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• Case | HBS Case Collection | November 2019 (Revised February 2020)

  Constellation Brands' Investment in Canopy Growth: Aiming High

  Stuart C. Gilson and Sarah L. Abbott

  In 2017, Constellation Brands, the U.S. based beverage company, acquired a 9.9% equity interest in the Canadian marijuana company, Canopy Growth. In 2018, Constellation announced a subsequent investment in Canopy—taking its ownership interest to 37%. However, Canopy’s performance had been volatile and net losses had increased since the investment. In an effort to get into the cannabis market early, had Constellation Brands been too early?

  Keywords: Equity Investment; marijuana; growth investing; new market development; beverage industry; Equity; Investment; Strategy; Consulting Industry; Canada; United States;

  Citation:

  Gilson, Stuart C., and Sarah L. Abbott. "Constellation Brands' Investment in Canopy Growth: Aiming High." Harvard Business School Case 220-044, November 2019. (Revised February 2020.)  View Details

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• Case | HBS Case Collection | April 2015 (Revised January 2020)

  Bankruptcy in the City of Detroit

  Stuart Gilson, Kristin Mugford and Annelena Lobb

  The June 2013 bankruptcy of Detroit, Michigan, was, at the time, the largest municipal bankruptcy in American history. Detroit had struggled for years with a weakening tax base, high unemployment, a heavy debt load, and increasing retiree costs. These financial strains led to cuts in basic public services, declines in population, and significant urban blight. The State of Michigan appointed an emergency manager, Kevyn Orr, to lead the city though the restructuring process. In March 2014, Orr and his team put forth a restructuring plan to the city's creditors that provided for needed reinvestment in city services, but low recoveries for unsecured creditors. The city's plan also proposed that the Detroit Art Collection be transferred to a trust funded by philanthropists, with the proceeds accruing solely to retirees rather than to all creditors. Orr and his team must now find consensus on a plan that meets the needs of Detroit and is acceptable to its creditors.

  Keywords: Chapter 9; chapter 11; Restructuring; Financial Liquidity; Insolvency and Bankruptcy; City; Government Administration; Public Sector; Financial Crisis; Financial Management; Failure; Labor Unions; Urban Development; Public Administration Industry; Michigan; Detroit;

  Citation:

  Gilson, Stuart, Kristin Mugford, and Annelena Lobb. "Bankruptcy in the City of Detroit." Harvard Business School Case 215-070, April 2015. (Revised January 2020.)  View Details

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• Article | HBR Ascend | December 16, 2019

  Why Your Startup Won't Last

  Ranjay Gulati and Vasundhara Sawhney

  Why do some startups that have crossed the threshold of “product-market fit” and have a viable business model still fail? This article begins by exploring the argument that most startups need more professionalization to thrive. Founders resist putting in place structures and systems as they grow and that eventually leads to organizational chaos and ultimately, failure. But it then departs from this conventional view and explores the idea that while on the one hand too little structure in a high growth venture can lead to chaos, going too far on the other extreme with too much structure can also be equally detrimental and kill the soul of the startup. The article concludes by summarizing some ideas for startup founders on how they can learn the mechanics of scaling up effectively before they reach a point where they tip over too far, in one direction or the other. In an attempt to better understand this problem, the authors conducted a closed-group discussion with professionals, investors, and founders operating in various segments of the Indian startup ecosystem on which this article is based.

  Citation:

  Gulati, Ranjay, and Vasundhara Sawhney. "Why Your Startup Won't Last." HBR Ascend (December 16, 2019).  View Details

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