Professional Documents
Culture Documents
in this issue
New Web Site for Educators 01 new web site
current courses, create new ones, deliver material to students, and share course 22 Service Management
ideas with colleagues.
22 Social Enterprise & Ethics
It will now be possible for instructors to deliver both digital print material and
23 Teaching & the Case Method
online courses and simulations directly to students from the site—at special
student rates unavailable elsewhere.
23 contact information
Visit the site and apply for Educator Access:
www.hbsp.harvard.edu/educators
BC ew ONLINE COURSE:
n
SPREADSHEET MODELING
FORMAT INDUSTRY
DISCIPLINES PRODUCTS PCL & CASE METHOD
PUBLICATION DATE LANGUAGE
LOGIN NOW
BOOKS
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 3
New Brief Cases in Accounting & Control
Additional Cases in Marketing and OB & Leadership
Harvard Business Publishing continues to expand its Brief Cases collection with new offerings in
Marketing, Organizational Behavior, and Accounting. A Brief Case typically contains 3–7 pages of text
plus a few exhibits, portrays a protagonist who confronts a complex and critical decision, and requires
rigorous analysis—often quantitative—by students. Every Brief Case is accompanied by a detailed
Teaching Note.
Key topics: goodwill accounting, Key topics: financial reporting, Key topics: accounting procedures,
intangible assets, nonfinancial inventory valuation, LIFO, FIFO, bonds, financial analysis, financial
performance decision making reporting, interest rates, present value
#3254 • Teaching Note #3257 #3217 • Teaching Note #3219 #3215 • Teaching Note #3216
Cases
Newly released
N ot e s
A r t i cl e s
Boo k s
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 5
COMPETITIVE STRATEGY
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 7
e n tr e p r e n e u r sh i p
Jadelink and the Luxury Goods Marc Abrahams: Annals of an two months ago, when they completed a
Market in China Improbable Entrepreneur one-page “November Agreement.” Since then,
Michael has found an angel investor and
Kevin Au, Barbara Li Boris Groysberg
has worked nonstop on the business, while
Ivey School of Business Case Harvard Business School Case (Field)
one co-founder has been off enjoying the
Product #908M52 (19 pages) Product #409013 (25 pages)
winter break with his family and the other
Teaching Note #808M52
Marc Abrahams was a media entrepreneur worked on lucrative consulting contracts for
The chief executive officer of Jadelink who specialized in science humor. In 2008, other companies. Michael has just sent his
International Limited strives to create a he sought to boost the scale and monetiza- co-founders a proposal that would reallocate
modern jewelry brand that represents a new tion potential of his business. That business, the equity within their founding team, and all
perception of jade. The CEO has achieved called Improbable Research, encompassed three founders are getting ready to reopen a
early success, growing sales rapidly and a magazine (Annals of Improbable Research), negotiation they thought had been finalized.
bringing Jadelink products to Shanghai, the a high-profile annual event (the Ig Nobel
Learning Objective: To give students firsthand
trendiest city in China. But the company Prize Ceremony), a web site (improbable.
experience in negotiating with team members,
wants to expand business to the Asian and com), a series of books, and various public
in the context of a founding team splitting
international luxury goods markets. This appearances. This case uses the story of the
the equity within a new venture. Also, to
requires intensive capital to continue to build “improbable” emergence and expansion of
provide insight into the issues involved when
up the company scale. This case examines the that business to investigate the challenges
renegotiating in the shadow of a previous
consideration of venturing a new business and opportunities faced by an individual
arrangement. This is the core case in a series
in the China market, managing business who seeks to build an enterprise around his
that is useful for negotiation exercises.
growth, and acquiring venture capital. It also own human capital. It includes background
encourages discussion of factors that lead to a information on Abrahams’s early career, a
successful entrepreneurship and deal with a summary of the various segments of his Robert Wessman and Actavis’
business highly associated with industry tradi- company, and a discussion of recent efforts “Winning Formula”
tion, people connection, and product design by Abrahams to break free of constraints that Daniel J. Isenberg
and innovation. have limited the size and revenue-generating Harvard Business School Case (Field)
ability of Improbable Research for many Product #808127 (24 pages)
Learning Objective: This case is suitable for
years. Among those efforts are a decision to
use in teaching MBA students and senior Robert Wessman took over Actavis in 1999
distribute magazine content over the Internet
undergraduates in an entrepreneurship when it was a failing 90-person generic
for free and a major investment in producing
course. It can also be utilized in a new venture pharmaceutical maker in Iceland. Within
video content for the web. The case concludes
creation course because of the strong associa- 7 years he had taken Actavis to number 5
by presenting various options under con-
tion with product design and innovation. worldwide, a $1.6 billion global manufacturer
sideration by Abrahams—options that dealt
with both external challenges (How should with 11,000 people active in 40 countries. The
Keeping Google “Googley” he define his brand? Which markets should case explores the reasons for the success of
Boris Groysberg, David A. Thomas he target?) and internal challenges (Should this global venture.
Harvard Business School Case (Field) he hire to fill certain key positions?). The
Product #409039 (23 pages) case also features lively exhibits that illustrate Starbucks Coffee Company
Abrahams’ value proposition and analyze his in the 21st Century
This case examines how Google has worked
business model and revenue sources.
to avoid the potential negative by-products Nancy F. Koehn
of rapid growth, such as bureaucracy, slow Learning Objective: To explore key issues of Harvard Business School Case
decision making, lack of visibility, and human capital management, with a focus on (Secondary Source)
organizational inconsistency. When the case how individuals manage their own human Product #808019 (45 pages)
protagonist, Kim Scott, started with Google capital. This case explores the opportunities and
in 2004, she wondered if she would still be challenges confronting Starbucks in the
there in several years, as she preferred small, Negotiating Equity Splits at early 21st century. For more than 15 years,
entrepreneurial companies. In 2008, she UpDown Starbucks has grown swiftly and successfully,
was pleased that Google still had the same helping to create a large, dynamic market for
Noam Wasserman, Deepak Malhotra
entrepreneurial energy it had when she joined. specialty coffee, building one of the world’s
She and her colleagues reflect on how Google Harvard Business School Case (Field)
most powerful brands, and forging a new
Product #809020 (12 pages)
has been able to maintain its culture even as business model based on industry repair
Supplement #809021
the company keeps doubling in size. and responsible global citizenship. In 2008,
Supplement #809022
Learning Objective: To illustrate how a com- Supplement #809023 Starbucks leadership faces a range of issues
pany can maintain its entrepreneurial culture from inside and outside of the company that
Michael Reich is having severe doubts about relate to its success. This case examines these
amidst rapid growth.
how he split the equity with his co-founders
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 9
ENTRE P RENEURSHI P | FINANCE
issues in the context of a changing economy, FINANCE HSBC Credit Card Rewards Program
increased competition, evolving consumer Robert J. Fisher
priorities, and the organization’s place on the
Aurora Capital Group—Douglas Ivey School of Business Case
larger global stage.
Product #908A17 (22 pages)
Dynamics
Learning Objective: To help students under-
Nabil N. El-Hage At the start of the previous decade, competi-
stand the possibilities and problems of rapid
Harvard Business School Case (Field) tion in the credit card market was based
growth and industry leadership.
Product #209010 (11 pages) on price (i.e., interest rates and annual
fees). After Chase and American Express
System on a Chip 2008: Aurora Capital, a U.S. private equity firm, launched bonus-point programs in 1993,
contemplates whether to acquire Douglas
Global Unichip Corp. HSBC was forced to follow in 1994. The
Dynamics, the leading U.S. maker of snow- original program was targeted at high-income
Willy Shih, Chen-Fu Chien plows. Does a seasonal business that is highly consumers, as with luxury-brand redemp-
Harvard Business School Case (Field) dependent on the weather make a good lever-
Product #608159 (9 pages)
tion items. The competition reacted and
aged buyout candidate? This case provides a consumers quickly learned to expect a points
Teaching Note #609033
good introduction to the LBO business. What program as a standard feature. Again, HSBC
Though much of the semiconductor industry are the characteristics of a successful LBO? differentiated its credit card products by
has shifted to a horizontal model, complexity And how do successful PE firms create value adding a wider range of redemption items
driven by technological evolution is driving a by acquiring such companies? and lowering redemption levels. Problems
shift in the perceived boundaries in the value Learning Objective: To introduce students to emerged in 1997 and 1998 as the HSBC
chain. Global Unichip sees itself as a “virtual the concept of an LBO, to analyze price sensi- program became a source of complaints,
integrated device manufacturer,” a throwback tivity for an LBO, to explore characteristics of due to operational difficulties in fulfillment
to the vertically integrated model that fell a good LBO candidate, and to analyze how the and a lack of competitive advantage in the
out of favor for most chips. This case offers successful PE firm generates value in an LBO. marketplace. In 1999, HSBC’s credit card was
an opportunity to examine a highly modular rated poorly, largely because of the problems
industry and the impact of technology shifts with the bonus point system. Research was
on those boundaries, with significant implica- Finansbank 2006
used to understand consumers and revitalize
tions for the incumbents. C. Fritz Foley the program. Significant changes were made
Harvard Business School Case (Field) in the features, operations improved, and the
Learning Objective: To examine extreme value
Product #208108 (18 pages) selection of redemption items grew. By 2002,
migration in a modular system.
Teaching Note #208149 the program was rated as one of the best in
Supplement #208724 the industry. The challenge is, where does
Work Is Good: Branding the HSBC go from here?
This case provides students with an opportu-
Employ+Ability Mission
nity to analyze the restructuring of a Turkish Learning Objective: To illustrate how consum-
Lynda M. Applegate, Susan Saltrick, multinational business group by way of a ers and competitors change as markets evolve;
Monica Higgins merger. Finansbank is a bank headquartered to consider ways to differentiate products
Harvard Business School Case in Turkey, with additional operations in that have become commoditized; to examine
Product #809028 (23 pages) Holland, Switzerland, Russia, Romania, and a context in which an organization has
Employ+Ability, a small company that Ukraine. It was founded by Hüsnü Özye in transformed a product from worst to best in
employs developmentally disabled adults, 1987, and in April 2006, the National Bank of market through marketing activities; and to
finds itself competing with low-cost producers Greece (NBG) offered to buy part of the bank. consider the implications of using rewards
of its core products—therapeutic hot and cold Students consider factors that contribute to programs and promotional tactics to drive
packs. How might an innovative branding Finansbank’s growth and success. In order consumer behaviors. The case is designed for
campaign, centered on the company’s core to assess the terms of NBG’s offer, students marketing management courses at the senior
value of “Work Is Good,” enable it to effec- can evaluate given valuations of the bank and undergraduate, MBA, and executive levels. It
tively contend with its competitors? analyze why the proposed deal is structured is designed for a single 80-minute class.
so that Özye retains a stake and buys back
Learning Objective: To help students under- the non-Turkish operations. Students also
stand the challenges of social entrepreneur- consider the offer from the perspective of Iceland (A)
ship, especially in low-margin, cost-conscious minority shareholders. Aldo Musacchio
industries. Harvard Business School Case (Field)
Learning Objective: To illustrate how capital
Product #709011 (24 pages)
requirements create a need for restructuring
Supplement #709012
in environments where the benefits of owner-
ship concentration are high. In May 2008, a team of sovereign debt
analysts at Moody’s needed to decide whether
to downgrade the country’s sovereign long-
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 11
f in a n c e
SKS Microfinance French multinational. The case allows for a operating results and its credit market condi-
Shawn Cole thorough analysis of buyer types (financial tions made it unclear whether the transaction
vs. strategic), deal strategy, and valuation. could be closed as scheduled in 2007, or
Harvard Business School Case (Field)
Among other topics covered in the case are indeed at all.
Product #208137 (21 pages)
the importance of due diligence, the potential
Learning Objective: The case permits a discus-
Vikram Akula, CEO of SKS Microfinance, for value creation by private equity firms
sion of the decline of the U.S. newspaper
seeks a venture capital investment to fund through operational improvements, the use of
industry and an analysis of the advantages
his firm. SKS, one of the largest and fastest- footholds in deal strategy, and the challenges
and disadvantages of the unusual features
growing microfinance institutions in India, is of cross-border acquisitions.
built into this particular transaction. The case
a profitable for-profit institution with a social
Learning Objective: To evaluate the charac- may be analyzed from multiple perspectives:
mission. In what is one of the first commer-
teristics and goals of different buyer types, to Zell’s, the employees’, the shareholders’, and
cial financing deals in the world, Akula must
discuss deal strategy from a private equity Tribune’s pre-existing lenders’.
decide at what value (and to whom) to sell
standpoint, and to analyze how valuation
equity in SKS. The case focuses on valuation,
impacts bidding strategy.
which is difficult because at the time there Venture Capital Vignettes:
were no comparable publicly traded com- Difficult Financings
panies, and the strategic aspects of raising Tribune Company, 2007 G. Felda Hardymon
money. Timothy A. Luehrman Harvard Business School Case
Learning Objective: To teach valuation of Harvard Business School Case (Secondary Source)
(Secondary Source) Product #809003 (6 pages)
financial institutions, particularly microfi-
Product #208148 (24 pages)
nance; to study an entrepreneur’s problem. These three short vignettes depict invest-
Supplement #208723
ment professionals considering difficult
This case describes the proposed acquisi- financings for companies in their portfolios.
Thoma Bravo—Citect Corporation
tion of Tribune Company by Sam Zell in For one reason or another, each company
Take-Private
2007. Tribune Company is one of the largest has underperformed expectations. Should
Nabil N. El-Hage newspapers and broadcasting companies in the protagonist recommend that the firm
Harvard Business School Case (Field) the United States. Zell’s proposed acquisition participate or not, or should he try to revise it?
Product #209022 (22 pages) is unusual in several respects. It is two-tiered, Can the firm exercise any influence, and are
In 2006, Citect Corporation, a publicly employs an ESOP as the acquisition vehicle, the potential gains worth the time and effort
traded Australian software company, was the and involves a high degree of leverage as well that will be required?
target of a takeover battle between a financial as significant asset sales, and Zell himself will
own almost no common stock in the post-deal
Learning Objective: To introduce students to
sponsor and a strategic buyer. Thoma Bravo,
the complex and nuanced decisions about
the U.S.-based private equity firm, had to Tribune. The case is set in late October 2007,
funding companies with uncertain chances of
decide on its acquisition strategy in the face of at which point the first stage of the acquisition
success.
competition from Schneider Electric, a large had been completed, but the second stage had
not. Recent deterioration in both Tribune’s
GENERAL MANAGEMENT
General Management
Absolute Return for Kids
Groundswell Herman B. Leonard
Winning in a World Transformed by Social Technologies Harvard Business School Case (Field)
Product #309036 (22 pages)
Charlene Li and Josh Bernoff
Absolute Return for Kids (ARK) is a charity
Corporate executives are struggling with a new trend: people
with strong financial support. ARK seeks to
using online social technologies (blogs, social networking sites,
transform the lives of children who are vic-
YouTube, podcasts) to discuss products and companies, write
their own news, and find their own deals. The authors explain tims of abuse, disability, illness, and poverty.
how to turn this threat into an opportunity. As one of the 50 largest fundraising charities
in the United Kingdom, the organization’s
“An insightful book that takes a refreshing research-driven approach to helping trustees wrestle with how to meet the needs
businesses transform themselves and successfully navigate this new dynamic of this vast and most vulnerable population
landscape.” through program expansion and delivery in
—Steve Rubel, Senior Vice President, Edelman Digital, and columnist for Advertising Age Eastern Europe, South Africa, and the United
Product #2500 • ISBN-13: 978-1-4221-2500-7 • Hardcover • 304 pages • 2008 $29.95
Kingdom. How can the organization replicate
its existing successful programs faster, within
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 13
GENERAL MANAGEMENT
patients. Dr. Williams leads through his own money nor traditional “goods” are exchanged. Product #909009 (12 pages)
research and special programs to train clinical Kidney exchange is an idea pioneered by Supplement #909010
investigators. HBS professor and market designer Alvin
Pat Fili-Krushel, CEO and president of
Roth along with a small group of innovative
Learning Objective: To understand the role WebMD.com and past president of ABC
doctors. The case follows this group as they
of clinical research within the spectrum of Network, contemplates accepting Richard
grapple with some of the complex questions
biomedical research. Parsons’ offer to become the first executive
associated with launching a national clearing-
vice president of administration at AOL Time
house for kidney exchange. It raises critical
Warner. Accepting this position would be a
InnoCentive.com (A) questions about why and how value is created
move back into mainstream media but also a
Karim R. Lakhani in markets, and about how important moral
career shift from line positions to a corporate
Harvard Business School Case (Field) dilemmas (in this case, the buying and selling
staff role. The case profiles Fili-Krushel’s
Product #608170 (22 pages) of human organs) complicate the connection
media experiences and her use of interper-
between market exchange and value creation.
InnoCentive.com, a firm connecting R&D sonal influence and negotiation, leading up
labs of large organizations to diverse external Learning Objective: To demonstrate that to the critical decision point. After consult-
solvers through innovation contests, has to markets are a powerful vehicle for value cre- ing with colleagues throughout the media
decide if it will enable collaboration in its ation, and to show the complexities of market industry, Fili-Krushel’s decision rests on her
community. The case covers the basics of how design when applied in an unconventional own career aspirations and her expectations
a distributed innovation system works and setting. about the future of AOL Time Warner.
the advantages of having external R&D. It also Learning Objective: To facilitate a discussion
applies concepts of open source to a non- Mattel’s Long Hot Summer around critical decision points faced by
software setting; describes the rationale for individuals at the mid-career point, using
Jane Wei-Skillern
participation by solvers in innovation contests influence and negotiation strategies for career
Harvard Business School Case
and the benefits that accrue to firms; and management and addressing job challenges;
(Secondary Source)
raises the issue of whether a community can Product #308129 (14 pages) and to analyze specific influences and negotia-
be shifted to collaboration when competition tion tactics used in different stages of a career.
was the basis of prior interaction. In the summer of 2007, Mattel performed
three major recalls of toys, mostly due to
Learning Objective: To cover the mechanics the use of lead paint and other manufactur- Sovereign Wealth Funds: For Profits
of open innovation and the rationale for ing issues in China. This case examines or Politics?
participation by firms and individuals. To specifically how those recalls were perceived Laura Alfaro
discover the challenges of moving to a by consumers and responded to by Mattel, Harvard Business School Case (Field)
collaborative model for innovation and the as well as what effect they had on the toy Product #708053 (18 pages)
potential opportunities for participants in a industry, consumer safety, and manufacturing
collaborative setting. in China in general. On March 21, 2008, the U.S. government
secured an agreement from two leading
Learning Objective: To question the trade-offs sovereign wealth funds (SWFs) to adopt a
Kidney Matchmakers between price and quality in manufacturing new set of investment principles to govern
Brian J. Hall practices and strategy. the funds’ activities. SWFs, broadly defined
Harvard Business School Case (Field) as investment funds owned by a nation or
Product #908068 (4 pages) a government, were gaining prominence
Pat Fili-Krushel (A)
This case looks at the design and development across the globe, especially with their recent
Kathleen L. McGinn
of an unconventional market, where neither investments in troubled U.S. financial firms
Harvard Business School Case (Field)
that had suffered significant losses during
the subprime mortgage crisis. Yet SWFs were
viewed with suspicion amid concerns that
General Management they could have potential political interests
behind their investments. Many SWFs also
lacked disclosure or transparency regarding
Control in an Age of Empowerment
their activities or investment goals. Countries
Robert L. Simons such as the United States felt that interna-
tional regulation had to be imposed, but
In this short paperback, Robert Simons explains how to give
employees the freedom to innovate while protecting your firm
would it be possible?
from loose cannons. Clear examples in the book show how to
apply 4 powerful management “levers” to balance autonomy
with control.
System on a Chip 2008: Taiwanese maker of door lock hardware, U.S. more fully within the global WWF
Ardentec Corporation was faced with the question of whether to network and fostering longer-term trust-based
continue to focus on its ODM (original design relationships among all partner organizations
Willy Shih, Chen-Fu Chien
manufacturer) business or start placing more as they work toward their shared conservation
Harvard Business School Case (Field)
emphasis on its own brand development and goals. The case highlights the Tesso Nilo
Product #609026 (16 pages)
growth in global markets. The case explores Conservation Project, which brought together
Ardentec Corporation is a specialist in the bumpy history of the company and raises various WWF partners to stop illegal logging
“wafer probing,” a highly specialized niche questions around the downstream conse- in Sumatra and revive its wildlife environ-
sandwiched between the “front-end” and the quences of global outsourcing strategies. ment, and illustrates a network approach
“back-end” of semiconductor manufacturing. within a global multisite nonprofit.
Learning Objective: To examine some of the
Because the semiconductor industry uses
consequences of outsourcing strategies. Learning Objective: To examine the potential
modular processes and has standard contain-
of implementing networks in an established,
ers for a work-in-progress interchange, it has
mature, global nonprofit to achieve greater
evolved to a highly horizontal structure where Vignettes on Governance of
mission impact. The case examines the
specialists like Ardentec can carve out unique Private Equity Firms
challenges for institutionalizing such an
market opportunities that are less attractive G. Felda Hardymon approach as well as the required leadership,
to integrated manufacturers. The company Harvard Business School Case culture, and mind-set shift that is necessary
has grown rapidly, but as it starts to occupy (Secondary Source)
for building trust and transforming the way
a significant percentage of the total avail- Product #808168 (8 pages)
the organization operates and works with its
able market, its founders are faced with the
In a series of vignettes, Nigella Hardy-Smyth, peer organizations worldwide.
challenge of how to maintain growth. Do they
an employee of an international development
vertically integrate more into the back-end, or
agency that invests partners in emerging Year Up
should they try to do acquisitions in adjacent
markets private equity firms must decide how
markets? The case is intended to be used in Allen Grossman
to handle various situations as they arise. As a
conjunction with the Technical Note “Hori- Harvard Business School Case (Field)
member of the limited partner advisory board
zontal Specialization and Modularity in the Product #308032 (30 pages)
of each of the five firms, she must contend
Semiconductor Industry” (608001).
with a fund manager who has an indistinct Year Up, a nonprofit job-skills training
Learning Objective: To examine an extreme mandate, a manager who wants to exceed the program for low-income urban youth, has run
example of specialization, and to consider the concentration limit in an investment, a star four successful programs in four cities for
implications for company growth. investor experiencing tension with her other the past seven years. Now, after an ambitious
partners, a founding partner who wants to capital campaign, the organization is poised
Symyx Technologies, Inc. fire the rest of his senior team, and a limited to grow into a national program in an attempt
partner seeking preferential treatment that to reach the 4.3 million disconnected youth
H. Kent Bowen
might benefit his fund to the detriment of the in the United States, but will the organization
Harvard Business School Case (Field)
other limited partners. The process of discuss- be able to maintain high-quality results as it
Product #608152 (24 pages)
ing these scenarios helps the class explore the builds to scale?
Symyx is a science-based company spun out nuanced role of a limited partner in a private
Learning Objective: To illustrate the multi-
of Berkeley. Its unique materials technol- equity firm.
faceted challenges of managing growth in
ogy has been exploited for 10 years, but the
Learning Objective: To introduce students to a nonprofit while maintaining high-impact
company needs a new business model. The
the challenges confronting limited partner results.
company concept required the invention of
advisory boards.
hardware and software to do high-throughput
materials discovery, and a business partner-
ship model is needed to support scientific World Wildlife Fund U.S. HUMAN RESOURCES
and engineering development. The public Jane Wei-Skillern MANAGEMENT
company must now find new ways to grow, Harvard Business School Case (Field)
and Isy Goldwasser, a co-founder and the new Product #308035 (33 pages)
CEO, must lead the transition while maintain- Rehabilitation Alliance Hong Kong:
World Wildlife Fund U.S. is a leading Next Step Forward
ing unique scientific resources.
international conservation nonprofit that
Terence Tsai, Barbara Li
operates within a global network of WWF
Tong Lung Metal Industry Co. Ltd. Ivey School of Business Case
organizations. This case examines WWF U.S.
Product #908M26 (15 pages)
Willy Shih strategy to achieve its mission of protecting
Teaching Note #808M26
Harvard Business School Case (Field) natural wildlife and resources. In contrast to
Product #609034 (14 pages) traditional approaches in which WWF country The case describes the unique business model
programs operated relatively independently, of Rehabilitation Alliance Hong Kong (RAHK),
Tong Lung Metal Industry Co. Ltd., a beginning with its strategic alliance with Dairy
the new strategy involves integrating WWF
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 15
ma n ag e m e n t o f i n fo rm ati o n system s | MARKETING
Farm to run 7-Eleven convenience stores that many are also evolving toward becom- unique challenges as it implements a social
in an aim to create job opportunities for its ing information economies in the sense of enterprise (SE) business model; it describes
disabled members. The two managers then both value added (GNP) and jobs. While this the difficulties faced by social entrepreneurs
try out other forms of business, but these are evolution is less advanced in some countries, implementing for-profit business models in
not commercially effective. The case explores the United States is already well past the 60% domains usually populated by nonprofits. The
the challenges of managing a cooperative mark in terms of economic value added. This case is also useful as an introduction to the
relationship with a social conscience and case explores the confluence of these two business of software testing.
achieving social enterprise sustainability trends by examining the double dichotomy
Learning Objective: To examine the challenges
through innovation. of products versus services and information
of growing a for-profit social enterprise
versus material (noninformation) outputs,
Learning Objective: This case is suitable for business. To examine the software testing
thus dividing the economy into four super-
students at all levels, including postgraduate business.
sectors. The data reveal that the U.S. job
students who work in the private and public
market is dominated by information work,
sectors, and NGOs that wish to study social
and that the largest part of the U.S. economy
enterprise (SE) development through strategic
alliances. Instructors can draw from the con-
in terms of GNP value added is the “informa- MARKETING
tion services” super-sector. The largest job
cepts in the strategic management literature,
share in terms of the number of jobs is in the
especially concerning resources, capabilities, Blogging at BzzAgent
“material or noninformation” service jobs, but
core competence, and cooperative strategy David B. Godes
the largest share of the wage bill is in informa-
issues (see the recommended text below).
tion-related service jobs. This article discusses Harvard Business School Case (Field)
Other important concepts and theories are Product #508102 (51 pages)
the reasons behind these trends, identifies
utilized, including corporate social responsibil- Teaching Note #508118
major differences between information and
ity, business ethics, and sustainable business
noninformation sectors, and examines the BzzAgent is a word-of-mouth marketing firm.
development.
implications for management strategy in the The founder, Dave Balter, sees blogs as an
information economy. important way to communicate BzzAgent’s
unique positioning: transparency. He sees the
MANAGEMENT OF SPECIALISTERNE: Sense & Details firm’s blog (the BeeLog) as a way for the firm
INFORMATION SYSTEMS Robert D. Austin, Jonathan Wareham, to participate in conversations with clients,
Javier Busquets employees, and “agents.” However, he has
been unhappy with the level of interaction
Information Services in the Harvard Business School Case (Field)
Product #608109 (20 pages)
the blog has been generating and is consider-
U.S. Economy: Value, Jobs, and
ing shutting it down. The case provides a
Management Implications Three-quarters of SPECIALISTERNE’s expert context for a discussion about word-of-mouth
Uday Karmarkar, Uday M. Apte, software testing staff are diagnosed with some marketing and social media in general, as well
Hiranya K. Nath form of autism spectrum disorder (ASD). as about blogs specifically. It also provides
California Management Review Case Usually perceived as a handicap, ASD in fact examples of other corporate blogs and allows
Product #CMR394 (20 pages) conveys talents especially suited to software students to weigh the benefits and drawbacks
testing and other highly repetitive tasks that of this potentially important form of com-
It is well known that almost all of the largest
require extreme accuracy. This case describes munication.
economies in the world are already dominated
a growing company that struggles with
by services. What may be less well known is Learning Objective: To explore word-of-mouth
marketing, social media, and networks.
Learning Objective: This case can be used in Individual chapters available on our web site
OB classes in organizational change or in
“David Aaker has brilliantly dissected the CMO role within
marketing classes focused on branding or
complex global organizations and laid out a compelling
how businesspeople can work with design ‘how-to’ manual for success. Aaker offers up pragmatic
firms. The case could also be used in design solutions that will enhance the collaboration and connective tissue between siloed
schools. business units. This book will unquestionably turbocharge the impact of the CMO
and central marketing organizations worldwide.”
—Joseph V. Tripodi, Chief Marketing and Commercial Officer, The Coca-Cola Company
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 17
ma rket i n g | NEGOTIATIONS | OP ERATIONS MANAGEMENT
especially forays into technologies and coupled with overall political and economic
markets that have relatively high entry barri- transition, created major problems in the gas
ers and no deep-rooted national technological trade between the former Soviet republics—
or scientific foundation. As such, Chi Mei is
an interesting vehicle to examine the rise of
problems that emerged with the greatest
intensity in Russian-Ukrainian relations.
role plays
a major Asian industrial cluster with global
scope, one that has no participants or com-
Learning Objective: To provide the relevant and Introducing
background essential for the understanding of
petitors in the West. The case can also be used
current dynamics of the natural gas trade in
RolePlanner
to expose students to the global supply chain
Europe and Eurasia, and to illustrate the effect
for key information technology components.
of political changes over time on the develop- Role plays enable students to
Taiwan and Korea are today the major world
ment of an industry. “learn by doing,” experimenting
centers for the manufacture of semiconduc-
tors (in particular, DRAM and flash memory) with negotiation and decision-
and flat-panel displays. Taiwan is also the Patient Flow at Meldon Hospital (A) making skills under the guidance
center for notebook computer manufacturing, Anita Tucker
of an instructor. But many role
and Taiwanese companies, through their Harvard Business School Case (Field)
China-based manufacturing and assembly Product #608171 (19 pages)
plays require multiple steps and
operations, drive 60% of the IT exports Supplement #608172 roles, and administering them
from China. Yet few students even know the
Meldon Hospital challenged a team of can be challenging. Now the
identity of these major global players. Taiwan
and Korea-based TFT-LCD flat-panels are the
physicians to improve patient flow from the RolePlanner online platform
Emergency Department to intensive care provides a seamless mechanism
critical components in notebook computers,
units (ICUs). One team member, Thornton
computer monitors, and flat panel televisions for distributing role-specific
Burgess, director of the Surgical Intensive
from essentially all well-known global brands.
Care Unit (SICU), encountered workarounds information and timing its delivery.
Learning Objective: To examine diversification by two physicians attempting to transfer their Once an instructor uploads the
in high-tech industries and how it can lead patients to the SICU because the other ICUs
student role assignment list and
companies away from their core competence. were full. Reflecting on the wasted effort
and confusion caused by the workarounds, sets the timing of the various
Gazprom (A): Energy and Strategy Burgess sent an email outlining the situation steps, the platform “runs itself”
in Russian History to the team. His email generated a negative and provides students with a single
backlash and a chain of defensive emails from
Rawi Abdelal home page throughout the activity.
involved staff who felt criticized.
Harvard Business School Case (Field) Instructors are able to monitor
Product #709008 (18 pages)
Pfizer Inc.: progress and assess survey results.
Supplement #709009
Supplement #709010 Building an Innovation Center
Stefan Thomke Currently, 24 role plays are
Critics have accused Gazprom, the world’s
largest natural gas producer, of eschewing Harvard Business School Case (Field) available on the RolePlanner
market principles in favor of the foreign Product #609037 (17 pages) platform.
policy priorities of the Russian government, The case describes Pfizer’s efforts to build
ever since the energy giant cut off its supply and run an innovation center in Cambridge, See a sample role play online
to Ukraine in January 2006. The purported Massachusetts. As the center goes through
motive for the decision, however, seems to (Hamilton Real Estate, #2210)
different periods of leadership and strategic
indicate the opposite: The company claimed models, its relationship with the corporation
that it had no other choice, because the sides and other research sites is explored. The case www.hbsp.harvard.edu/educators
failed to conclude a contract on the terms of study describes in detail the challenges of
future trade. The case takes a look back in his- building an innovation center within a large
tory for clues that may resolve this paradox. It corporation, including organization, incen-
highlights how politics shaped the economics tives, and scientific issues.
of the natural gas trade in the former Soviet
Union and Europe from the late 1960s until Learning Objective: To explore how to build
the end of the 1990s; sketches the story of the an innovative organization within a large
creation of Gazprom by the first post-Soviet corporation (for students in the MBA and
government of Russia; and describes how Executive Education programs).
the erection of new sovereign borders in the
wake of the dissolution of the Soviet Union,
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 19
O PERATIONS MANAGEMENT | ORGANIZ ATIONAL BEHAVIOR & LEADERSHIP
The Flaxil Label (A) Product #409014 (23 pages) this process in an ideal manner? This case
Supplement #409015 examines the Special Forces training in light
Gregory Barron
of the types of missions soldiers are expected
Harvard Business School Case The case examines the tools a manager
(Secondary Source)
to execute and asks students to consider
can use to keep her project on track and
Product #909001 (10 pages) whether the Special Forces recruitment and
to manage conflict and tension as Adobe
Teaching Note #909004 training process identifies the best possible
prepares to launch Creative Suite 3, the big-
Supplement #909002 candidates for future Special Forces service.
gest software release in the company’s 25-year
Supplement #909003
history. The protagonist, Yvonne Murray, is Learning Objective: To allow students to
This case focuses on the 2001 negotiation a group program manager at Adobe who is discuss a range of issues: selection, hiring,
between Mytex Pharmaceuticals and the U.S. responsible for coordinating the integration managing talent, and appraising individual-
Food and Drug Administration (FDA). The of her business unit’s product—Device organization fit.
outcome of the negotiation would determine Central—in Creative Suite 3. Murray is copied
the new label for Mytex’s blockbuster drug on an email warning the Device Central prod-
Leading Citigroup (A)
for arthritis, Flaxil. The negotiation is rather uct team that Device Central could be pulled
from the Creative Suite 3 marketing materials Lynn Sharp Paine
qualitative and differs from the typical price
negotiation with which students are familiar. and even from the launch entirely because it Harvard Business School Case (Field)
was in danger of missing a deadline. Murray Product #308001 (26 pages)
However, at stake was $500 million in Flaxil
wonders if and how to respond to the email Supplement #308002
sales as well as the safety of millions of
patients. The (A) case presents the perspective that was addressed to her Device Central col- The (A) case describes a series of controversial
of Mytex and the FDA on new data suggesting league, group product manager Carol Linburn. events and alleged misdeeds that placed
that Flaxil may have a side effect. Learning Objective: To understand the tools Citigroup in the public spotlight in the fall of
a manager can use to implement a project 2004 and launched investigations by regula-
Learning Objective: This case facilitates a dis-
or spearhead change within an organization, tors in Japan and Europe into the company’s
cussion of the psychology of rare events and
without relying solely on direct authority business practices. CEO Chuck Prince must
explores positions versus interests, qualitative
or title. decide what to do to right the company and
negotiations, and value creation and agency.
restore its reputation.
“This wise book offers wonderful and important guidance. Sloan & Harrison:
Ethics often seem obvious in the abstract and in hindsight. Non-Equity Partner Discontent
But life is not lived that way, and acting ethically is very hard in the day-to-day
Boris Groysberg
moments where choices are actually made. Howard and Korver show all of us how
to do, and be, better.” Harvard Business School Case (Field)
Product #409033 (11 pages)
—Larry D. Kramer, Stanford Law School
The law firm, Sloan & Harrison, was dealing
Product #2106 • ISBN-13: 978-1-4221-2106-1 • Hardcover • 224 pages • 2008 • $24.95
with some discontent among its junior noneq-
uity partners. These partners were concerned
with the transparency of the advancement Nick, a former Hall of Fame football player, Learning Objective: To analyze medical
process, their ability to position themselves when Marc suffered a spinal cord injury. In research and organizational issues, to under-
as both leaders within the firm and rainmak- 2007, with Marc still confined to a wheelchair, stand the particular demands of nonprofit
ers, and the politics of promotion within the the Miami Project had developed into the development, to evaluate the protagonist’s
firm. The firm must find solutions to these world’s largest spinal cord injury research and leadership, and to debate appropriate focus
challenges. Senior partners wondered: Was treatment center. It had 250 employees, oper- and strategy for 2007 and beyond.
the path to partnership structured in the best ated from a $37 million state-of-the-art facility
interests of the firm? What could and should located on the University of Miami Miller The Redgrove Axial Workshop
be done to address the non-equity partners’ School of Medicine campus, and had raised
concerns? What were the ultimate effects of Michel Anteby
in excess of $275 million since its inception.
discontent within the NEP ranks upon the Harvard Business School Case
However, there was still no cure for spinal (Secondary Source)
firm’s functioning overall? cord injury, and many of the project’s support- Product #409034 (13 pages)
Learning Objective: To explore several ers were becoming anxious for a substantial
clinical breakthrough. Fundraising was always Marc Fontaine, a new manager at a global
issues: managing professional service firms;
a concern, particularly as government spend- manufacturing concern, is on a fast track to a
employee development; mentorship; set-
ing on research was declining. Marc and his senior managerial position. One morning, in
ting expectations; managing performance;
father were keenly aware of the challenge of a storage room, he discovers some ornamen-
feedback; employee promotion; up-or-out
maintaining the enthusiasm and financial tal artifacts made with the same materials
promotion systems; employee retention and
backing of the Miami Project’s supporters. used for official production. He suspects
turnover; employee motivation; employee
Yet they needed to avoid overpromising the workers have been making these items with
morale; employee job satisfaction; employee
likelihood of potential breakthroughs, which company materials. At that moment, a worker
commitment; and work/life balance decisions.
required painstaking research and stringent enters the room to fetch a tool. Fontaine asks
clinical trials. The leadership also questioned him what is going on with these items, but
Sony Ericsson WTA Tour (A) whether the mission should remain focused the worker claims ignorance and quickly
Jay W. Lorsch on spinal cord injury or whether it should leaves. Fontaine is meeting his boss and the
Harvard Business School Case (Field) be broadened to include brain trauma and plant director that afternoon. What should
Product #409018 (11 pages) other neurodegenerative diseases such he do? Say something? Pretend nothing hap-
Supplement #409019 as Alzheimer’s and Parkinson’s. The case pened? This case deals with group dynamics,
Supplement #409020 provides an opportunity to discuss the chal- informal behaviors, and ethics at work.
Larry Scott, the new CEO of the Women’s lenges of nonprofit management and medical
Tennis Association, arrives amid turmoil. research and to debate appropriate strategy for
Players and tournaments clash over opposing the Miami Project in 2007.
interests. As a result, the board members
who represent them are equally divided and
feel conflicted about their roles. They aren’t
sure how to help their constituents while also
fulfilling their duty of oversight of the WTA
as a whole. In order to make women’s tennis
more popular and profitable, Scott must find
a way to get the board of directors to resolve
their differences and work together for the Service Management
greater good of the organization.
Learning Objective: To learn how to resolve Ownership Quotient
conflicts among board members, and to Putting the Service Profit Chain to Work for
understand the governance challenges unique Unbeatable Competitive Advantage
to a stakeholder organization. James L. Heskett, W. Earl Sasser Jr., and Joe Wheeler
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 21
SERVICE MANAGEMENT | SOCIAL ENTER P RISE & ETHICS
SERVICE MANAGEMENT article argues for a more radical service-logic data from several suppliers, and wondered
perspective that challenges the traditional, how this could be used to decide among
attribute-based view of innovation. Rather environmental technology options. Given that
Service Blueprinting: A Practical than innovating products and services, the at least 150 additional company stores were
Technique for Service Innovation focus here shifts toward innovating custom- scheduled for opening or renovation during
Mary Jo Bitner, Amy L. Ostrom, ers’ value co-creation roles. This article the upcoming three years in China, the
Felicia N. Morgan presents a case-based managerial framework project would have long-term implications for
California Management Review Case that reveals how service-logic innovations Carrefour.
Product #CMR397 (30 pages) change the customer’s role as a buyer, payer,
Learning Objective: This case addresses a vari-
or user, and shows how firms can innovate
With the global focus on service-led growth ety of issues related to corporate environmen-
through smart offerings, different value
has come increased need for practical tal sustainability and strategy implementation.
integration approaches, and reconfigured
techniques for service innovation. Services are Depending on its particular course use, one
value constellations.
fluid, dynamic, experiential, and frequently or more of the following teaching objectives
co-produced in real time by customers, could be emphasized: (1) to examine an
employees, and technological entities, often organization’s environmental sustainability
with few static physical properties. However, SOCIAL ENTERPRISE activities in regard to a specific operating
most product innovation approaches focus & ETHICS issue as well as its impact on both the envi-
on the design of relatively static products with ronment and the financial bottom line; (2) to
physical properties. Thus, many of the inven- evaluate the role of the internal and external
tion and prototype design techniques used Carrefour China: environments of a company in regard to
for physical goods and technologies do not Building a Greener Store environmental sustainability activities; and
work well for human and interactive services. Andreas Schotter, Paul W. Beamish, (3) to examine strategy implementation in an
This article describes one technique—service Robert Klassen emerging market context. The course can be
blueprinting—that has proven useful for Ivey School of Business Case taught at the undergraduate, graduate, and
service innovation. Service blueprinting Product #908M48 (19 pages) Executive Education levels.
is securely grounded in the customer’s Teaching Note #808M48
experience, allowing the clear visualization of
Carrefour, the second-largest retailer in the Corruption in Germany
dynamic service processes.
world, had just announced that it would Rawi Abdelal, Rafael Di Tella
The technique is described in detail including open its first “green store” in Beijing before Harvard Business School Case
real case examples that illustrate the value the 2008 Olympic Games. David Monaco, (Secondary Source)
and breadth of its applications. Asset and Construction Director of Carrefour Product #709006 (25 pages)
China, had little experience with green build-
Why do managers become corrupt? Does
ing and was struggling with how to translate
Service-Logic Innovations: How to corruption ever pay? When do friendly
that announcement into specifications for
Innovate Customers, Not Products relations cross into bribery? How can CEOs
store design and operations. Monaco has to
Stefan Michel, Stephen W. Brown, manage and prevent outbreaks of corruption?
evaluate the situation carefully from both eco-
Andrew S. Gallan These and other questions are raised by three
logical and economic perspectives. In addi-
California Management Review Case short case studies of corruption in Germany:
tion, he must take China’s infrastructure and
Product #CMR396 (18 pages) at the global engineering firm Siemens,
regulatory situation into account—no official
the automaker VW, and the chemical giant
Service innovations reportedly involve green building standard exists, and only a few
BASF. While German law not only permitted
innovating intangible products, but this suppliers of energy-saving equipment operate.
overseas bribery but even made it tax-
He had already collected energy and cost
deductible until 1999, it was not welcomed
in some nations where Siemens did business,
such as in the United States—or in Germany
Free Exam Copies and Teaching Notes
after 2000. However, the old practices
continued. Cooperative management-labor
Faculty authorized on our web site receive: relations, often seen as key to the post-World
Educator copies of cases, articles, and book chapters War II German industrial powerhouse, went
sour at VW, as a top manager secured key
Preview access to online courses and simulations concessions by paying for union leaders’
Teaching Notes lavish foreign travel and visits to prostitutes.
After vitamin prices sagged in the late
Course planning tools—with special pricing for students
1980s, BASF and the Swiss chemical firm
Hoffmann-La Roche plotted a global cartel
> Apply Online: facultyaccess.hbsp.harvard.edu that lasted a decade and raised the prices of
many vitamins by 50% or more. In the end, This case explores the role that MTV, with
even after record-setting criminal fines and its heavy diet of music and general youth- CONTACT US
jail time for some executives, some observers oriented media content, plays in spreading Customer service is available
argued that such practices were likely to recur. public-service messaging to contain the 8 am to 8 pm, Monday through
scourge of HIV/AIDS worldwide. There is a Friday (Eastern Standard Time)
Learning Objective: To discuss the causes of
focus especially on MTV’s efforts in several
and possible solutions to corrupt business
emerging markets, particularly the parts
practices. Phone:
of Africa that have a heavy incidence of the
1-800-545-7685
disease. MTV has developed a DNA of public
Outside the U.S. and Canada,
Phil Chan (A) service announcements that it claims are of
call 1-617-783-7600
Paul W. Beamish, Jean-Louis Schaan central relevance to its high-risk customer
Ivey School of Business Case base. How core is this to the strategy of a
Fax:
Product #908M38 (8 pages) for-profit firm like MTV? What role can a
617-783-7666
Teaching Note #808M38 multinational play in helping develop the
Supplement #908M39 health care “soft” infrastructure in such
Email:
emerging markets?
The case deals with a scam that has been run custserv@hbsp.harvard.edu
out of Nigeria since 1990. Foreign companies Learning Objective: To explore the role of
are approached for their assistance in facilitat- corporate social responsibility in a multina- Web:
ing an international transfer of funds in order tional’s strategy and the role of a multina- www.hbsp.harvard.edu/educators
to receive a very large but unearned commis- tional in fostering health care infrastructure
sion. In this case, a Hong Kong–based man- in emerging markets.
ager who is traveling to Nigeria is unaware
that he is walking into a situation where his Supplement #908409
company is about to be cheated. The objective Supplement #908410
of the case is to raise the issue of ethics in the
TEACHING & THE CASE Supplement #908411
conduct of international business. METHOD Supplement #908412
Learning Objective: To raise the issue of ethics Professor Kenneth Carpenter has received
in the conduct of international transactions. Professors Sven Larson and word that he has inadvertently offended one
It is not a case about doing business in Kenneth Carpenter (A) of his students. He is pondering a possible
Nigeria; rather, it provides an opportunity to James L. Heskett response.
alert students and managers to the dangers Harvard Business School Case Learning Objective: To illustrate participant-
of indiscriminate greed. The case can be used (Secondary Source) centered learning and teaching methods.
in courses on strategic management, ethics, Product #908408 (2 pages)
and international business. Although to
some the case may appear straightforward, its
value may come from the following: (1) Not
Teaching & the Case Method
everyone is sensitive to these issues. Millions
of dollars have been lost to swindlers! (2)
This is not an isolated phenomenon; and (3) The Case Study Handbook
Managers may inadvertently find themselves New for students
in a more sophisticated and less purely greed- By William Ellet, writing consultant,
driven scam. The question then becomes, Harvard Business School
how does one get out of such a situation once
in it? and (4) Managers may inadvertently “By far the best and the most comprehensive case study
be drawn into the fallout from one of these self-help book I have ever read.”
scams through the actions of suppliers, —Rastislav Kulich, graduate, Harvard Business School
affiliates, etc.
Ideal for students new to the case method, The Case Study Handbook covers:
How to quickly establish a base of knowledge about a case
Sex, Drugs, and Rock ‘n’ Roll:
How to write persuasive case-based essays
The MTV Approach to Tackling
How to talk about cases effectively in class
HIV/AIDS
Tarun Khanna Faculty authorized on our web site can view a full-length PDF of the book online,
Harvard Business School Case (Field) and individual chapters are available.
Product #709429 (28 pages)
Product #1584 • ISBN 978-1-4221-0158-2 • Paperback • 273 pages • 2007 • $24.95
www.hbsp.harvard.edu/educators • 1-800-545-7685 | 23
NEW ONLINE COURSE
Spreadsheet Modeling
Harvard Business Publishing is an affiliate of Harvard Business School. © 2009 Harvard Business School Publishing. Printed on Recycled Paper
Product #7298 150980109