A Week in the Life of an IBD Team – Team Ananda

Written by Igor Borges, Stan Cataldo, Ryan Dingler, Elaine Leong, and Mila Pires, of the Ananda Development team in Thailand.

It was May 13th at 6pm and our team had just arrived in Suvarnabhumi, Bangkok’s main airport. Ryan (one of our team members) hailed us a Grab, Thailand’s Uber, and we were on our way to the hotel. In the hot and humid Thai weather, we passed two of our clients real estate developments. During our research, we found Ananda Development (our client) had a strong real estate presence in Bangkok and were already finding that to be true!

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The next day we met Lloyd, our main employee contact and the best host we could have asked for. He introduced us to his staff and gave us a tour of the office, which looked more like a high-tech company office in the Bay Area than a real estate company.

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After showing our initial research and framework to Dr. John, Ananda’s Chief Development Officer, we rebuilt our deck to dive deeper into the solutions we identified as strongest in preparation for our field research the following day. To decompress, back at the hotel we began a tradition, which continued for the full three weeks, where we would all play foosball but only Elaine would win. Then we managed to get through the intense Bangkok traffic to Beer Belly, a restaurant recommended by an employee at Ananda, where played some pool, air hockey and ping pong along with eating fried pork skin and some (very) spicy food.

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Tuesday during the day, Lloyd and his team setup tours of three of Ananda’s real estate developments, from pre-construction to fully sold-out and transferred properties, including an amazing 4D projection for the Ashton brand (Ananda’s most luxurious sub-brand). The three developments were all different Ananda sub-brands (these brands vary by target resident income and style) which gave us a good perspective of the various types of customers Ananda attracts.

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In the afternoon, we went to dinner with Ananda and a USC-Marshall team that was also doing a project with Ananda. It was a great opportunity to mingle and try several typical Thai dishes that our Ananda team ordered for us. This was also the point where Ryan was introduced to mango sticky rice – a true love story in the making.

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Wednesday we spent the day incorporating our initial feedback from Dr. John and additional information and insights we gathered during our field tours into our deck before our presentation to the CEO on Thursday. We also got to participate in a Singularity University event on the development of “fake meat” delivered by a professor from Japan.

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Thursday, was our big day to present to Ananda’s CEO, Khun Chanond Ruangkritya. Khun Chanond is a young Berkeley alum that is at the forefront of rewriting how real estate is done in Bangkok. During the meeting, he gave us the go-ahead and said we were heading in the right direction and gave us a lesson on how to be a successful but humble leader – a true Haasie! To close the day, we were invited to the presentation of USC’s project and networked with professors and other USC teams that were also in Thailand.

On Friday we visited another Ananda building to learn about their Property Management division and how they manage existing developments. Also, Ananda had a TGIF event, where we were able to hear an amazing Adele performance by one of our close Ananda contacts, who used to be a professional singer before joining Ananda.

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After the performance, we headed to our flights to Chiang Mai (a city in the north of Thailand) where we spent the weekend visiting temples, caring for our “own” elephants at a sanctuary and driving rented motorcycles.

It was an amazing pleasure and privilege to be in this project and we hope the next classes are as lucky as we were in getting such a heartwarming, exciting and eye-opening experience as ours. Lloyd and the team were wonderful hosts, every week they planned multiple events for us to network with CEOs, academics, and Berkeley alums.

Thank you Ananda for this unique experience and for the invaluable lessons!

Ford Shanghai – 2018 IBD

Members: James Westhafer (team lead), Sandra Tamer, Alyssa Warren, John Sheffield, Joe Akoni

Figure : The Ford Asia-Pacific headquarters in the Shanghai neighborhood of Pudong

Figure : The Ford Asia-Pacific headquarters in the Shanghai neighborhood of Pudong

The Ford-Shanghai team was tasked with a very unique problem in their IBD project: How can Ford improve their customer experience in the “pre-drive” space (before a journey starts) and the”post-drive” space (after the journey ends).  It was a relevant problem for multi-national company because so much of Ford’s internal effort is spent on the “in-flight” (during the journey) customer experience. We spent the spring semester at Berkeley researching customer use cases, benchmarking the competitive landscape, and speaking with as many Ford employees as possible to better educate ourselves on this unique problem.  We knew that our in-country experience in China at the end of the spring semester would be immersive and we came in with high expectations. Our time in Shanghai exceeded these expectations and gave us a level of exposure and experience that none of us thought was possible when we were sitting at our gate ready to board our flight to China on May 11.

After registering at the front desk of the Shanghai Information Center in the skyscraper-laden Shanghai neighborhood of Pudong and passing through the facial-recognition security checkpoint, we arrived on the 36th floor of Ford’s Shanghai office.  Our first day was filled with meetings of Ford executives, in groups ranging from strategy to Ford Smart Mobility to their Autonomous/Electric vehicle division.  It was the epitome of “drinking from the firehose” as we continued to educate ourselves on a very complex topic. We soon realized that talking and listening is only one component, and to fully understand the travel woes in urban China, our team had to experience it for ourselves.  We spent the entire second day of our project moving through Shanghai: subways at rush hour, the bus during non-peak hours, the dock-less bike share program, Didi (Uber equivalent in China), and even more.  

    

Experiencing the true urban China mobility experience first-hand was essential for our understanding of the true pains of residents and Ford customers.  It’s these pain points that drive Ford’s strategy in product development and partnership selection and an area that we believed to be a key area of focus in our project.  We didn’t have much time to debrief after our mobility outing because we were scheduled to travel to Beijing on Thursday for all-day meetings on Friday. We wanted to meet with other key Chinese mobility players to better understand their strategies for addressing customer pain points in the pre and post-drive space.  The partners we visited—Didi (Uber equivalent in China), Mobike (China’s most promising and successful dock-less bike company) and Shouqi (Didi competitor)—would be a great data point on how other companies in China were thinking about similar mobility problems.

 

After a marathon day of meetings, we were able to unwind a bit and take in the local flavors of northern China.  There was an eventful Beijing night that included the local favorite dish of Peking duck and a Chinese alcohol specialty, Bijou.  The next day, the team made a memorable trip to the Great Wall of China that far-exceeded everyone’s expectations. We had a great tour guide that educated us on all-things Chinese history and helped put the grandeur of the Great Wall into perspective.  It was a highlight of our trip and certainly a lifetime memory for all of us.

An amazing day trip to Huanghugcheng, north of Beijing, to visit a relatively tourist-less portion of the Great Wall

An amazing day trip to Huanghugcheng, north of Beijing, to visit a relatively tourist-less portion of the Great Wall

We got back to work the following Monday and began designing and creating a comprehensive interview guide that would help to validate (or disprove) some of our customer painpoint takeaways from our mobility outing and various meetings from the week before.  We lined up a number of Ford employees and other Shanghai residents that ranged from ages 23 to 60 in order to help our team better understand mobility trends and personal travel pain points in urban China. We had some very interesting and thought-provoking conversations that validated some of our personal painpoint takeaways, but also some unique nuggets that we used to develop some preliminary recommendations.  

As the week progressed, we had more meetings and team brainstorms to start landing on what our final recommendations would be to the Ford team.  There were many long nights as our team sifted through the massive amounts of data and information that we had in front of us from the 2 weeks of immersive meetings and interviews.  We left the Ford office on Friday on the second week of our in-country visit with a clear (yet ambitious) presentation outline that we would delve into during our last week.

Figure 7: The Ford team working through some slides in “CR-9 War Room”, the designated space for the team during their stay in Shanghai.  Lots of snacks, coffee and water were needed.

Figure 7: The Ford team working through some slides in “CR-9 War Room”, the designated space for the team during their stay in Shanghai. Lots of snacks, coffee and water were needed.

The final week in Shanghai consisted of long working sessions to perfect the slide deck that would be presented to senior Ford leadership at 8am on Thursday May 31st, the last day of the project.  The climax of the in-country experience came on Wednesday May 30th when the team worked from 7:30am until 10:30pm at night, which included a final run through of the presentation in our hotel room while eating one last meal of Shanghai’s famous “soup dumplings”.  

The final presentation on Thursday morning was a wild success.  We presented to the head of Asia Pacific Ford Smart Mobility and the head of Asia Pacific Strategy for Ford along with a number of other Ford executives.  After presenting our findings and making final recommendations on Ford’s strategy in China, the VP of Strategy for Asia Pacific (formerly a partner at Bain Consulting in Shanghai) said that the presentation “exceeded his expectations” and that he saw really tangible ideas that could make a difference in China.  He even started brainstorming with Ford’s lead on Connected Services on how some of our recommendations could be piloted in China! It was a very rewarding ending to the project and validated the hard work that we put in throughout the spring semester. It was an absolutely amazing experience for all 5 members of the team and will certainly be a highlight of our two years at Haas.  We want to publicly thank the Ford team for their help and support throughout the project. It was a joy working with the Shanghai team and we are happy that our recommendations could have a lasting impact for the company. From the entire team, xiè xie for everything, Ford!

The Ford team on the 36th floor of the Shanghai Information Tower in Pudong on the last day of their project.  Thanks for everything Ford!

The Ford team on the 36th floor of the Shanghai Information Tower in Pudong on the last day of their project. Thanks for everything Ford!

 

Seva Team Blog – 2018 IBD

Written by Jocelyn Brown, Rachel Lee, Grant Hannigan, Josue Chavarin, and Gagan Dhaliwal

May 21, 2018

It’s 110 degrees outside. Every bump of the road jostles us back and forth as we sit on stretchers in the back of the hospital ambulance. Weaving down dirt roads that look way too narrow for our vehicle, let alone two lanes of traffic, the driver uses the siren to announce our arrival, to both wandering buffalo and massive trucks filled with just-cut sugarcane. Within minutes of leaving the hospital, we are passing small farming villages. Goats, stray dogs and buffalo rest in the shade of ramshackle structures, along with villagers who stare at us as we drive by. Little fans in the back of the ambulance blow hot air in our faces, making it feel like we’re in the middle of a hot, dry sauna.

After stopping to ask directions several times, we finally locate our first interviewee. Today, Gagan and I are interviewing patients who visited Dr. Shroff’s Charity Eye Hospital in Mohammadi, India, and were told that they needed cataract surgery but haven’t come back yet to schedule it. We’re hoping to learn, through our teenage translators Srishti and Gracy, why they haven’t come back to the hospital. Every trip we take outside of the hospital walls has taught us an incredible amount about the surrounding communities and their day-to-day lives. We also usually come back exhausted and completely wiped from the Indian heat after only a few hours.

The first man we meet is prone on a cot underneath a straw hut and comes out to meet us. He’s shirtless, hunched from the waist around a wooden walking stick, and wearing thick, coke-bottle glasses. The first thing our translator tells us after introducing us is that he drinks alcohol. He doesn’t have any family members who can take him back to the hospital, and so he relies on others for transportation. Boiling in the sun, struggling to get any concrete details about why he might not want to come back to Shroff’s, we quickly decide to move on.

Our next interview is the opposite experience. We pull up to through the center of another village and step out of the ambulance. All of the houses around us seem to be made out of mud and straw. Several children seem to be the only ones who have any energy as they run around playing with each other and a stray dog. The community outreach coordinator for the hospital learns that our next patient is out working in the fields. While other members of the community go fetch him, chairs and water are suddenly precured from nowhere. We see very few women, just glimpses of their colorful garb from open doorways. As we wait for our interviewee, a small crowd of children and interested men starts to form. By the time our interviewee has arrived, a crowd has fully surrounded our little half-moon of chairs.

We’ve worked with our translators ahead of time so they know the types of questions we’re hoping to understand: how did you first hear about Shroff’s? What motivated you to seek care there? Did you understand what the doctor told you about cataract surgery? Why haven’t you returned to Shroff’s for surgery? We receive very brief answers in return: I was very satisfied with my experience. I wouldn’t change anything; the doctors and facilities are the best. Now surrounded with a full crowd of villagers, I wonder how much this man feels like sharing with these foreigners who have suddenly descended upon him and his home.

Conducting our interview with a local farmer

Conducting our interview with a local farmer

As our translators work to glean why this man hasn’t returned to the hospital for surgery (he doesn’t have the time), Gagan and I start to realize the enormity of our task. Our goal is to find untapped sources of new paying patient revenue, so that the hospital can work towards financial sustainability. But as our interviews in the community continue (we only make it through two more before we’re completely wiped by the heat), we realize we will not find the patients we’re looking for here.

We discover that the sugar cane farmers are paid 1-2 times a year for their crop and are making at most $5,000 a year. If these villagers are challenged with the basics of transportation and finding the time to make the trip to the hospital, none of our fancy, MBA pricing models are going to make any bit of difference in this community. Our impression that these patients would price shop for their surgery is immediately dispelled once we realize the simple, minimal lifestyle that describes 80% of this entire state of 200 million people. It’s only Monday of our second week and we certainly have our work cut out for us to identify sources of paying patients.

We gathered quite the crowd!

We gathered quite the crowd!

Haas IBD Blog – Citibanamex

Written by Michelle Boyd, Kira Mikityanskaya​, ​Jack Anderson, Danielle Pinder​ & Neeraj Goyal

The view from our apartment at dawn

The view from our apartment at dawn

As the second Haas IBD team to work with Citibanamex, we knew we up for an interesting experience!  Citibanamex is one of the oldest and largest banks in Mexico, and it has a culture of being traditional.

So how does a massive and traditional bank attract the young and emerging affluent, and adapt to an increasingly digital world? 

That is the question we were trying to help solve, and here is a day in the life:

 6:00 am – 9:00 am

We were fortunate enough to be staying in an Airbnb on the 18th floor of a beautiful apartment complex.  The views from our apartment were incredible, and we were rewarded with amazing sunrises and sunsets – but more importantly we were able to get a sense of how large Mexico City is.  There are over 21 million people living in the greater metro area, which contributes to some of the worst traffic any of us had ever seen.

Although our apartment was less than a mile away from Citibanamex headquarters, our daily commute regularly took over 30 minutes, as we wound our way down the hill and through incredibly dense traffic.

Team picture on the way to the office

Team picture on the way to the office

Our commute!

Our commute!

9:00 am – 1:00 pm

When traffic was light we made it into the office by 9:00am.  The office doors were also a source of daily comedy – we are still not sure what their purpose is.

On one of our first mornings in Mexico we hosted an Ideation Workshop.  We had 17 Citibanamex employees from across the organization come together to help us develop new ideas.  Although this workshop was very generative (over 90 ideas!), it got off to a bumpy start.  Just as we kicked off the workshop with a presentation about our research, we were told we needed to evacuate; a 4.7 magnitude earthquake had just hit a town nearby.

Waiting to be allowed back inside after the earthquake evacuation.

Waiting to be allowed back inside after the earthquake evacuation.

After about 20 minutes of waiting outside, we went back upstairs to finish our

Michelle and Kira going through the office doors

Michelle and Kira going through the office doors

presentation. We then divided into groups and tried to embody different customer personas.  Our goal was to brainstorm the tasks, influences, pain points and feelings that these customers would experience while working with Citibanamex.  These factors were then assembled into a customer journey, which was used as a platform to brainstorm potential solutions.

 

1:00 pm  – 2:30pm

The Ideation Workshop in action

The Ideation Workshop in action

Lunch is Mexico is a production.  Working lunches are not the norm, and employees regularly take an hour and a half to relax and chat with friends.  We tried everything from going to restaurants nearby, ordering from Rappi (the Amazon of Latin America), braving the crowds at the wallet-friendly Citibanamex cafeteria (3 dollars for a three-course meal!), and even the street taco’s.

Michelle and Neeraj digging into the street food!

Michelle and Neeraj digging into the street food!

2:30 pm – 4:00 pm

 Afternoons were filled with team-work sessions, meetings with various stakeholders, and the occasional coffee break.

During this time we saw some challenges related to innovating across such a large organization.  We met with amazing, intelligent and driven people, who were questioning the status quo and tackling big challenges – but were struggling to implement their initiatives, or multiple similar projects were being undertaken in different departments.  For most of our team (who came from small organizations pre-Haas), this was an interesting education in large corporate culture and organizational structure.

Jack taking us through a Hypothesis Tree

Jack taking us through a Hypothesis Tree

4:00 pm – 4:15 pm

Coffee was an important ingredient for our team, and we definitely took advantage of the Starbucks in our building.  For those of us who did not know Spanish before Mexico, ordering coffee was about as far as we got. It was appreciated.

Neeraj with a correctly spelled name and a heart for his improving Spanish

Neeraj with a correctly spelled name and a heart for his improving Spanish

4:15 pm. – 6:00pm

After coffee it was back to work, although on a few days we were lucky enough to get out of the office to learn more about Citibanamex first-hand.  We visited two branches, one traditional branch and one digital branch, as well as a contact center.  These visits gave us greater insight into both the benefits and pain points of being a priority customer.

Team picture in the contact center

Team picture in the contact center

After 6:00 pm  

When we were not indulging in the amazing restaurant scene that Mexico City offers, dinners consisted of Rappi, Uber Eats, and a few homecooked meals.

IBD is pitched as an intense team experience – after spending all day together, we were still each other’s company for dinner.  Our team made the most of this experience, and we turned dinners into friendly ‘interrogations’.  We threw out the etiquette rule of no religion or politics at the table and asked each other about childhoods, families, career goals, weird habits, and everything in between!

Although we never fulfilled Jack’s goal of watching Ten Things I Hate About You (his favorite rom-com), we all became closer friends from this experience, and we had a lot of fun hanging out and exploring what Mexico City has to offer.

Here are a few more highlights!

 

 

 

 

 

 

 

Freedom with Responsibility. Trust. Excellence. Commitment. Authenticity.

Clearsale-picture-1Written by Anna Braszkiewicz, Reginald Davis, Anik Mathur, Risa Shen and Nolan Chao

Freedom with Responsibility. Trust. Excellence. Commitment. Authenticity.

These were among the ten core values that our IBD client, a Sao Paulo based tech firm, harbored as a part of their organizational culture. In our first week in-country, we sat down with the client’s People Development Manager to learn more about these values and why they were so important to the organization. Our team was impressed by how much our client emphasized the principle of “professional-in-a-person”—the concept that a professional career is oftentimes a large part of a person, but that people tend to separate the two once they are in the office. As a result, our client’s organization also wanted to cultivate the “person” and ensure that employees could truly be themselves. There were many affinity groups across the organization—ranging from video games, music, crafts, dance, and writing—to breed this personal development.

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Our client’s People Development Manager walks us through their organizational culture.

IBD is no different with respect to a “professional-in-a-person”. Throw five Haas MBAs together in a conjoined Sao Paulo studio apartment for three weeks in a country they’ve never been in, and add a management consulting project for an international client on top of it—the two worlds are bound to intersect! So today, we’ll tell you about a typical day of our life in Sao Paulo—as both a professional and a person.

Although June is actually winter time in Brazil, the weather is still quite pleasant. I’d usually start my day off with a short run through the city on Avenida Paulista — often described as the “5th Avenue” of Sao Paulo. It’s filled with stores, museums, and cafes, and is one of the most bustling streets in this massive, sprawling city. It was a fascinating way to see the street art and architecture that Sao Paulo is well known for. In the morning, the team would all cook a light breakfast together and then take a cab to the company office.

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A mural depicting Avenida Paulista near our apartment; the building with red pillars is the Sao Paulo Museum of Art.

It was then down to business when we arrived at the office. Our project was scoped towards market entry selection and implementation. Our client had recently expanded to a new office abroad and was looking for further opportunities to harbor their international growth and capitalize off of their new location. Once we arrived on-site, our day would often start with an internal interview, ranging from Sales to Marketing to Product.

We would also talk with agencies helping to

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An Avenida Paulista building decorated as a basketball hoop during the NBA Finals.

coordinate the Foreign Direct Investment activities for both Brazil and our target country markets. These officials were great resources in underlining the importance of differences in business culture, and providing information about location strategies, business regulations, and trade patterns. It was great to hear multiple perspectives about internationalization strategy to test our hypotheses en route to our final recommendation

One of the big cultural differences our Haas classmates had told us about for Brazil was that lunch is a big deal! Lunches often are over an hour long, and the city is full of lanchonettes (“snack bars”) and “pay-per-kilo” buffets to fulfill your culinary desires. Some days were more special than others; Wednesday, in particular, is known for serving feijoada—a hearty Brazilian stew made with black beans, beef, pork, and sausage and typically served with a huge plate of rice.

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The Sales, Marketing, and Intelligence teams gave us a very friendly welcome during our first week in the office!

After that, we’d synthesize our insights from the morning and seek further market research on foreign markets and the industry statistics within those markets. A large focal point for us was combing through multiple research sources to derive the correct data insights. The client’s industry featured a host of white papers and information, but oftentimes had contradicting points—a large part of our role was to carefully verify the data. Finally, after hours of research, it was time to head home!

After riding home through the hectic Sao Paulo traffic—sometimes up to an hour long—we’d either make a group dinner in the apartment or go out and try a restaurant in Sao Paulo. Another common culinary delight in Brazil is a churrascaria, or steakhouse. It would typically be served rodizio style “all you can eat”. Talk about a filling meal!

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…Complete with team member Reggie Davis being tossed up in the air!

After dinner—if the rodizio wasn’t enough to send us to a food coma—we’d relax back in our flat—catching up with friends from home, watching Netflix, playing cards, or relaxing on the rooftop pool of our apartment. Before we knew it, it was time to sleep and get ready for the next day’s journey. Bon noche! (Good night!)

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IBD Team Travels to Stockholm to Help Civil Rights Defenders to Implement a New Innovation Program

Written by Carol Macavilca Paredes, Elizabeth Miller, Ingrid Monroy, Beth Williams and Blakey Larsen

Our IBD Project took us to Stockholm to help our client, Civil Right Defenders (CRD), a nonprofit organization devoted to human rights founded in 1982, to implement a new Innovation Program that will foster the development and launch of innovations. We started with one simple question, how can we apply innovation to human rights? Easy to answer, right? To be honest, none of us knew the answer four months ago.

Work hard, travel hard was definitely the motto of our team. We worked 3 weeks in Sweden and visited 2 countries, Finland and Norway.

It was hard work, but we also had a lot of fun in beautiful Stockholm, a city with 14 islands and, in the summer, 18 hours of daylight.

Our first week in the CRD office was a whirlwind: We started by introducing our project to the entire CRD staff, who gave us a warm welcome. In the days that followed, we had a lovely meal at Communications Manager’s house with Swedish pizza…

…and participated in the Stockholm Internet Forum 2017, focused on the Internet Freedom for Global Development, in order to interview innovation experts for our project.

During our second week, the most memorable highlight was to be in the CRD office when it was revealed that the organization had won a court case in which they had been working for four years. Representing 11 of about 4,700 people included in the police registry of Roma population, CRD won the court case against the Swedish state in the Svea Court of Appeal. The state was found guilty of ethnic registration and discrimination and was ordered to pay 30,000 SEK in damages to each of the 11 Roma plaintiffs. We were moved by the words of Robert Hardh, Executive Director of CRD to all the staff the day they received the news, that these are the days they live for.

Also, we had an unexpected but happy news for us: two and a half days of holidays. We decided to visit the IBD Finland team in Helsinki. At the recommendation of our client, we went to Finland by boat. The ferry ride was 15 hours of fun!

We also went to Bergen, during that holiday. We took a full day tour to see some of Norway’s most beautiful fjord scenery. We experienced the scenic Bergen Railway, the breathtaking Flåm Railway, and the narrow and dramatic UNESCO-protected Nærøyfjord.

Our team was surprised to experience a uniquely Swedish challenge: doing laundry. In Stockholm apartments, washers and dryers must be booked weeks ahead of time in order to wash your clothes. With limited options, our team had to cancel plans one evening to get our laundry done. The team at CRD said we were real Swedes now!

One fun fact is that in Sweden, purchasing alcoholic beverages isn’t a simple matter. There are no privately owned liquor stores nor do grocery stores sell wine or any liquor. Sweden has a state-run chain of liquor stores called Systembolaget, the only retail stores allowed to sell alcohol. Problems arise due to their opening hours (especially for unaware visitors like us). The stores generally close at 6pm on weekdays, at 3pm on Saturdays and all Systembolaget are closed, without exceptions, on Sundays and holidays! So you need to keep this in mind and don’t wait (like us) until 2:50 pm on Saturday to run to the store.

Last week. We had our first fika in the office and our final presentation. Fika is a tradition in Sweden, is the moment that you take a break, often with a cup of coffee, but alternatively with tea, and find a baked good to pair with it.

Que Alegre! Updates from Guatemala City

Written by Peter Wasserman, Ian Collazo, Kevin Schuster, Michelle Hernandez and Rachel Garrison

FTMBA students Peter Wasserman, Ian Collazo, Kevin Schuster, Michelle Hernandez and Rachel Garrison traveled to Guatemala City during May 2017 to work with the fourth-largest, family-owned, home goods, hardware, toy, and baby retailer in Guate mala: Cemaco.

Guatemala City

Our team arrived in Guatemala City during an exciting time for retail. Last year, the retail industry grew 13%, with growth driven by middle/high-end of the market in Guatemala City. Our client Cemaco benefited from these demographic trends, increasing revenue despite growing competition, doubling the number of stores, and receiving recognition as one of Guatemala’s most recognized brands.

Cemaco came to IBD looking for big ideas to meet aggressive revenue and profitability goals.  Among the five pillars for growth highlighted in the 2020 vision, our team was tasked to develop strategy and implementation roadmap to become the dominant e-commerce retail player in Guatemala.

The Initial Research

E-commerce is nascent but growing in Guatemala City. In 2016, e-commerce grew by 20%, mainly used by the young, urban, upper class.  Cemaco launched their beta e-commerce site in April of this year, allowing us to work in parallel with the team and project.

Prior to arriving in Guatemala City, our team conducted secondary research on the industry, competition, company, and customers to make the most of our time in-country. We sent a survey to 600 active and 250 lapsed Cemaco customers and received 80% response rate. This amazing level of loyalty and commitment from the customer base was incredible – we were excited to meet the team and customers during the coming weeks!

Arrival in Guatemala City

Arriving on Saturday, May 13th, we were greeted by the Cemaco team for a tour of the city.  We stopped by a local market, picked up groceries, and of course visited a Cemaco store.

First Days at the Office

Our day of arrival presentation gave us helpful feedback to move forward with our proposal. Meeting with the team, we felt incredibly welcome. Not to mention, it was Peter’s birthday! The team took us out to lunch and we celebrated over cake!

Learning about the market

To learn about the market, we focused our time visiting Cemaco and competitor stores, going to the warehouse to see the e-commerce logistics firsthand (and ride a forklift together!), and conducting in person interviews at Cemaco stores. These experiences helped us understand

  • What obstacles/profitability challenges Cemaco will face: Labor is very cheap in Guatemala. From a logistics perspective, Cemaco has been very flexible and fast, figuring out how to package and deliver e-commerce orders in 1-2 days
  • How Cemaco sets itself apart from the competition: Cemaco is a customer first company that puts its stores at the center of its experience. Cemaco stores are welcoming, bright, and customers enjoy spending time browsing the wide variety of products
  • Why customers love Cemaco: As an established, family owned company with Guatemalan roots, customers are extremely loyal. They feel that they can find everything they need for their homes at Cemaco, and expect to find high-quality products.

Weekend trips 

As our classmates pointed out to us, our team didn’t just work…our client Cemaco planned amazing weekend trips for us. First, we went to Lake Atitlan, where we enjoyed an amazing view of the lake, mountains, and volcanoes went on a nature hike with swinging bridges and saw ancient Mayan ruins.

On our second weekend, we hiked the Pacaya volcano where we roasted marshmallows on top and visited the beautiful, historic Antigua.  Walking down the cobbled roads, we took in the architecture and culture of the city – from carrot ice cream to a speakeasy bar called “No Se,” we tried to find all the hidden gems that Antigua had to offer.

Final Presentation

Back at work, in our final presentation, we recommended that Cemaco prioritize its growing B2B business through an e-commerce platform, and developed a customer-first omnichannel experience plan for both existing and new customers. We were especially excited about our plan to partner with apartment buildings in the nearby Zone 4, known as the “Silicon Valley of Guatemala City,” where first time renters were moving out of their parents’ home before getting married. The team took us out to drinks to celebrate!

In Conclusion

Guatemala is an amazing country and the people are incredibly warm and welcoming. We were so impressed by the culture that Cemaco has created and kept strong over the past 40 years, encouraging their employees to move across functions, pursue continuing education, push for corporate social responsibility, and experiment with new business strategies. We are excited to see what’s next for Cemaco!

Updates from IBD Shanghai – ARM Accelerator

Written by Harsh Thusu, Jennifer Hoss, Justin Wedell, Chris Roberts, and Amanda Eller

FTMBA students Harsh Thusu, Jennifer Hoss, Justin Wedell, Chris Roberts, and Amanda Eller traveled to Shanghai, China during summer 2017 to work with ARM Accelerator.

IBD team in the ARM Accelerator Shanghai office

The Internet of Things (IoT) involves embedding objects in our surroundings with sensors, which capture data and make decisions without the need for human intervention. IoT is poised to change the world, and our client, ARM, is playing a major role in the IoT revolution. ARM is a multinational semiconductor company that designs architecture for the chips that power our smartphones and tablets. Over the next 20 years, ARM expects to deliver 1 trillion chips for IoT devices.

Two years ago, ARM China launched the ARM Accelerator to support IoT startups. Our five-person IBD team traveled to Shanghai to work with ARM Accelerator, helping them develop a strategy to attract Silicon Valley startups, and crafting a plan to diversify their revenue sources.

Initial Research: Bringing Silicon Valley to China

IBD team members Jen, Harsh, and Chris presenting our recommendations to ARM leadership

Our initial challenge was to advise ARM Accelerator on a strategy for attracting U.S. startups. We hypothesized that U.S.-based startups would not want to travel to China for the program, and anticipated recommending a Silicon Valley office. To test our hypothesis, we spoke with founders from 12 different IoT startups in the U.C. Berkeley ecosystem.

We were surprised to learn that virtually all of the founders had either already spent time in China, or anticipated going in the near future. The primary reason for Chinese travel was to connect with manufacturers, but several startups were also interested in meeting Chinese investors and customers.

IBD students with ARM Accelerator leadership, including Allan Wu (center), President of ARM China and Haas MBA ‘96

We also discovered that most startups learn about accelerators through their networks. The ARM brand is strong, but few startups had heard of ARM’s accelerator, underscoring the need for business development efforts and localized marketing content in Silicon Valley.

Evaluating the Accelerator Business Model

In the weeks leading up to our trip, we expanded our focus. At two years old, ARM Accelerator is still a startup, and they wanted insights into how other accelerators achieve financial sustainability. We analyzed successful accelerators from around the world, and compiled preliminary recommendations to test in-country.

IBD team member Jen Hoss at the TechCode Shanghai Accelerator, testing an Augmented Reality windshield

 

Day of Arrival

On May 12, we flew to Shanghai. None of us had ever visited mainland China, and we were eager to meet the ARM Accelerator team and learn more about the Chinese startup ecosystem.

ARM Accelerator founder Andy Chen and head engineer Shi Lei gave us a warm welcome, and briefed us on an itinerary packed with interviews. Over the following days, we met with ARM Accelerator graduates, venture capital investors, other accelerators, and the local government. We even attended a presentation in which ARM Accelerator companies pitched their autonomous vehicle technologies to representatives from BMW.

IBD team members from left to right, Jen Hoss, Justin Wedell, Amanda Eller, Chris Roberts, and Harsh Thusu, meeting with bike-sharing startup MoBike.

Interview Highlights: TechCode, Shanghai government, and MoBike

TechCode is an accelerator and incubator started in China, with locations all over the world. Daphne Han provided insights into the benefits of the accelerator for TechCode’s corporate sponsor. She also gave us a tour of their co-working office space, and IBD team member Jen got to test a TechCode company’s “Smart Windshield,” which uses Augmented Reality to provide real-time information to drivers.

Another highlight was our meeting with Zhang Lan from the Shanghai government’s Development and Reform Committee. Mr. Lan shared fascinating insights about the government’s role in supporting entrepreneurship, and the incentives available to ARM Accelerator companies.

Mr. Lan then brought us to the MoBike headquarters. MoBike is a bike sharing startup that has taken

IBD team at the MoBike Shanghai office, with Shanghai government official Mr. Zhang Lan and our ARM colleague Allan Zhong

China by storm, with support from the government. 25 years ago, Shanghai was full of bicycles, but their replacement with motorcycles and cars has exacerbated pollution. MoBike is reversing the trend, and we were impressed by the number of Chinese taking advantage of MoBike. MoBikes can be parked anywhere, and locked or unlocked with a smartphone app; each morning the bikes pile up in front of office buildings, and by evening rows of MoBikes surround the metro stations.

Our ARM Accelerator hosts took us for a traditional Chinese business dinner, which meant plenty of baiju, or Chinese spirits

Eating our way across China

The team made the most of our free time by trying every dumpling we could find. We learned about the art of handpulled noodles, sampled Uigher-style barbecue, and tasted Schizuan Province’s spicy mala peppercorns.  We even contemplated opening a Berkeley franchise of China’s popular Yang’s Dumplings chain.

Between meals, we climbed the Great Wall, explored Beijing’s Forbidden City, and hiked the mountains surrounding Hangzhou’s famous West Lake.

And throughout our trip, we were greeted by local Haasies. Alan Wu, President of ARM China and Haas MBA ‘97 provided valuable feedback throughout our project and shared his visions for China’s technological future.

Making new friends over a Beijing-style hotpot dinner

And the Haas Shanghai Alumni group welcomed us with a happy hour, where we met two incoming classmates to the class of 2019.

After a successful three weeks in China, we are excited to continue following ARM Accelerator’s progress as they help build companies shaping the future of IoT.

Phnomenal Times

Written by Sushant Barave, William Conry, Daniel Conti and Joe Layton

For our IBD project, we’re working with Cambodia’s first and only rum distillery, Samai, based in Phnom Penh. Our team is partnering with Samai’s founders, Antonio and Daniel, on expansion strategy, new market pricing, operational improvement and accounting guidance.

Prior to arriving in Phnom Penh we had been corresponding with Samai to finalize the scope of the project and complete as much pre-work as possible. While our team was productive across those six weeks, it was remarkable how much more effective we became on location with the client. For instance, we had an idea of what the rum production process looked like, however being able to visualize the steps enhanced our understanding to the level required to make recommendations.  Additionally, speaking face to face with Daniel, Antonio and Champich, the master distiller, we were able to have more insightful conversations and gain a better feel for the business and its needs.

Dan and Sushant review the production steps with Daniel in order to calculate COGS

Dan and Sushant review the production steps with Daniel in order to calculate COGS

Another byproduct of live meetings is shifting priorities. While the project work streams had been determined in advance of our arrival, it became clear our first-day additional challenges that require support will surface. Our team recognized the importance of prioritization as a guiding principle – we need to invest our time and resources into the projects that are most vital to Samai and also ensure our deliverables are actionable.

 

Cocktail Competition

Samai’s distillery is open to the public on Thursday nights, when it serves up Samai rum-based cocktails to a lively, mostly expat, clientele. During our required rum tasting our first day on the job I suggested –  somewhat jokingly –  that we have a competition on Thursday to determine which Haas team member can create the best cocktail. Antonio sounded intrigued and within a day we had teams decided, menus set, ingredients purchased and a professional flyer posted on social media. That escalated quickly!

Dan and I settled on a variation of a Dark and Stormy entitled Ann’s Arbor, an homage to our undergraduate institution. Leveraging Joe’s advanced rum knowledge, he and Sushant crafted a more complex, boozy concoction, a Queens Park Swizzle.

We met at the distillery early to pour practice drinks and tweak the recipes until we had it right. This was not just a fun experiment; patrons would be paying for these cocktails! Once we had the proportions, preparations, and presentations down, it was game time.

It could have been the Berkeley-Haas name on the flyer, perhaps it was the sophisticated drink selection or maybe it was our rugged good looks and charm behind the back bar, but the orders flowed in like Trump tweets after a New York Times bombshell report.

Bill and Joe try to keep up with demand behind the bar

Bill and Joe try to keep up with demand behind the bar

At a few points we couldn’t keep up with the demand – we were forced to act like seasoned bartenders who knew how to accommodate a packed bar.

For the competition piece, believe it or not, according to the official tally the contest ended in a tie! The Ann’s Arbor team will point out that our drink had a higher volume of orders, which should be the tie breaker. The Queen Park Swizzle duo will remind us that more orders led to more misinformed votes from those who only sampled one beverage.

Regardless of who deserves the crown, overall the cocktail competition was a win. We learned useful skills that aren’t often taught in the classroom, had fun, brought in incremental sales for Samai and met some interesting people.

After shaking and stirring as celebrity bartenders for the night, it was back to our real lives Excel modeling and PowerPoint-ing as consultants at the Samai office the next morning. It was fun while it lasted, but there’s still work to do!

Back to work

Back to work

Berkeley Haas IBD 2017 – Aramis Menswear, Sao Paulo, Brazil

Written by Diane Chiang, Barun Mazumdar, Abhishek Mishra, Kalyan Pentapalli and Priya Vijayakumar

Weekend before in-country: Foz de Iguaçu

Five happy and excited Cal bears arrived at the Iguaçu airport on late Friday evening after spending almost a day in air and in connecting airports. We checked in at the beautiful Belmond hotel (which overlooks a small portion of the falls) and had our introduction to authentic Brazilian cuisine and Caipirinhas. It was love at first sight! The Iguaçu falls were absolutely breathtaking – on Saturday, we took a short walk along the waterfall trail and a boat ride on the Iguaçu River before flying to Sao Paulo.

The beauty and grandeur of the waterfalls made this short detour to Iguaçu totally worthwhile.

We arrived at Sao Paulo (SP) on Saturday evening and to kick off our 2-week stay at SP, we went to the acclaimed chef Alex Atala’s restaurant – D.O.M for an amazing fine dining experience. We spent the rest of the weekend exploring Sao Paulo and fine-tuning our Day of Arrival presentation.

First Week at the client site in Sao Paulo

We had an early start on our first day at Aramis’ office – Fabio Davidovici and Luan Silva with whom we had been collaborating since the start of our project greeted us. We presented our “Day of Arrival” presentation to Richard Stad (CEO) and Fabio. It was a very interactive session peppered with questions and interesting discussions around retail trends, brands, and competition.

Because of the high level of engagement, our meeting that was initially scheduled for an hour ran for over two hours. Richard appreciated the groundwork we had done while at Berkeley, it was also a great opportunity for us to learn more about the company and its challenges directly from the CEO. At the end of the first day, Fabio gave us a tour of one of the stores to round out the day.

On Tuesday, we spent the entire day visiting Aramis’ stores at various malls in Sao Paulo. This was an amazing way for us to get to better understand their products, store layouts, and store employees. We interviewed many store managers and sales people to understand the challenges and processes within the stores. We also visited many of Aramis’ competitor’s stores. We shared our initial feedback, observations, and ideas with Fabio, many of them centered on visual merchandising in the store.

Throughout the course of the week, we met with directors and managers across different functions – Marketing, CRM, Inventory planning, Warehousing, E-Commerce, Store Supervisors, Retail, HR and Customer Service. We also got a chance to have lunch on one of the days with the Founder, Henri Stad. Although we experienced a language barrier, Fabio attended all the meetings with us and helped with translation and provided more context.

We also scheduled meetings with stakeholders outside Aramis. We had a very insightful discussion with Fabio Matsui from Cypress Capital (HAAS ‘03) where he walked us through the Brazilian apparel retail industry and the various participants.

We also met with Daniel Maladrin (HAAS ‘05) from 2BCapital/Bradesco – the PE firm that invested in Aramis few years ago. Daniel introduced us to Leonardo Santos from Semantix, which was another company that the PE firm had invested in. We invited Fabio to join us for our meeting with Leo, where he walked us through the omni-channel strategy he had implemented at an American retailer and the challenges he faced launching in Brazil. We identified many synergies between Aramis’ omni channel implementation and the current work that Semantix is doing, and the two companies plan to start some initial discussions to collaborate.

By the end of week one, we learnt a lot about the Brazilian people – their food, culture, and working styles.  Fabio spent a generous amount of time to ensure we were comfortable, got enough face time with Aramis employees and explored Sao Paulo the way locals do.

 

Splendid Salvador and Refreshing Recife

We took a late flight on Friday to Salvador to experience the northeastern part of Brazil. We spent Saturday at Salvador exploring the churches, beaches and the colorful Pelorinho neighborhood. The highlight of the day was the amazing Bahian cuisine we had at Pariso Tropical. This restaurant won our top vote among twenty other strong contenders for the best food of our entire trip! Later that night, we flew to Recife and spent our Sunday exploring Recife and nearby Olinda. We returned to Sao Paulo on Sunday night.

Monday started with a series of previously scheduled meetings.

Talia from Visual Merchandising was the first meeting; she travels around the country for store openings and renovations. She has been re-working the store layouts to make them look fresh and cater to younger demographic. The major challenge she faces is convincing the store managers that the new layouts will lead to increased sales. We then met with Felipe from Store Sales Management who manages all store managers across the country and was able to share how sales strategy has changed over the years and lately with the advent of new POS technology.

 

At the end of each day, we debriefed and communicated our findings till date and next steps with Fabio. We had dinner with Fabio and his wife Fernanda, who took us out to Don Veridiana, which many locals claim to have better pizza than in Italy.

On Tuesday, the team interviewed Mariana, Director of Product, the final scheduled interview and learnt more about how Aramis designs and sources its products. With interviews now over, we focused on consolidating our findings and clarifying any remaining questions we had. After a full day working session, the team agreed to expand the scope beyond assortment planning and omni-channel to include other functional areas and do a 360 analysis.

On Wednesday, the team marched towards the converge phase and began to build on the final business plan to the client. We separated our recommendations into multiple functions including: Inventory Planning (Assortment and Replenishment), Customer Relationship management (CRM), Customer Service, Data/IT Integration, Store Experience, Multi-channel, and Internal Communication. Throughout the day, we had multiple calls for clarifications, and by the end of the day, we had an initial draft that we shared with Fabio before we headed out for some excitements! In the evening, we went to watch football match between two bitter rivals: Palmeras and Colinhas, accompanied by Fabio and Luan.

Thursday being the final day, the team had an early start. We received feedback from Fabio on the initial draft, and decided to move forward with additional deep dive into assortment models. We had dinner at the CEO Richard’s house, along with his wife and son. We learned about Richard’s travel experiences, and discussed his vision about emerging technologies in retail. After dinner, the team headed back to the hotel for the final home stretch of our business plan and wrapped up around 4am.

Friday, the last day at Aramis, was quite a bittersweet experience. We started the day with our presentation with Richard (CEO), Fabio and other executives. Richard showed strong interest and agreed with most of our findings and recommendations. He showed special interests in the assortment models that we recommended and believed it could be quickly implemented. Richard appreciated the fact that we had dug deep into the entire organization, and that we understood the sentiment and culture of Aramis in such a short timeframe. Though rewarding and relieved, it was quite a bittersweet moment when we finally had to say good bye to everyone at Aramis.

Brazil Finale

For the final weekend in Brazil, we headed to Rio de Janeiro. Over the next two days, we experienced the landmarks, nightlife, shopping, and cuisine. The experience of the IBD program has been beyond our expectations and cannot be expressed in words. We appreciated the opportunity to work with Aramis while experiencing the incredible country of Brazil. The five of us also built such strong bonds during the trip that we know we can rely on each other.