This is a picture of ESMT books and working papers

Publications

ESMT Berlin publishes in international academic journals, which are first-class in their respective fields. Research also provides cutting-edge and profound insights for the business community as well as the classroom through managerial publications and case studies. This rare integration of research and practice makes ESMT Berlin an outstanding location for generating relevant and ground-breaking knowledge.

ESMT Case Study

Suicides at France Télécom

ESMT Case Study No. ESMT-414-0149-1
2012 EFMD Case Writing Award Highly Commended Case
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Responsible leadership, change management, corporate responsibility, business ethics, adaptive leadership, corporate communications, corporate culture

The case deals with a dramatic series of suicides at France Télécom between 2008 and 2009. Over a period of 18 months preceding the date of the opening lines of the case, 23 France Télécom employees took their lives. Many of the deceased had left notes blaming work-related stress or management decisions as the reasons for their extreme actions. The French government found it necessary to intervene and demand France Télécom’s management to indicate to the workforce and society that they were taking the situation seriously. The case briefly describes the history of France Télécom, the change initiatives following the deregulation of the European telecommunications industry, and the development of the attention of the French nation and international public toward the company in the aftermath of the suicides and suicide attempts. The case closes citing the response of the government, the company, the unions, psychologists, and stock analysts after a crisis meeting between French Labor Minister Xavier Darcos and France Télécom’s PDG (Chairman of the Board and CEO) Didier Lombard in September 2009.

The case serves as a fertile basis for discussion on responsible leadership, corporate culture, human resources management practices, adaptive change management, corporate social responsibility, or business ethics. It puts the students in a deep thinking mode on questions about the responsibility of organizational leaders for creating healthy working cultures, the impact leadership decisions have on people’s lives, and their own choices as managers or employees in difficult organizational situations. The case can also be used as introductory stimulus material for in-company management training programs on workplace health or suicide prevention.

Teaching note Yes
Also available in Spanish
Length 14p
Industry Telecommunications
Geographical setting France
Size €45 billion revenue; 170,000 employees
Setting period 2009
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ESMT Case Study

Vodafone in Egypt: National crises and their implications for multinational corporations (A)

ESMT Case Study No. ESMT-714-0144-1
2014 TCC Case Writing Award Hot topic, 2014 EFMD Case Writing Award Highly Commended Case
Urs Müller, Shirish Pandit (2014)
Abstract:
Subject(s): Ethics and social responsibility
Keyword(s): Business ethics, corporate responsibility, social responsibility, international ethics, crisis management, stakeholders, politics

On Thursday January 27, 2011, hundreds of thousands of protesters in Egypt were vociferously demanding an end to the 30-year rule of President Hosni Mubarak, and to the state of emergency he had let prevail, and nurtured during that tenure. The protest movement was expected to gather even greater momentum following the afternoon prayers the next day, a Friday. The communication and connectivity through social media had acted as a key catalyst in enabling the protesters to coordinate their actions. President Mubarak’s government decided to strike hard at the lifeline of this virtual medium, by exploiting some of the rights that the state of emergency had accorded them. That afternoon, the government ordered the three main voice and data communications providers in Egypt – Vodafone, Mobinil, and Etisalat – to suspend services in selected areas. Among these areas was Tahrir Square (“Freedom/Martyrs’ Square”) in Cairo, the biggest nucleus where protesters had assembled. Later, the government would also instruct these communications providers to broadcast propaganda text messages to all their subscribers, imploring them to be on the side of the Egyptian Army, which the government said was the true protector of Egypt. When Hatem Dowidar, CEO of Vodafone Egypt, heard about the government’s order, he was about to take a crucial decision. He knew that the situation in Egypt was being observed closely from all over the world. Dowidar also realized that the course of action he opted for would have consequences not just for Vodafone Egypt, but also for the parent Vodafone Group. He contemplated the possible consequences, well aware that any decision he took would invariably evoke strong reactions.

The case offers the opportunity to discuss some implications of national crises on multi-national corporations (MNCs), especially implications for business, society, and ethics. Given the fairly well-known historical context of the case, as well as, the non-technical nature of the underlying issue, the case can be used for a broad range of audiences. We have already successfully used the case in MBA settings, in executive education courses, and in workshops that were open to the general public.

Teaching note Yes
Also available in Spanish
Length 17p
Industry Media & telecommunications
Geographical setting Africa, Egypt
Size 6.500 employees in Egypt; >40 bn GBP revenue
Setting period 2011
Related Vodafone in Egypt: National crises and their implications for multinational corporations (B)
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ESMT Case Study

Vodafone in Egypt: National crises and their implications for multinational corporations (B)

ESMT Case Study No. ESMT-714-0145-1
2014 TCC Case Writing Award Hot topic, 2014 EFMD Case Writing Award Highly Commended Case
Urs Müller, Shirish Pandit (2014)
Abstract:
Subject(s): Ethics and social responsibility
Keyword(s): Business ethics, corporate responsibility, social responsibility, international ethics, crisis management, stakeholders, politics

On Thursday January 27, 2011, hundreds of thousands of protesters in Egypt were vociferously demanding an end to the 30-year rule of President Hosni Mubarak, and to the state of emergency he had let prevail, and nurtured during that tenure. The protest movement was expected to gather even greater momentum following the afternoon prayers the next day, a Friday. The communication and connectivity through social media had acted as a key catalyst in enabling the protesters to coordinate their actions. President Mubarak’s government decided to strike hard at the lifeline of this virtual medium, by exploiting some of the rights that the state of emergency had accorded them. That afternoon, the government ordered the three main voice and data communications providers in Egypt – Vodafone, Mobinil, and Etisalat – to suspend services in selected areas. Among these areas was Tahrir Square (“Freedom/Martyrs’ Square”) in Cairo, the biggest nucleus where protesters had assembled. Later, the government would also instruct these communications providers to broadcast propaganda text messages to all their subscribers, imploring them to be on the side of the Egyptian Army, which the government said was the true protector of Egypt. When Hatem Dowidar, CEO of Vodafone Egypt, heard about the government’s order, he was about to take a crucial decision. He knew that the situation in Egypt was being observed closely from all over the world. Dowidar also realized that the course of action he opted for would have consequences not just for Vodafone Egypt, but also for the parent Vodafone Group. He contemplated the possible consequences, well aware that any decision he took would invariably evoke strong reactions.

The case offers the opportunity to discuss some implications of national crises on multi-national corporations (MNCs), especially implications for business, society, and ethics. Given the fairly well-known historical context of the case, as well as, the non-technical nature of the underlying issue, the case can be used for a broad range of audiences. We have already successfully used the case in MBA settings, in executive education courses, and in workshops that were open to the general public.

Teaching note Yes
Also available in Spanish
Length 9p
Industry Media & telecommunications
Geographical setting Africa, Egypt
Size 6.500 employees in Egypt; >40 bn GBP revenue
Setting period 2011
Related Vodafone in Egypt: National crises and their implications for multinational corporations (A)
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ESMT Case Study

Team Wikispeed: Developing hardware the software way

ESMT Case Study No. ESMT-813-0139-1
2018 TCC Best-selling Case
Martin Kupp, Linus Dahlander, Eric Morrow (2013)
Abstract:
Subject(s): Entrepreneurship
Keyword(s): Product development, agile manufacturing, disruptive innovation, managing creativity & innovation

In 2008 Joe Justice saw the announcement for the Progressive Insurance X Prize—a $10 million prize aimed at the (im)possibility to build a 100 miles per gallon (mpg) car to road-legal safety specifications. Joe persuaded his wife to use their college grad 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 three months later, Wikispeed had been formed. It counted 44 members in four countries, and had a functioning prototype which was entered in the X Prize competition. In 2010 they came in 10th in the mainstream class, outrunning more than one hundred other cars from well-funded companies and universities around the world. Following the press reaction to the success of team Wikispeed in 2011 they were 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 display in Cobo Hall right next to Ford and Chevrolet. Wikispeed was contacted by more than a hundred people who were interested in joining the team as well as in ordering the prototype. By 2013, more than five hundred people had joined team Wikispeed. They had also sold nine prototypes. The immediate issue of the case study is the decision whether the team should use a pair of existing axles, cut and weld them 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 like modularity, which they call object-oriented architecture, scrum, and extreme manufacturing (XM) to organize their innovation efforts.

Depending on the scope of the course, the following teaching objectives can be emphasized: to discuss ways of how to coordinate product development efforts in the absence of traditional hierarchies; to understand the conditions when distributed innovation processes can be used in industries with physical products; to understand the key elements of agile development: modularity, scrum, and extreme manufacturing; to examine the principles and potential limitations of agile development for hardware development; to understand the roadblocks to agile product development in large established organizations.

Teaching note Yes
Length 12p
Industry Automotive
Geographical setting United States
Size 300 team members (volunteers); $1million
Setting period 2013
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ESMT Case Study

Defining the purpose for Borussia Dortmund GmbH & Co. KGaA

ESMT Case Study No. ESMT-713-0134-1
2013 ecch Case Writing Award Hot topic
Urs Müller, Ulrich Linnhoff, Bernhard Pellens (2013)
Abstract:
Subject(s): Ethics and social responsibility
Keyword(s): corporate social responsibility (CSR), defining the purpose of an organization, shareholder-value maximization versus other purposes, accounting, capitalization of human resources, valuation of assets, especially of human capital, business ethics, the role of human resources in an organization, stakeholders’ interest, legitimacy of stakeholders’ interest

In its 100th year of existence in 2009, Borussia Dortmund (BVB) was the only German soccer club listed on the stock exchange. With three days to go before the annual shareholders’ meeting on November 24 of that year, the club's managing directors, Thomas Treß and Hans-Joachim Watzke, went through the year-end figures one more time. Although the situation had improved since 2005 when the club was on the brink of insolvency, the closing accounts once again showed a negative net income. After nine years as a publicly traded company, the BVB had to report its fifth loss, this time for €5.9 million, which added up to a cumulative loss of more than €145 million. After the passing of a century, many stakeholders were concerned about the way forward. What was the organization’s purpose? What was more important, finally making a profit and meeting shareholders' expectations, or playing for the fans and the club’s honor? What could the managing directors offer to their shareholders, who had seen the value of their shares drop from €11 at the IPO to less than €1 in November 2009?

Teaching note Yes
Also available in German
Length 14p
Industry Football
Geographical setting Germany
Size €115 million revenue
Setting period 2009
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ESMT Case Study

An old bank in a new country: Restructuring Nile Commercial Bank of South Sudan

ESMT Case Study No. ESMT-212-0131-1
2012 CEEMAN Case Writing Award
Veit Etzold (2012)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): strategy, internationalization, Africa, uncertainty, finance, banking, politics, economics, South Sudan, Sudan, banking, globalization, emerging markets, crisis management

The case study documents the efforts of the equity investor African Development Corporation (ADC) and the African investment Loita Group to acquire shares in Nile Commercial Bank (NCB) of South Sudan in the summer of 2011. South Sudan had just become independent from northern Sudan in July 2011 after decades of civil war. It is one of the poorest countries in the world, but has vast reserves of commodities, mainly oil. On the one hand, NCB in 2011 was bloated with debt and managed badly. Certified data on the bank like P&L statements and balance sheets did not exist until summer 2011 and a due diligence has never been carried out. On the other hand, it is the most powerful banking brand in South Sudan and thus could yield high future profits by participating in the development of the economy and financing the exploration of the oil fields. The central bank, the Bank of South Sudan, has supported NCB since its founding in 2003, but was in 2011 looking for international debt- or equity investors to invest in NCB. The case focuses on ADC’s CEO, Dirk Harbecke, and his negotiations with the central bank. In summer 2011, ADC was an $80 million private equity fund, investing in banking and insurance services in sub-Saharan Africa. It is based in Mauritius. The case discusses whether or not ADC and Loita should invest in NCB when considering risk, return, and ethics as well as how a debt- or equity investment should be structured. The case can be taught in MBA, EMBA, and advanced management programs focusing on market expansion, global strategy, negotiation, and international finance.

Teaching note Yes
Length 15p
Industry Banking
Geographical setting South Sudan, Africa
Size $5 billion
Setting period 2011
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ESMT Case Study

Waltraud Ziervogel at Konnopke's Imbiss: Re-inventing a Berlin icon

ESMT Case Study No. ESMT-512-0126-1
2011 EFMD Case Writing Award Family business
Urs Müller, Veit Etzold (2012)
Abstract:
Subject(s): Marketing
Keyword(s): marketing, strategy, positioning, branding, heritage, tradition, family business, entrepreneurship, succession planning, consumer, Berlin, food

The case describes a critical external incident that will have fundamental consequences for a small but very successful family business: In 2010, Konnopke’s Imbiss was considered to be one of the, if not the, most famous snack bars in Berlin. This family-owned business was especially famous for the legendary “currywurst,” a Berlin invention that consists of a sausage fried in hot oil and served with ketchup, chili sauce, curry powder, and French fries. The main branch of Konnopke’s Imbiss was located in the Berlin district of Prenzlauer Berg, which was considered to be one of the “coolest” districts of Berlin. Konnopke’s had become a Berlin fast food icon, winning critical acclaim in almost all major Berlin travel guides. But in 2010, the snack bar no longer seemed to fit to its environment, which had changed from a working class district to a posh neighborhood mainly consisting of young freelancers and tourist.

The case describes how an external event (construction work) will have fundamental consequences for a small but very successful family business. This critical incident forces the owner family to rethink its business.

Teaching note Yes
Also available in German
Length 10p
Industry Fast food
Geographical setting Germany
Size €1 million revenue
Setting period 2010
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ESMT Case Study

Motors for Munchao

ESMT Case Study No. ESMT-711-0122-1
2017 TCC Best-selling Case
Mark A. Young, Urs Müller (2011)
Abstract:
Subject(s): Ethics and social responsibility
Keyword(s): business ethics, negotiation, cross-cultural negotiation, ethics in negotiation

The case describes the joint venture negotiation between Mr. Hartmut Holgebretsen, vice president of sales at Euroland Motors, in the English-speaking country of Norland, and Mr. Wu Chang, deputy president at Munchao Motors Import (MMI) in Munchao. It serves as information for a negotiation exercise. The negotiation takes place after the agreement on an initial letter of intent. However, MMI wanted to reopen a few issues before signing a final contract on the import of gas and diesel engines. The case contains “General information” that is available to both negotiation parties. In separate case supplements, Supplement (A): “Negotiation brief for Euroland Motors” and Supplement (B): “Negotiation brief for MMI,” the two parties receive confidential information that is exclusively for them and should not be made available to the other party before the negotiation exercise. The case combines three levels of discussion: a) business issues, b) cross-cultural issues, and c) ethical issues (especially “dirty” negotiation tricks, intellectual property rights, confidential information, and corruption).

The case seems to be most effective and popular when used in executive education with culturally diverse groups of managers who have already gained personal experiences in intercultural negotiations. The case can be used to discuss/introduce topics such as: business ethics in general, business ethics in intercultural/cross-cultural negotiation in particular, mechanics of negotiation, increasing the pie in a negotiation, intercultural/cross-cultural management, and B2B sales of technological products.

Teaching note Yes
Length 2p
Industry Automotive
Geographical setting Europe/Asia
Size Large
Setting period Undisclosed
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ESMT Case Study

Anna Frisch at Aesch AG: Initiating lateral change

ESMT Case Study No. ESMT-410-0112-1
2014 TCC Case Writing Award Human resource management/Organizational behavior, 2016 TCC Best-selling Case, 2014 TCC Best-selling Case, 2017 TCC Best-selling Case, 2018 TCC Best-selling Case
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): initiating change, implementing change, change management, communication of change, lateral change / leading change from the middle, influencing / persuading, stakeholder management, power and politics in organizations, change in a global matrix organization

Anna Frisch has tried to initiate change at Aesch AG, a large global provider of medical devices for the healthcare industry. As marketing director, she has identified major shifts in German healthcare that demand that Aesch changes its ways of approaching customers. Instead of targeting the specific needs of doctors in hospitals, Aesch should rather address the new decision makers: the CEOs, CFOs, or CIOs of hospitals, who have a different buying logic. In Aesch's matrix organization (global product responsibility, supported by regional sales) Anna wants to convince the heads of marketing for the different product businesses to change. She seems to be able to quickly convince her colleagues of what she calls "C-level marketing." However, as soon as work is supposed to start, she realizes that commitments were less strong than she assumed. A few weeks later, Anna is clearly told that there will be no support for her.
The short case study is set when Anna realizes the failure of her change initiative. The case discussion allows analyzing and discussing various mistakes in the areas of:
- defining an attractive vision and strategy,
- reading and playing the organizational culture, power and politics,
- communicating a change initiative successfully,
- managing the stakeholders.
The case is supported by a 6-minute video showing Anna reflecting on the events, her analysis of failure, and her personal preferences as of December 2008.

Teaching note Yes
Also available in German
Length 9p
Industry Medical equipment & devices
Geographical setting Germany
Size 33.000 employees
Setting period 2007
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ESMT Case Study

Auchan in Syldavia: Formulating a strategy for the new subsidiary

ESMT Case Study No. ESMT-309-0091-1
2009 CEEMAN Case Writing Award
Francis Bidault, Geneviève Féraud (2010)
Abstract:
Subject(s): Strategy and general management
Keyword(s): general management, mergers and acquisition, business strategy, change management, corporate culture

Michel Portal, an executive with Auchan in France, has been appointed to head up a new acquired subsidiary in the imaginary country of Syldavia. This case is based on a real situation that has been disguised to ensure confidentiality of the persons involved. Syldavia, as a the host country is depicted as a economy in transition, and as such could be considered as one of the eastern and central European countries, although the case that inspired this situation is not situated in this part of the world. Auchan Syldava is typical of a "taking charge" case study where participants are expected to help Michel Portal, the new CEO, to develop a strategy for his new assignment for a company that he is expected to turn-around in a relatively short time span. The case provides a detailed description of the Grünfeld group which Auchan has acquired as well as the strategic, organizational and cultural context both at the mother company and the new subsidiary.

Teaching note Yes
Length 27p
Industry Mass retail
Geographical setting Southern Europe
Size €1 billion
Setting period 2000
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ESMT Case Study

Do you really think we are so stupid? A letter to the CEO of Deutsche Telekom (A)

ESMT Case Study No. ESMT-409-0100-1
2013 ecch Case Writing Award Human resource management/organizational behavior, 2011 ecch Case Writing Award Best-selling Case
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Adaptive change, role of leadership, communication of change, resistance to change, leadership and public relatiuoins, change leadership

This three-part case-study illustrates key concepts and lessons about leading adaptive change in organizations in the context of turning around Deutsche Telekom, one of the world's largest telecommunication companies. The case portrays some of the efforts undertaken by Deutsche Telekom under the leadership of René Obermann after his ascent to the CEO position in that organization. The case illustrates the challenges associated with resistance to adaptive change, management of expectations of organizational members from their leaders, and the psychological challenges of leading necessary, but unpopular, change efforts under the conditions of pressure from organizational stakeholders, who consciously or unconsciously attempt to divert the change-oriented leader from pushing the organization forward. The case serves as fruitful ground for exploration of the theory of adaptive change as put forward by Heifetz & Linsky (2002), Heifetz, Grashow, & Linsky (2009a, 2009b), discussion of the dangers of leading (Heifetz & Linsky, 2002), and psychological challenges of leading (Kets de Vries, Korotov, & Florent-Treacy, 2007).

Teaching note Yes
Also available in German, Russian, Spanish
Length 10p
Industry Telecommunications
Geographical setting Germany
Size Large
Setting period 2007–2008
Related Do you really think we are so stupid? A letter to the CEO of Deutsche Telekom (B)
Do you really think we are so stupid? A letter to the CEO of Deutsche Telekom (C)
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ESMT Case Study

Celtel Nigeria: Towards serving the rural poor (A)

ESMT Case Study No. ESMT-309-0096-1
2008 EFMD Case Writing Award African business cases
Martin Kupp, Jamie Anderson (2009)
Abstract:
Subject(s): Strategy and general management
Keyword(s): low-income consumers, poverty, developing countries, rural marketing, sales strategy, sales management, base of the pyramid, marketing, Africa, Nigeria, telecommunication, mobile communication, convergence

This is a two part case study that explores Celtel Nigeria's innovative approach to serving the rural poor. The A Case provides an overview of the mobile telecommunications market in Nigeria as of mid 2007, as well as detailed demographic and socioeconomic information. At the time of the case Celtel Nigeria is the second largest mobile telecommunications company in the Nigerian market with a 28% market share and subscriber base of approximately 8 million. The company has experienced considerable success in serving Nigeria's cities and larger towns, but has only recently shifted its attention to serving poorer consumers in rural areas - a massive but as of yet under tapped market. But this shift from urban to rural has not been easy, and although some 50% of Nigeria's population lives in rural regions the challenges of reaching them sometimes seem overwhelming. The absence of a reliable national electricity grid means that the company's rural telecommunications towers have to be run on diesel generators, resulting in high maintenance and diesel fuel costs. Theft and vandalism of expensive communications equipment and generators has emerged as a major concern, resulting in the need to employ full-time security guards on virtually every base station site outside of urban areas. The distribution and marketing of products and services is also a challenge, with existing distributor networks well established in urban areas, but virtually absent from the countryside. On top of all this, while there is real demand for telecommunications services most consumers in rural areas still see mobile telephony as an expensive necessity, with affordability remaining a very real issue for many communities. At the end of the A Case Celtel Nigeria's Chief Operating Officer Lars Stork is pondering the challenges of bringing the benefits of mobile telecommunications to Nigeria's rural poor, setting the scene for analysis by students in suggesting potential route to market approaches for the company. The B Case demonstrates how Celtel has been able to implement a highly innovative marketing strategy to serve low-income rural customers. At the heart of this marketing approach is what is called the Rural Acquisition Initiative (RAI), a micro-franchising model involving partnerships with local entrepreneurs. It is recommended that both Case A and B are distributed to students, but the case can also be taught if only the A Case is distributed. In the latter situation, instructors will still need to review the B case to be able to explain the business model behind the rural acquisition model. There is also PowerPoint pack and video CD-Rom to complement the case study, and both are highly recommended to enhance the classroom experience. Both can be ordered via the ECCH Collis website.

Teaching note Yes
Length 20p
Industry Telecommunications
Geographical setting Nigeria, Africa
Setting period 2007
Related Celtel Nigeria: Towards serving the rural poor (B)
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ESMT Case Study

Sitting pretty: Customer-driven innovation at Faurecia car seating

ESMT Case Study No. ESMT-606-0057-1
2006 EFMD Case Writing Award Marketing
Alessio Castello, Francis Bidault (2007)
Abstract:
Subject(s): Product and operations management
Keyword(s): Manufacturing strategy, supply chain, new product development, innovation

The case study presents the situation faced by Faurecia over the last few years in terms of strategic direction and operations management in the highly competitive environment of car seating.
In a consolidating market, in which survival is based on cost containment and performance excellence, Faurecia, the third largest car seat supplier worldwide, decided to launch an ambitious program to promote innovation and to optimize the new product development process.
The case study analyzes the evolution of the supply chain for car seats, its market demand, the evolving business model imposed by carmakers and the impact it has on sourcing and manufacturing. The central issue of the case is how Faurecia should organize its new product development process in order to increase its performance and involve its customers and its suppliers earlier in the process.
The case provides an opportunity to discuss how a large multinational company can leverage a changing market demand by tuning its business model and adapting its product offering while staying abreast of competition with increasingly innovative solutions. The case lead to discussing issues relative to the organization of the new product development process in a price sensitive market, the design for manufacturing concept and the cooperation/competition role that different companies have to play in a complex supply chain.

Teaching note Yes
Length 20p
Industry Automotive parts & accessories
Geographical setting Global
Size 60,000 employees
Setting period 2005
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ESMT Case Study

Zopa.com

ESMT Case Study No. ESMT-306-0065-1
2009 ecch Case Writing Award Best-selling Case, 2008 ecch Case Writing Award Best-selling Case
Jamie Anderson, Martin Kupp (2006)
Abstract:
Subject(s): Strategy and general management
Keyword(s): Competitive advantage, differentiation strategy, first movers, general management, Internet,; market share, resources, strategy, value innovation, web-based technologies

Launched in early 2005, Zopa is a peer-to-peer online brokerage that couples British residents who want to lend with those who want to borrow. The company represents a new business model in the retail financial services industry, and since Zopa is not technically a bank and does not lend money itself, the capital requirements to run the business are relatively small. Compared to a traditional full service bank Zopa concentrates on only a few steps of the value chain. This case study provides an overview of the financial service industry, especially banks, in the UK in 2006 and how Zopa, a value innovator, has developed a unique position in the market through an innovative business model. Rich data especially on banking trends are given. Additional data on key players in the industry are supplied. This data will enable students to develop a good understanding of the elements of a value innovation and how technologies have the potential to shake up an established industry structure and its key players. A focus is on the concept of value innovation and sustainable competitive advantage. The case can also be used to address the topic of how incumbent firms should respond to innovative new business models.

The case provides an overview of the financial service industry in the UK in 2006 and how Zopa, a value innovator, has developed a unique position in the market through an innovative business model. Rich data especially on banking trends are given. Additional data on key players in the industry are supplied. This data will enable students to develop a good understanding of the elements of a value innovation and how technologies have the potential to shake up an established industry structure and its key players. A focus is on the concept of value innovation and sustainable competitive advantage.

Teaching note Yes
Length 21p
Industry Financial services
Geographical setting United Kingdom
Setting period 2006
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ESMT Case Study

Smart Communications Inc. (A)

ESMT Case Study No. ESMT-505-0032-1
2006 EFMD Case Writing Award Managerial issues in transitory economies
Jamie Anderson, Arun Khan (2005)
Abstract:
Subject(s): Marketing
Keyword(s): marketing, developing world, mobile, innovation, segmentation, Smart, poverty, 4Ps, marketing strategy, telecom, telecommunications, Vodafone, Orange, network

This is the first of a two-case series. The case series explores Smart Telecommunication Inc's innovative approach to serving low-income customers in the Philippines. The case introduces a framework for developing strategies to serve low-income customers in developing countries - the 4A's. This framework is an adaptation of the classic 4P's of marketing that are likely to have been covered early in any marketing course. Case (A) provides an overview of the mobile phone market in the Philippines as of early 2003, as well as demographic and socioeconomic information. According to analysts, the mobile phone market in the country is heading towards saturation due to the fact that the majority of the population is unable to afford mobile services. It is estimated that in a best-case scenario, 35% of the population will be using a mobile phone by 2008. The CEO of Smart, Napoleon L Nazareno asks if it might be profitable to serve the massive but still untapped pool of low-income consumers, or whether his company should focus on pursuing market development opportunities to increase revenues from existing customers.

Teaching note Yes
Length 7p
Industry Telecommunications
Geographical setting Philippines
Size Large
Setting period 2003
Related Smart Communications Inc. (B)
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