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• Working Paper | HBS Working Paper Series | 2020

  The Effects of Hierarchy on Learning and Performance in Business Experimentation

  Sourobh Ghosh, Stefan H. Thomke and Hazjier Pourkhalkhali

  Do senior managers help or hurt business experiments? Despite the widespread adoption of business experiments to guide strategic decision-making, we lack a scholarly understanding of what role senior managers play in firm experimentation. Using proprietary data of live business experiments from the widely-used A/B testing platform, Optimizely, this paper estimates the association of management hierarchy with learning from experiments and their performance outcomes across industries and contexts. Our findings suggest that senior management’s association is mixed. On the one hand, senior managers’ involvement associates with bolder experiments that create more statistically significant learning signals aiding in the exploration of new strategic directions. On the other hand, their involvement associates with less cause-and-effect learning that is instrumental to optimization and performance improvements. Our results contribute to a burgeoning literature on experimentation in strategy, while helping articulate limits that organizational design might place on data-driven decision-making. Furthermore, we describe different experimental learning modes in the formation of strategy, offering important implications for how managers can modulate search and performance outcomes.

  Citation:

  Ghosh, Sourobh, Stefan H. Thomke, and Hazjier Pourkhalkhali. "The Effects of Hierarchy on Learning and Performance in Business Experimentation." Harvard Business School Working Paper, No. 20-081, February 2020.  View Details

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• Case | HBS Case Collection | September 2015 (Revised February 2020)

  Managing Consumer Touchpoints at Nissan Japan

  Thales Teixeira, Nobuo Sato and Akiko Kanno

  In 2015, Nissan was third place in the Japanese auto market, behind Toyota and Honda. The challenge of increasing market share was that 80% of car shoppers who were non-Nissan owners did not consider Nissan during their purchase process. This process involved three main consumer touchpoints: mass media advertising, internet auto websites, and the physical dealerships. In the last five years, the importance of the dealers in influencing car sales had greatly diminished as consumers researched and chose which make and brand of car to buy online, going to the dealer only to negotiate price, purchase, and receive the car. Given this trend, how should Nissan's top marketer make changes in how Nissan manages these three key consumer touchpoints? And how to better integrate them to maximize sales.

  Keywords: Nissan; Automobiles; cars; touch points; digital marketing; Internet; Web Sites; Marketing Channels; Advertising; Auto Industry; Japan;

  Citation:

  Teixeira, Thales, Nobuo Sato, and Akiko Kanno. "Managing Consumer Touchpoints at Nissan Japan." Harvard Business School Case 516-035, September 2015. (Revised February 2020.)  View Details

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• Case | HBS Case Collection | August 2019 (Revised January 2020)

  Essential Explorations at MUJI

  Tomomichi Amano, Das Narayandas, Naoko Jinjo and Akiko Kanno

  Launched as a private brand in 1980 to counter the increasingly brand-conscious consumer in Japan, MUJI offered beautifully designed, fairly priced, no-frills quality goods. The once modest private label brand with 40 products had expanded significantly by 2019 to more than 7,000 products with more than half its 975 stores outside its home market in Japan. It had even expanded into the service industry, opening hotels. President Matsuzaki of Ryohin Keikaku, MUJI’s operating company, was charged with reorganizing the product portfolio and prioritizing new initiatives, tasks complicated by the absence of a clear definition of “MUJI-ness,” the meaning of which had always been intentionally left open.

  Keywords: Japan;

  Citation:

  Amano, Tomomichi, Das Narayandas, Naoko Jinjo, and Akiko Kanno. "Essential Explorations at MUJI." Harvard Business School Case 520-024, August 2019. (Revised January 2020.)  View Details

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