In early 1990, the Chairman of Rabobank Nederland, one of the largest Dutch banks which traced its origins back to the late 19th century when it was established as a cooperative to relieve the hardship of Dutch farmers, entered into discussions with the President of the Robeco Group, the country’s leading independent investment management company, to explore the possibility for a potential alliance. While Rabobank, with its extensive network of fairly autonomous local banks, held a dominant position in the savings market and in financing small and medium-sized business, it had foundered in the investment business, currently holding only about 2.5% of this market. One idea put forth in a December 1989 discussion paper was to team up with an expert in the industry who would promote Rabobank’s investment funds.
Rabobank and Robeco Group: Background on the Robeco Group
Summary
In early 1990, the President of the Robeco Group entered into discussion with the Chairman of Rabobank Nederland, one of the largest Dutch banks, to explore the possibility for a potential alliance. Historically, Robeco had been a conservative marketer, relying on banks and stockbrokers to sell its products. However, when the Dutch banks began offering their own funds in the early 1970s and sales of its flagship fund slumped, Robeco was forced to become more of a hustler and an innovator. Following the arrival of a new president in 1987, the company was again revitalized, adding both marketing and information systems capabilities to become one of the leading independent investment management companies in the Netherlands. Deriving 70% of its funding from Dutch investors, Robeco currently dominated the domestic investment market. However, the performance of several Robeco funds had been stagnating for some time, and top management was feeling increasing urgency to broaden the company's cashflow and to find an "impulse" to get things going again.
Reference
IMD-3-0552
Copyright
©1995
Copyright owner
IMD Copyright
Available Languages
English
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Rabobank and Robeco Group: Giving life to the joint venture
Summary
In the summer of 1990, a committee was formed to work on developing an organizational structure for the joint venture, IRIS, that would operationalize the co-operation between Rabobank and the Robeco Group. IRIS was to be located in Rotterdam in existing Robeco facilities beginning January 1, 1991, housing up to 150 people. Two co-directors, who had been part of the original task forces, were designated to represent the interests of each mother organization. Only 87 of the 120 Rabobank people, who were qualified to enter the joint venture, accepted the move. One of the early challenges was to bring the cultures of the two parent organizations together and to build a new IRIS culture. By the end of 1991, the joint venture appeared to be running smoothly. Robeco was experiencing an increase in revenues that could be directly attributed to IRIS, and the local Rabobanks also seemed relatively happy with the prospect of having a new jointly-developed product available in the near future. However, some areas in the joint venture still needed work. For instance, it was becoming increasingly clear that the necessary linkages between IRIS and Robeco marketing were not always being made.
Reference
IMD-3-0555
Copyright
©1995
Copyright owner
IMD Copyright
Available Languages
English
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Rabobank and Robeco Group: The negotiation
Summary
Following discussions between the Chairman of Rabobank and the President of the Robeco Group, two task forces were set up to do further background work and conduct preliminary talks during the spring of 1990. Now, in early May, each side was about to enter the final stage of negotiations regarding a potential alliance.
Reference
IMD-3-0553
Copyright
©1995
Copyright owner
IMD Copyright
Available Languages
English
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Rabobank and Robeco Group: The outcome of the negotiation
Summary
In May 1990, Rabobank and the Robeco Group announced their intention to enter into a lasting strategic alliance. With the guiding principle that this co-operation would focus on offering investment products and services as well as investment research and product development, a Steering Committee, consisting of the original members of both task forces plus two additional representatives from each of the mother organizations, made the decision to form a joint venture that would officially start on January 1, 1991. The expectation was that within one year, the joint venture would be standing on its own and within two years, it would be covering its own costs.
Reference
IMD-3-0554
Copyright
©1995
Copyright owner
IMD Copyright
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Engineer your own luck
Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities. Prediction is hard. T...
By
Mark J. Greeven, Howard H. Yu and
Jialu Shan
Summer 2024, vol. 65, no. 4
Should Unilever pivot from being purpose-led?
Summary
The case study delves into strategic transformation and leadership transitions at Unilever since 2009. Unilever has been an industry leader of business sustainability. Paul Polman was a pioneer who introduced the idea that, by addressing social and environmental problems, a company can unlock new growth opportunities. Polman launched a 10-year Sustainable Living Plan with three objectives: to enhance health and well-being, livelihoods and environmental sustainability. Alan Jope followed in Polman’s path and launched a novel plan for the new decade called The Unilever Compass, focused on sustainability. Unilever took a strategic turn during Jope’s tenure and asked the brands to use their products to solve social issues. He called this “purpose-led branding,” which confused investors. They believed social branding would take the company’s focus away from growth. Tensions were high at Unilever and resulted in a change in leadership. The company wants to focus on growth, which raises questions about the future of corporate sustainability at Unilever.
Reference
IMD-7-2578
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Unilever
Industry
Consumer Goods
Available Languages
English
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Strategic planning in volatility: The dance between agility and core strengths
Summary
Understanding your organizational capacity for agility and responding to events accordingly is the key to success in the new business environment, ...
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How to navigate our future world order - Maha Hosain Aziz
Summary
In a post-pandemic era shaped by wars, climate change, and new technologies, Maha Hosain Aziz outlines the main risks and shock events that could d...
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How Boeing lost altitude
Summary
The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight. It traces Boeing’s trajectory since the McDonnell Douglas merger in 1997, highlighting the changes in the engineering culture and outsourcing strategy that affected the production quality of the 787 Dreamliner and the 737 MAX aircraft. The case also explores how leadership decisions prioritized cost-cutting over quality, leading to inconsistencies and delays. Then the case discusses the 737 MAX, which was grounded after two major crashes in 2018 and 2019. Investigations by the Federal Aviation Administration (FAA), the Department of Justice and a Senate Committee found defects in the MCAS flight control system and flaws in the safety certification. The case study explores the leadership actions of CEOs McNerney, Muilenburg and Calhoun, who decisively shaped the nature of the company.
Reference
IMD-7-2588
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Boeing
Industry
Travel and Leisure, Airlines and Aviation
Available Languages
English
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UrbanLuxe Cosmetics: Embracing S&OP/IBP
Summary
The case is seen through the eyes of the newly appointed supply chain director at a cosmetics company based in Berlin. The general manager has tasked the new supply chain director to provide bold process recommendations to improve the poor service, high inventory and rampant use of overtime. To understand the issues at play, the supply chain director meets with the CFO, the factory manager, the chief procurement officer and chief revenue officer and their feedback constitutes the body of the case. Each individual offers a different perspective, though none take any responsibility. The CFO is unhappy with the high inventory levels. The factory manager feels helpless in the situation. The chief procurement officer is proud of the savings he has generated by shifting to Asia. The chief revenue officer appears altogether disinterested and not concerned by the problem. The supply chain director must integrate this feedback and propose a new process that will address the performance shortcomings, define the roles and responsibilities of each, along with KPIs to monitor progress.
Reference
IMD-7-2572
Copyright
©2024
Copyright owner
IMD Copyright
Organization
UrbanLuxe Cosmetics (Invented name)
Available Languages
English
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Metalshub: A steely approach to launching a B2B metal trading platform
Summary
Few Business to Business (B2B) marketplaces have succeeded. Metalshub has successfully combined a software platform as a service, with a marketplace matching supply and demand for raw materials used in the Metals and Mining industries. Through innovative pricing and business models, the company has managed to scale its operations in a short timeframe.
Reference
IMD-7-2457
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Metalshub
Industry
Materials, Metals and Mining
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Contabilizei: Freeing entrepreneurs from Brazil’s tax complexity
Summary
The case focuses on Contabilizei, a Brazilian startup providing online accounting services for small and medium-sized enterprises (SMEs). The case study delves into the challenges faced by the company’s founder and CEO, Vitor Torres, as he navigated Brazil’s complex social and economic landscape. Issues such as Brazil’s byzantine tax system, disparate educational quality and accessibility, and the high cost of doing business in the country are explored. Despite these barriers, Contabilizei demonstrated impressive growth, transforming digital innovation into standardized services. However, the rise of competitors and persistent profitability concerns prompt Torres to thoroughly explore future strategies to maintain market leadership and improve financial performance. The case provides an in-depth analysis of Brazil’s entrepreneurial ecosystem, examining its business, educational, legal and infrastructural realities and their implications for startups as well as the difficult step for startups to become established companies.
Reference
IMD-7-2546
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Contabilizei
Industry
Finance and Insurance, Financial Services
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Ipsen: Leveraging an encompassing strategy to accelerate growth in pharma
Summary
IMD's Niccolò Pisani examines how a combination of clear-eyed analysis and a strong sense of purpose allowed the French biopharma to change course.
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Engineer your own luck
Summary
Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities. Prediction is hard. T...
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Euro 2024 Sponsorship - Chinese Brands
Summary
Leading Chinese companies are preparing to take advantage of exposure and opportunities as top sponsors and suppliers to the UEFA EURO 2024 Men’s S...
Contact
Research Information & Knowledge Hub for additional information on IMD publications