Dec'19
Focus
The first case, “Restructuring Unilever”, by Barnali Chakraborty and Sanjib Dutta, is about how the fast moving consumer goods giant underwent an organizational restructuring program. It describes the various aspects related to the ‘Connected 4 Growth’ program initiated in July 2016 that aimed to increase Unilever’s penetration in fast-growing markets, advance its portfolio through acquisitions, and develop more channels through which to sell its products. It also dwells on the company’s failed attempt to move corporate headquarters to the Netherlands.
The next case, “Team-Based Learning: The Free-Rider Dilemma”, by Virpi Malin, Xiujuan Jiang, Chi Anyansi-Archibong and Marilyn L Taylor, is about the problem of free-riding that is often encountered in a team setting. It describes the predicament of Professor Metso when she receives an e-mail from a member of a three-person student team stating that one member in the team has not done his part and that the other two members, both females, have not managed to get in touch with him. It is critical for a leader, whether in an academic setting or a corporate setting, to identify and implement steps that encourage people to contribute their fair share.
The third case, “Can Tencent Holdings Rebound from Its Fall?”, by Benudhar Sahu, Indu Perepu, Trilochan Tripathy and Debapratim Purkayastha, recounts the troubles faced by Tencent Holdings Limited (Tencent), once the most valuable company in China by market capitalization. Tencent’s stock price reached its peak in January 2018, but investor sentiments soured after a series of troubles cropped up for the company, including a drop in its profits and a regulatory crackdown on gaming in China. Additionally, Tencent’s growing debt position, massive investments, overseas marketing strategy, and Sino-US trade war fears all contributed to the decline in its stock price value. In such a scenario, what should Tencent do to maintain its stock price valuation?
The next case, “Business Excellence Framework as a Competitive Advantage: The Case of Max Group”, by Rohit Kumar and Swarup Kumar Dutta, is about how the Max Group implemented the Max Performance Excellence Framework. It delves into the nitty-gritty of implementing a quality system in a reasonably big conglomerate, and how it has helped Max Group gain competitive advantage.
The final case in this issue, “India’s Kalyan Jewelers – Winning with a Hyperlocal Strategy”, by Koti Vinod Babu and Namratha V Prasad, is about the hyperlocal strategy used by India’s leading jewelry chain, Kalyan Jewelers India Private Limited. Hyperlocal strategy hinges on the new marketing approach that focuses on a smaller number of shoppers in a very specific area. Companies adopting such a strategy specifically targets people in highly localized areas that want to purchase products or services locally.
Restructuring Unilever
The case “Restructuring Unilever” examines the organizational restructuring program at Unilever, a leading FMCG conglomerate. In July 2016, Unilever announced the Connected 4 Growth (C4G) program that aimed to increase its penetration in fast-growing markets, advance its portfolio through acquisitions, and develop more channels through which to sell its products. The C4G program was expected to increase the company’s growth as well as profitability. With C4G, Unilever aimed to achieve long-term sustainable shareholder value creation. The case discusses the C4G program and its different components in detail. It also analyzes the implementation of the C4G program, the benefits of the program, and Unilever’s failed attempt to move corporate headquarters to the Netherlands. The case ends with a discussion on the future strategies of Unilever under its new CEO, Alan Jope.
Team-Based Learning: The Free-Rider Dilemma
The case focuses on the problem of free-riding that Professor Metso confronts just as the last week of classes was about to get underway in Spring 2013 at the School of Business and Economics (JSBE) at the University of Jyväskylä (JYU), Finland. The apparent free-riding occurs in a three-person student team operating as a part of a pilot experiment running within a mass course “Introduction to Management and Leadership”, for which Professor Metso is responsible. The pilot is a part of a university level developmental project “Interactive Teaching and Learning” (IT&L) that was set up by the Rector. The specific goal for the larger project is to enhance student agency and engagement by developing interactive, dialogic and collaborative teaching methods. The case opens with Professor Metso receiving an e-mail from a member of a three-person team stating that one member in the team has not done his part and that the other two members, both females, have not managed to get in touch with him. The e-mail indicates the two are concerned about their ability to take the exam scheduled for Friday, six days hence. Professor Metso has to decide quickly what to do and how to reply to the e-mail.
Can Tencent Holdings Rebound from Its Fall?
The case is about the troubles faced by Tencent Holdings Limited (Tencent), once the most valuable company in China by market capitalization. Tencent, one of the world’s largest internet companies, had become the most powerful mobile ecosystem in China. It became the first Chinese technology company to join the elite US$500 bn market capital club, backed by its huge revenue from video games, advertising, and social media businesses. Climbing on the growth drivers, Tencent’s stock price reached its peak in January 2018, but investor sentiments soured after a series of troubles cropped up for the company including a drop in its profits and a regulatory crackdown on gaming in China. Additionally, Tencent’s growing debt position, massive investments, overseas marketing strategy, and trade war fears all contributed to the decline in its stock price value. Investors voiced doubts about the firm’s declining profit margins and its ability to keep innovating. Amid regulatory hurdles, the company went in for a strategic reorganization, took global expansion initiatives, and introduced anti-addiction measures to limit play time for vulnerable segments. Analysts were optimistic about Tencent’s future and hoped that its strong long-term growth prospects would help the company bounce back in the coming days. However, with competition growing in the market and some segments facing saturation, can Tencent maintain its stock price valuation?
Business Excellence Framework as a Competitive Advantage: The Case of Max Group
The Max Group is involved in multiple businesses, ranging from specialty films, healthcare, health insurance, senior living, to life insurance. The case describes in detail how the Max Performance Excellence Framework has been the fulcrum for the success of the Max Group at large and has helped them gain a competitive advantage. The case delves into the key aspects of both the business excellence framework and the Max Quality System. The process of implementation and the challenges associated with it are also highlighted. The case was written based on primary research (interview-research).
India’s Kalyan Jewelers – Winning with a Hyperlocal Strategy
The case is about the hyperlocal strategy used by India’s leading jewelry chain, Kalyan Jewelers India Private Limited (KJ) that served as a foundation for its success. The case starts out by mentioning the entrepreneurial journey of KJ’s founder T S Kalyanaraman Iyer (Kalyanaraman). It then talks about the various business practices adopted by Kalyanaraman that disrupted the Indian jewelry industry—by not only altering the way people bought gold, but also changing the way it was sold. The case then delves into the nuances of KJ’s key business strategy, namely, the hyperlocal business strategy. It describes the company’s promotional tactics that primarily involved using celebrity endorsement and were also centered on the hyperlocal strategy. The case then documents the rise of the company and its success in attracting private investment. Can KJ go in for a successful IPO and succeed in its endeavor to become one of the largest jewelry brands in the world?