyzes the globalization of Metro Case & Carry, a German wholesaler, which has flourished in many foreign markets but struggled to gain traction in India. Considers Metro's experience in Russia and China to put the company's challenges in India in comparative perspective. Pays particular attention to the institutional obstacles for a multinational to tap into the opportunities offered by emerging markets

Global Climate Change and Emissions Trading

McGrath, Patia, Nazli Uludere, Forest L. Reinhardt, and Gunnar Trumbull
May 2007

Global climate change is an increasingly prominent political and business problem. Design of market-based systems to reduce carbon emissions has proven difficult. More broadly, national attempts to comply with the provisions of the Kyoto Protocol present both governments and firms with significant challenges. The design of international institutions that will be useful for managing change after the Kyoto period is a challenge both for Kyoto ratifiers and for countries like the United States that have not ratified the agreement. Summarizes the science and economics of climate change, and encourages readers to contemplate the strategic and risk management problems that it presents to government officials and to business leaders in developed countries and in the developing world.

The Convention on Biological Diversity: Engaging the Private Sector

Bell, David E., and Mary Shelman
April 2007

The Convention on Biological Diversity (CBD) was a U.N. treaty that by 2006 had been signed by virtually every country in the world except for the United States. The treaty established three main goals: the conservation of biological diversity, the sustainable use of its components, and the fair and equitable sharing of the benefits arising from the use of genetic resources. Although the treaty had been in effect for almost 15 years, progress was slow. CBD Executive Secretary Ahmed Djoghlaf needed to increase the participation of the private sector in order to meet the treaty's "2010 Target," which called for a significant reduction in the loss of biodiversity at all levels (global, regional, and national). Provides background on the relationship between biodiversity and agriculture.

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