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• Case | HBS Case Collection | September 2019

  JTC: Stronger Together with Shared Ownership

  Ethan Bernstein and Daniela Beyersdorfer

  Nigel Le Quesne, CEO of Jersey-based financial services firm JTC, firmly believed that "shared ownership" was at the heart of his company’s successful track record. The firm had seen its revenues, profits, and number of clients and staff grow steadily throughout its over 30-year history, and management attributed much of its competitive edge to its culture in which engaged employee owners had fully aligned interests and collaborated for the greater good of the firm. Le Quesne had seeded the first employee benefit trust with some of his own equity when becoming CEO in 1998, making all employees—from the receptionists to top executives—direct shareholders in the firm. Over time, the employee owned equity had grown from 5% to 23% and the trusts created significant value that had already been directly distributed to employees in two past pay-out events. In 2018, after JTC’s successful IPO, Le Quesne and his leadership team have to decide if and how to adjust the shared ownership tools to their new public markets environment.

  Keywords: Ownership; Employee Ownership; Leadership Style; Compensation and Benefits; Organizational Culture; Employee Stock Ownership Plan; Going Public; Mission and Purpose; Management Practices and Processes; Human Resources; Financial Services Industry; Channel Islands; Europe; United States;

  Citation:

  Bernstein, Ethan, and Daniela Beyersdorfer. "JTC: Stronger Together with Shared Ownership." Harvard Business School Case 420-008, September 2019.  View Details

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• Article | Marketing Science | Forthcoming

  Price Bargaining and Competition in Online Platforms: An Empirical Analysis of the Daily Deal Market

  Lingling Zhang and Doug J. Chung

  The prevalence of online platforms opens new doors to traditional businesses for customer reach and revenue growth. This research investigates platform choice in a setting where prices are determined by negotiations between platforms and businesses. We compile a unique and comprehensive dataset from the U.S. daily deal market, where merchants offer deals to generate revenues and attract new customers. We specify and estimate a two-stage supply-side model in which platforms and merchants bargain on the wholesale price of deals. Based on Nash bargaining solutions, our model generates insights into how bargaining and competition jointly determine the price and firm profits. Our results show that there is systematic variation in bargaining power between platforms and merchants with different characteristics. By working with a bigger platform, merchants enjoy a larger customer base, but they are subject to lower margins due to less bargaining power during negotiations. Our counterfactual results quantify the value of platforms for merchants and show that merchants with lower bargaining power benefit more by working with a smaller platform. Regarding the impact of price negotiations on platform competition, we estimate that roughly 11% of the deals on a smaller platform are attributable to the platform’s lower level of revenue sharing.

  Keywords: business-to-business marketing; platform competition; Two-Sided Markets; price bargaining; daily deals; structural model; Two-Sided Platforms; Competition; Price; Negotiation;

  Citation:

  Zhang, Lingling, and Doug J. Chung. "Price Bargaining and Competition in Online Platforms: An Empirical Analysis of the Daily Deal Market." Marketing Science (forthcoming).  View Details

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• Case | HBS Case Collection | March 2019 (Revised August 2019)

  CareerWise Colorado

  Rawi Abdelal, Joseph B. Fuller and Matthew Preble

  CareerWise Colorado (CWC) is an organization that equips high school students with the skills to build successful careers through apprenticeships. Founded in 2016, the young organization has attracted interest from different groups and civic leaders from across the U.S., some of whom want to replicate CWC’s model and others who want CWC to bring and then operate its program in their localities.
  
  Noel Ginsburg, CWC’s founder and CEO, and Ashley Carter, COO, now have to decide how, when, and where to grow CWC. They both believe in CWC’s apprenticeship model’s widespread applicability, but so far it is still a relatively small—with just over 200 active apprentices spread across two cohorts, all of whom live in Colorado—and unproven entity. As of late 2018, no apprentices had yet completed the three-year program. They did not want to scale the program too soon, but Ginsburg and Carter also did not want to miss out on the attractive opportunities being presented to them. How should they scale this organization?

  Keywords: apprenticeship; nonprofit; not for profit; labor markets; skills; Nonprofit Organizations; Education; Competency and Skills; Personal Development and Career; Growth and Development Strategy;

  Citation:

  Abdelal, Rawi, Joseph B. Fuller, and Matthew Preble. "CareerWise Colorado." Harvard Business School Case 319-001, March 2019. (Revised August 2019.)  View Details

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