First Look

First Look summarizes new working papers, case studies, and publications produced by Harvard Business School faculty. Readers receive early knowledge of cutting-edge ideas before they enter the mainstream of business practice. For complete details on faculty research, see our Working Papers section.

August 28

Should LEGO play the game?

When LEGO executives plan upcoming products, the key question is, how many bricks? Bricks, those familiar snap-together parts of LEGO products, control everything from profit margin to designer happiness. (Designers want to use more bricks to spur innovation, while the operations team wants fewer for the sake of simplicity and reuse.) But component count is just one of the major decisions facing CEO J°rgen Vig Knudstorp as he ponders taking the company in a whole new direction: board games. Read the case study, "LEGO," by Jan Rivkin, Stefan Thomke, and Daniela Beyersdorfer.

Sell-side versus buy-side

Most research on equity analysts focuses on the decisions of sell-side analysts in banks and brokerage houses. When Boris Groysberg, Paul M. Healy, George Serafeim, and Devin M. Shanthikumar turned a lens on buy-side analysts, they discovered a group with different motivations and recommendations than their sell-side brethren. "We find that the buy-side firm's analysts issue less optimistic recommendations for stocks with larger market capitalizations and lower return volatility than their sell-side peers, consistent with their facing fewer conflicts of interest and having a preference for liquid stocks." Read their results in "The Stock Selection and Performance of Buy-Side Analysts," forthcoming in Management Science.

Plugging carbon leaks

Carbon regulation programs can significantly add production costs for companies, so much so that they will instead take their manufacturing offshore or outsource to other firms. Then result: carbon leakage, or the displacement of carbon emissions to distant locations. David F. Drake investigates the use of carbon tariffs as one way to deal with this problem in the paper "Carbon Tariffs: Effects in Settings with Technology Choice and Foreign Comparative Advantage."

 

Publications

Individuals' Decision to Co-Donate or Donate Alone: An Archival Study of Married Whole Body Donors in Hawaii

Abstract

An abstract is unavailable at this time.

Read the paper: http://dx.plos.org/10.1371/journal.pone.0042673

Mandatory IFRS Adoption and Financial Statement Comparability

Abstract

This study examines whether mandatory adoption of International Financial Reporting Standards (IFRS) leads to capital market benefits through enhanced financial statement comparability. UK domestic standards are considered very similar to IFRS (Bae et al., 2008), suggesting any capital market benefits observed for UK-domiciled firms are more likely attributable to improvements in comparability (i.e., better precision of across-firm information) than to changes in information quality specific to the firm (i.e., core information quality). If IFRS adoption improves financial statement comparability, we predict this should reduce insiders' ability to benefit from private information. Consistent with these expectations, we find that abnormal returns to insider purchases-used to proxy for private information-are reduced following IFRS adoption. Similar results are derived across numerous subsamples and proxies used to isolate IFRS effects attributable to comparability. Together, the findings are consistent with mandatory IFRS adoption improving comparability and thus leading to capital market benefits by reducing insiders' ability to exploit private information.

Epistemic Contests and the Legitimacy of the World Trade Organization: The Brazil-USA Cotton Dispute and the Incremental Balancing of Interests

Abstract

The World Trade Organization (WTO) features prominently in studies of international institutions, often cast either as a tool of rich-world domination over the poorer South or as a neutral mediator facilitating a tariff-free world of economic prosperity. This article instead analyses how the WTO has sought legitimacy for itself and for the underlying institution of free trade in the midst of questions regarding its organizational mandate and management of international trade negotiations. Historically, legitimacy for GATT and later the WTO was understood to derive from expanding membership and success at major trade round negotiations. In the past decade, and despite a lack of progress in the Doha Round, legitimacy has been built through institutional deepening by means of dispute resolution processes. This shift, I argue, raises epistemic questions of expertise, the relationship of models to real-world outcomes, and methods for bounding disputes over scientific facts. Based on a case study of the Brazil-Upland Cotton dispute and a trend analysis of over 400 total WTO disputes, I find that the WTO dispute settlement process is helping to legitimize the institution of free trade through its public display of rational authority and neutral expertise. At the same time, dispute panels have begun to pass judgment on issues of econometric and scientific uncertainty. As a result, the basis for the broader legitimacy of the WTO is shifting from questions of representation that have long drawn attention to epistemic issues, especially concerning the design of international trade models. The article thus provides insights on the resolution of disputes in global trade while contributing to our understanding of the evolving role of modeling at international organizations.

Nations' Income Inequality Predicts Ambivalence in Stereotype Content: How Societies Mind the Gap

Abstract

Income inequality undermines societies: the more inequality, the more health problems, social tensions, and the lower social mobility, trust, and life expectancy. Given people's tendency to legitimate existing social arrangements, the Stereotype Content Model (SCM) argues that ambivalence―perceiving many groups as either warm or competent, but not both―may help maintain socio-economic disparities. The association between stereotype ambivalence and income inequality in 37 cross-national samples from Europe, the Americas, Oceania, Asia, and Africa investigates how groups' overall warmth-competence, status-competence, and competition-warmth correlations vary across societies, and whether these variations associate with income inequality (Gini index). More unequal societies report more ambivalent stereotypes, while more equal ones dislike competitive groups and do not necessarily respect them as competent. Unequal societies may need ambivalence for system stability: income inequality compensates groups with partially positive social images.

Sustainability at Dow Chemical

Abstract

Dow Chemical Company, which was founded in 1894, is now the second‐largest chemical company in the world. From the outset, the company has been committed to high‐technology research and commercial innovation in chemistry, advanced materials, and agro‐sciences. But if Dow's long history of innovation is impressive, the greatest change in the past few years has been the company's use of innovation to reinforce its commitment to sustainability. In 1996, the company produced its first set of 10‐year sustainability‐related goals. In an effort to meet such goals, the company invested a total of $1 billion in environmentally beneficial products such as new seeds and traits in Dow's AgroSciences business, solar shingles, and advanced battery technologies. Along with the social benefit of higher crop yields and reduced carbon emissions, the company's return on this investment has been estimated at $5 billion. The company was even more ambitious when setting its next set of 10‐year goals in 2006. In this statement, Dow's leadership aimed to create a culture that saw sustainability as a business opportunity from the perspective of a "triple bottom line"-a performance evaluation scheme focused on "people, planet, and profit" that construes success in terms of social benefits, environmental stewardship, and economic prosperity. Dow is now starting the process of developing its third set of 10‐year goals, with the aim of producing a plan that will ensure the viability of the company 50 years from now. With this end in mind, Dow's leaders understand their obligation to continue investing in the health and well‐being of their employees, their communities, and the environment while still creating value for their shareholders.

How to Become a Sustainable Company

Abstract

Using field and survey data we identify the characteristics of sustainable companies, and we develop a two-stage model that can help companies develop a culture of innovation, trust, and the ability for transformational change.

Read the paper: http://sloanreview.mit.edu/the-magazine/2012-summer/53415/how-to-become-a-sustainable-company/

Capturing the Link between Non-financial and Financial Performance in One Space

Abstract

An abstract is unavailable at this time.

Book: http://www.unglobalcompact.org/docs/news_events/upcoming/RioCSF/partner_deliverables/Making_Investment_Grade.pdf

Gendered Races: Implications for Interracial Marriage, Leadership Selection, and Athletic Participation

Abstract

Six studies explored the overlap between racial and gender stereotypes and the consequences of this overlap for interracial dating, leadership selection, and athletic participation. Two initial studies, utilizing explicit and implicit measures, captured the stereotype content of different racial groups: the Asian stereotype was seen as more feminine whereas the Black stereotype more masculine compared to the White stereotype. Study 3 found that preferences for masculinity versus femininity mediated White participants' attraction to Blacks relative to Asians. Analysis of the 2000 United States Census replicated this pattern with interracial marriages. In Study 5, Blacks were more likely and Asians less likely to be selected for a masculine leadership position compared to Whites. Study 6 analyzed the NCAA Student-Athlete Ethnicity Report and found Blacks were more heavily represented in masculine versus feminine sports relative to Asians. These studies demonstrate that the association between racial and gender stereotypes has important real-world consequences.

The Stock Selection and Performance of Buy-Side Analysts

Abstract

Prior research on equity analysts focuses almost exclusively on those employed by sell-side investment banks and brokerage houses. Yet investment firms undertake their own buy-side research, and their analysts face different stock selection and recommendation incentives than their sell-side peers. We examine the selection and performance of stocks recommended by analysts at a large investment firm relative to those of sell-side analysts from mid-1997 to 2004. We find that the buy-side firm's analysts issue less optimistic recommendations for stocks with larger market capitalizations and lower return volatility than their sell-side peers, consistent with their facing fewer conflicts of interest and having a preference for liquid stocks. Tests with no controls for these effects indicate that annualized buy-side Strong Buy/Buy recommendations underperform those for sell-side peers by 5.9% using market-adjusted returns and by 3.8% using four-factor model abnormal returns. However, these findings are driven by differences in the stocks recommended and their market capitalization. After controlling for these selection effects, we find no difference in the performance of the buy- and sell-side analysts' Strong Buy/Buy recommendations.

Software Platforms

Abstract

An abstract is unavailable at this time.

Book: http://www.oup.com/us/catalog/general/subject/Sociology/EnvironmentTechnology/?view=usa&sf=toc&ci=9780195397840

What Drives Corporate Social Performance? The Role of Nation-level Institutions

Abstract

Based on Whitley's "National Business Systems" (NBS) institutional framework (Whitley 1997, 1999), we theorize about and empirically investigate the impact of nation-level institutions on firms' corporate social performance (CSP). Using a sample of firms from 42 countries spanning seven years, we construct an annual composite CSP index for each firm based on social and environmental metrics. We find that the political system, followed by the labor and education system, and the cultural system are the most important NBS categories of institutions that impact CSP. Interestingly, the financial system appears to have a relatively less significant impact. We discuss implications for research, practice, and policy-making.

Delegation in Multi‐Establishment Firms: Adaptation vs. Coordination in I.T. Purchasing Authority

Abstract

This paper conducts one of the first large-scale, establishment-level empirical studies of delegation within firms. Recent contributions to a rapidly growing theory literature have focused on the tradeoff between adaptation and coordination in determining organizational structure, but empirical evidence is extremely limited. Theoretically, delegation of authority is expected when locally adapted choices are most important to the overall value of the firm, when local information advantages are significant, or when the cost of processing firmwide information at the center grows too great. Centralization is predicted when the value of firmwide coordination dominates these adaptation and information-processing concerns. Based on a novel data set containing information on establishment-level decision rights over information technology investments, I find robust conditional correlations consistent with some, but not all of these predictions. A relatively high economic value of adaptation at the establishment has a strong association with delegation to local managers, as do local information advantages and greater firmwide diversification. In contrast, a high value of within-firm coordination as measured by the value of integrated production is negatively correlated with delegation. Surprisingly, absolute size of the firm is negatively related to delegation. The overall pattern of results highlights the need for a nuanced theoretical framework that can accommodate the full range of empirical facts.

Signals across Multiple Networks: How Venture Capital and Alliance Networks Affect Interorganizational Collaboration

Abstract

In this paper, we examine the contingent effects of signals generated by different types of networks on new ventures' formation of future strategic alliances. We argue that the signaling value of a given tie in reducing adverse selection is more pronounced when another type of tie is lacking. In particular, we suggest that signals associated with (i) a new venture's affiliations with venture capitalists (VCs) that have prominent positions in syndicate networks and (ii) a new venture's prominent position in alliance networks resulting from previous alliances offer redundant benefits. As a result, the positive effect of VC prominence in determining a new venture's future alliance formation diminishes as the new venture's prominence in alliance networks increases. Evidence from biotech alliances between new ventures and established companies provides support for our theory.

 

Working Papers

Short-Termism, Investor Clientele, and Firm Risk

Abstract

Using conference call transcripts to measure the time horizon that senior executives emphasize when they communicate with investors, we explore the effect of managerial short-termism on firm's investor clientele and risk. We find that our measure of short-termism is associated with various proxies for accruals and real earnings management, suggesting that our proxy captures not just different disclosure strategies, but also different managerial styles. Next, we show that firms focusing more on the short-term have a more short-term oriented investor base. Moreover, we find that short-term oriented firms have higher stock price volatility, and that this effect is mitigated for firms with more long-term investors. We also find that short-term oriented firms have higher equity betas and as a result higher cost of capital. However, this result is not alleviated by the presence of long-term investors, consistent with these investors requiring a risk premium for holding the stock of short-term oriented firms. Our results hold after controlling for the endogeneity between short-termism and both investor clientele and risk.

Download the paper: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1999484

Liability Structure in Small-Scale Finance: Evidence from a Natural Experiment

Abstract

Microfinance, the provision of small individual and business loans, has witnessed dramatic growth, reaching over 150 million borrowers worldwide. Much of its success has been attributed to overcoming the challenges of information asymmetries in uncollateralized lending. Yet, very little is known about the optimal contract structure of such loans-there is substantial variation across lenders, even within a particular setting. This paper exploits a plausibly exogenous change in the liability structure offered by a microfinance program in India, which shifted from individual to group liability lending. We find evidence that the lending model matters: for the same borrower, required monthly loan installments are 11% less likely to be missed under the group liability setting, relative to individual liability. In addition, compulsory savings deposits are 20% less likely to be missed under group liability contracts.

Download the paper: http://www.hbs.edu/research/pdf/13-018.pdf

Carbon Tariffs: Effects in Settings with Technology Choice and Foreign Comparative Advantage

Abstract

Carbon regulation is intended to reduce global emissions, but there is growing concern that such regulation may simply shift production to unregulated regions and increase global emissions in the process. Carbon tariffs have emerged as a possible mechanism to address these concerns by imposing carbon costs on imports at the regulated region's border. I show that, when firms choose from discrete production technologies and offshore producers hold a comparative cost advantage, carbon leakage can result despite the implementation of a carbon tariff. In such a setting, foreign firms adopt clean technology at a lower emissions price than firms operating in the regulated region, with foreign entry increasing only over emissions price intervals within which foreign firms hold this technology advantage. Further, domestic firms are shown to conditionally offshore production despite the implementation of a carbon tariff, adopting cleaner technology when they do so. As a consequence, when carbon leakage does occur under a carbon tariff, it conditionally decreases global emissions. Three sources of potential welfare improvement realized through carbon tariffs require both foreign comparative advantage and endogenous technology choice, underscoring the importance of considering both in value assessments of such a policy.

Download the paper: http://www.hbs.edu/research/pdf/13-021.pdf

What Do Managers Do? Exploring Persistent Performance Differences among Seemingly Similar Enterprises

Abstract

An abstract is unavailable at this time.

Download the paper: http://www.hbs.edu/research/pdf/13-020.pdf

The Effect of Institutional Factors on the Value of Corporate Diversification

Abstract

Using a large sample of diversified firms from 38 countries, we investigate the influence of several national-level institutional factors or 'institutional voids' on the value of corporate diversification. Specifically, we explore whether the presence of frictions in a country's capital markets, labor markets, and product markets, affect the excess value of diversified firms. We find that the value of diversified firms relative to their single-segment peers is higher in countries with less efficient capital and labor markets, but find no evidence that product market efficiency affects the relative value of diversification. These results provide support for the theory of internal capital markets that argues that internal capital allocation would be relatively more beneficial in the presence of frictions in the external capital markets. In addition, the results show that diversification can be beneficial in the presence of frictions in the labor market.

Download the paper: http://www.hbs.edu/research/pdf/13-022.pdf

The Dark Side of the Vote: Biased Voters, Social Information, and Information Aggregation Through Majority Voting

Abstract

We experimentally investigate information aggregation through majority voting when some voters are biased. In such situations, majority voting can have a "dark side," i.e., result in groups making choices inferior to those made by individuals acting alone. We develop a model to predict how two types of social information shape efficiency in the presence of biased voters, and we test these predictions using a novel experimental design. In line with predictions, we find that information on the popularity of policy choices is beneficial when a minority of voters is biased but harmful when a majority is biased. In theory, information on the success of policy choices elsewhere de-biases voters and alleviates the inefficiency. In the experiment, providing social information on success is ineffective. While voters with higher cognitive abilities are more likely to be de-biased by such information, most voters do not seem to interpret such information rationally.

Download the paper: http://www.hbs.edu/research/pdf/13-017.pdf

Earnings Management from the Bottom Up: An Analysis of Managerial Incentives Below the CEO

Abstract

Performance-based pay is an important instrument to align the interests of managers with the interests of shareholders. However, recent evidence suggests that high-powered incentives also provide managers with incentives to manipulate the firm's reported earnings. The previous literature has focused primarily on Chief Executive Officers, but managers further down in the firm hierarchy-division managers and Chief Financial Officers-are likely to have similar incentives and perhaps even greater opportunity to influence reported earnings in a manner that maximizes these managers' personal income. Moreover, previous research focuses on equity incentives and largely ignores other elements of incentive pay. We contribute to this literature by analyzing all forms of incentive pay for several types of managerial positions and include additional measures of earnings manipulation-end-of-year excess sales and class action litigation-in addition to the standard measure of discretionary accounting accruals. We find that the association between high-powered incentives and earnings manipulation varies by both type of incentive pay and position. Our findings have important policy implications and suggest that compensation committees should review pay policies of other managerial positions in addition to CEOs. Importantly, if the committees wanted to weaken incentive pay to get more truthful reporting, diluting the CFO's bonus and stock options would be one place to start.

Download the paper: http://www.hbs.edu/research/pdf/12-056.pdf

 

Cases & Course Materials

The Business Development Manager

Jeffrey J. Bussgang, Thomas R. Eisenmann, Sarah Dillard, Katharine Nevins, and Puja Ramani
Harvard Business School Note 812-107

Describes the role of business development (BD) managers in technology companies, detailing the following: 1) BD managers' key responsibilities at each step in the process of creating a partnership agreement, 2) how the nature of the BD function evolves as a technology startup matures, and 3) the attributes of effective BD managers.

Purchase this note:
http://hbr.org/search/812107-PDF-ENG

Barclays Capital and the Sale of Del Monte Foods

John Coates, Clayton Rose, and David Lane
Harvard Business School Case 313-036

This case explores the reputational and legal issues that arise as Barclays Capital attempted to manage client conflicts by following established industry practice in the face of changing legal norms. In February 2011, Judge Travis Laster granted a preliminary injunction that delayed for 20 days a shareholder vote on the sale of Del Monte Foods Co. (Del Monte) to a consortium of three private equity firms. In his opinion, Laster was critical of Del Monte's board, noting that the directors may not have properly exercised their fiduciary duties, and the private equity firms. However, he saved his most severe criticism for an organization that was not even a party to the suit: the company's financial advisor, Barclays Capital. He suggested that Barclays had placed its own interests ahead of the company's in its actions and advice.

Purchase this case:
http://hbr.org/search/313036-PDF-ENG

El Paso's Sale to Kinder Morgan

John Coates, Clayton Rose, and David Lane
Harvard Business School Case 313-021

On October 16, 2011, El Paso agreed to sell itself to Kinder Morgan for just over $21 billion. Shareholders filed suit, arguing that the process was tainted by conflict and that a higher price could be obtained. Delaware Chancellor Leo Strine agreed with the plaintiffs on the conflicts, and in his opinion expressed serious concerns with how El Paso advisor Goldman Sachs and El Paso CEO Douglas Foshee conducted themselves in the process. The case examines these conflicts, Strine's view of their effects on the outcome, and the reason he was unable to grant the plaintiff's request, instead allowing the merger vote to proceed. The case is a companion case to "Barclays Capital and the Sale of Del Monte Foods," HBS No. 313-036.

Purchase this case:
http://hbr.org/search/313021-PDF-ENG

Fresh & New Cleaners (A)

Janet Kraus, Brian McIntosh, and Nick Plantan
Harvard Business School Case 812-165

An abstract is unavailable at this time.

Purchase this case:
http://hbr.org/search/812165-PDF-ENG

Purchase this supplement (B):
http://hbr.org/search/812166-PDF-ENG

Anne F. Baird

Leslie A. Perlow and Thomas J. DeLong
Harvard Business School Supplement 403-086

Presents profiles written by six members of the HBS Class of 1976 from the 10th and 20th reunions. The six alumni represent a cross section of the class of 1976 and provide a snapshot of life at the time of the reunions.

Purchase this supplement:
http://hbr.org/search/403086-PDF-ENG

"Linda Fay Harris

Leslie A. Perlow and Thomas J. DeLong
Harvard Business School Supplement 403-081

Presents profiles written by six members of the HBS Class of 1976 from the 10th and 20th reunions. The six alumni represent a cross section of the class of 1976 and provide a snapshot of life at the time of the reunions.

Purchase this supplement:
http://hbr.org/search/403081-PDF-ENG

Matthew J. Martin

Leslie A. Perlow and Thomas J. DeLong
Harvard Business School Supplement 403-084

Presents profiles written by six members of the HBS Class of 1976 from the 10th and 20th reunions. The six alumni represent a cross section of the class of 1976 and provide a snapshot of life at the time of the reunions.

Purchase this supplement:
http://hbr.org/search/403084-PDF-ENG

Patricia Hughes Mason

Leslie A. Perlow and Thomas J. DeLong
Harvard Business School Supplement 403-083

Presents profiles written by six members of the HBS Class of 1976 from the 10th and 20th reunions. The six alumni represent a cross section of the class of 1976 and provide a snapshot of life at the time of the reunions.

Purchase this supplement:
http://hbr.org/search/403083-PDF-ENG

Profiles of the Class of 1976

Leslie A. Perlow and Thomas J. DeLong
Harvard Business School Case 403-087

Presents profiles written by six members of the HBS Class of 1976 from the 10th and 20th reunions. The six alumni represent a cross section of the class of 1976 and provide a snapshot of life at the time of the reunions.

Purchase this case:
http://hbr.org/search/403087-PDF-ENG

Richard Oliva

Leslie A. Perlow and Thomas J. DeLong
Harvard Business School Supplement 403-085

Presents profiles written by six members of the HBS Class of 1976 from the 10th and 20th reunions. The six alumni represent a cross section of the class of 1976 and provide a snapshot of life at the time of the reunions.

Purchase this supplement:
http://hbr.org/search/403085-PDF-ENG

Samuel Allston

Leslie A. Perlow and Thomas J. DeLong
Harvard Business School Supplement 403-082

Presents profiles written by six members of the HBS Class of 1976 from the 10th and 20th reunions. The six alumni represent a cross section of the class of 1976 and provide a snapshot of life at the time of the reunions.

Purchase this supplement:
http://hbr.org/search/403082-PDF-ENG

LEGO

Jan W. Rivkin, Stefan Thomke, and Daniela Beyersdorfer
Harvard Business School Case 613-004

LEGO has emerged as one of the most successful companies in the toy industry. The case describes LEGO's gradual rise, rapid decline, and recent revitalization as it is keeping up with a changing market place. Central to LEGO's management model is the ability to find the right balance among growing through innovation, staying true to its core, and controlling operational complexity.

Purchase this case:
http://hbr.org/search/613004-PDF-ENG

MF Global: Where's the Money?

Clayton S. Rose, Pamela Chan, and Raghav Chopra
Harvard Business School Case 312-106

When MF Global failed in October 2011, it was discovered that $1.6 billion of segregated customer assets was missing. Safeguarding these assets was the firm's responsibility, and in the words of one SEC official, its "sacred obligation." What is known about the missing assets is that they were taken from the accounts of customers trading in commodity futures and used in other areas of the firm; less is known about how it happened. The case describes MF Global's operating model, certain management decisions, its regulatory oversight, and the chaos of its final days, allowing for an exploration of how so much money could have gone missing.

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http://hbr.org/search/312106-PDF-ENG

Transatlantic Holdings, Inc.—The Belle of the Ball

Clayton S. Rose and Aldo Sesia
Harvard Business School Case 313-017

In November 2011, Transatlantic Holdings, Inc., a global property and casualty reinsurance company, announced it had agreed to sell itself to Alleghany Corporation, ending "the most frenzied takeover battle" of 2011, which involved competitors, Warren Buffett's National Indemnity, and private equity investors. The agreement with Alleghany came after Transatlantic's failed effort at a merger of equals, and as several other unsuccessful bids for the company, one that was hostile.

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http://hbr.org/search/313017-PDF-ENG

Mekanism: Engineering Viral Marketing

Thales S. Teixeira and Alison Caverly
Harvard Business School Case 512-010

The Mekanism case introduces students to a digital media production company specialized in creating viral marketing campaigns for advertising agencies and their clients (e.g., Microsoft, AXE, eBay, Toyota, etc.). Mekanism has grown tremendously from 2007 to 2010 in part due to the rise of viral marketing as a promising promotion tool for advertisers to reach and engage with consumers cheaply and quickly via word-of-mouth. Mekanism's president is contemplating expanding its services to other advertising content and media (e.g., television, print, online), in effect becoming a full-service ad agency. This case is intended to discuss whether Mekanism should 'evolve' into an ad agency or keep focused on producing and distributing viral marketing content.

Purchase this case:
http://hbr.org/search/512010-PDF-ENG