Case Studies | Luiss Business School

A gas-fired combined cycle power plant in the Republic of Armenia: a winning international partnership

Autori: Matteo Caroli, Leopoldo Mandelli, Luca Silla, Amerigo Silvestri Abstract: In December 2016, the government of the Republic of Armenia (RA) signed a memorandum of understanding (MoU) with an Italian medium-sized construction company, Renco S.p.A Group (RESpa). The MoU detailed the indicative commitments of the three pivotal counterparts potentially involved: the Armenian government (the project promoter), RESpa (the project’s main initial developer) and the to-be-established project company (the special purpose vehicle – SPV or “project company”). The MoU, based on a Build-Own-and-Operate (BOO) project financing contractual framework, defined the preliminary responsibilities concerning the design, construction, operation and maintenance of a 250MW gas-fired combined cycle power plant in Yerevan, Armenia’s capital city (the “project”). The new plant was originally expected to replace part of the energy production of an old nuclear power plant which needed to be refurbished. For RESpa and its top management, the Chairman and the CEO, the MoU constituted a real turning point and great opportunity to improve RESpa’s track record and market position as an emerging international EPC (engineering, procurement and construction) player in the energy sector. However, the project encompassed various challenges for RESpa in terms of technical and industrial complexity, legal and commercial matters and, above all, considerable potential employment of capital and financial resources. On the one hand, the CEO and the management team were aware of the opportunity and prestige created by the MoU, but, on the other hand, they knew all too well that the project would generate a variety of critical risks which, if not managed properly, could damage the company’s reputation and stress its financial position. RESpa and its management were therefore required to find an efficient and winning solution to seek industrial and financial partners without losing visibility vis-à-vis Armenian political decision-makers, competitors and other market players. The key success factors for RESpa were identifying the most suitable project working organisation, project partners, several co-investors and the right risk strategy to cover operational and political risks. Download Case Study Richiesta Teaching Notes

ACEA thinking outside ACEA: How a 110-years old, asset-intensive company innovates its Innovation model and designs an Innovation Factory

Autori: Maria Isabella Leone, Laura De Lorenzis. Abstract: Even today, as in the times of ancient Rome, May is considered the month of sowing and new opportunities. Also, in Acea it is time for unveiling a new course of actions. Born in the south of Italy but grown up in Milan, Stefano Antonio Donnarumma, was aware of this opportunity, when he entered the Acea main building, in the role of the new CEO in May 2017. Donnarumma’s mission was not the most ordinary one: to launch Acea into the future, not in a progressive way but in an incomparable leap forward. In Donnarumma's mind, a single imperative: how to turn an industrial, asset-intensive company into an open and smart company and do it fast. Download Case Study Richiesta Teaching Notes

Mission Opportunity Progession Smart

AMGEN: quando lo smart working diventa lavoro agile per una crescita sostenibile. Il ricercato equilibrio tra DNA aziendale, ingaggio dei dipendenti e competitività

Autori: Maria Isabella Leone, Ginevra Assia Antonelli Abstract: New York, Pechino, Londra, Amsterdam, Milano. In qualsiasi città e fuso orario operino, terminato lo stato di emergenza del Covid-19, i CEO delle organizzazioni di tutto il mondo si interrogano sul futuro del lavoro, dentro e fuori le loro aziende. In questo clima di grande fermento e incertezza, anche Amgen – multinazionale americana innovativa nel settore delle biotecnologie – è chiamata a decidere del destino dell’azienda, e dei dipendenti stessi, nel cosiddetto scenario del “new normal”. Al momento della scelta, a livello globale, la matrice americana dell’azienda si svela subito, con l’adozione di una modalità di lavoro “face-to-face only on purpose”, che fa tesoro delle lezioni apprese nei mesi di chiusura forzata e si rinnova con strumenti facilitatori, come FlexSpace, una piattaforma per la gestione degli spazi di lavoro flessibili e on-demand. Quando poi la decisione viene lasciata all’autonomia delle aziende dei singoli Paesi, gli orientamenti nazionali e, in particolare, la cultura organizzativa prevalente ne determinano opportunità e sfide. Di fronte, dunque, al ritorno conservativo di molte realtà aziendali italiane, Amgen Italia si trova davanti ad un bivio: ritornare ad un modello più tradizionale, seppur prevedendo giornate di smart working settimanali, o adottare sistematicamente un nuovo modello di lavoro agile che lasci più autonomia, flessibilità e responsabilità ai propri dipendenti? Le variabili da tenere in considerazione sono numerose così come i quesiti da porsi. Il Leadership Team si interroga e si consulta con Livia Alessandro, Direttrice Risorse Umane di Amgen Italia. Da una parte, un’eventuale marcia indietro, rispetto all’apertura a forme di lavoro flessibili estese a tutti i dipendenti, sarebbe considerata incoerente sia con le scelte già compiute, in tempi pre-Covid-19, sia con il dna dell’impresa di cui si fanno portavoce: “una realtà innovativa, giovane ed inclusiva”. Dall’altra, scelte più flessibili sono generatrici di nuove sfide e richiedono un cambiamento culturale sistematico. È ora di disegnare il futuro dell’azienda in questo nuovo scenario adottando un modello che sia in linea con la strategia dell’impresa e, allo stesso tempo, frutto dell’ascolto diretto delle persone Amgen. Quali scelte compiere? E quali sfide si stagliano all’orizzonte per assicurare una crescita organizzativa sostenibile? Download Case Study Request Teaching Notes

Cultura organizzativa Responsabilità Sostenibilità Strategia

Amplifon in the US: A Story of Customer-Centric International Growth

Autori: Antonio Majocchi, Alessandro Zattoni Abstract: Amplifon is a multinational corporation, headquartered in Milan, that operates in the retail hearing aids sector. The company has an extensive network of shops, and it specializes in customizing and fitting hearing aids and in distributing an extensive range of accessories to solve problems related to the loss of hearing. Since 2001, Amplifon has been listed on the Italian Stock Exchange. It joined the STAR segment in 2008, the FTSE-MIB Index in 2018, the Stoxx Europe 600 in 2019, and the MSCI Global Standard index in 2020. Amplifon is expected to have close to €2 billion in sales in 2021. It operates in 27 countries, and it has around 18,000 employees in a network of 11,500 points of sale. Amplifon competes in the hearing aid retail market, an industry that is highly fragmented at the global level. Amplifon is the global leader, with almost twice the market share of its largest competitor, but its worldwide share is just over 11%. The major players in the industry compete fiercely to lead the consolidation of the space. The sector is undergoing rapid development, thanks in part to the modernization impulse given by Amplifon in recent years. Hearing devices are highly technological products with continuous innovation, and distribution models are now experimenting with digitalization opportunities. Moreover, renewed interest in consumer hearing devices like Apple AirPods is bringing new products and technologies to market. The challenges facing competitors are diverse and complex. The market that best exemplifies the size and the depth of the challenges in the US market where Amplifon has been present since the early 1990s. Giulio Pizzini (Chief Strategy & Business Development Officer at Amplifon) explained the company’s challenges in the US market: “In the US we are the leader in the premium market, but we want to further increase our market share and consolidate our competitive position. Leadership in the US is fundamental not only because it is the largest retail market, covering around 40% of the world market, but also because this is the most innovative market where new technologies and innovation in retail tend to emerge first.” Download Case Study Richiesta Teaching Notes

Development Digitalization Retail Marketing Technologies

Art and Science of Managing Paradox of Open Innovation

Autore: Prem Sagar Menghwar Abstract: In April 2021, Edward Robb, an entrepreneur, who has been running the family business for the past twenty years, looked back at the last decade’s performance of their companies Applied Medical Coatings and Robb Surgical. Applied Medical Coatings was born as a spinoff company from Metal Cladding in 2003. However, Metal Cladding was established in 1943 by Edward Hupt Robb’ great uncle of Edward Robb. In the last 75 years, Metal Cladding has been an industry leader in providing applied coating technologies that enhance products’ performance while increasing market sustainability at the optimum cost. Metal Cladding has mainly provided products and services to United States Federal Agencies and Armed Service Branches for nearly six decades. In comparison, Applied Medical Coatings (AMC) was established to provide services to the medical industry. The core capability of AMC is that it has the potential to design and develop multiple coating solutions according to the needs of its customers. The company values and uses feedback from its two main stakeholders- corporations and healthcare surgeons- to develop, design, and refine the products. Using a multiple-step iterative process, the company collaborates with stakeholders on developing a range of products manufactured in the USA. However, deliver at the same or lower price developed outside the USA, where production costs are much lower. To achieve this goal, the company collaborates, putting its core knowledge at risk. Each time it collaborates with partners, the company faces the classical paradox of open innovation – how to protect its knowledge while benefiting from external knowledge. So far, it has managed to preserve its internal knowledge and capabilities while collaborating with external stakeholders. However, a new partner has brought colossal business but has asked for complete information about the product development process. It has demanded that it inspects each step in order to ensure that the products meet the criteria. Edward doesn’t want to lose this big customer; however, he can’t also take the risk of sharing the core knowledge. Second, in 2013, another company, Rob surgical, was established as a spinoff company of applied medical coatings. This company works in collaboration with doctors and people who work at universities and has an idea about developing a new product. This company manufactures new medical devices and sells them directly in the market. This collaboration brings other communication challenges because doctors and engineers speak different languages. Besides this, the Covid-19 crisis has disrupted supply chain issues due to the lockdown and closing of elective hospital units. These challenges are critical and pose a risk to the sustainability of the companies; hence, Edward is thinking of approaching his father and engineering team, who has vast experience, and trying to find a way to address these issues to ensure the survival of his family business. Download Case Study Richiedi Teaching Notes

Challenges Family Business Stakeholders Sustainability

Australia General Construction, Inc.

Autori: Saverio Bozzolan, Fabio Accardi, Roberto Rosato Abstract: John Richmond, a thirty-eight-year-old with a degree in Construction Engineering with a MBA,is the Chief Audit Executive (CAE) of Salmon Creek Engineering and Construction LLC (SCE&C).SCE&C is listed in the New York Stock Exchange, and it operates on a global scale in the large infrastructure industry, with General Contracting, Project Financing and Operation & Maintenance Divisions. John became the Chief Audit Executive since few months, after working for four years in a large international auditing company and following for about two years as Controller of a medium-sized construction company. It was a quite Friday afternoon and John started to plan his weekend making order on his desk when the phone rang. The CEO's assistant told him that Robert Marshall (CEO) needs to meet him immediately. When John entered in the CEO’s office, the CEO went immediately to the reason for the meeting. "Dear John" he began "you have been with us for a few months and we are very happy with how you are working. The position of CAE is covered by a person who does not limit himself to verifying that "the procedures are respected" but that is able to make a contribution to the achievement of our strategies". "For this reason," Robert continued, "I would talk about an ambitious and reserved project that we have for our expansion abroad. As you know the SCE&C’s objective, in the execution of our worldwide strategy as per 2019 - 2022, is to enter into the Australian market. With the aim to minimize environmental and market risks, we have been looking for potential acquisitions of an existing company (M&A). After a very careful analysis of possible target firms, the choice is going towards the Australia General Construction, Inc. (AGC).” Download Case Study Richiesta Teaching Notes

Environment Market Risks Strategy Worldwide

Banca FINNAT. “HNWI WEALTH: Growth through Transparency” - ENG

Autori: Paolo Nattino, Carlo Pittatore, Maurizio Corsoni, Enrico D’Onofrio Abstract: Paolo Nattino stood in his office in the prestigious Palazzo Altieri, looking out of the window overlooking Piazza del Gesù in Rome, pondering the future of Banca Finnat Euramerica (BFE), which had been founded by his family well over a century earlier. His mind was immersed in the dilemma presented by the imminent introduction of the Retail Investment Strategy (RIS), which was in the process of being approved by the European Commission and which could lead to the implementation of a new integrated and holistic advisory contract. As Paolo contemplated the situation, the opportunities and risks of this new strategy emerged in his mind. On the one hand, an integrated approach would have allowed the bank to offer more comprehensive and personalised advice to its clients, taking into account a wide range of factors, including financial goals, wealth situation and risk profile. This could have led to greater customer confidence and satisfaction, as well as potential business growth opportunities. On the other hand, there were also risks considering. An incorrect or ineffective implementation of the new consultancy contract could have led to increased operational complexity and potential conflicts of interest. Furthermore, the introduction of a new strategy required adequate staff training and significant investments in technology and human resources. Download Case Study Richiedi Teaching Notes

Investments Opportunity Risk Strategy

Being friends or being in a fight club: Organizing work amidst conflicts. How politics, egos, and tensions among physicians disrupted vital work in a cardiac department

Autori: Sriteja Reddy Wudaru, Andrea Prencipe Abstract: In Jupiter, a leading international hospital in Southern India, around 20 cardiac physicians share two “Catheterization Laboratories” to perform interventional cardiac procedures for patients. Jupiter’s management has designed a schedule that allocates the labs in 1- or 2-hour slots to different physicians at different times on different days. Additionally, they have also appointed a coordinator to ensure the physicians respect the schedule and to manage any discrepancies that may arise. Because only 2 labs are present, a physician can perform a procedure only if another physician already using a lab hands it over on time. But these hand-offs never go according to the plan because of a few reasons. Jupiter implements a unique fee-for-service business model. It does not pay physicians a fixed salary; instead they earn a fee for seeing patients in their “out-patient” offices, and a share in the amount earned through interventional procedures. To balance procedures and out-patient office, physicians often put their patients in the lab and go back to their out-patient offices. The lab remains blocked and other physicians cannot use it. This derails everyone’s schedule within and beyond CCL. Physicians also plan their procedures in ways that benefit them without any concern towards others’ work. Additionally, the interpersonal competition amongst physicians has put pressure on them to appear superior to their peers. They try to highlight their own skills or defame or trash-talk about others. As more and more physicians engage in such behaviors, even those who joined the hospital recently think this is legitimate and acceptable behavior. There is also a lack of loyalty towards and identity with the hospital as physicians work in other organizations too. As they can leave taking their patients with them, Jupiter’s top management is reluctant to impose sanctions on the physicians for not following the rules. As a result, frequent tensions occur amongst physicians who often resort to arguing and even fistfights. The coordinator often tries to resolve these conflicts through various tactics but no concrete solution seems to be possible. Download Case Study Richiesta Teaching Notes

Business model Competition Management Organization

Benelux Baltics in Business Case

Autore: Agne Nainyte, Gabriel Mayrink Abstract: Benelux Baltics in Business (BBinB) is a non-profit networking organization founded by four Lithuanian professionals residing in both Lithuania and the Netherlands. Established in 2020, BBinB aims to connect entrepreneurs and business professionals from the Baltic and Benelux regions to facilitate international business growth and networking opportunities. The organization’s flagship event, an annual conference in Amsterdam, has become a pivotal platform for fostering connections and promoting business collaboration these regions. This business case explores the founding story, motivations, key events, challenges, and future strategies of BBinB, providing insights into the dynamics of establishing and sustaining an international networking organization. Download Case Study Richiedi Teaching Notes

Entrepreunership Networking Opportunity Organization

Brand Development through Brand Extension and Licensing: Pininfarina Extra

Autore: Marco Francesco Mazzù In cooperation with Pininfarina Management Abstract: Year 2012 started as a key defining moment for Pininfarina Group and its future. In the eyes of the management team, the last five years have been full of hitches. A lot of personal energies have been dedicated to guide the organization through a set of diverse and serious challenges: years between 2007 and 2011 were characterized by the Global crisis of the Automotive sector, main historical focus of the group; some investments in partnership with major OEM did not reach the expected pay-off; the group has been forced to rethink its historical focus of activities, and, even more important, the dramatic death of Andrea in 2008, CEO of the Group at that time, forced an unexpected and unplanned change in leadership an internal governance, including the entrance of the first external members to Pininfarina’s family in top management position. Despite continuing to succeed with its image in the market, as testified by winning several international “best designer” awards, a strong bank intervention has been needed to guarantee company continuity, and sales were not coping up with the expected level to support future growth. In addition, some of the core activities have been divested. It has been clear to the management, that the historical company focus, and the Automotive market was not anymore enough to support a healthy outlook. Something more should also be done to develop other “internal jewels” of the company as Pininfarina Extra (PFE), founded in 1986, and focused on bringing the company’s design culture and comprehension of modern life, culture and social paradigms to other categories of industrial design. However, several growth alternatives were present for PFE, each balancing different opportunities and risks. Would it be better to focus PFE on automotive-related accessories or move it to completely different categories? What would be the product/services that could best fit with Pininfarina heritage and Brand values? Would the development of PFE change the company’s BrandTelling? What would be the most appropriate business model (internal development vs. licensing) and which new competencies should be in place? How to ensure that resources dedicated to this business area would have a positive return both in terms of Brand Equity and financial impact? What elements of the Brand Equity could support this bridge and how would the market react? Every move was apparently a sliding door: every managerial decision, in a moment of scarce resources, could lead to a no-return direction for the company. Download Case Study Richiesta Teaching Notes

Brand Decision Impact Values

Bridging Profit and Purpose: Italiacamp’s Impact Journey

Autori: Jordana Rech Graciano dos Santos, Fabrizio Sammarco, Elisabetta Scognamiglio, Ian McCarthy Abstract: Since 1970, when Milton Friedman wrote his famous article in The New York Times arguing that a business’s primary goal should be to maximize profits, many companies have embraced this view. This marked the rise of shareholder theory, which focuses on the idea that a company’s main aim should be to maximize returns for its shareholders. Over time, especially in recent years, economic theories and business practices have evolved to adapt to new realities after some important external events, such as financial crises and environmental crises, have demonstrated that a business cannot consider only the interests of shareholders but also the value (not just economic) that it can create or destroy through its operations. Important concepts, such as blended or creating shared value (CSV), challenge Friedman’s view that profits should be measured solely economically. Both concepts relate to economic and societal progress relationships, generating economic and societal benefits instead of merely donating money to a certain cause or defining business’ responsibilities to address societal challenges. Today, many companies recognize that financial success is not the only important outcome—social and environmental impacts also matter. This broader approach emphasizes the importance of the well-being of employees, communities, and the environment, showing that businesses can create value beyond financial profit. Combining profit-driven motives with social impact goals is a crucial area of study and practice. Many companies are changing their institutional logic to address their challenges better. This teaching case gives an example of a hybrid company that effectively manages the challenges of this new logic. Download Case Study Richiedi Teaching Notes

CSR CSV Profits Shareholder Theory

Building and strengthening a global culture: The case of UNIQLO Europe

Autori: Silvia Dello Russo, Daniele Mascia Abstract: UNIQLO is a global brand belonging to Fast Retailing Group, one of the world’s largest retail group. The group overall counts approximately 3500 stores worldwide and its global sales reached 16.6 billion US dollars in 2022 (at the end of their fiscal year which is the end of August), a 7.9% growth on the previous year (excluding exchange rate variation). Within the Fast Retailing Group, UNIQLO is the largest of the eight brands, which all operate in the apparel and fashion industry. Some of the brands are more geared toward the luxury segment – although an “affordable luxury” – such as Comptoir des Cotonniers; while others, such as UNIQLO, are more casual outfitting. UNIQLO is the lead-brand, and the one that best represents the group’s defining identity. Download Case Study Richiesta Teaching Notes

Fashion Identity Industry Luxury

Business strategy formulation, the age of agile and current dilemmas

Autore: Rogier Senn van Basel Abstract: EverGreen Bank (fictional name) is a large European financial institution, serving millions of customers with over 50,000 employees. EverGreen Bank is serving both retail, SME companies as large corporate customers and provides products and services ranging from payments, consumer loans such as mortgages, business loans, as well as finance and advisory for the larger corporate customers. Download Case Study Richiedi Teaching Notes

Corporate Retail SME

Contadinner: Knowledge sharing and social innovation in the Italian agricultural sector

Autori: Matteo De Angelis, Giuseppe Savino Abstract: In 2014, when he was 33 years old, Giuseppe Savino decided to leave the permanent job he had been carrying out for 6 years at an Italian aerial service transportation company and found a notfor-profit organization called “Terra Promessa”, along with his brother Michele, his two friends Valeria Carannante and Sanny Torretta, and Don Michele de Paolis, a Salesian priest died at the end of 2014. Son of a farmer based in the area of Foggia, in Apulia, a region located in the South East of Italy, Giuseppe envisioned a revolutionary concept of agriculture: no longer strain and hard work only, but also dream, culture and innovation. This change, in Giuseppe’s vision, needed to ground on a deep cultural change that should have happened in the whole agricultural sector of the Southern Italy: from the typical isolation of farmers to mutual trust and proneness to share knowledge and practices. A few days after, Giuseppe was given 250 euro by Don Michele to register the trademark “Vazapp”. In vernacular, va’zàpp means “go hoeing the soul” and it is an exhortation typically used in the Southern Italy in a derogative manner to warmly invite someone to stop saying lies or using his/her time in an unproductive way. Overturning such a derogative meaning, Vazapp was born under the initiative of a few young professionals led by Giuseppe Savino as a rural hub “which provides innovative solutions to activate social relations among farmers” and whose core mission is to foster territorial identity, social innovation and knowledge sharing among farmers. More generally, the mission of Vazapp is to give dignity and hope to farming so to foster young people to experience it, to make it become their own world and to deeply change it rather than leaving their territory in search of something different and often very risky. Paramount to implement this mission, Vazapp’s people thought, is their ability to instill trust in farmers, which means allowing farmers to overcome the diffidence and the tendency to stay isolated rather than collaborating and sharing their know-how, ideas and farming practices that typically characterize them. Download Case Study Richiesta Teaching Notes

Agricultural Identity Knowledge Practices

Danone and PizzAut: a partnership linking purpose driven organizations

Autori: Alessandro Zattoni, Jordana Rech, Graciano dos Santos Abstract: Danone group operates in Italy through one legal entity, Danone Nutricia SpA Società Benefit, active on three categories of products: dairy and plant-based products, baby food and medical nutrition. In line with Danone’s vision “One Planet. One Health”, the corporate goal is to combine profit and purpose. Danone Italy’s main responsibility is to market and sell global and local products in Italy and Greece. Typically, the company develops local marketing campaigns or adapts global campaigns to the Italian setting (e.g., by identifying local partners and ambassadors), manages the distribution and sales of products, and nurtures good relationships with the local stakeholders. Danone Italy developed either new products (like Activia Kéfir) or innovative HR practices (like the parental policy) that have been later adopted by the Danone group. The leadership team of Danone Italy is striving to develop new business opportunities for helping the company to successfully combine Danone’s dual social and economic mission. However, satisfying these two company goals is a continuous struggle as it is not easy to predict (ex-ante) if the strategic plan or decisions will satisfactorily address the trade-off between profit and purpose. This trade-off concerns every aspect of the company, from the products to the marketing campaigns, from the HR practices to the selection and involvement of external partners. Download Case Study Request Teaching Notes

Corporate Goals Mission Profit Purpose

Danone: A purpose driven company

Autori: Alessandro Zattoni, Jordana Rech, Graciano dos Santos Abstract: At the beginning of 2023, Danone SA group operates in over 120 countries with a diverse product portfolio focused on fresh dairy products, early life nutrition, water, and medical nutrition. Since several decades, Danone group is striving to combine successfully purpose and profit. In 2023, about 74% of Danone global sales are covered by B Corp certification and the group aims at obtaining a global B Corp Certification by 2025. In line with its vision “One Planet. One Health”, the corporate goal is to combine profit and purpose. However, satisfying these two company goals is a continuous struggle as it is not easy to predict (ex-ante) if the strategic plan or decisions will address satisfactorily the trade-off between profit and purpose. As a result, it is still an open question if a listed company with dispersed ownership (like Danone SA) can combine purpose and profit. Download Case Study Request Teaching Notes

Corporate Goals Mission Profit Purpose