24
Online Coursepack Tools Hide and Reveal Content, Make Materials Optional To better serve the needs of instructors, Harvard Business Publishing has added new coursepack-building tools on the Educators web site. The new functionality improves usability and provides flexibility in creating coursepacks and delivering materials to students. New coursepack tools include a feature to hide specific content in a coursepack until a desired date; this allows for a delay in revealing “B” and “C” cases, materials to be used for exams, or other items that are best shown after prelimi- nary class discussions. Instructors can also now designate specific items within a coursepack as optional, and for easier folder management, expired coursepacks will now move to an archive folder. An updated user interface is most notable in search activities. Search results are displayed more clearly and it’s easier to find materials that have teaching supple- ments, such as instructor and student spreadsheets—which instructors can now easily preview. Adding content from search results into one’s library is now quicker with simple drag-and-drop functionality. Furthermore, bringing materials from search results directly into an existing coursepack now requires fewer clicks. Watch a video overview of the new coursepack building tools: hbsp.harvard.edu/list/help-videos. Coursepack tools are available to registered Premium Educators. Not registered? It’s free. Apply now: educatoraccess.hbsp.harvard.edu NEW! Harvard ManageMentor® v11 in Coursepacks Harvard ManageMentor® (HMM), the leading business reference tool, can now be delivered to students entirely through digital coursepacks. This online learning tool features 44 self-paced modules that address the full spectrum of issues students will face as managers. Included are interactive learning activities, audio downloads for mobile devices, video insights, templates, and other downloadable tools. HMM is an ideal resource for students preparing to become managers. Each module addresses a key management responsibility and aims to strengthen student understanding of essential leadership skills. Modules are divided into 7 sections, including Getting Started, Practice, Apply, Assess, and more. HMM is delivered entirely online, and individual modules or the full suite can now be added to digital coursepacks, giving students a 50% discount. HMM modules include: Accounting Budgeting #9000 Business Ethics Ethics at Work #9018 Entrepreneurship Business Plan Development #9004 Innovation and Creativity #9024 Innovation Implementation #9025 TEACHING MATERIALS NEWSLETTER Operations Management Simulation p. 2 Case Startup Kits p. 3 Cases, Articles, Books & Chapters, eLearning p. 4 Contact Information p. 23 NEW! Continued on p. 2 TN TEACHING NOTE AVAILABLE SPRING 2014

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Page 1: Operations Management Case Startup Kits Simulation p. 3 p ...€¦ · Danshui Plant No. 2 in southern China has a 1-year contract with Apple Inc. to assemble 2.4 million iPhones

Online Coursepack ToolsHide and Reveal Content, Make Materials Optional

To better serve the needs of instructors, Harvard Business Publishing has added new coursepack-building tools on the Educators web site. The new functionality improves usability and provides flexibility in creating coursepacks and delivering materials to students.

New coursepack tools include a feature to hide specific content in a coursepack until a desired date; this allows for a delay in revealing “B” and “C” cases, materials to be used for exams, or other items that are best shown after prelimi-nary class discussions. Instructors can also now designate

specific items within a coursepack as optional, and for easier folder management, expired coursepacks will now move to an archive folder.

An updated user interface is most notable in search activities. Search results are displayed more clearly and it’s easier to find materials that have teaching supple-ments, such as instructor and student spreadsheets—which instructors can now easily preview.

Adding content from search results into one’s library is now quicker with simple drag-and-drop functionality. Furthermore, bringing materials from search results directly into an existing coursepack now requires fewer clicks. Watch a video overview of the new coursepack building tools: hbsp.harvard.edu/list/help-videos.

Coursepack tools are available to registered Premium Educators. Not registered? It’s free. Apply now: educatoraccess.hbsp.harvard.edu

NEW! Harvard ManageMentor® v11 in Coursepacks Harvard ManageMentor® (HMM), the leading business reference tool, can now be delivered to students entirely through digital coursepacks. This online learning tool features 44 self-paced modules that address the full spectrum of issues students will face as managers. Included are interactive learning activities, audio downloads for mobile devices, video insights, templates, and other downloadable tools. HMM is an ideal resource for students preparing to become managers.

Each module addresses a key management responsibility and aims to strengthen student understanding of essential leadership skills. Modules are divided into 7 sections, including Getting Started, Practice, Apply, Assess, and more. HMM is delivered entirely online, and individual modules or the full suite can now be added to digital coursepacks, giving students a 50% discount. HMM modules include:

AccountingBudgeting #9000

Business EthicsEthics at Work #9018

EntrepreneurshipBusiness Plan Development #9004

Innovation and Creativity #9024

Innovation Implementation #9025

TEACHING MATERIALSN E W S L E T T E R

Operations Management Simulation

p. 2

Case Startup Kits

p. 3 Cases, Articles, Books & Chapters, eLearning

p. 4

Contact Information

p. 23

NEW!

Continued on p. 2

TN TEACHING NOTE AVAILABLE

SPRING 2014

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2 | SPRING 2014 Teaching Materials Newsletter

NOT A PREMIUM EDUCATOR? APPLY ONLINE: educatoraccess.hbsp.harvard.edu

FinanceFinance Essentials #9020

General ManagementBusiness Case Development #9002

Change Management #9006

Crisis Management #9009

Decision Making #9011

Delegating #9012

Goal Setting #9022

Managing Upward #9028

Meeting Management #9030

New Manager Transitions #9033

Presentation Skills #9037

Time Management #9049

Writing Skills #9051

Human Resource ManagementCoaching #9007

Developing Employees #9013

Dismissing an Employee #9015

Hiring #9023

Laying Off Employees #9026

Performance Appraisal #9034

Performance Measurement #9035

Retaining Employees #9042

MarketingCustomer Focus #9010

Marketing Essentials #9029

Negotiation Negotiating #9031

Operations ManagementProcess Improvement #9038

Project Management #9041

Organizational BehaviorCareer Management #9005

Difficult Interactions #9014

Diversity #9017

Feedback Essentials #9019

Global Collaboration #9021

Leading and Motivating #9027

Persuading Others #9036

Stress Management #9045

Team Leadership #9046

Team Management #9048

Virtual Teams #9050

StrategyStrategy Execution #9044

Strategic Thinking #9043

Harvard ManageMentor: Full Suite #9001

COMPLETE FREE TRIAL ACCESS TO THE ENTIRE SUITE OF MODULES IS AVAILABLE TO PREMIUM EDUCATORS

hbsp.harvard.edu/list/hmm

continued from p. 1

Harvard ManageMentor

*Reviews available to registered Premium Educators

New! Operations Management Simulation: Quality AnalyticsTHIS SINGLE-PLAYER simulation illustrates how to manage quality in service, health care, and manufacturing settings through the use of analytics related to statistical process control (SPC), process capability, and the cost of quality. Students play 4 different challenges:

Challenge 1: Use sample statistics to calculate control limits for X-bar and R charts in a generic manufacturing setting.

Challenge 2: Use the control limits from Challenge 1 and inform decisions about machine recalibrations and labor swaps to keep the process in control while minimizing cost.

Challenge 3: Use 4 separate histograms (each for a different industry) that show the means of all samples over a period of time to determine whether each process is capable of producing to specifications.

Challenge 4: Make investment decisions related to prevention and appraisal in order to minimize the total cost of quality.

This simulation is ideal for introduc-tory operations management courses or more advanced courses in quality management or SPC. Students are expected to have basic knowledge about the purpose of control charts, calcula-tion of control limits for X-bar and R

charts, interpretation of control charts, and process capability. It is appropriate as a mastery exercise after students have completed a module on quality manage-ment or SPC.

SUBJECTS COVERED:

• Statistical Process Control • Process Capability • Quality

LEARNING OBJECTIVES INCLUDE:

• Understand the purpose and use of a control chart.

• How to calculate control limits for X-bar and R charts, based on process data.

• How to use X-bar and R control charts in real time, during production, to maintain control of a process.

• The difference between a process that is in control and a process that is capable, through post hoc analysis of a control chart.

• How managerial decisions about cost play out in the trade-off between cost and defect rate.

• How to balance investment decisions related to prevention and appraisal with internal and external failure costs.

#4341

Approximate seat time: 60–90 minutes

Preview and Free Trial AccessA Free Trial allows full access to the entire simulation and is available to Premium Educators on our web site.

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01 NEW! ONLINE COURSEPACK TOOLS

01 HARVARD MANAGEMENTOR NOW IN COURSEPACKS

02 NEW! OPERATIONS MANAGEMENT SIMULATION

03 CASE STARTUP KITS

04 NEW CASES, ARTICLES, BOOKS & CHAPTERS, ELEARNING

Case Startup KitsIdeal for Instructors New to Case Teaching

EDUCATORS OFTEN ASK where to begin when choosing their first cases. To make the initial step into case teaching easier, Harvard Business Publishing developed the Case Startup Kit. Each kit is designed to help aspiring case teachers begin using cases in their courses. Each recommends 8 to 10 cases that are ideal to use as a “first case” for instructors new to case teaching.

The cases within each kit were selected for their brevity, ease of use, and teachability. Most are fewer than 15 pages, and all are accompanied by a Teaching Note that provides instructional guidance.

I N T H I S I S S U E

TN TEACHING NOTE AVAILABLE

04 ACCOUNTING

05 BUSINESS ETHICS

06 BUSINESS & GOVERNMENT RELATIONS

07 ECONOMICS

07 ENTREPRENEURSHIP

09 FINANCE

10 GENERAL MANAGEMENT

12 HUMAN RESOURCE MANAGEMENT

13 INFORMATION TECHNOLOGY

14 INTERNATIONAL BUSINESS

15 MARKETING

16 NEGOTIATION

17 OPERATIONS MANAGEMENT

18 ORGANIZATIONAL BEHAVIOR

20 SALES

21 SOCIAL ENTERPRISE

21 SERVICE MANAGEMENT

22 STRATEGY

Case Startup Kits are now available in the 9 disciplines below, with more disciplines coming soon.

• Accounting

• Entrepreneurship

• Finance

• General Management

• International Business

• Marketing

• Operations Management

• Organizational Behavior

• Strategy

Many cases in Case Startup Kits come with:

• Instructor spreadsheets that provide supporting data and editable calculations.

• Supplementary spreadsheets that assist students with quantitative analysis of the case.

• Optional downloadable audio versions for students.

NEW!

Learn More hbsp.harvard.edu/list/casestartupkit

BC IPAD APP FOR STUDENTS

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*Reviews available to Premium Educators4 | SPRING 2014 Teaching Materials Newsletter

ACCOUNTING

Groupon and the SEC

Vaughan Radcliffe, Mitchell Stein, Alexis Gottschalk

Ivey Publishing Case

#W12666 (16 pages) TN

Groupon provides an opportunity to review

Groupon Inc.’s S1 filing made prior to an IPO.

Groupon’s financial statements attracted a

great deal of controversy due to revenue recog-

nition policies that produced very substantially

higher revenues for the corporation, as well

as non-GAAP earnings measures, especially

ACSOI, an invention of the firm that served to

exclude certain marketing expenses from the

calculation of profit. Since marketing expenses

were a very material expense for Groupon at a

stage at which it was building its business, the

effect of the use of ACSOI was as substantial

as the effect of aggressive revenue recogni-

tion policies. Groupon backed down on both

revenue recognition and the use of ACSOI

following SEC queries as to the corporation’s

accounting policies.

Boston University Medical Center HospitalDavid W. Young

The Crimson Group Case#TCG105 (7 pages) TN

This case describes a “bundled pricing” approach to managed care contracting. Bun-dled pricing is a contracting strategy whereby a hospital and its physicians share the risk of a fixed-price contract. The case raises ques-tions about managed care pricing strategies and hospital-physician relationships. Students must analyze the financial implications of the hospital’s contracting strategy and propose an approach that provides appropriate incen-tives for physicians while minimizing the hospital’s risk.

Danshui Plant No. 2William J. Bruns Jr., Julie H. Hertenstein, Kelvin LiuHarvard Business School Brief Case#913525 (5 pages) TN

Available in Spanish

Danshui Plant No. 2 in southern China has a 1-year contract with Apple Inc. to assemble 2.4 million iPhones. In the first 3 months of the contract, the plant is unable to assemble

as many phones as expected and is operating at a loss. The plant manager must analyze the budget and prepare a summary of monthly operations to help identify the source of perfor-mance problems. The plant has had difficulty hiring enough workers despite raising wages over 30%. In addition, the assembly process for an iPhone is complicated, with 140 steps involving over 100 components. The plant manager considers whether a flexible budget would be more useful for uncovering prob-lems than the static budget currently being used. Students must perform break-even and flexible budget analyses and calculate price and usage variances as they consider solutions for the plant’s problems with the iPhone contract. This case, which explores the challenges of outsourcing manufacturing, can be used as an introduction to managerial accounting.

Value Partners and the Evergrande SituationPaul M. Healy, Keith Chi-ho WongHarvard Business School Case#113113 (27 pages)

In June 2012, Cheah Cheng-Hye and his colleagues at Value Partners, a Hong Kong-based investment firm, received a copy of a short-seller report alleging that Evergrande,

C A S E SA R T I C L E S B O O K S & C H A P T E R Se L E A R N I N G

NEWLY RELEASED

ACCOUNTING

Financial Accounting Online Course

This Online Course introduces the fundamental concepts of financial accounting in a management context. Students learn how accounting systems are used to record the day-to-day economic activities of a business. Special emphasis is given to understanding accounting terminology. Real-world challenges require students to interpret the financial data to find answers. Student progress and test scores can be viewed online or downloaded to Excel format.

REGISTERED PREMIUM EDUCATORS (A FREE SERVICE) CAN SEE A FULL FREE TRIAL ONLINE Seat time: 18–22 hours

#105708 TN

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hbsp.harvard.edu 1-800-545-7685 | 5 TN TEACHING NOTE AVAILABLE

one of China’s largest property developers, was using fraudulent accounting and paying bribes to secure business. Evergrande’s stock plummeted, and Value Partners, which had a sizable holding of Evergrande stock, had to determine how to respond to the allegations. The case provides an opportunity to review Value Partners’ research approach to investing in Chinese companies and to assess the merits of the Evergrande allegations.

Royal Collection Inc. Vaughan Radcliffe, Derrick Wong Ivey Publishing Case#W12222 (4 pages) TN

A manufacturer of royal memorabilia relies on a network of subcontractors and markets primarily on cable TV. The firm must resolve several accounting policy issues around rev-enue recognition, provision for returns, and cost flow assumptions.

Liza Davis and the Bargain-Hunting CustomerF. Asis Martinez-Jerez, Lisa BremHarvard Business School Case#111040 (14 pages)

Liza Davis, an upscale women’s fashion retailer, is reeling from worldwide recession and lower demand. Should the company target the fast-growing bargain hunter segment or hold the line on price discounts to preserve its brand image? Customer profitability calcula-tions show that the bargain-hunting customer loses money—does that mean the company should ignore this customer in favor of full-price shoppers?

Luotang Power: Variances and Cost Allocations Robert L. Simons, Craig J. ChapmanHarvard Business School Brief Case#913533 (8 pages) TN

Instructor and Student Spreadsheets Available

The general manager of a coal-fired power plant in central China prepares a presentation to the board of directors. He believes his com-pany performed better than what the financial results show.

BUSINESS ETHICS

Don’t Just Dump It!: Saving Sandy PondRobert W. Sexty, Natalie Slawinski, Kristen C. BakerNorth American Case Research Association Case#NA0223 (19 pages) TN

In July 2009, Vale NL began building a $2.17 billion nickel refinery in Long Harbour, Newfoundland and Labrador. The refinery would bring economic prosperity by creating 1,600 to 2,000 jobs during construction and 400 to 500 permanent jobs in an area of high unemployment. The project’s environmental assessment process began in 2006, and the company had successfully completed the required environmental impact statements for the government. A major environmental issue was the disposal of tailings from the refinery, and the approved solution was to store them in a natural lake known as Sandy Pond. Members of several environmental NGOs had opposed the use of the lake as a “tailings impoundment area” and formed the Sandy Pond Alliance for the Protection of Canadian Waters (SPA). The use of natural lakes was allowed, but SPA believed that the regulation that permitted the use was inconsistent with environmental leg-islation. SPA had to decide how to challenge the use of tailings ponds at Long Harbour and elsewhere in Canada, and whom to target in its efforts. Instead of being designed as a management decision-making exercise, this case places students in the position of environ-mentalists as they decide what course of action to initiate.

Michael Harris: Crafting an MBA Faculty Values StatementMark E. HaskinsDarden School of Business Case#UV6739 (4 pages) TN

Worried that a graduate business school is in danger of losing the legacy of shared values that makes it so special to many faculty members, one member feels a responsibility to create a document that articulates and codifies a set of shared faculty values. He decides that the way to begin is to use the school’s mission statement as the starting point.

Following Lance Armstrong: Excellence CorruptedClayton Rose, Noah FisherHarvard Business School Case#314015 (21 pages)

After years of vigorous denials, on January 14, 2013, Lance Armstrong admitted in a television interview with Oprah Winfrey that he “doped” in each of his record 7 consecutive Tour de France victories, confirming the findings a few months earlier by the U.S. Anti-Doping Agency that he had orchestrated “a massive team doping scheme, more extensive than any previ-ously revealed in professional sports history.” Until that moment with Oprah, Armstrong had consistently and strenuously denied using performance-enhancing drugs (PEDs), blood transfusions, or other artificial enhancers to compete in the grueling, 3-week race through-out France. He verbally thrashed, bullied, and threatened legal action against riders, journal-ists, race officials, and anyone else who had suggested he had cheated. This case explores Armstrong’s leadership of a corrupt culture, the extensive nature of the cheating scandal among elite athletes, the decisions taken by other riders to support Armstrong and his scheme and ultimately admit to cheating, and the costs borne by those associated with Arm-strong. It allows for discussion of the responsi-bilities that leaders have to followers, and that followers have to themselves and to others.

Evergreen EnhancementJared Harris, Jenny MeadDarden School of Business Case#UV6577 (8 pages)

Richard Alpert, senior partner at Evergreen Investments, must decide which of his 2 best employees to promote to the position of managing VP. He had initially preferred Charlie Pace over Daniel Faraday, but that deci-sion had become less clear-cut when Alpert inadvertently overheard an office conversation and learned that Pace was taking Adderall, a stimulant primarily prescribed for people suffering from attention deficit/hyperactivity disorder (ADHD). Pace did not have ADHD and apparently obtained the medication by deceiving a physician. Alpert is faced with a number of questions, including whether it was fair to Faraday—or any other high-performing employee—to be passed over for promotion in favor of someone who illicitly boosted his performance with a substance he did not medically need.

ACCOUNTING — BUSINESS ETHICS

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6 | SPRING 2014 Teaching Materials Newsletter *Reviews available to Premium Educators

BUSINESS ETHICS — BUSINESS & GOVERNMENT RELATIONS

The Global Oil and Gas IndustryAndrew InkpenThunderbird School of Global Management Case#TB0321 (18 pages) TN

This case examines the oil and gas industry. It first provides background information on industry financial performance, the role of OPEC, and the problems oil-producing nations have had in capitalizing on their resource wealth (i.e., the resource curse). It then sum-marizes the major competitors among the integrated oil companies (IOCs), national oil companies (NOCs), and independents. The case describes the major business segments, including exploration and production, refin-ing and marketing, natural gas, and petro-chemicals, then concludes with a discussion of industry evolution.

BUSINESS & GOVERNMENT RELATIONS

Shaping the Future of Solar Power: Climate Change, Industrial Policy, and Free TradeRobert Lawrence, Anjani Datla Harvard Kennedy School Case#HKS757 (15 pages) TN

When Solyndra, a California-based solar panel maker, filed for bankruptcy in 2011, the U.S. government was left with more than half a billion dollars in unpaid debt. The bankruptcy was a major embarrassment for the Obama administration, which had touted renewable energy companies like Solyndra as the wave of the future and had invested billions of dollars in government loan guarantees to promote them. The Chinese government, however, had outpaced the U.S. in providing loan guaran-tees and subsidies to solar manufacturers and helped transform the country’s nascent solar manufacturing industry into a world leader. Chinese dominance in the solar market ultimately triggered a high-stakes trade war between the U.S. and China, but neither coun-try could contain the massive downturn in the solar market that began in 2012. The case pro-vides an in-depth account of the complex and often competing agendas on climate change, industrial policy, and free trade that fueled the politically charged trade battles between the U.S. and China. Against the backdrop of the global environmental challenge, the case

includes details on the Obama administra-tion’s signature energy subsidy program and the factors that led to Solyndra’s collapse. It also traces the rise of China’s solar industry as well as the trade complaints made by the U.S. against China at the World Trade Organization and the subsequent Department of Commerce decision to impose penalties against Chinese solar panel makers.

What We’ve Learned from the Financial CrisisJustin FoxHarvard Business Review Article#R1311G (9 pages)

For decades, the basic idea that governed economic thinking was that markets work: the right price will always find a buyer and a seller, and millions of buyers and sellers are far better than a few government officials at determining the right price. But then came the Great Reces-sion, when the global financial system seemed on the verge of collapse—as did prevailing notions about how the economic and financial world is supposed to function. The author has followed academic economics and finance as a journalist since the mid-1990s. To him, 3 shifts in thinking stand out: (1) macroecono-mists are realizing that it was a mistake to pay so little attention to finance; (2) financial economists are beginning to wrestle with some of the broader consequences of what they’ve learned over the years about market misbehav-ior; and (3) economists’ extremely influential grip on a key component of the economic world—the corporation—may be loosening. In the early 1930s, he concludes, policy errors by governments and central banks turned a financial crisis into a global economic disaster. In 2008 the financial shock was at least as big, but the reaction was smarter and the economic fallout less severe.

Lesotho Hospital and Filter Clinics: A Public-Private PartnershipHenry LeeHarvard Kennedy School Case#HKS766 (27 pages) TN

This case looks at the public-private partner-ship (PPP) between the Health Ministry for the government of Lesotho and a private con-sortium headed up by Netcare, a South African company, to build and operate a new referral hospital and 4 feeder clinics in Maseru, the nation’s capital. The project was one of the

first efforts to design a PPP in Africa for the construction and the operation of a major hospital plus the clinical services. The project is perceived by the International Finance Corporation (IFC) as a major success. The case focuses on 3 issues: (1) the steps taken by the government, the IFC, and the private parties to form a workable public-private partnership; (2) the design and implementation of the key per-formance indicators contained in the contract; and (3) the sustainability of the project in light of higher-than-anticipated costs and lower-quality health services in other areas of the country, which have resulted in a demand for services from the new clinic and hospital far in excess of the numbers originally forecast.

Brazil’s Enigma: Sustaining Long-Term GrowthLaura Alfaro, Hilary WhiteHarvard Business School Case#713040 (32 pages)

Over the past decade, Brazil’s future as a lead-ing world economic power appeared certain. An expanding middle class and commodity boom had fueled economic growth, with GDP growth hitting a peak of 7.5% in 2010. However, the high cost of conducting business in Brazil, known as “Custo Brasil,” was hurt-ing domestic manufacturing, while incoming foreign investments threatened to overwhelm Brazilian markets. Under President Dilma Rousseff, economic growth stagnated, and the Rousseff administration struggled to find the best balance between reducing inflation, main-taining a flexible exchange rate, and improving the competitiveness of Brazilian exports.

Australia: Commodities and CompetitivenessLaura Alfaro, Richard H. K. Vietor, William Russell, Hilary WhiteHarvard Business School Case#713015 (31 pages) TN

Available in Spanish

For the past few decades, Australia has dealt with the benefits and costs of repeated mining booms—inflation, a housing bubble, a current account deficit, and growing dependence on China. Between 1996 and 2007, however, Aus-tralia had most of these issues under control and grew at impressive rates, becoming one of the richest of developed countries. Yet competi-tiveness in its non-mining sectors declined. Since the financial crisis, additional challenges

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BUSINESS & GOVERNMENT RELATIONS — ECONOMICS — ENTREPRENEURSHIP

associated with climate change, minerals taxes, migration, and an overvalued currency have complicated the issues facing Julia Gillard and her Labor Party, which has a very thin majority.

Aspen Skiing Company (A)Michael W. Toffel, Stephanie van SiceHarvard Business School Case#611002 (26 pages) TN

B and C Cases Available

Having begun improving the environmental performance of its own operations, Aspen Skiing Company is considering “greening” its supply chain and lobbying for greenhouse gas regulations. A world-renowned ski resort vulnerable to global climate change, Aspen’s activities often garner media attention, which can promote its causes. But these initia-tives, which attempt to compel other firms to improve their environmental performance, risk a public relations backlash and charges of “greenwashing,” given that Aspen’s ski resorts are themselves environmentally inten-sive operations.

ECONOMICS

Everything I Ever Needed to Know about Economics I Learned from Online DatingPaul OyerHarvard Business Review Press Books#11541 (256 pages) Hardcover and PDF eBook Available

Conquering the dating market—from an economist’s point of view. After more than 20 years, economist Paul Oyer found himself back on the dating scene—but what a difference a few years made. Dating was now dominated by sites like Match.com, eHarmony, and OkCu-pid. But Oyer had a secret weapon: economics. It turns out that dating sites are no different from the markets Oyer had spent a lifetime studying. Monster.com, eBay, and other sites where individuals come together to find a match gave Oyer startling insight into the modern dating scene. The arcane language of economics—search, signaling, adverse selec-tion, cheap talk, statistical discrimination, thick markets, and network externalities—provides a useful guide to finding a mate. Using the ideas that are central to how markets and econom-ics and dating work, Oyer shows how you can take advantage of the economics in everyday life, all around you, all the time. For all online

life and enable the unimagined flourishing of human civilization or (b) take away our jobs and cause civilization as we know it to collapse. The author argues that this either-or dual-ism misses the point, and he shows that the real issue is this: we are in dire need of a new social compact that extends the advantages of our emergent knowledge economy to a much broader range of workers.

ENTREPRENEURSHIP

Dosa King: A Standardized Masala Dosa for Every IndianUnnikrishnan Dinesh KumarIndian Institute of Management Bangalore Case#IMB439 (8 pages) TN

Indian Foods Fermentation Limited (IFFL) was established in 1992 by Narayanan to develop an expert dosa maker, “Dosa King,” to be used in fast-food restaurants. According to market research carried out by IFFL in 1992, on any given day 20 million dosas were consumed in India. Narayanan and his colleagues at IFFL decided to develop an automatic dosa delivery system that would at an interval of 30 seconds deliver standardized dosas of the same size, color, crispiness, and taste. The project was funded by venture capitalists, and the Dosa King was intended to be a mass-distributed item with the number of retail points across the country expected to be in excess of 10,000 within 5 years from its launch in 1992. The IFFL realized that its largest stakeholder would therefore inevitably be the retailer or franchisee who invested in dosa machines, batter, and masala and also interfaced with the customer. The IFFL conducted a market survey to capture the “voice of the customers” for the dosa delivery system and identified vari-ous system requirements. At various stages of product development, Narayanan had to make several key decisions related to the design and development of machines and on inputs for preparation of dosa batter and other accom-paniments. Although India went through a period of major economic reform in 1991 and the economy started growing much faster after the ’90s, in 1992 India did not have any Western fast-food chains. Narayanan expected the demand for fast food to grow in all major cities of India, and equipped with his experi-ence at Coca-Cola and Nestlé, Narayanan was confident that he could change the restaurant industry in India.

daters—and for anyone else swimming in the vast sea of the information economy—this book uses Oyer’s own experiences, and those of millions of others, to help you navigate the key economic concepts that drive the modern age.

International Economics, Chapter 2: Economic Growth, Convergence, and Trade Business Expert Press#BEP230 (24 pages)

International Economics: Economic Growth, Con-vergence, and Trade for Managers is a 6-chapter book published in 2013 by the Business Expert Press and written by Dr. Paul Torelli, chief economist at Quantitative Social Science. The author explains that because of the impact of globalization, new technology, and interna-tional trade, business managers need more than ever to understand basic economic con-cepts in order to make well-rounded decisions. To that end, this book outlines the conceptual foundation of economic globalization. Starting with the important milestones in the his-tory of global trade development, the author explores how global trade has developed and how globalization has fostered growth, consumption, and higher standards of living. He explains the core models of economic theory relevant to managers and how these concepts provide a framework for interpreting the global economy. He also shares insight on using the book in management courses and suggests complementary readings, including case studies. In Chapter 2, Economic Growth, Convergence, and Trade, the author consid-ers the factors that lead to varying growth rates between countries. He explains how the neoclassical growth model provides a frame-work for understanding long-term growth. He reviews the 3 components of the model—labor, capital, and technology—and the implication that varying the input of labor and capital can lead to an equilibrium state. He provides sup-port for the model through the analysis of how globalization facilitated growth in Asia, Latin America, and Africa.

Robots Aren’t the Problem: It’s UsRichard FloridaRotman School of Management Case#ROT209 (5 pages)

Everyone has an opinion about technology. Depending on whom you ask, it will either (a) liberate us from the drudgery of everyday

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ENTREPRENEURSHIP

Team Wikispeed: Developing Hardware the Software WayMartin Kupp, Linus Dahlander, Eric MorrowESMT—European School of Management and Technology Case#ES1391 (12 pages) TN

In 2008 Joe Justice saw the announcement for the Progressive Insurance X Prize—a $10 million prize aimed at the (im)possibility of building a 100-miles-per-gallon (mpg) car to road-legal safety specifications. Joe persuaded his wife to use their savings of $5,000 to pay the registration fee. He started the work alone but blogged about what he was doing and what he was learning. Through social networking tools like Facebook and WordPress, bloggers who shared his interest learned about his project. Some of these people joined Joe in his endeavor to tackle the challenge. Only 3 months later, Wikispeed had been formed. It counted 44 members in 4 countries and had a functioning prototype that was entered in the X Prize competition. In 2010 Wikispeed came in 10th in the mainstream class, outrunning more than 100 other cars from well-funded companies and universities around the world. Following the press reaction to the success of team Wikispeed, in 2011 the team was invited to showcase their concept car at the Detroit auto show, the largest motor show in the world. Their car, the SGT01, was put on dis-play in Cobo Hall right next to Ford and Chev-rolet. Wikispeed was contacted by more than 100 people who were interested in joining the team as well as in ordering the prototype. By 2013, more than 500 people had joined team Wikispeed. They had also sold 9 prototypes. The immediate issue of the case study is the decision about whether the team should use a pair of existing axles, cut and welded together to the right length for the next iteration of their prototype, or develop their own pair of axles from scratch. More fundamentally, this case study looks at the way team Wikispeed used tools from the world of software development, such as modularity—which they call object-oriented architecture, scrum, and extreme manufacturing (XM)—to organize their inno-vation efforts.

redBus: The Next Step for GrowthSandeep Goyal, Amit Kapoor, M.P. JaiswalIvey Publishing Case#W13193 (15 pages) TN

redBus has enjoyed tremendous success in the structurally unattractive, fragmented, and non-transparent market for private bus travel bookings by introducing a technology platform to bridge the supply-demand gap in real time. This technology platform connects the bus operators, travel agents, and bus travelers in a seamless and transparent manner. redBus is considered an industry transformation change agent that has altered the dynamics of the bus travel booking industry by using a disruptive business model to eliminate the pain points of the bus operators and travelers and to provide greater convenience and efficiency. This case examines the evolution of the company’s business model and considers redBus’s next growth step. Should it expand beyond the Indian market to receptive Western and Asian markets; diversify its portfolio of service offerings to include air travel, hotels, and tour packages; or simply continue to focus on what it does best?

A Late Bloomer: ZPMC CEO Guan TongxianBaiyin Yang, Ang Gao, Lu ChenTsinghua University Case#TU0042 (17 pages) TN

“Any important port in the world that has container handling operations should have container machinery made in China.” With this dream, Guan Tongxian, who was 59 years old when he came to Shanghai, led 13 people from Shanghai Port Machinery Company to start a difficult venture with US$1 million. Today ZPMC has assets of over US$7 billion, but Guan makes only US$50,000 a year without holding any equities. He has kept such a low profile that even MBA programs in top Chinese universities might not be aware of his success. Chinese traditional culture has been playing an influential role in the personal growth of Guan Tongxian. Guan was influ-enced by the old generation of intellectuals in his childhood: “At that time, there were old Xiucai and Jinshi in Beijing, and I followed them to learn Chinese poems and listen to them speaking of Confucianism that promotes an idea of cultivating oneself, putting family in order, ruling the country, and giving peace to the world.”

Elasto Therm: The Next StepJim Sharpe, James WeberHarvard Business School Case#813030 (14 pages) TN

Video Supplement Available

Julia and Nate Burstein were living their dream—running their own business and balancing the demands of work and family obligations while creating a company that was responsive to their employees’ and their customers’ needs. The Bursteins had joined a large multinational manufacturing company after receiving their MBAs from HBS, but soon left to join Julia’s family plastics business. After the business was sold, they struck out on their own to search for a similar business. They purchased Elasto Therm, with $8 million in revenue from manufactured rubber and urethane components, with their own cash, bank financing, and the seller, partly in the form of an employee stock ownership plan (ESOP). Initially, Nate ran the business and after a few years changed roles with Julia to stay at home with their young children for 3 years. The 2 were in charge as co-CEOs before Julia relinquished her responsibilities to be at home again. The couple significantly strengthened the organization’s talent, focused on innovation and growth, and provided a learning environment for their employees. Through cost efficiencies and pricing strategies, Elasto Therm was able to achieve higher margins than its competitors and focus on low-volume, short-run orders as the business continued to expand. The 2008 recession forced the Bursteins to reexamine all aspects of the business, which retained profit-ability after painful cutbacks in the organization. To continue their growth into the next decade, they are faced with the choice of acquiring other businesses or growing more organically by adding to their sales organization to achieve geographic expansion.

HGRM: Bringing Back High-Touch HospitalityLynda M. Applegate, Gabriele PiccoliHarvard Business School Case#813019 (27 pages) TN

The case centers on the dilemma faced by Carlo Fontana, the owner-operator of a small chain of 2 4-star urban hotels, 1 located in Lugano, Switzerland, and the other in Milan, Italy. Having developed an extensive customer service and operations information system called Happy Guests Relationship Manage-ment, Fontana is entertaining the possibility

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FINANCE

of commercializing his innovation. Doing so may provide a welcome new source of income during the greatest economic slowdown in recent history, and it would help in keeping the HGRM design and development team motivated to refine and improve the solution. However, commercializing the innovation may also stretch his organization too thin and bring his team into a business, the software industry, completely foreign to them.

FINANCE

Valuing Wal-Mart 2010James E. Hatch, Cyrus Zahedi Ivey Publishing Case#W11058 (14 pages) TN

An equity analyst uses a variety of methods to value Wal-Mart shares, with a view to making a buy/sell or hold recommendation for the stock.

Return of the Loan: Commercial Mortgage Investing after the 2008 Financial CrisisCraig Furfine, Mike Fishbein Kellogg School of Management Case#KEL757 (35 pages) TN

Instructor and Student Spreadsheets Available

Zoe Greenwood, vice president at Foundation Investment Advisors, was glancing through the offering memorandum for a new commer-cial mortgage-backed securities (CMBS) deal on April 1, 2010, a time when the opportuni-ties for commercial mortgage investors had been bleak to the point of comical. This new CMBS deal represented the first opportunity to buy CMBS backed by loans to multiple bor-rowers since credit markets had shut the secu-ritization pipeline in June 2008. The offering gave Greenwood a new investment opportu-nity to suggest to her firm’s latest client. She had planned to recommend an expansion in her client’s traditional commercial mortgage business, but these new bonds looked intrigu-ing. Could the new CMBS offer her client a superior risk-return trade-off compared with making individual mortgage loans?

Blue Heron Capital PartnersKathleen Hevert Babson College Case#BAB711 (4 pages) TN Student Spreadsheet Available

The subject of the case is a socially responsible

hedge fund. The options valued are written on 2 firms, AstraZeneca plc and Medco Health Solutions, Inc., with documented and recog-nized social responsibility practices.

Larry Steffen: Valuing Stock Options in a Compensation PackageWilliam E. Fruhan, Craig StephensonHarvard Business School Brief Case#914517 (7 pages) TN

Instructor and Student Spreadsheets Available

New MBA graduate Larry Steffen has accepted an attractive job offer from Athena Global Technology but must now choose 1 of 2 alter-native compensation plans. The first com-pensation plan option includes a base salary plus a $25,000 cash bonus, and the second includes the same base salary plus employee stock options. In order to evaluate and decide on one of these plans, Larry must estimate the value of the offered stock options and consider several complicating factors, includ-ing whether he will remain at Athena for the 5-year vesting period necessary to receive the options. This case introduces students to option valuation and facilitates a discussion about the effectiveness and potential benefits and problems associated with the use of stock options in compensation packages.

Jackson Automotive SystemsWilliam E. Fruhan, Wei WangHarvard Business School Brief Case#914505 (6 pages) TN

Instructor and Student Spreadsheets Available

Jackson Automotive Systems produces automotive parts for advanced heating and air-conditioning systems, engine cooling systems, fuel injection and transfer systems, and various other engine parts, and supplies them to the automotive industry, primarily in Michigan. Like many OEM suppliers for the automotive industry, Jackson cut back produc-tion following the financial crisis in 2008. By 2013, the firm is back to operating at capacity. The company experiences a bottleneck in production of some key electronic compo-nents and, as a result, is unable to repay its outstanding debt to the bank. In addition, the firm delayed replacing equipment during the downturn and now must replace aging equip-ment to avoid future production delays. The president approaches the bank for an exten-sion to repay a loan and for an additional loan to cover the new equipment purchase. Before meeting with the loan committee, the

president must prepare a presentation on the firm’s financial position.

New Earth Mining, Inc.William E. Fruhan, Wei WangHarvard Business School Brief Case#913548 (12 pages) TN

Instructor and Student Spreadsheets Available

New Earth Mining is one of the largest produc-ers of precious metals in the U.S. While the firm operates mines primarily in the U.S. and Canada, it has also made substantial investments in gold exploration projects in Australia and Chile. New Earth has been very successful and has a large amount of cash on the balance sheet, a simple debt structure, and a reasonable leverage ratio with no liquidity risk. With a strong financial position, the firm considers reducing its dependence on precious metals by diversifying into base metals and other minerals. An investment opportunity for mining iron ore in South Africa looks promising but still carries substantial risk. A high risk of civil war in neighboring countries along with strong fears that the South African government will nationalize mining opera-tions combine to create an unstable political environment. The tentative financing package is complex and creates challenges for deter-mining a value for the project. Students must complete a quantitative analysis of 4 propos-als with different valuation methods before making a final recommendation.

Tesla: Evaluating a Growth CompanyMaureen McNichols, Anne Casscells, Jaclyn C. Foroughi Stanford University Case#A209 (21 pages)

Amid worldwide market and economic uncer-tainty, Tesla debuted its stock in June 2010 on the NASDAQ Stock Market (ticker symbol: TSLA). The stock price jumped over 40% in its first day of trading to close at $23.89 in an upsized deal that valued the company at $2 billion and raised over $226 million. It was the first initial public offering by an American automaker since Ford’s debut in 1956. While the primary market showed strong enthusiasm for the stock, the secondary market was much less convinced. Concerns were raised about the long-term viability of the company, stemming from a limited operating history, a long history of losses, liquidity issues, unreliable consumer demand, expensive battery technology, and

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competition from traditional automakers. As a result, the stock was frequently the subject of high short interest, a predictor of lower invest-ment performance. The question plaguing investors was this: were the short-sellers correct in their bearish sentiment, or was a short squeeze imminent? This case describes Tesla’s road from founding to outsourced manufactur-ing of the Roadster, the first fully electric sports car, to in-house capacity production of the Model S, its highly regarded fully electric luxury sedan. Specifically, it focuses on the long-term viability of the growth company along with questions related to quality of earnings.

GENERAL MANAGEMENT

How Google Sold Its Engineers on ManagementDavid A. GarvinHarvard Business Review Article#R1312D (10 pages)

High-performing knowledge workers often question whether managers actually contribute much, especially in a technical environment. Until recently, that was the case at Google, a company filled with self-starters who viewed management as more destructive than benefi-cial and as a distraction from “real work.” But when Google’s people analytics team exam-ined the value of managers, applying the same rigorous research methods the company uses in its operations, it proved the skeptics wrong. Mining data from employee surveys, perfor-mance reviews, and double-blind interviews, the team verified that managers indeed had a positive impact. It also pinpointed exactly how, identifying the 8 key behaviors of great Google managers. In this article, Harvard Business School professor David Garvin describes how Google has incorporated the detailed findings from the research into highly specific, concrete guidelines; classes; and feedback reports that help managers hone their essential skills. Because these tools were built from the ground up, using the staff’s own input, they’ve been embraced by Google employees. Manag-ers say that they’ve found their training to be invaluable, and managers’ ratings from direct reports have steadily risen across the company.

Southwest AirlinesAndrew InkpenThunderbird School of Global Management Case#TB0333 (16 pages) TN

After more than 40 years of service, the company was facing some major challenges. Legacy carriers in the U.S. had become more efficient, and the recent megamergers involv-ing Delta/Northwest and Continental/United were shaking up the industry. Smaller compa-nies like JetBlue and Allegiant were pressur-ing Southwest’s cost-advantage and low-fare focus. A major internal challenge for South-west would be managing its acquisition of AirTran. To make the acquisition a success, the company would have to integrate a workforce of more than 8,000 and new markets that included non-U.S. destinations. In addition, high fuel prices were a continuing challenge, and Southwest’s salaries were among the high-est in the industry.

Samsung Electronics: Managing Innovations in an Economic DownturnAli Farhoomandr, Elsha YiuUniversity of Hong Kong Case#HK1007 (25 pages) TN

Samsung Electronics’ ambition to go beyond a household brand to become a premium life-style brand through its range of smartphones offers insights into the concept of dynamic capabilities, which drives the management team to stay on course to achieve predictable results. The case illustrates the growth trajec-tory of a company that has reached a point where growth sustainability becomes a ques-tion at the heart of its strategic management.

Ferguson’s FormulaAnita Elberse, Alex FergusonHarvard Business Review Article#R1310G (11 pages)

When Alex Ferguson took over as manager of the English football team Manchester United, the club was in dire straits: it hadn’t won a league title in nearly 20 years and faced a very real threat of being relegated to a lower division. In 26 seasons under Ferguson, United won 38 domestic and international trophies—giving him nearly twice as many as any other English club manager—and became one of the most valuable franchises in sports. In 2012, during Ferguson’s final season before retiring, Harvard Business School professor Anita Elberse had the unique opportunity to observe Ferguson’s management style in a series of visits and in-depth interviews. In this collaborative explication, she details 8 parts of Ferguson’s “formula” as she observed them

and gives the manager his say. The lessons described range from the necessity of main-taining control over high-performing team members to the importance of observation and the inevitability of change. The approach that brought Ferguson’s team such success and staying power is applicable well beyond football—to business and to life.

Make Time for the Work That MattersJulian Birkinshaw, Jordan CohenHarvard Business Review Article#R1309K (5 pages)

More hours in the day. It’s one thing everyone wants, and yet it’s impossible to attain. But what if you could free up significant time—maybe as much as 20% of your workday—to focus on the responsibilities that really matter? The authors have spent the past 3 years studying the productivity of knowledge workers and discovered that they spend, on average, 41% of their time on activities that offer little personal satisfaction and could be handled competently by others. On the basis of their research, the authors have come up with a process to help knowledge workers make themselves more productive. It involves thinking consciously about how they spend their time, deciding which tasks matter most to them and their organizations, and drop-ping or creatively outsourcing the rest. The tasks to be dropped are sorted into quick kills (things you can stop doing now without any negative effects), off-load opportunities (work that can be delegated with minimal effort), and long-term redesign (work that needs to be reconceived or restructured). Once the tasks are disposed of, the freed-up time is spent focusing on more important work. When 15 executives tried this, they were able to reduce desk work by an average of 6 hours per week and meetings by 2 hours per week. They filled the time with value-added tasks like coaching and strategizing.

Tata Nano: The People’s Car That Promises to Reconstruct the Automobile IndustryW. Chan Kim, Renee A. Mauborgne, Robert Bong, Mi JiINSEAD Case#INS262 (3 pages) TN

The case describes Tata Motors’ strategic move to create and launch the Tata Nano and explores the successes and setbacks of the

GENERAL MANAGEMENT

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Tata Nano team in so doing. It illustrates the importance of having a strong and aligned set of value, profit, and people propositions in order to create and capture a blue ocean. The Teaching Note reviews how Tata Nano created its exceptional value proposition and attained a viable profit proposition by following the right strategic sequence, and then examines differ-ent components of Tata Nano’s people proposi-tion to identify the major causes of the setback in executing its blue ocean strategy.

Strategic Management of Intellectual Property: An Integrated ApproachWilliam W. Fisher III, Felix Oberholzer-GeeCalifornia Management Review Article#CMR550 (27 pages)

In many organizations, the R&D, strategy, and legal functions are poorly integrated. As a con-sequence, firms miss opportunities to create and exploit the value of intellectual property. Functional silos are one reason for the lack of integration. More important, however, is the lack of a common framework and even language that would allow engineers, lawyers, and business executives to manage IP assets better. This article provides such a framework. There is no one best way to manage IP, and many managers overestimate the attractive-ness of using IP to exert market power. Rather, the value of the various means to protect and benefit from IP depends on firm strategy, the competitive landscape, and the rapidly chang-ing contours of intellectual property law.

IBM and the Reinvention of High School (A): Proving the P-TECH ConceptRosabeth Moss Kanter, Ai-Ling Jamila MaloneHarvard Business School Case#314049 (21 pages) TN Video Supplement and B Case Available

IBM’s Stanley Litow was the key architect in designing Pathways in Technology Early College High School, known as P-TECH. The open-enrollment high school located in New York City’s Brooklyn was launched in 2011 through a joint partnership between IBM, City University of New York, and the New York City Department of Education. The innovative design incorporated career and technical edu-cation, STEM (science, technology, engineer-ing, and math), and early college. Students

could graduate with an associate degree (essentially, 2 free years of college) and be “first in line” for jobs at IBM. The school was already seeing remarkable results; one-third of the inaugural class entered P-TECH below grade level and nearly all students were pro-moted to the 10th grade, and more than half of them took college courses before the end of their sophomore year. This case explores the motivation behind P-TECH (a growing skills gap) and how it was developed, and examines the challenges and the attention generated by the unique school design.

The Strategy That Will Fix Health CareMichael E. Porter, Thomas H. LeeHarvard Business Review Article#R1310B (19 pages)

In health care, the days of business as usual are over. Around the world, every health care system is struggling with rising costs and uneven quality, despite the hard work of well-intentioned, well-trained clinicians. Health care leaders and policy makers have tried countless incremental fixes—attacking fraud, reducing errors, enforcing practice guidelines, making patients better “con-sumers,” implementing electronic medical records—but none have had much impact. It’s time for a fundamentally new strategy. At its core is maximizing value for patients—that is, achieving the best outcomes at the lowest cost. We must move away from a supply-driven health care system organized around what physicians do and toward a patient-centered

GENERAL MANAGEMENT

system organized around what patients need. We must shift the focus from the volume and profitability of services provided—physi-cian visits, hospitalizations, procedures, and tests—to the patient outcomes achieved. And we must replace today’s fragmented system, in which every local provider offers a full range of services, with a system in which services for particular medical conditions are concentrated in health-delivery organizations and in the right locations to deliver high-value care. The strategy for moving to a high-value health care delivery system consists of 6 interdependent components: organizing around patients’ med-ical conditions rather than physicians’ medical specialties, measuring costs and outcomes for each patient, developing bundled prices for the full care cycle, integrating care across separate facilities, expanding geographic reach, and building an enabling IT platform. The transformation to value-based health care is well under way. Some organizations, such as the Cleveland Clinic and Germany’s Schon Klinik, have undertaken large-scale changes involving multiple components of the value agenda. The result has been striking improve-ments in outcomes and efficiency, and growth in market share.

Governance and Sustainability at Nike (A)Lynn S. Paine, Nien-he Hsieh, Lara AdamsonsHarvard Business School Case#313146 (19 pages) B Case Available

GENERAL MANAGEMENT

Product #11177Length: 240 pages Harvard Business Review Press

NEW! Available as a PDF eBook. Instructors can add the eBook to a digital coursepack and review a full-text Educator Copy online. For the first time, students receive a 50% discount on eBooks in coursepacks.

Keeping Up with the QuantsYour Guide to Understanding and Using Analytics

Thomas H. Davenport, Babson College, and Jin-ho Kim, Korea National Defense University

“An accessible and timely introduction to the data mining work of quantitative analysts.”

— Forbes.com

“As digital information becomes ever more abundant, quantitative literacy becomes ever more essential. There is no better guide to this new landscape than Keeping Up with the Quants.”

— Erik Brynjolfsson, Professor, MIT Sloan School of Management

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Two members of Nike’s executive team must decide what sustainability targets to propose to Nike’s CEO and to the corporate responsibility committee of Nike’s board of directors. Set in 2012, the case traces the evolution of Nike’s approach to environmental and social concerns from its origins in student protests against labor conditions in the supply chain in the 1990s through the development of a board-level corporate responsibility (CR) committee in 2001 to the creation of the Sustainable Busi-ness & Innovation (SB&I) strategy in 2009. In this context, Hannah Jones, Nike’s VP of SB&I, and Eric Sprunk, VP of Merchandising & Prod-uct, are working to finalize the company’s next round of sustainability targets for presentation to the CR committee. When Nike signs on to the Roadmap to Zero, a Greenpeace-inspired initiative to eliminate the discharge of toxic chemicals into the water supply by 2020, the company’s target-setting process becomes more complex. Jones and Sprunk must decide whether to recommend that Nike dial back other sustainability goals to meet the zero toxics challenge, modify its commitment to zero toxics, or find another solution.

HUMAN RESOURCE MANAGEMENT

Shree Cement Limited: Cementing the People First AgendaAbhoy OjhaIndian Institute of Management Bangalore Case#IMB449 (11 pages) TN

Shree Cement Limited (SCL) is a unique company that has combined traditional Indian management practices and innovative initia-tives based on emerging trends in contempo-rary management. SCL has always practiced a ‘‘people first’’ policy that was informed by a joint family and community ethos, which is so integral to Indian society. By 2012, SCL was experiencing heady business growth. Top man-agement was very keen to ‘‘cement’’ the culture of employee happiness and meaningfulness

at the core of its human resource practices to avoid any people-related issues becoming a bottleneck in the journey of growth. It hired Ernst & Young to conduct an employee percep-tion survey, which showed very high levels of engagement but also some areas of concern. Based on an analysis of the responses and fur-ther focus group discussions, 18 improvement projects were initiated under the leadership of senior managers and volunteers from among the employees. Mahendra Singhi, executive director, and Vikas Rai Bhatnagar, chief people and wellness officer, were examining the recommendations of the improvement project teams. They had to be careful to ensure that they took a holistic look at the implications of all the recommendations and to implement an integrative set of initiatives that reinforced each other’s positive effects rather than proceed with a potpourri of recommendations that could potentially undermine each other’s influences and worsen rather than improve the existing organizational climate.

Leadership StylesKonstantin KorotovESMT—European School of Management and Technology Case#ES1401 (6 pages) TN

The 6 vignettes in this case present situations that call for the application of 1 of the 6 leader-ship styles: coercive, pacesetting, authorita-tive, affiliative, democratic, and coaching. The vignettes, each demonstrating a correct, incorrect, or possible use of a particular style, can be used in class for the purpose of develop-ing students’ leadership style and diagnostic skills, as group discussion material, or as test material for post-class examination. Each of the vignettes is a generalized experience story based on examples shared by participants in executive education programs run over the course of the author’s 8 years of teaching the leadership styles model as presented by Goleman (2000) at a leading European busi-ness school. The vignettes have been tested within the context of MBA and executive MBA programs, and executive education courses for

high potentials, middle managers, and board-level executives.

Aharai: Leading in Front of the LinesJan HagenESMT—European School of Management and Technology Case#ES1411 (4 pages) TN

The case serves as an illustration of organiza-tional behavior when it comes to the issue of silence in organizations. It describes a critical leadership situation that requires speaking up against the orders of a superior in a hierarchi-cal structure—in this case, the armed forces. When the protagonist, a young Israeli officer leading a special-forces platoon, receives an order that would put his platoon in extreme danger, he has to make a decision. The case is not concerned with combat situations, but rather with how to act as a responsible leader. Given the setting of an army unit governed by command and control, the initial case discus-sion is likely to focus on typical leadership issues such as motivation and followership. However, the more interesting aspect concerns the dual roles that leaders typically have to ful-fill—that is, they may be both leaders and fol-lowers. The protagonist of the case is a captain who receives an order from a major that will have consequences for the captain’s platoon. The core issue of the case is the decision to reject the order in question. Participants will discuss why speaking up is an issue in orga-nizations and usually does not occur. The case also allows us to look at situations in high-risk organizations that allow open communication.

Great Leaders Who Make the Mix WorkBoris Groysberg, Katherine ConnollyHarvard Business Review Article#R1309D (10 pages)

Business leaders send a powerful message when they make a commitment to diversity that goes beyond rhetoric. But what motivates them to do so, and how do they actually create inclusive cultures? To find out, the authors interviewed 24 CEOs whose firms were known for embracing people of all backgrounds. These executives saw diversity as a strategic and moral imperative and made promoting it a personal mission. Many had experienced what it was like to be an outsider, which gave them a deeper understanding of the barriers that women, in particular, face at work. The CEOs resoundingly agreed that an inclusive environ-

HUMAN RESOURCE MANAGEMENT

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ment was one in which employees contributed to success as their authentic selves, and the organization respected and leveraged their talents and provided a sense of connected-ness. Eight best organizational practices for instilling such a culture emerged from their interviews: (1) measure diversity and inclusion; (2) hold managers accountable; (3) support flexible arrangements; (4) recruit and promote from diverse pools of candidates; (5) provide leadership education; (6) sponsor employee resource groups and mentoring programs; (7) offer quality role models; and (8) make the chief diversity officer position count. It’s also key for CEOs to dedicate time to work person-ally on diversity initiatives. That sets the tone for everyone and helps ensure that organiza-tions attract and develop the best talent.

Ningbo FOTILE Kitchen Ware Co., Ltd.F. Warren McFarlan, Zheng Xiaoming, Yuren Fang, Hong ZhangTsinghua University Case#TU0049 (30 pages) TN

Since 2008, FOTILE has actively introduced philosophies of the traditional Chinese cul-ture—such as benevolence, justice, courtesy, wisdom, and faith—into its management, which it believes to compensate for deficien-cies in Western management concepts and create a new Chinese enterprise management model. FOTILE’s attempts are controversial and evoke intense discussions and reflec-tions. The core question for class discussion is whether its philosophy is sustainable and applicable to modern enterprises generally in China. How can one integrate the Western management philosophy with traditional Oriental culture? Is it really possible? This case can be used in MBA, EDP, EMBA, Orga-nizational Behavior, and Corporate Culture courses. It supports a 60-to-90-minute class discussion. The case describes how FOTILE developed its Confucian culture-based management model in a world of market competition. It first introduces the company’s background, including its startup and develop-ment processes. It next describes the transfor-mation of FOTILE’s management model from Western philosophy to one based on traditional Oriental concepts. It then shows how Confu-cianism is applied in FOTILE’s management. In particular, it describes the applications of Confucianism in FOTILE’s HR management and performance evaluations.

INFORMATION TECHNOLOGY

Data’s Credibility ProblemThomas C. Redman Harvard Business Review Article#R1312E (6 pages)

Fifty years after the expression “garbage in, garbage out” was coined, we still struggle with data quality. Studies show that knowledge work-ers waste a significant amount of time looking for data, identifying and correcting errors, and seeking confirmatory sources for data they do not trust. When data are unreliable, managers quickly lose faith in them and fall back on their intuition to make decisions, steer their com-panies, and implement strategy. They’re also much more apt to reject important counterin-tuitive implications that emerge from big data analyses. The good news is that improving data quality is often not as hard as you might think, the author asserts. The solution is not better technology. It’s better communication between the creators of data and the data users; a focus on getting the process right going forward rather than on cleaning up existing bad data; and, above all, the shifting of responsibility for data quality away from IT folks, who don’t own the business processes that create the data, and into the hands of managers, who are highly invested in getting the data right.

You May Not Need Big Data After AllJeanne W. Ross, Cynthia M. Beath, Anne Quaadgras Harvard Business Review Article#R1312F (9 pages)

Why do companies have so little to show for their investments in big data? The biggest reason is that they aren’t doing a good job of using the data they already have. They don’t know how to manage the information embedded in their operating systems, analyze it in ways that enhance their understanding, and then make changes in response to new evidence and insights. The few companies that have adopted evidence-based decision making ensure that all decision makers have perfor-mance data at their fingertips every day. They also follow 4 practices: (1) Agree on a single source of truth. Using performance data from just one source yields a more accurate view of costs and profitability. (2) Use scorecards. Per-haps the best way to teach people how to use data to create business benefits is to provide

HUMAN RESOURCE MANAGEMENT — INFORMATION TECHNOLOGY

Course Materials in Spanish and ChineseIn response to global demand for teaching materials in languages other than English, Harvard Business Publishing now has more cases and articles in the 2 most requested languages: Spanish and Chinese. Over 3,000 Harvard Business Review articles and Harvard Business School cases are now available in Spanish. Educators will also find over 300 Harvard Business School cases now available in simplified Chinese.

Translated content includes the partial list below and much more.

NOW AVAILABLE IN SPANISH

BUSINESS & GOVERNMENT RELATIONS

The Greek Crisis: Tragedy or Opportunity? Premier Case • #712S06 TN

FINANCE

Mercury Athletic: Valuing the OpportunityBrief Case • #410S14 TN

MARKETING

Mountain Man Brewing Co.: Bringing the Brand to LightBrief Case • #209S11 TN

NOW AVAILABLE IN CHINESE

ENTREPRENEURSHIP

Zipcar: Refining the Business ModelPremier Case • #814C01 TN

FINANCE

Ocean CarriersPremier Case • #214C03 TN

GENERAL MANAGEMENT

BRL Hardy: Globalizing an Australian Wine CompanyPremier Case • #314C01 TN

SEE ALL TRANSLATED CONTENT AT:

hbsp.harvard.edu

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them with data about their own performance. (3) Explicitly manage business rules. Little data can have a big effect on performance when managers use the data to assess and improve the business rules that govern their operations. (4) Use coaching to improve performance. Adopting evidence-based decision making is a big cultural shift. Employees need help learn-ing how to base their decisions on data instead of on instinct. Fortunately, companies that make the shift don’t usually go back, and they improve their operations in ways that rivals can’t easily replicate.

Peak Experiences and Strategic IT Alignment at Vermont Teddy BearJanis L. Gogan, Mark Lewis Journal of Information Technology Teaching Cases#JIT031 (10 pages)

In winter 2010 Bob Stetzel, the new CIO at Vermont Teddy Bear, hopes to replace or mod-ernize many of the company’s existing systems and invest in some new applications. This catalog marketer (via online and print catalogs) offers 3 separately managed brands: Vermont Teddy Bear, PajamaGram, and Calyx Flowers. Sales are highly seasonal, with peak volumes at Christmas, Valentine’s Day, and Mother’s Day. Stetzel has spent his first few months on the job cataloging systems and databases, learning about the “spiderweb” of middleware connect-ing various applications and platforms, and locating employees with expertise to fix them. The company has survived an economic down-turn and several costly strategic missteps. The CEO is seeking new sources of revenue and ways to leverage the well-known brand, while

the CIO needs to set IT priorities: should the company invest in a full-featured enterprise resource planning package or take other steps that would more quickly yield tangible results? Whatever choice he makes, Stetzel will have to convince the CEO and the board of directors to provide the necessary resources. This case provides students with an opportunity to place themselves in the shoes of a CIO wrestling with strategic IT alignment challenges at a time when resources are severely constrained and competitive rivalry is fierce.

INTERNATIONAL BUSINESS

Global Diversity and Inclusion at Royal Dutch Shell (A)Sandra J. Sucher, Elena CorsiHarvard Business School Case#613063 (23 pages)B Case Available

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, head count, 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 because 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 restruc-tures its business and reduces its managerial workforce.

Jabwood International: The Risky Business of Expanding EastMarina Apaydin, Rami Jabado, Hiba Obeid, Balsam DanhashIvey Publishing Case #W12320 (17 pages) TN

Jabwood, a wood trading company with 4 branches in Lebanon owned by the Jabado family, is contemplating international expan-sion into new markets—specifically, Saudi Arabia and China—to compensate for a decline in revenues. This case examines the macroeconomic environment of Lebanon, China, and Saudi Arabia as well as the wood industry in those countries. The characteristics of a successful international expansion are considered. In addition to identifying the crite-ria of attractiveness for each country, the case requires a decision on a market entry strategy that would ensure a successful expansion for the company. Given the risks and trade-offs in each country, Jabwood has to decide whether it should expand in either market or both and on the mode of entry it should adopt to increase its chances of success.

Where Have You Been? An Exercise to Assess Your Exposure to the Rest of the World’s PeoplesPaul W. Beamish Ivey Publishing Case#W13382 (11 pages) TN

This exercise assesses one’s exposure to the rest of the world’s peoples. A series of work-sheets require respondents to check off the number and names of countries they have visited and the corresponding percentage of world population that each country represents. By summing a group’s collective exposure to the world’s people, the result will inevitably be the recognition that together they have seen much, even if individually some have seen little. The Teaching Note provides assignments and discussion questions that look at why there is such a high variability in individual profiles, the implications of each profile for one’s business career, and what it would take for the respon-dent to change his/her profile. For marketers, it underscores the need to gather greater base knowledge about opportunities abroad.

INFORMATION TECHNOLOGY — INTERNATIONAL BUSINESS

INFORMATION TECHNOLOGY

NEW! Cases from the Journal of Information Technology

Cases from the Journal of Information Technology are now available on the HBP for Educator’s web site. More than 25 JIT cases are available, covering a range of IT-related topics. Titles include:

• Managing the Internet Payment Platform Project (#JIT018) • E-business Transformation at the Crossroads: Sears’ Dilemma (#JIT005) • The Ultimate Bluff: A Case Study of Partygaming.com (#JIT011)

SEE THEM—AND OUR OTHER PARTNER COLLECTIONS: hbsp.harvard.edu/list/partners

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The Art of Developing Truly Global LeadersBeth BrookeHarvard Business Review Article#F1211E (2 pages)

The global vice chair of public policy for Ernst & Young discusses how emerging multination-als can address talent shortfalls in rapid-growth markets. The problems start, she says, with senior leadership teams that lack international experience. Often they are driven to poach talent from rivals, inviting high turnover and salary inflation. Instead of focusing so much on the “science” of talent management—the best practices of Western companies that have been internationalizing for decades—executives need to pay attention to the “art”: a commit-ment to inclusive leadership. They must value difference, not merely tolerate it, encouraging discussion and actively engaging conflicting points of view.

MARKETING

Procter & Gamble India: Gap in the Product Portfolio?Seema Gupta, Kanchan Mishra, Ashish Maheshwari Indian Institute of Management Bangalore Case#IMB433 (23 pages) TN

The case traces the evolution of the laundry detergent market in India. Although the entry of Lever Brothers was the starting point, Nirma made detergents a product of the masses by targeting the economy segment. When P&G entered the market in 1985, the market was already well entrenched by existing play-ers. P&G started Project 2-3-4 to crack open the Indian market—by 2015, P&G wanted to double the number of Indians who used its products, treble per capita spending by Indians, and quadruple net sales of its India operations. The case analyzes a series of mar-keting innovations—product line expansion, product line pricing to brand expansion—that the competing players resorted to. With a host of little-differentiated products in the market, the companies had to think through position-ing the offerings well. The era of price wars and increased marketing spends to obtain cus-tomer attention and garner increased market share significantly strained profitability. After making successful inroads in the mid-segment with Tide and Tide Naturals, P&G wondered

if it should launch a brand for the economy segment too. P&G was lagging behind in capturing the Indian growth story. How could it realistically play catch-up with HUL when it operated in far lesser categories than HUL? Does it have a choice but to take HUL head-on in big categories such as detergents?

Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate?John A. Quelch, Diane BadameHarvard Business School Brief Case#914501 (12 pages) TN

Andrea Torres, director of new product devel-opment at a high-end chocolate confectionery company, leads her team through a carefully sequenced program of market research to support the development and launch of a new product: healthy dark chocolate with fruit. This is the first time Montreaux USA, an offshoot of a Swiss confectioner, has created a product spe-cifically for U.S. chocolate consumers. The case explains the steps Torres and her NPD team have completed and describes the decisions that lie ahead, a few months in advance of the anticipated launch. A challenging situation is intensified by a competitor also having tested a dark-chocolate-with-fruit product that was likely to be introduced into the U.S. marketplace in the near future. Students must perform a quan-titative analysis as part of their work.

Launching Krispy Natural: Cracking the Product Management CodeFrank V. Cespedes, Heather BeckhamHarvard Business School Brief Case#913574 (11 pages) TN

Instructor and Student Spreadsheet Available

Pemberton Products is a U.S. market leader in the cookie and bakery snacks segment of the sweet snack market. Looking to expand into the salty snack market, the company acquires Krispy Inc., a maker of salty snack crackers that is located in the southeastern U.S. To com-pete with premium cracker brands, Pemberton plans to reformulate and relaunch the Krispy brand as “Krispy Natural,” which offers natural ingredients, improved taste, and revised pack-aging. Market tests in Columbus, Ohio, show market share results that are double the com-pany projections, while results in 3 cities in the southeastern U.S. fall well below expectations. The marketing director must interpret the market test results, consider possible competi-

tive responses to the new brand, and present his recommendation for a national rollout to the VP of sales and marketing.

Olympic Rent-A-Car U.S.: Customer Loyalty BattlesJohn Deighton, James KindleyHarvard Business School Brief Case#913568 (13 pages) TN

Instructor Spreadsheet Available

The marketing and operations managers for Olympic Rent-A-Car meet to decide how to respond to changes in the loyalty rewards program at the market-leading competitor. The competitor’s program gives awards based on dollars spent instead of days rented and eliminates blackout dates. Olympic expects the program to capture more of the valuable business traveler segment, which rents cars more frequently and generally pays higher premiums than the leisure traveler segment. At the meeting, the team reviews the financial performance of the firm and the firm’s reward program, called Olympic Medalist. They consider whether they can afford to match the competitor’s loyalty program terms as they have done in the past and also consider how the competitor’s actions will affect the entire car rental industry. Ultimately, they must respond with a truly distinctive strategy. Stu-dents must perform a quantitative analysis of each possible response and consider the value of customers in loyalty programs.

Brannigan Foods: Strategic Marketing PlanningJohn A. Quelch, James KindleyHarvard Business School Brief Case#913545 (12 pages) TN

Available in SpanishInstructor Spreadsheet Available

The soup division at Brannigan Foods con-tributes over 40% of the firm’s revenue. The general manager is concerned that the soup industry is declining and that the soup division shows declining profits and market share, especially among the important baby boomer segment. Hoping to reverse these trends, he asks 4 key managers to review a consultant’s analysis of the soup industry and recommend a turnaround strategy. Each manager pres-ents a different plan, from investing in core market segments and products to acquiring new product lines and customers. Students must perform a quantitative analysis of each proposal while considering the feasibility

INTERNATIONAL BUSINESS — MARKETING

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and risks associated with each option before making a final recommendation.

Volkswagen in IndiaSeema GuptaIndian Institute of Management- Bangalore Case#IMB443 (33 pages)

The case traces the entry of Volkswagen (VW) in India at a time when India will play a key role in fulfilling VW’s global ambitions. The case describes the consumer research con-ducted by VW to identify consumer insights that pave the way for designing products to meet local needs and aspirations. The case describes VW’s segmentation, targeting, and positioning strategy for India against the background of its global brand values. The case traces the launch strategy of each of the models—Passat, Jetta, Touareg, Phaeton, Beetle, Polo, and Vento. The case invites students to review the marketing and commu-nication strategy of VW to enable it to fulfill its vision of being among the top 3 brands in India by 2018. The vision is challenging, particularly because VW is a very late entrant in the Indian market. The rich data in the case enables full-blown discussion on whether VW is dif-ferentiating itself enough in the competitive marketplace and whether it is giving the con-sumer a compelling reason to buy its brands.

Search Engine Optimization: Note for Marketing ManagersMichael A. Stanko Ivey Publishing Case#W13189 (5 pages)

This brief, nontechnical note is aimed at mar-keting professionals and/or those in training. The note explores the value of search engine optimization as well as its key concepts and some of the tactics that can help optimize online search performance. If a brand applies these tactics, customers (and potential custom-ers) using search engines such as Google, Bing, Yahoo, and Ask.com will be more likely to find effective information about that brand and its products. Several practical examples are used to highlight these strategies in use and to illustrate what happens when they are ignored.

Harley-Davidson: Chasing a New Generation of CustomersNeal J. Roese, Mohan Kompella Kellogg School of Management Case#KEL742 (12 pages)

In July 2007 Mark-Hans Richer became Harley-Davidson’s first chief marketing officer. Its riders were aging, which the company saw as an existential threat. Although Harley-Davidson had a record sales year in 2006 and had maintained a commanding share of the heavyweight motorcycle market for the previous decade, it needed to take new action to sustain its growth. Richer needed to deliver a new generation of riders and a more diverse customer base, all without losing current Har-ley-Davidson customers. He also knew that he could not relax: the average tenure of a CMO in 2007 was only 27 months and a complete new product development cycle would take a minimum of 4 years.

Star Digital: Assessing the Effectiveness of Display AdvertisingSridhar Narayanan, Taylan Yildiz Stanford University Case#M347 (5 pages)Student Spreadsheet Available

Star Digital, a multichannel video service provider with over US$100 million in annual advertising spends, was gradually increasing its online advertising spend. The company was extremely active in managing its substantial advertising budget, using return-on-invest-ment information to make spending decisions. Even though the Internet provided a promis-ing platform to measure ad effectiveness, doing so for display ads was proving difficult. The 2 common approaches to measuring dis-play ad effectiveness tended to either under- or overvalue conversion rates. To truly measure the effect on sales conversion, Star Digital needed to understand what users would have done if they had not seen campaign ads. To do so, Star Digital designed a controlled experi-ment to measure the effect of display ads for one of its advertising campaigns. This case describes Star Digital’s experiment, focus-ing on the experiment design and how the company addressed various design issues. The case includes an Excel spreadsheet that contains sample data from the experiment. Students need to analyze the spreadsheet data to answer questions on the effectiveness of Star Digital’s display ads. This case study is based on data from an online advertising study

for a real firm, but the name of the firm and some elements of the data have been disguised for confidentiality.

SafeBlend FracturingBenson P. Shapiro, Frank V. Cespedes, Alisa ZaloshHarvard Business School Brief Case#914513 (12 pages) TN

Instructor and Student Spreadsheets Available

The CEO of SafeBlend Technologies must set a price for the company’s environmentally friendly fracturing fluid additive. The firm is negotiating a new contract with its biggest client, Bristol Natural Gas. For the past two years, SafeBlend has been the sole provider of additives to Bristol due to aggressive negotia-tion and limited competition. New competitors are entering the market, and the CEO believes one competitor is prepared to offer Bristol a chemical-free additive for 50% less per gallon than SafeBlend. Anticipating lower bids from competitors, he considers reducing the price in the new contract to maintain the relationship with Bristol—despite the impact on revenue. However, the competition may not be able to supply enough additive to meet all of Bristol’s needs, so he also considers the impact of set-ting a more competitive and profitable price that assumes losing only a portion of Bristol’s business.

NEGOTIATION

The Cinnamon Case: Sales Negotiation (Role Play)— (A) The SellerSamish Dalal, Agarwal RajivIvey Publishing Case#W12258 (3 pages) TN

B Case Available

The case presents a role play between a buyer and a seller who must negotiate a price for a perishable but rare commodity. The case covers the dilemma faced by buyers and sell-ers when they are in possession of limited information but must still attempt to negotiate a best-case scenario for themselves. This case involves the seller and is used with The Cinna-mon Case: Sales Negotiation (Role Play)—(B) The Buyer.

MARKETING — NEGOTIATION

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Five Essential Strategies for Creative NegotiationsKandarp MehtaIESE-Insight Magazine Article#IIR088 (8 pages)

From the corridors of political power to the boardroom, the ability to hold your own around the negotiating table is a vital element of success in today’s world. Unfortunately, many negotiations end in deadlock. This is partly because many negotiators are unable to come up with creative, integrative deals, which research shows are a significant variable in reaching a conclusion satisfactory to both par-ties. Using a role-play-based experiment, the author observes 207 dyadic negotiations and discovers that a creative solution in a nego-tiation depends on the amount of creativity deployed in the tabling of the first offer and the resulting counteroffers. Most surprising, the creativity of the counteroffer appears to be the most significant variable influencing the success of the final deal. With that in mind, he proposes 5 strategies to help readers be more creative when they negotiate.

In Global Negotiations, It’s All about TrustBrian Gunia, Jeanne Brett, Amit NandkeolyarHarvard Business Review Article#F1212C (2 pages)

A 3-part framework that allows you to optimize the outcome of your negotiations, whatever the level of trust.

OPERATIONS MANAGEMENT

Preferred Customer Service at US AirwaysUmit Akinc North American Case Research Association#NA0202 (13 pages) TN

Repatriation of the previously offshored call center operations of US Airways was being completed in the summer of 2011. The reserva-tion director of the East Region considered this to be an opportunity to provide high-quality and faster service to “preferred customers” by establishing a preferred customer desk at the Winston-Salem center. The headquarters has asked the director to provide an in-depth analysis of the proposal’s costs and benefits

before it can be approved. The wider question of the case is whether this initiative has merit. Is it likely to provide enough advantages (both quantifiable, such as shorter average wait times, and nonquantifiable, such as the per-ception by the customers of the service quality) to justify additional personnel costs? The call centers operate 24/7 and experience varying call volumes. This causes the required number of agents to economically achieve some targeted average wait times to greatly fluctuate during each time increment (e.g., each hour). Therefore the case, more narrowly, focuses on the challenges of (1) the fundamental trade-off between wait times and agent utilization and (2) scheduling of the start times of the standard 8-hour shifts to provide adequate coverage during each period. The instructor’s manual provides extensive analyses based on multiserver queuing models and linear programming of these technical issues. In addition, the case provides rich opportunities to discuss human resource strategies and their role in securing competitive advantage.

Polaris Industries Inc.Sunil Chopra, Ioana Andreas, Sigmund Gee, Ivi Kolasi, Stephane Lhoste, Benjamin Neuwirth Kellogg School of Management Case#KEL725 (9 pages) TN

In September 2010 Suresh Krishna, vice president of operations and integration at Polaris Industries Inc., a manufacturer of all-terrain vehicles, side-by-sides, and snow-mobiles, needed to recommend a location for a new plant to manufacture the company’s side-by-side vehicles. The economic slowdown in the U.S. had put considerable pressure on Polaris’s profits, so the company was consider-ing whether it should follow the lead of other

manufacturers and open a facility in a country with lower labor costs. China and Mexico were short-listed as possible locations for the new factory, which would be the first Polaris manu-facturing facility located outside the Midwest-ern U.S. By the end of the year Krishna needed to recommend to the board whether Polaris should build a new plant abroad (near-shored in Mexico or offshored in China) or continue to manufacture in its American facilities.

Cisco Systems, Inc.: Collaborating on New Product IntroductionHau Lee, Maria Shao Stanford University Case#GS66 (27 pages) TN

In November 2007 a global, cross-functional team at Cisco Systems, Inc., was seeking man-agement approval to start manufacturing a new router, code-named Viking. The team faced a host of challenges in launching the low-cost but powerful router for telecommunications service providers. After overhauling the project to sharply increase the router’s planned speed and capacity, the company had just 1 year to launch the product, an unusually fast schedule. In addition, Cisco wanted to debut China as a low-cost manufacturing base for the high-end product. It planned to use contract manufac-turer Foxconn Technology Group to produce the machine, even though Foxconn had never made such a complex product for Cisco. Could Foxconn handle the technical complex-ity? Could Cisco work closely with Foxconn to mitigate the project risks? Could Cisco’s methodology for new product introduction rise to the necessary level of sophistication? The case highlights the challenges and complexities of developing and manufacturing a sophis-ticated technology product for a worldwide

NEGOTIATION — OPERATIONS MANAGEMENT

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market. Students will consider what it takes to achieve success in new product introduction, or NPI. The case also offers an opportunity to evaluate supply chain issues in a company that outsources manufacturing globally.

Ford vs. GM: The Evolution of Mass Production (A)Willy Shih Harvard Business School Case#614010 (21 pages) TN

B Case Available

This case explores the very different paths taken by the Ford Motor Company and the General Motors Corporation in the first 3 decades of the 20th century. Henry Ford’s Model T was a car for the masses. After consid-erable experimentation, Ford Motor perfected a mass production system that converted the vast majority of jobs in the factory into routine tasks. It pioneered the moving assembly line, and it pursued processes that became increas-ingly integrated and mechanized. While its single-minded focus on cost minimization led to spectacular market success for a time, the resulting inflexibility made it difficult for the company to respond to market changes. This created an opportunity for General Motors and others, particularly in the face of technological shifts to closed-body designs and metal stamp-ing technology, as well as the marketing-led idea of the annual model change. The case offers a setting to examine several frameworks: exploration versus exploitation, the emergence of dominant designs, and vertical integration versus transaction costs and supplier holdup. The A case closes with the question of what GM should do about supplier Fisher Body. The B case summarizes the shift to all-steel body stamping and engine manufacturing as the core technologies for automobile production and how these changes made it difficult for Ford to maintain its first-mover advantage.

The Future of Same-Day Delivery: Same as the Past?Sunil Chopra Kellogg School of Management Case#KEL732 (2 pages) TN

In 2012 several retailers, including Amazon and Wal-Mart, experimented with same-day delivery. Home delivery of pizzas had been a very successful model in the U.S. and had been copied all over the world. In contrast, home delivery attempts by companies like Kozmo and Urbanfetch had failed; both of

these companies went bankrupt. The goal of this case is to build a framework that helps students identify the factors that influence the success or failure of home delivery models.

Operations Management Exercise: System Utilization in Service ManagementRicardo ErnstOnline Exercise#4391 (30 minutes) TN

Based on the classic Manzana Insurance case, this exercise reinforces student understand-ing of Little’s Law. Students analyze a service process—writing and renewing insurance policies—to understand the impact of capacity utilization on throughput time and WIP under demand variability. This exercise can be used for courses in Operations Management for both MBA and undergraduate students. It is delivered entirely online and requires 1 class meeting or less for students to run the exercise and discuss the results.

Operations Management Exercise: Multiple Server QueuesAnita TuckerOnline Exercise#4386 (30 minutes) TN

This exercise illustrates how variability in arrival times, variability in service times, and resource utilization impact patient waiting times for a 4-bed hospital unit. A second scenario compares the average performance of 4 specialized 4-bed units to the perfor-mance of a pooled 16-bed unit. The exercise illustrates the trade-offs between cost, patient experience, and clinical quality that arise from queuing systems. This exercise can be used for courses in Operations Management for both MBA and undergraduate students. It is delivered entirely online and requires 1 class meeting or less for students to run the exercise and discuss the results.

ORGANIZATIONAL BEHAVIOR

You Can’t Be a Wimp—Make the Tough CallsRam Charan, Melinda MerinoHarvard Business Review Article#R1311D (8 pages)

As one of the world’s preeminent advisers to CEOs, Ram Charan has spent the past 35 years on the road, helping hundreds of executives deal with their toughest challenges. In this edited interview, he shares what he’s learned about decision making over the decades. Get-ting to the right answer is a lot harder today than it was 10 years ago, Charan points out. Leaders have to contend with more variables and constituencies than ever before. They must be able to cut through all that complex-ity and to make subjective judgments about highly ambiguous and constantly changing factors. The best executives know which decisions to focus on (and which to delegate), when to make a decision, and what the risk of not making a decision is. When opportunities arise and vanish quickly, timing is critical. In this environment, good decisions involve a lot more than analytics. They demand perceptual acuity, or the ability to see change coming; qualitative judgment, which allows leaders to formulate and select the right options; and credibility, which helps them gain acceptance for decisions. All 3 traits can be developed over time by practicing the right habits, such as listening to diverse and contradictory views, thinking through second- and third-order consequences, and socializing decisions by demonstrating transparency and explaining their performance payoff.

GlaxoSmithKline: Sourcing Complex Professional ServicesHeidi K. Gardner, Silvia Hodges SilversteinHarvard Business School Case#414003 (16 pages)Supplemental Template Available

Pharmaceutical company GlaxoSmithKline (GSK) uses an innovative approach to procur-ing outside legal counsel: it replaces relation-ship-based selection and law firms’ traditional time-based billing with data-driven decision making and an online reverse auction. In the case, GSK is hit with a potentially devastating suit and must hire a firm in time to respond. The recently hired managing attorney, Sophia Keating, grapples with GSK’s approach. The GSK veterans assure her that the approach drives down costs and improves the quality of work by systematically increasing the rigor in the procurement process. Still skeptical, Sophia runs the process of systematically analyzing and comparing the competing firms’ bids. This case also describes the process by which these tools were created and adopted.

OPERATIONS MANAGEMENT — ORGANIZATIONAL BEHAVIOR

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Beyond the implications for law firms and other service providers, lessons from this case are applicable for teaching about institutional change, about procurement processes relevant to many fields, and about how to increase rigor in typically informal business processes.

Ken Private Limited: Digitization ProjectRupali Pardasani, Asha BhandarkerIvey Publishing Case#W13347 (10 pages) TN

The COO of a global knowledge-outsourcing and technology-services firm has been selected by his company’s board of directors to step in and rescue a large-scale digitization project that is in danger of missing its rapidly approaching deadline. The project requires the firm to create digital archives of a daily American newspaper, spanning 150 years. With teams from 2 different countries paired to work on this significant venture, things quickly go awry on several levels as a result of misunderstandings about client expectations, lack of employee training (both from a stand-point of cultural awareness and with respect to the use of new technology), and poor project management. The COO must quickly develop an action plan to address these issues and ensure the success of the project in the face of an ultimatum from the client: deliver the proj-ect on time or lose it completely. In the role of the COO, students must create an action plan to overcome the issues that threaten to derail the project.

Sophia Tannis: The European TransferGerard Seijts, Kanina BlanchardIvey Publishing Case#W13410 (9 pages) TN

A multinational company’s first senior female leader is assigned to the European headquar-ters. The assignment is a professional coup, and she is primed to meet the challenge. However, her new colleagues’ predominant view is that she is a non-European woman who represents the corporate head office. She has the opportunity to fly high or fail.

Collaborating for Growth: Duane Morris in a Turbulent Legal SectorHeidi K. Gardner, Annelena LobbHarvard Business School Case#414022 (27 pages)

By the late 2000s, the law firm Duane Morris had transformed itself from a growing U.S. law firm to a significant global player. The firm’s uniquely collaborative organizational culture, which featured a transparent, data-driven com-pensation system, practice-group integration across multiple offices, and rewards for attor-neys who shared responsibility, had contributed to the firm’s success as it had expanded into new U.S. and international offices. Yet, amid a shaky world economy and an increasingly cut-throat legal profession, Duane Morris attorneys began to wonder—could collaboration survive as a firm value? Would the firm’s culture help it continue to grow in the years ahead and bring in more sophisticated legal work, or would its lawyers inevitably start to keep work to themselves as the firm navigated an ever-more competitive environment?

Ron Ventura at Mitchell Memorial HospitalFrank V. Cespedes, Heide AbelliHarvard Business School Brief Case#913572 (16 pages) TN

Mitchell Memorial Hospital is a 750-bed regional academic medical center in Ohio. Andy Prescott, chief of the Cardiovascu-lar Center, is reviewing the performance evaluations of his star vascular surgeon, Ron Ventura. The evaluations, the result of a 360-degree performance review cycle the hospital had recently put in place, are much more critical than he had anticipated. Ventura, with a national reputation as an accomplished vas-cular surgeon, has improved the vascular sur-gery practice enormously in his short tenure at Mitchell Memorial and generated much

new case flow for the hospital. Ventura is also, as the evaluation packet made clear, sharp-tongued, impatient, and abrasive. Prescott knows that the Cardiovascular Center needs team players, but he also has a responsibility to improve the performance of the vascular surgery practice, and Ventura is critical to that effort. Now Ventura’s contract is up for renewal. Although Prescott recruited Ventura and gave strong support in his first months, other surgeons are now considering leaving the hospital, HR is getting complaints from the nursing staff and the residency programs, and many point to Ventura’s behavior as the cause. Prescott wonders whether Ventura’s actions violate Mitchell Memorial’s cultural norms focused on teamwork and collabora-tion and whether or not his contract with the hospital should be renewed. Students must consider approaches to the upcoming perfor-mance feedback interview between Prescott and Ventura.

McKinsey & CompanyJay W. Lorsch, Kathleen DuranteHarvard Business School Case#413109 (14 pages)

In early 2013 the leaders of McKinsey & Com-pany were reflecting, as they did periodically, on the path forward for their firm. Founded in Chicago in 1926 by James O. “Mac” McKinsey with only a small staff in one office, the firm had grown to be a global company with more than 17,000 firm members, including more than 9,000 consultants. It was arguably the world’s preeminent management consulting firm. This case describes the history of events and decisions that have led to this enviable

ORGANIZATIONAL BEHAVIOR

NEW MULTIMEDIA CASE

Bridgewater Associates

NOW AVAILABLE ONLINE! Bridgewater Associates was the world’s largest hedge fund with approximately $120 billion in assets under management in mid-2012. This new multimedia case illustrates Bridgewater’s culture of “radical transparency” (videotaping meetings, publicizing each employee’s performance review, interrupting investment meetings to give personal feedback to individuals in front of colleagues). Students must examine whether, how, and to what extent the practices foster high performance and debate their associated trade-offs.

#413702 TN

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record of success, and it poses the questions before the firm’s senior leaders in 2013. What should be their path forward? Can the firm continue to grow successfully with its current strategy, organization, and culture?

Corporate Solutions at Jones Lang LaSalle 2001 (A)Ranjay Gulati, Luciana SilvestriHarvard Business School Case#113114 (8 pages)B, C, and D Cases Available

This case describes the strategic and organiza-tional challenges that Jones Lang LaSalle (JLL) faced at the turn of the millennium. Until then, JLL sold piecemeal commercial real estate services to its corporate clients, which maintained relationships with a variety of vendors. In 2000, JLL’s large corporate clients started globalizing their activities and seeking to outsource their real estate needs. They were looking for integrated solutions delivered through a single point of contact, and they cut their providers to a few strategic vendors. JLL’s organizational structure, configured around largely autonomous service lines, was not well suited to supporting the development of integrated services. Executive Peter Barge was put in charge of a new team, called Corporate Solutions, whose mission was to draw con-nections between the service lines in order to foster integration. How should Barge structure Corporate Solutions to make sure it succeeds in its mission? And how should he configure the group’s ties to the service lines to ensure their collaboration? The retention of JLL’s most profitable clients was at stake. This case is the first in a series that also comprises cases B, C, and D and collectively covers JLL’s evolution between the years 1999 and 2012.

SALES

All Pain, No Gain? Why Adopting Sales Force Automation Tools Is Insufficient for Performance ImprovementRonald Jelinek Business Horizons Article#BH560 (8 pages)

The dawning of the 21st century brought a wave of research into the phenomenon of sales force automation (SFA)—technology tools aimed at enabling sales organizations to better practice customer relationship management. While the academic literature has offered great insight into how an organization can increase the likelihood that its sales force will adopt a new technology system, a great majority of research stops there. This is unfortunate in that companies mistakenly infer that use of an SFA system is the major hurdle and that simply motivating SFA use will be the key to unlocking improved performance. However, this is often not the case; many organizations are able to get their sales force to use an SFA system but do not see improvements in per-formance. After briefly providing an overview of the factors affecting SFA use, this research provides insight into why use alone may not contribute to long-term improvements in a firm’s sales performance. Key empirical findings and theoretical arguments from the extant literature are considered, and a list of best practices is offered here to help managers bridge the gap between SFA use and improved sales effectiveness and efficiency.

Dismantling the Sales MachineBrent Adamson, Matthew Dixon, Nicholas Toman Harvard Business Review Article#R1311H (9 pages)

Sales leaders have long fixated on process discipline, monitoring reps’ conformance to “optimal” behaviors and their performance

of specified activities. Recently, however, this sales machine has stalled. The approaches that once led to predictable progress in a sale do not work with today’s customers, who are empowered with more information than ever before. The new environment favors creative and adaptable sellers who challenge custom-ers with disruptive insights into their busi-ness—and offer unexpected solutions. Such “insight selling” gives reps latitude to discover what the customer has already concluded about its needs and the available solutions, determine who the decision makers are, look for signals that the customer is receptive to a new insight about its business, and then figure out how best to proceed. A study of 2,500 B2B sales professionals found that most organiza-tions, despite faltering sales performance, still have a climate that emphasizes compliance rather than judgment. To create a judgment-oriented sales climate, managers must serve as connectors within and beyond their teams, providing a continual flow of information that supports reps as they exercise their judgment on individual deals. These managers must also focus on the long term, monitoring custom-ers’ behaviors and directing reps’ creativity and critical thinking to the most promising opportunities. And they need to hire profes-sionals—not necessarily those with sales back-grounds—who can thrive in the new climate.

The Truth about Customer ExperienceAlex Rawson, Ewan Duncan, Conor JonesHarvard Business Review Article#R1309G (10 pages)

Companies have long emphasized touch-points—the many critical moments when customers interact with the organization on their way to purchase and after. But this focus can create a distorted picture, suggesting that customers are happier with the company than they actually are. And it distracts from the more important picture: the customer’s end-to-end experience. In their research, the authors—partners at McKinsey—have found that organizations able to skillfully manage the entire customer journey reap enormous benefits: enhanced customer satisfaction, reduced churn, increased revenue, and greater employee satisfaction. To realize these benefits, companies need to embed customer journeys into their operating models in 4 ways. They must identify key journeys, understand

ORGANIZATIONAL BEHAVIOR — SALES

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how they are performing in each, redesign and support those journeys, and change mind-sets to sustain the initiatives at scale. Journey-based transformations may take years to perfect. But they create a culture that engages the organiza-tion across functions and from top to bottom. It’s a culture that’s hard to build otherwise, and a true competitive advantage goes to com-panies that get it right.

SOCIAL ENTERPRISE

Innovating for Shared ValueMarc Pfitzer, Valerie Bockstette, Mike StampHarvard Business Review Article#R1309H (9 pages)

At its best, business is about innovating to meet society’s needs and to build a profitable enterprise. But many corporate leaders are struggling to achieve those twin goals. In a study of more than 30 companies that have succeeded in creating so-called shared value, the authors identified 5 mutually reinforcing elements: (1) Embedding a social purpose. This may involve reemphasizing a firm’s founding mission, as Danone’s CEO did in 2000 to refocus the company on its origins as a manufacturer of healthy food. (2) Defin-ing the need. Some firms conduct extensive research to develop a comprehensive view of the social problem. Before launching a micronutrient-reinforced spice product for low-income consumers in India, Nestlé stud-ied nutritional deficiencies in the country and visited 1,500 households to understand cook-ing customs and diets. (3) Measuring shared value. To monitor an initiative in Brazil to increase the employability of youth, Coca-Cola spent months planning how to achieve busi-ness and social goals and then established intermediate measures to track progress. (4) Creating the optimal innovation structure. The right structure for a social enterprise depends on whether the firm already has a clear social purpose, understands the targeted problems, is able to solve them, and builds a strong business case for doing so. (5) Co-creating with external stakeholders. Effective social innovators enlist external stakeholders in their efforts to understand social needs and to execute their strategies.

New Resource Bank: In Pursuit of GreenChristopher Marquis, John AlmandozHarvard Business School Case#412060 (25 pages) TN

New Resource Bank was founded in San Fran-cisco in 2006 with a mission focused on envi-ronmental sustainability. The case illustrates the opportunities and challenges of banking on values and the challenges of organizations defining a social and environmental commit-ment. The case also highlights the tension and potential synergies between social mission and shareholder value in the context of the crisis of 2008; the taken-for-granted expecta-tions and norms arising from a commercial bank charter; and the distinct perspectives of bank regulators, founders, investors, and other stakeholders of the newly founded bank.

RuralShores: Service Excellence at the Indian HinterlandSourav MukherjiIndian Institute of Management Bangalore Case#IMB423 (11 pages)

The case describes the inception and early stage evolution of RuralShores—a business process outsourcing organization established in rural India (RBPO). RBPO is a unique business model that involves the rural poor in delivering remote services such as transac-tion processing via telecommunication links. Although India has a thriving BPO business, all BPO organizations are located in urban centers. The founders of RuralShores con-ceptualized the RBPO model so that it can be inclusive, empower rural women, and solve problems of large-scale migration. Locating a BPO organization in rural India enabled significant savings in cost. However, it had its attendant challenges, such as dealing with poor-quality infrastructure and a lower level of skills among the employees. RuralShores not only overcame these challenges but also ensured that its service levels were on par with those of urban BPO organizations. In the process, it was able to create positive impact in the lives of its employees as well as give a boost to the local economy. This motivated it to embark on an aggressive plan of scaling that involves geographic expansion through a franchisee model and increasing the scope of RuralShores’ activities.

Krishna Bhima Samruddhi Local Area Bank (KBSLAB): A Decade ReviewPuran Singh, Nupur Pavan Bang, Kaushik Bhattacharjee, Rajesh ChakrabartiIndian School of Business Case#ISB018 (24 pages) TN

Microcredit made a dramatic entry into the banking lexicon when Nobel laureate Muham-mad Yunus ushered in a new era of social banking with his Grameen Bank. BASIX, the Indian replicator of the Nobel laureate’s ideology (albeit with a different methodology of livelihood promotion), had established itself as an effective microfinance institution (MFI) in India. It had successfully convinced the government of the need for, and feasibility of, setting up financial institutions such as “local banks” in rural areas to mobilize rural savings and provide meaningful livelihoods for the poor, especially women. KBSLAB, a local bank established by BASIX, had performed very well initially, but had reached a critical juncture in its journey in 2011. The Reserve Bank of India’s (RBI) guidelines were similar for the commercial banks and the local area banks in many aspects such as the statutory liquidity ratio and the cash reserve ratio requirements. But the geographical restrictions on the local area banks were making it difficult to expand and meet the compliance and monitoring mechanisms. The case looks at the journey of this unique microfinance banking institution over a decade of its existence and contemplates its future. It raises questions about what actu-ally plagues local area banks in general and KBSLAB in particular, the justifiability of the RBI guidelines, and the viability of microcredit banks in the future.

SERVICE MANAGEMENT

State Bank of India: SMS UnhappyRishtee Batra, Piyush KumarIndian School of Business Case#ISB001 (13 pages) TN

State Bank of India: SMS Unhappy, is a deceptively simple but comprehensive case of a public sector company using a customer complaint management tool as a catalyst to improve overall service performance and over-taking even its private sector competitors in terms of both customer satisfaction and orga-nizational performance. The case describes a

SOCIAL ENTERPRISE — SERVICE MANAGEMENT

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novel, mobile phone-based complaint redressal system designed and implemented by Shiva Kumar, chief general manager (south) of the State Bank of India. The long-term impact of the simple system was the alignment of the entire organization, especially at the branch level, with customer-defined parameters of performance, driving it toward very high levels of customer-centricity. The SMS Unhappy ini-tiative brought greater levels of transparency to all levels of branch performance, resulting in superior service operations with low variance and, ultimately, better customer response.

Pret A MangerFrances X. Frei, Rick Goldberg, Stephanie van SiceHarvard Business School Case#612033 (20 pages)

Pret A Manger, a London-based chain of sandwich shops, was known for its fast, genu-ine service and prepackaged sandwiches pre-pared on-site daily. Instructed by its board to grow at 15% per year, Pret considered opening “twin” shops in locations too small to contain kitchens; these shops would receive sandwich deliveries throughout the day from a nearby “parent” shop. Would Pret’s employees and customers accept twin shops or view them as counter to the Pret culture? Through this decision point, the case frames a discussion about how companies build service models to reliably deliver customer service excellence. The case also helps students understand the role of employee management systems in creating consistent service experiences and introduces a set of innovative employee man-agement practices.

STRATEGY

The COFCO GroupF. Warren McFarlan, Zheng Xiaoming, Ziqian ZhaoTsinghua University Case#TU0044 (23 pages) TN

COFCO was China’s sole legitimate window for agricultural foreign trade before 1987. The reform of China’s foreign trade system begin-ning in 1987 cost COFCO its monopoly posi-tion. Subsequently, the SOE giant capitalized on its foreign trade expertise to strategically move upstream in the food industrial chain. Additionally, COFCO made investments in unrelated areas. These unrelated diversifica-

tion activities were stopped by the new chair-man Ning Gaoning, appointed in 2004. He cared greatly about the innate logic for future mergers and acquisitions. The company, under his leadership, focused on its weak-nesses and strengths to identify a focused overall strategy. He brought the “whole industry chain” concept to COFCO with 3 clear goals in mind: 1) to shape “farmland to table” food processing to assure customers of safe, high-quality food; 2) to unite COFCO’s segmented business units and enable them to gain competitive edge over local companies; and 3) to increase the company’s strength to compete with global food companies. The case depicts COFCO’s historical transforma-tions, identifies its mergers and acquisitions since 2005, and shows its financing history. Information is provided about several domes-tic and overseas competitors to illustrate COFCO’s role in a larger China environment. It is not only a market player but also a main force in China’s pillar industry and the only domestic food company that can rival global food companies in China’s domestic market.

Analytics 3.0Thomas H. DavenportHarvard Business Review Article#R1312C (9 pages)

Those who study “data smart” companies believe that we have already lived through 2 eras in the use of analytics—we might think of them as “before big data” and “after big data”—and are entering a third. It represents a far-reaching resolve to apply powerful data gathering and analysis not just to a com-pany’s operations but also to its customer services and products. This strategic change in focus means a new role for analytics. Companies will need to recognize a host of related challenges and respond with new capabilities, positions, and priorities. Require-ments will include multiple types of data, often combined; a new set of management options; faster technologies and methods of analysis; embedded analytics; data discovery; cross-disciplinary data teams; chief analytics officers; prescriptive analytics; analytics on an industrial scale; and new ways of decid-ing and managing. These new capabilities can’t be developed using old models for how analytics supported the business. The big data model was a huge step forward, but it will not provide advantage for much longer. Compa-nies must once again fundamentally rethink

how the analysis of data can create value for themselves and their customers.

Consulting on the Cusp of DisruptionClayton M. Christensen, Dina Wang, Derek van BeverHarvard Business Review Article#R1310F (10 pages)

Consulting’s fundamental business model has not changed in more than 100 years: very smart outsiders go into organizations for a finite period of time and recommend solutions for the most difficult problems confronting their clients. But at traditional strategy consulting firms, the share of work that is classic strategy has sharply declined over the past 30 years, from 60% or 70% to only about 20%. What accounts for this trend? Disruption is coming for management consulting, the authors say, as it has recently come for law. For many years the professional services were immune to disruption, for 2 reasons: opacity and agility. Clients find it very difficult to judge a firm’s performance in advance because they are usually hiring it for specialized knowledge and capability that they themselves lack. Price becomes a proxy for quality. And the top consulting (or law) firms have as their primary assets human capital; they aren’t hamstrung by substantial resource allocation decisions, giving them remarkable flexibility. Now incumbent firms are seeing their competitive position eroded by technology, alternative staffing models, and other forces. Market research compa-nies and database providers are enabling the democratization of data. The vast turnover at consultancies means armies of experienced strategists are available for hire by former cli-ents, whose increasing sophistication allows them to allocate work instead of relying on one-stop shops as they did in the past. Draw-ing on the theory of disruption, the authors offer 3 scenarios for the future of consulting.

Organizing for Innovation at Glenmark (A)Nita Sachan, Charles DhanarajIndian School of Business Case#ISB028 (13 pages) TN

B Case Available

The case traces the journey of an Indian phar-maceutical firm, Glenmark Pharmaceuticals, which had traditionally focused on generic

SERVICE MANAGEMENT — STRATEGY

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drugs, into the area of discovery research. After India entered the global product patent system with the signing of the WTO TRIPs agreement in 1994, a number of Indian companies sought to move into discovery research. Glenmark invested heavily in devel-oping its capabilities to undertake high-risk pharmaceutical research and within 3 years developed several promising molecules. The company signed out-licensing agreements for the molecules with international compa-nies—2 agreements with U.S.-based Eli Lilly and Company and one each with U.S.-based Forest Laboratories and Germany-based Merck KGaA. The case takes students back to 2008, one of the most critical periods in the company’s evolution. Three of Glenmark’s 4 drug development projects have failed, and the fourth is showing signs of failure. The company’s stock price has plummeted, and the management is under pressure from financial analysts to drop discovery research and focus on what they had always done best—generics. The case puts participants in the chair of Glenmark’s CEO Glenn Sal-danha, who must, amid the building pressure and resource constraints on the company, develop a future plan of action for its R&D. To be or not to be the innovation company? That is the question before Saldanha and the class.

Jamba Juice (A)J. Bruce Harreld, Christian KaregaHarvard Business School Case#713536 (14 pages)B Case Available

James White, the new CEO of Jamba Juice, has successfully averted bankruptcy and must now decide the future path for Jamba Juice, the leader in the smoothie and fresh bar industry. This 2-part case presents the various strategic options White is considering. It then asks participants to determine the best strategic path and how this path should be specifically implemented. The follow-on (B) case describes what White actually did and presents the results.

Yammer (A)Mikolaj Jan Piskorski, Kerry Herman, Aaron SmithHarvard Business School Case#713407 (25 pages)B Case Available

In spring 2012, Yammer was on track to become a highly successful stand-alone com-

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STRATEGY

pany. Yammer was a leading enterprise social network, providing companies a private social network in which employees could collabo-rate securely and efficiently. However, later that year, Microsoft executives unexpectedly reached out with an offer to acquire Yammer for $1.2 billion and integrate Yammer into the Microsoft Office division. An integration with Microsoft would have a profound effect on Yammer’s scalability, software development, and organizational culture. David Sacks, CEO of Yammer, debated the challenges and opportunities related to competition, product, and culture as he thought about the offer on the table.

iMatariJoseph L. Badaracco Jr., Matthew PrebleHarvard Business School Case#313083 (13 pages)

In late 2012, recent Harvard Business School graduate Hannah Lopez is given the opportunity to lead entry into a new market for Plámo, a company that created startup companies in Europe and emerging markets based upon existing successful business models. She had been with the company only a few months, and while excited by the opportunity, she was beginning to have some doubts about the company. In the brief time she had been with the company, she had had a few experiences that made her question the company’s approach to management and the sustainability of its business. Accepting the assignment could give her a unique entrepre-neurial opportunity, but she wondered what level of support she could expect to receive, and if the startup did fail, what impact would that have on her career and reputation? Lopez was also starting to worry about the ethical implications of Plámo’s style of entrepreneur-ship. She worried that by agreeing to serve as a manager of the new operations, she would be tacitly supporting elements of Plámo’s strategy and practices that she was concerned about. Was she comfortable taking other companies’ ideas and simply copying them? Was this true entrepreneurship?

Louis VuittonMary M. Crossan, Manu MahbubaniIvey Publishing Case#W13009 (19 pages) TN

Louis Vuitton, the flagship group within LVMH Moët Hennessy Louis Vuitton, had

contributed to the stellar growth of the group in 2010 and 2011. But there were clouds on the horizon. Was the recent growth sustain-able? What steps should Louis Vuitton take to address upcoming challenges? This case takes the student through the challenges a global company faces as it tries to grow a business that is based on one of the most valued high-end brands in the world. The case reveals the fundamental strategic tension between what a firm needs to do, given the competi-tive environment; what it can do, given its resources and organization; and what leaders want to do, given their fundamental motiva-tions and beliefs, which shape the way they see the issues.

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