Ivey Publishing

Modern Competitive Strategy

Walker, G.,2/e (United States, McGraw-Hill Irwin, 2007)
Prepared By Pat MacDonald, Ph.D. Student (General Management)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
What Is Strategy?

Carl F. Fey, Andrew Karl Delios

Product Number: 9B05M028
Publication Date: 8/2/2005
Revision Date: 10/1/2009
Length: 14 pages

SpeedTest is a Finland-based entrepreneurial high-tech start-up company that competes in the clinical research segment of the world-wide pharmaceutical industry. More specifically, the company has developed a mobile device to record drug testing information from patients, which has the potential to radically speed up the drug testing process. The newly hired chief executive officer has a mandate to identify the customers for its product, come up with a pricing model and construct a business model to develop a position of advantage for the nascent company.

Teaching Note: 8B05M28 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Competitive Advantage; Growth Strategy; Generating Profit from New Technology
Difficulty: 4 - Undergraduate/MBA

Allen Morrison, Scott Hill

Product Number: 9B02M020
Publication Date: 9/20/2002
Length: 16 pages

mGames is a manufacturer of game-based software for portable computers, PDAs and cell phones. The company's new chief executive officer has just been informed of a potential hostile takeover of the company by a major PDA manufacturer. At the same time he receives a phone call from a senior executive at a Scandinavian telecommunications company expressing interest in forming a partnership. With all of this happening, the chief executive officer faces growing pressure from the company's chairman to address ongoing performance problems. In a complex and changing environment he must make a strategic choice as to which group of customer groups (traditional handheld gaming device manufacturers, telecom manufacturers or PDA manufacturers) the company should focus on.

Teaching Note: 8B02M20 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Personal Values; International Business; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA

J. Nick Fry, Rod E. White

Product Number: 9B00M036
Publication Date: 9/25/2000
Revision Date: 1/11/2010
Length: 15 pages

The management team at WestJet was reviewing its growth plans in light of an anticipated merger of Air Canada and Canadian Airlines. The merger would result in a near monopoly of domestic air travel in Canada and a new set of opportunities and challenges for the handful of smaller airlines in the country. Under the circumstances, WestJet was considering whether it should shift from its focus of building on its success in Western Canada and expand into the East. The management team must analyze how fast and how significant an entry would be necessary from a competitive standpoint, how fast and how significant an entry the company could digest, and in the longer term, WestJet's prospects when competing against Air Canada and others.

Teaching Note: 8B00M36 (16 pages)
Industry: Transportation and Warehousing
Issues: Competition; Strategic Scope; Strategic Planning
Difficulty: 4 - Undergraduate/MBA

Mary M. Crossan, Ariff Kachra

Product Number: 9A98M006
Publication Date: 5/14/1998
Revision Date: 5/10/2017
Length: 23 pages

Starbucks is faced with the issue of how it should leverage its core competencies against various opportunities for growth, including introducing its coffee in McDonald’s, pursuing further expansion of its retail operations, and leveraging the brand into other product areas. The case is written so that students need to first identify where Starbucks competencies lie along the value chain, and assess how well those competencies can be leveraged across the various alternatives. It also provides an opportunity for students to assess what is driving growth in this company. Starbucks has a tremendous appetite for cash since all its stores are corporate, and investors are betting that it will be able to continue its phenomenal growth, so it needs to walk a fine line between leveraging its brand to achieve growth while not eroding it in the process. This is an exciting case that quickly captures the attention of students.

Teaching Note: 8A98M06 (13 pages)
Industry: Accommodation & Food Services
Issues: competitiveness; industry analysis; growth strategy; core competence; coffee
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
Competitive Advantage

Michael N. Young, Dong Liu, Derek Au, Karen Hung, Crystal Wong, Marty Yam, Olivia Yau

Product Number: 9B06M075
Publication Date: 8/30/2006
Revision Date: 2/5/2014
Length: 16 pages

Ocean Park was the only amusement park in Hong Kong until 2005 when Hong Kong Disney exploded onto the entertainment scene. This case outlines Ocean Park's history and its response to Disney's encroachment into its market. Ocean Park acted swiftly and decisively to capitalize on the excitement generated by Disney, thus turning what could have been a threat into an opportunity. In terms of business-level strategy, the park moved to accentuate the differences with Disney rather than compete with Disney head-on. As the CEO stated We have no intention of trying to out-Disney Disney. The park focused on its aquarium, animals and thrill-rides as opposed to the fantasy and animated characters that make up Disney's core competence. By following such a strategy, the park was able to capture a large portion of Disney visitors that came from Mainland China. The case also discusses a recent restructuring, as well as, human resources management issues and other challenges that the park faced in 2006.

Teaching Note: 8B06M75 (6 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Product Positioning; Competitive Strategy; Human Resources Management
Difficulty: 4 - Undergraduate/MBA

Louis Hébert, Mary M. Crossan, Ken Mark

Product Number: 9B01M019
Publication Date: 4/30/2001
Revision Date: 9/18/2009
Length: 10 pages

Canadel is Canada's leading manufacturer of casual dining room furniture. Following Canadel's entry into the U.S. market in 1992, sales had multiplied eight-fold and were expected to reach $125 million in 2000. The three brothers that made up the company's top management team were discussing recent sales results and future orientation of the firm. Questions that surfaced included growth in existing and new markets, and competition from established industry giants and new upstarts. The brothers were determined to assess these opportunities and threats in the upcoming weeks.

Teaching Note: 8B01M19 (7 pages)
Industry: Manufacturing
Issues: Competition; Strategy Development; Core Competence; Growth Strategy
Difficulty: 4 - Undergraduate/MBA

Mary M. Crossan, Ken Mark

Product Number: 9B01M017
Publication Date: 5/17/2001
Revision Date: 12/21/2009
Length: 14 pages

Grand & Toy is one of Canada's largest commercial suppliers of office stationery. The president of Grand & Toy is wary of the competitive threat posed by Staples, a well-known U.S. office supply company, and is reviewing his company's budget forecast to plan for a meeting with senior managers. He wants to use this opportunity to rethink the company's strategy and ensure all competitive threats and opportunities have been considered.

Teaching Note: 8B01M17 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategic Planning; Core Competence; E-Commerce; Competitiveness
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Industry Analysis

Michael J. Rouse, Jordan Mitchell

Product Number: 9B07M014
Publication Date: 3/16/2007
Revision Date: 8/14/2007
Length: 24 pages

As of late 2004, the chief executive officer (CEO) of New York-based wine distributor Monarchia Matt International (MMI) is looking at his portfolio of wines and wondering what advantage Hungarian wine could provide in becoming a powerful niche player in the highly fragmented and complicated U.S. wine industry. The CEO is cognizant of Hungarian wine's reputation in the United States as an inexpensive, mass-quantity produced and low quality drink. At the same time, the CEO is aware of Hungary's rich wine making tradition and is confident that the country's wine varieties could prove to be a key differentiator and help him grow revenues from $6 million in 2004 to $50 million by 2010. This case serves as an introduction to many of the core course frameworks in strategy, and can be used to cover the following topics: PEST (political, economic, social and technological factors); Porter's five forces; resource-based view of the firm using VRIO framework; value proposition; SWOT; and value frontier.

Teaching Note: 8B07M14 (13 pages)
Industry: Wholesale Trade
Issues: Growth Strategy; Competitive Advantage; Product Mix; Industry Analysis
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Akash Kapoor

Product Number: 9B03M001
Publication Date: 2/27/2003
Revision Date: 10/21/2009
Length: 20 pages

The cigar industry in Cuba has a mythical aura and renown that give it unparalleled recognition worldwide. The relationship between Cuba and the United States makes the situation in this industry particularly intriguing. Cuban cigars cannot currently be sold in the United States, even though it is the largest premium cigar market in the world. This note provides an opportunity for a structured analysis using Porter's five forces model and to consider several scenarios including the possible lifting of the U.S. embargo and the relaxation of Cuba's land ownership laws.

Teaching Note: 8B03M01 (19 pages)
Industry: Manufacturing
Issues: Government and Business; Internationalization; International Business; Industry Analysis
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M031
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 12 pages

The Chinese fireworks industry thrived after China adopted the open door policy in the late 1970s, and grew to make up 90 per cent of the world's fireworks export sales. However, starting from the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. Students are asked to undertake an industry analysis, estimate the industry attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor's point of view. Jerry Yu is an American-born Chinese in New York who has been invited to buy a fireworks factory in Liuyang, Hunan.

Teaching Note: 8A99M31 (15 pages)
Industry: Manufacturing
Issues: Exports; Market Analysis; International Marketing; Industry Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Competing over Time: Industry and Firm Evolution

Scott Jacobs, Prescott C. Ensign

Product Number: 9B06M023
Publication Date: 5/12/2006
Revision Date: 9/21/2009
Length: 11 pages

The chairman and chief executive officer of Sun Microsystems Inc., is struggling to take the company he co-founded into a profitable direction. There is strong evidence that a new strategy is necessary. Segments of Sun's business are growing but open source solutions and commoditization of products are driving revenues toward zero. Decisions involve market focus, pricing and investment in new technologies. The case illustrates the role of management preferences and the limits to an executive's span of attention/control. Both the chairman's and Sun's success is contingent upon an accurate assessment of the industry and the relative position of partners as well as the ability to generate creative solutions.

Teaching Note: 8B06M23 (14 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Managing Industry Change; Generating Profit from New Technology; Leadership; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA

Charlene Zietsma, Ken Mark, Jordan Mitchell

Product Number: 9B04M083
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 14 pages

Hewlett-Packard hired a new chief executive officer in 1999 to lead them into the future. The company, despite a strong legacy of success, had been faltering since the late 1990s, with slow sales growth and declining profitability. Industry observers felt that HP was not responding appropriately to competitive threats in its server, printer and personal computer markets. Industry conditions were also worsening, suggesting hard times ahead. The CEO felt a dramatic move was required to improve HP's position in the market. An attempt to expand HP's IT services business through the acquisition of PriceWaterhouseCoopers was unsuccessful. The CEO was considering a merger between HP and Compaq. With the help of four role plays supplements, 9B04M085 - Hewlett-Packard: Sun Microsystems in 2001, 9B04M086 - Hewlett-Packard: Dell in 2001, 9B04M087 - Hewlett-Packard: IBM in 2001 and 9B04M088 - Hewlett-Packard: Lexmark in 2001, student groups take on the roles of competitors in various segments and plan their competitive strategy while Hewlett-Packard is dealing with the merger. The supplement 9B04M084 - Hewlett-Packard in 2004 concludes the Hewlett-Packard in 2001 case series.

Teaching Note: 8B04M83 (11 pages)
Industry: Manufacturing
Issues: Competition; Computer Industry; Mergers & Acquisitions; Strategic Positioning
Difficulty: 4 - Undergraduate/MBA

Mary M. Crossan, Margaret A. Wilkinson, Mark Perry, Trevor Hunter, Tammy Smith

Product Number: 9B01M002
Publication Date: 3/5/2001
Revision Date: 12/18/2009
Length: 19 pages

The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files -- which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital.

Teaching Note: 8B01M02 (21 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: E-Commerce; Strategic Change; Intellectual Properties; Industry Analysis
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Anthony Goerzen

Product Number: 9B00A019
Publication Date: 10/19/2000
Revision Date: 5/23/2017
Length: 19 pages

Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. Recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. The early stages of Interbrew's global branding strategy and tactics are examined, enabling students to consider these concepts in the context of a fragmented but consolidating industry. It is suitable for use in courses in consumer marketing, international marketing and international business.

Teaching Note: 8B00A19 (10 pages)
Industry: Manufacturing
Issues: Global Product; International Business; International Marketing; Brands
Difficulty: 4 - Undergraduate/MBA

Chapter 5:
Strategy Execution

Julia Sagebien, Rick Shaver

Product Number: 9B07M070
Publication Date: 1/4/2008
Revision Date: 8/26/2008
Length: 12 pages

The case centers around the strategic planning retreat of MacTara Limited (MacTara), the largest wood products company in Nova Scotia. While there are some very good opportunities for the company in some sectors, like wood pellets for fuel (high demand for inexpensively priced renewable energy sources), the Canadian lumber industry as a whole is not attractive at this time (distortionary effects of the Canadian-U.S. softwood lumber dispute, low price of lumber, sales denominated in the free-falling U.S. dollar, inflexible cost structure, etc). The fact that MacTara is a somewhat vertically integrated company - from construction lumber, to chips for paper mills, to fuel pellets made out of wood waste - makes planning very difficult because the health of each sector impacts on the prospects for the others. Company executives need to find a way to make all the various pieces of the business fit together into a profitable whole while they still have money and time. The Canadian lumber industry is in crisis and the eastern Canadian industry is ripe for consolidation.

Teaching Note: 8B07M70 (7 pages)
Industry: Manufacturing
Issues: Industry Analysis; Strategy Development; Crisis and Change; Trade
Difficulty: 4 - Undergraduate/MBA

W. Glenn Rowe, John R. Phillips

Product Number: 9B02M038
Publication Date: 1/9/2003
Revision Date: 3/4/2011
Length: 9 pages

Paragon Information Systems is a small business unit owned by NewTel Enterprises Limited that manufacturers hardware for information technology and systems integration. The newly appointed chief executive officer is faced with a crisis. Days after his appointment, two vice-presidents resign and start a new company. The new company recruits the entire sales team, members of the technical unit and support staff from Paragon Information Systems, a loss of almost one third of Paragon's staff within two months. The new chief executive officer must meet short-term stakeholder needs, assess, formulate and implement long-term strategies, deal with the competitive threat of the new company, and consider the leadership style and control systems required to make the necessary level of change.

Teaching Note: 8B02M38 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Leadership; Strategy Development; Strategy Implementation; Organizational Change
Difficulty: 4 - Undergraduate/MBA

Mary M. Crossan, Barbara Pierce

Product Number: 9A94M004
Publication Date: 11/15/1994
Revision Date: 9/9/2009
Length: 8 pages

This case is the first supplement to Sabena Belgian World Airlines (A). It outlines the strategic changes implemented by Pierre Godfroid, Sabena’s CEO, and introduces Erik Weytjens, a recent graduate of an MBA program. This case outlines Weytjens’s first assignment to solve a major logistics problem in the dishwashing department. The case, along with the follow-on series of cases, provides the opportunity to: 1) make decisions and take action under realistic constraints of limited information, time, and credibility; and 2) reflect on how the pattern of actions supports or undermines strategy.

Teaching Note: 8A94M03 (19 pages)
Industry: Transportation and Warehousing
Issues: Strategy Formulation; Strategy Implementation; Change Management; Airline Industry; Belgium
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Vertical Integration and Outsourcing

Mark O. Lewis, Arun Rai, David Forquer, Dan Quinter

Product Number: 9B07D002
Publication Date: 2/26/2007
Length: 14 pages

This case is about managing large supply change outsourcing relationships over time. The focus is on the challenges service providers and their customers face as they seek to continually find new sources of value as the relationships change. Emphasis is placed on issues related to coordinated capabilities across functional boundaries, information sharing and developing information technology readiness.

Teaching Note: 8B07D02 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Relationship Management; Outsourcing; Innovation
Difficulty: 5 - MBA/Postgraduate

Zhang Weijiong, Chen Junsong

Product Number: 9B06M045
Publication Date: 3/29/2006
Revision Date: 9/21/2009
Length: 6 pages

The Zhejiang Tengen Group (Tengen) has grown into one of the largest private enterprises in China. However, the company has faced many challenges along the way. The demand for low-voltage electronics was so high that it was difficult to meet. As more and more suppliers joined the market, quality problems emerged. Despite this problem, Tengen managed to maintain a reputation for supplying high quality electronics. Using this reputation, Tengen outsourced the production of many of its products so they would carry the Tengen name brand. Several problems are faced by the company as it loses control over production, including a decline in the quality of the products. Another problem that needs to be addressed is the lack of qualified salespeople.

Teaching Note: 8B06M45 (5 pages)
Industry: Manufacturing
Issues: China; Virtual Business; Outsourcing; CEIBS
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Jing'an Tang

Product Number: 9B04M005
Publication Date: 3/4/2004
Revision Date: 11/18/2014
Length: 12 pages

Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?

Teaching Note: 8B04M05 (7 pages)
Industry: Manufacturing
Issues: China; Expansion; Imports; Outsourcing; Plant Location
Difficulty: 4 - Undergraduate/MBA

Tony S. Frost, Terence Tsai, Borshiuan Cheng, Changhui Zhou

Product Number: 9A98M017
Publication Date: 4/9/1999
Revision Date: 1/29/2010
Length: 11 pages

Taiwan's United Microelectronics Corporation (UMC), one of the world's leading semiconductor foundries, has grown dramatically in 16 years. UMC pursued a strategy of vertical disintegration as part of the chairman's vision of turning UMC into a pure-play foundry. This case discusses the major technological and competitive forces affecting the industry and looks at UMC's restructuring through the eyes of the chairman. The case provides enough detail to engage the class in a discussion of the merits of UMC's vertical disintegration strategy and the possible pitfalls of this approach going forward.

Teaching Note: 8A98M17 (12 pages)
Industry: Manufacturing
Issues: Joint Ventures; Vertical Integration; Competitiveness
Difficulty: 4 - Undergraduate/MBA

Chapter 7:

Paul W. Beamish, Jordan Mitchell

Product Number: 9B06M048
Publication Date: 4/28/2006
Revision Date: 9/21/2009
Length: 21 pages

Resina is a global manufacturer of resins and surfacing solutions headquartered in Helsinki, Finland, and has three production facilities and 12 sales offices in China. The head of Asia Pacific for Resina needs to decide what should be done about Beijing and Guangdong. Should Beijing remain in operation, be shut down, or moved to another area where demand for liquid bulk resins is stronger. Similar options exist in Guangdong. In aiming towards profitable operations, he needs to consider the buoyancy of local demand, Resina's partner in Beijing, local and foreign competitors and appropriate managers in each operation.

Teaching Note: 8B06M48 (11 pages)
Industry: Manufacturing
Issues: China; International Management; Risk Analysis; Operations Management; Joint Ventures
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Kevin K. Boeh

Product Number: 9B04M044
Publication Date: 9/20/2004
Revision Date: 9/18/2008
Length: 22 pages

MapQuest is a leading provider of mapping services and destination information as well as a publisher of maps, atlases and other guides. On the Internet, they provide these products and services both to consumers directly and to other businesses enabling these businesses to provide location, mapping and destination information to their own customers. The company completed a successful initial public offering five years ago and were in a strong competitive position. However, the markets were allowing competitors to quickly get funding in both private and public deals. As well, there were perceptions that a general stock market bubble existed for technology companies. The chief executive officer had several options available, and wanted to consider those options and present a recommendation to the board. Possible options included splitting the firm's old and new-line business units, raising capital to fund an acquisition strategy, forging a set of alliances, focusing on organic growth, and pursuing the sale of the firm.

Teaching Note: 8B04M44 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Strategy; Strategic Alliances; Competitive Advantage; Mergers & Acquisitions
Difficulty: 4 - Undergraduate/MBA

Charles Dhanaraj, Paul W. Beamish, Nikhil Celly

Product Number: 9B04M016
Publication Date: 5/14/2004
Revision Date: 3/13/2017
Length: 18 pages

Eli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations is re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture has run smoothly for a number of years despite their differences in focus, but recently Ranbaxy was experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives.

Teaching Note: 8B04M16 (18 pages)
Industry: Manufacturing
Issues: Joint Ventures; Emerging Markets; International Management; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Changwha Chung

Product Number: 9B03M002
Publication Date: 2/6/2003
Revision Date: 10/21/2009
Length: 10 pages

General Motors Defense, a division of General Motors, one of the world's largest automobile manufacturers, designs and manufactures light armored vehicles. The company is approached by General Dynamics to jointly pursue the U.S. Army's Brigade Combat Team program. However, General Dynamic made it clear that they would also submit a bid on their own. Contrary to past practices, the chief of staff of the U.S. Army planned to award the multi-billion dollar contract within only 11 months. The executive director of General Motors Defense has to decide whether the company should bid-it-alone or submit a joint venture bid with General Dynamics.

Teaching Note: 8B03M02 (9 pages)
Industry: Manufacturing
Issues: Joint Ventures; Doing Business in the U.S.; Political Environment; Leadership
Difficulty: 4 - Undergraduate/MBA

Chapter 8:
Competing in Global Market

Pierre-Xavier Meschi

Product Number: 9B07M030
Publication Date: 4/2/2007
Length: 20 pages

As opposed to other emerging countries, the tire market in India was almost exclusively dominated by local players: 90 per cent of all tires on the Indian market were made and sold by local Indian companies. It is important to note that the big names of the world tire industry - Michelin, Bridgestone, Goodyear and Continental - were hardly visible in India. Michelin was absent from the Indian tire market and it is very surprising that the world leader of the tire industry had neither a production facility nor a distribution network in India. Why such an absence? Why did Michelin have so little presence in Asian emerging countries and especially in India? This case presents the main features of the tire industry in India. The case allows students to carry out a comprehensive strategic evaluation of the industry's attractiveness as well as an in-depth analysis of the structure of competition. Students will also conduct performance analysis for each company.

Teaching Note: 8B07M30 (4 pages)
Industry: Manufacturing
Issues: Industry Analysis; International Strategy
Difficulty: 4 - Undergraduate/MBA

Pierre-Xavier Meschi

Product Number: 9B07M031
Publication Date: 4/2/2007
Length: 9 pages

This is a supplement to Michelin in the Land of the Maharajahs (A): A Note on the Tire Industry in India, product 9B07M030. This case presents the performance and the geographic positioning of Michelin as well as its international expansion strategy. The information provided allows students to analyse Michelin's strategy and performance.

Teaching Note: 8B07M30 (4 pages)
Industry: Manufacturing
Issues: International Strategy; Industry Analysis
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Ken Mark, Jordan Mitchell

Product Number: 9B04M066
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 17 pages

Sun Life Financial is a large insurance conglomerate with $14.7 billion in annual revenues. The vice-president for China must formulate an approach for his company's entrance into China. Sun Life has achieved two important milestones: the right to apply for license and the signing of a Memorandum of Understanding for Joint Venture with China Everbright, a local securities company. The financial vice-president must consider strategic options for entry and choose a city in which to focus his efforts in getting a license. In doing so, he needs to consider Sun Life's overall priorities, strategic direction and how he will sell the concept to senior management in Canada. Intended for use in an introduction to international business course, the case includes assessing internal capabilities against an environmental scan, formulating strategy and making operational decisions relating to city selection. It also introduces the idea of joint venture management and government relations.

Teaching Note: 8B04M66 (12 pages)
Industry: Finance and Insurance
Issues: China; Joint Ventures; Market Entry; Risk Analysis; International Business
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Isaiah A. Litvak, Harry Cheung

Product Number: 9B04M012
Publication Date: 2/3/2004
Revision Date: 10/9/2009
Length: 7 pages

The vice-president of international operations must decide whether to continue to operate or abandon the company's Nigerian joint venture. Although the expatriate general manager of the Nigerian operation has delivered a very pessimistic report, Larson's own hunch was to stay in that country. Maintaining the operation was complicated by problems in staffing, complying with a promise to increase the share of local ownership, a joint venture partner with divergent views, and increasing costs of doing business in Nigeria. If Larson decides to maintain the existing operation, the issues of increasing local equity participation (i.e. coping with indigenization) and staffing problems (especially in terms of the joint venture general manager) have to be addressed.

Teaching Note: 8B04M12 (11 pages)
Industry: Manufacturing
Issues: Subsidiaries; Third World; Government Regulation; Staffing
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Nikhil Celly

Product Number: 9B04M001
Publication Date: 1/14/2004
Revision Date: 11/18/2014
Length: 17 pages

Vincor International Inc. was Canada's largest wine company and North America's fourth largest in 2002. The company had decided to internationalize and as the first step had entered the United States through two acquisitions.The company's chief executive officer felt that to be among the top 10 wineries in the world, Vincor needed to look beyond the region. To the end, he was considering the acquisition of an Australian company, Goundrey Wines. He must analyze thestrategic rationale for the acquisition of Goundrey as well as to probe questions of strategic fit and value.

Teaching Note: 8B04M01 (14 pages)
Industry: Manufacturing
Issues: Internationalization; Market Entry; Acquisitions; Growth Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
New Business Development

Charlene Zietsma, Iris Fischlmayr, Rob Wong

Product Number: 9B06M060
Publication Date: 5/12/2006
Revision Date: 9/21/2009
Length: 18 pages

KTM was a leading sport motorcycle company based in Austria with sales internationally. In 2005, the company was considering expanding into all terrain vehicles (ATVs), a market which was experiencing mid to high double-digit sales growth with healthy operating margins. There were several options open to KTM to expand into the ATV market, including internal development, acquisition of another firm with capabilities in the area of allying with an ATV manufacturer. The chief executive officer had to consider the fit of the ATV business with KTM's core business as well as the implications of the various options for ATV market entry on maintaining control of KTM, achieving KTM's growth objectives, and effectively exploiting the ATV opportunity in an international context. This case allow students to determine how best to pursue a related market to maximize revenue and cost synergies, learning, and control of the firm. This case can be used with KTM: Ready to Race, product 9B05M036.

Teaching Note: 8B06M60 (15 pages)
Industry: Manufacturing
Issues: Growth Strategy; Acquisitions; Alliances; Globalization
Difficulty: 4 - Undergraduate/MBA

David W. Conklin, Danielle Cadieux

Product Number: 9B05M040
Publication Date: 7/15/2005
Revision Date: 10/1/2009
Length: 17 pages

In the early 2000s, De Beers Consolidated Mines has successfully managed the global diamond industry for many decades, propping up prices at all stages of the value chain, reducing price volatility and increasing consumer demand. By the end of the 20th century, however, a series of forces threatened De Beer's role and profitability. New diamond mining firms were selling their production on the open market rather than through De Beers' Central Selling Organization. The new competitors were attempting to grade, polish and cut diamonds outside of the De Beers value chain. Some retailers were purchasing shares in new mines in order to create their own value chain. New technology offered the possibility of creating synthetic diamonds that would be indistinguishable from diamonds created by natural forces. Governments were threatening antitrust actions. Meanwhile, an illicit trade in conflict diamonds was supporting revolutionary groups and disrupting the market. De Beers now had to decide whether to maintain its traditional functions or to embark on a new strategy. In particular, De Beers contemplated a shift into the retail jewelry business in a joint venture with France's Moet Hennessy-Louis Vuitton luxury goods corporation that would sell De Beers-branded diamond jewelry.

Teaching Note: 8B05M40 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Value Chain; Globalization; International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA

Allen Morrison

Product Number: 9B03M054
Publication Date: 11/5/2003
Revision Date: 10/22/2009
Length: 16 pages

Pinnacle Technologies is an unusual company in that it acts essentially as a subsidiary of U.K.-based Psion Teklogix although it is 100 per cent independent. Psion Teklogix manufacturers wireless data communication devices that are used primarily in inventory management activities performed in warehouses, ports, factories and airports. In the mid 1990s, Psion gave Pinnacle Technologies exclusive Middle Eastern rights to the Teklogix technology and product line. It also assisted in training Pinnacle's development staff, programmers and sales representatives. By 2002, Pinnacle was prospering and was thinking of diversifying into related and unrelated software services. The chief executive officer must decide to what degree Pinnacle should diversify from its core business and determine what financial and managerial resources are required for the diversification. (A 27-minute video is available featuring a discussion with the chief executive officer of Pinnacle, product 7B03M054.)

Teaching Note: 8B03M54 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Core Competence; Management in a Global Environment; Inventory Planning/Control; International Business
Difficulty: 5 - MBA/Postgraduate

Paul W. Beamish, Tom Gleave

Product Number: 9B01M032
Publication Date: 6/20/2001
Revision Date: 12/21/2009
Length: 16 pages

Strategic Intelligence Pte. Limited is a research and new-media company that provides Asian-based economic and political information. The managing editor is facing several challenges in building a new online business intelligence service that focuses on Asia's new economy. As the person responsible for the company's first Internet related initiative, he is expected to design, manage and help market the new initiative that will be independent from, yet complementary to, the company's existing events-oriented and research services. Although he is satisfied with the content that has been developed, he still needs to resolve several issues regarding target audience, pricing policy, revenue diversification options and service awareness. A sense of urgency pervades the situation, since he is expected to ensure that the new service will contribute 25 per cent of total company revenues within the next year.

Teaching Note: 8B01M32 (14 pages)
Industry: Information, Media & Telecommunications
Issues: Growth; Pricing Strategy; Sales Strategy; Consumer Research; Nanyang
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Managing the Multibusiness Firm

Ravi Sarathy, David T.A. Wesley

Product Number: 9B06M025
Publication Date: 2/16/2006
Revision Date: 9/21/2009
Length: 18 pages

The Rayovac case discusses the company's bold and risky acquisitions strategy as it diversifies into personal care and grooming, lawn and garden care, insecticides and pet foods. The company assumes it can successfully manage diverse product categories across diverse geographic markets in which it has limited experience. Success will depend on how well the acquired companies are integrated and managed under Rayovac's supervision. Increasingly, it will also depend on external conditions beyond Rayovac's control, such as macroeconomic conditions and foreign exchange fluctuations. Students should be able to analyze the case from the point of view of international business and strategy and perform a financial analysis of potential future returns using different assumptions for sales growth and margins of the various businesses acquired.

Teaching Note: 8B06M25 (13 pages)
Industry: Manufacturing
Issues: Risk Analysis; Diversification; Acquisition Strategy; Globalization; Northeastern
Difficulty: 4 - Undergraduate/MBA

Rod E. White, Derek Lehmberg

Product Number: 9B05M067
Publication Date: 2/6/2006
Revision Date: 10/3/2009
Length: 19 pages

In January 1997, Sir John Craven, a highly respected investment banker and chairman of the investment bank Deutsche Morgan Grenfell, was offered the chairmanship of Lonrho, a conglomerate with headquarters in London, England, and operations primarily in Africa. Lonrho's more significant interests were in hotels, mining, agribusiness and trading. The company was experiencing financial trouble, and was no longer respected by the financial community in London. Tiny Rowland, the tycoon entrepreneur who built the firm, had recently been fired. The firm lacked the leadership and direction it needed to remove itself from its current financial troubles and prosper in the future. Sir John needed to decide whether he should accept the offer of the chairman position, and if he did, what direction Lonrho should take. Supplements From Lonrho to Lonmin (B): Restructuring a Conglomerate, product 9B05M068 and Lonrho (C): Lonmin, product 9B05M069 look at the Sir John's decision and the company's focus.

Teaching Note: 8B05M67 (14 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Strategy; Diversification
Difficulty: 4 - Undergraduate/MBA

Frank C. Schultz, Michael McCune

Product Number: 9B05M026
Publication Date: 1/31/2005
Revision Date: 10/1/2009
Length: 16 pages

In 1996, Gillette acquired Duracell batteries for $7.3 billion in stock. The purchase was met with optimism not only by Gillette's senior management and its highly visible director, Warren Buffet, but also Wall Street analysts. The case highlights the numerous challenges that Gillette has encountered since its acquisition of Duracell. Despite the initial enthusiasm, Duracell has proven to be a drain on Gillette's earning and has cost Michael Hawley, James Kilt's predecessor as CEO, his job after only 18 months in the position - in large part for his inability to turn around the financial hemorrhaging at the Duracell division. The key strategy questions revolve around what can be done to turn around the battery business to help it achieve the potential for Gillette that everyone had assumed it possessed. The supplement Gillette's Energy Drain (B): Energizer's Acquisition of Schick, product 9B05M027 highlights Energizer's October 2003 acquisition of Schick.

Teaching Note: 8B05M26 (13 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Corporate Strategy; Competition; Strategy Implementation
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Corporate Governance

Lawrence G. Tapp, Trevor Hunter

Product Number: 9B06M096
Publication Date: 11/23/2006
Length: 9 pages

In 2004 CCL Industries Inc. was a leading producer of value-added outsourcing custom products and packages for numerous large consumer packaged goods companies. CCL's chief executive officer and vice-chair faced an important strategic decision. The CEO was contemplating selling the custom manufacturing division of CCL that was the basis for its founding, and still contributed approximately 34 per cent of overall earnings. Although the firm had acquired and divested many business units throughout its history, this divestment was perhaps the most significant in terms of its historical importance. The divestment of this division represented a major change to the essence and strategy of the firm. CCL was fortunate to have a very active, supportive yet independent board of directors. The CEO had to ensure that if he recommended divesting the custom manufacturing division, he would need to be very well prepared for some intense questioning from the board regarding the soundness of his proposal. The board took their role as stewards of the corporation very seriously.

Teaching Note: 8B06M96 (5 pages)
Industry: Manufacturing
Issues: Board/Management Relations; Divestment of Assets; Strategy; Corporate Governance
Difficulty: 5 - MBA/Postgraduate

Amy J. Hillman

Product Number: 9B04M062
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 21 pages

PepsiCo is a large international soft drink manufacturer. The company has decided to split its worldwide bottling company from its concentrate business and is pursuing the initial public offering of the Pepsi Bottling Group. The president of PepsiCo Inc will become the chief executive officer of the newly formed bottling division and must create a system of corporate governance, and decide how to structure the new board of directors for the Pepsi Bottling Group.

Teaching Note: 8B04M62 (12 pages)
Industry: Manufacturing
Issues: Initial Public Offerings; Corporate Governance; Board of Directors
Difficulty: 4 - Undergraduate/MBA

Paul Croke, David T.A. Wesley

Product Number: 9B03M032
Publication Date: 8/6/2003
Revision Date: 10/22/2009
Length: 14 pages

After an ill-fated acquisition of a Linux development company, Pronix finds itself in a financial crisis that could lead to bankruptcy. The board has decided to recruit a new chief executive officer from outside the company who has experience turning around enterprise software companies and strategic business units. Despite its flagging performance, Pronix produced some of the most advanced enterprise software available and was one of the few suppliers of real-time software capable of integrating entire corporations. By refocusing software development on a single integrated platform, the new chief executive officer hoped to transform the company's prospects. Others, however, were less enthusiastic. Some recommended that the entire Pronix product line be sold piecemeal. The case describes the process of implementing a turnaround during an economic downturn and the leadership issues associated with managing resistance to change among senior members of a management team.

Teaching Note: 8B03M32 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Board of Directors; Management Information Systems; Leadership; Crisis Management; Northeastern
Difficulty: 4 - Undergraduate/MBA

Chapter 12:
Strategic Planning and Decision Making

Deepak Sardana, Don Scott-Kemmis

Product Number: 9B06M093
Publication Date: 11/6/2006
Length: 13 pages

Pharmaxis is a new biotechnology venture based in Sydney, Australia. The case brings to light the important stages in the growth of the company and the commercialization decisions the company faced. It also highlights both the uniqueness of some of the managing team's decisions and their understanding of the industry. The case underscores the point that good decision-making can overcome apparent barriers to growth. The company is now at a key decision point. It needs to determine the best approach to commercialize its first diagnostic product. The wrong decision could waste scarce financial resources, divert the time of managers and researchers, and jeopardize the reputation of the firm with potential investors.

Teaching Note: 8B06M93 (8 pages)
Issues: Managing Growth; Business Development; Biotechnology Management; Planning
Difficulty: 5 - MBA/Postgraduate

Rod E. White, Paul W. Beamish, Andreas Schotter

Product Number: 9B06M083
Publication Date: 1/9/2007
Length: 15 pages

The new chief executive officer (CEO) of ING Insurance Asia/Pacific wants to improve the regional operation of the company. ING Group was a global financial services company of Dutch origin with more than 150 years of experience. As part of ING International, ING Insurance Asia/Pacific was responsible for life insurance and asset/wealth management activities throughout the region. The company was doing well, but the new CEO believed that there were still important strategic and operational improvements possible. This case can be used to discuss the local versus regional or global management issue and will yield best results if the class has already been introduced to different strategic and organizational alternatives in the international business context.

Teaching Note: 8B06M83 (12 pages)
Industry: Finance and Insurance
Issues: Subsidiaries; Organization; Leadership; International Management
Difficulty: 4 - Undergraduate/MBA

Don Wood, Paul W. Beamish

Product Number: 9B04M067
Publication Date: 1/10/2005
Revision Date: 9/21/2011
Length: 17 pages

At the end of 2001, the Canadian Imperial Bank of Commerce (CIBC) and Barclays Bank PLC were in advanced negotiations regarding the potential merger of their respective retail, corporate and offshore banking operations in the Caribbean. Some members of each board wondered whether this was the best direction to take. Would the combined company be able to deliver superior returns? Would it be possible to integrate, within budget, companies that had competed with each other in the region for decades? Would either firm be better off divesting regional operations instead? Should the two firms just continue to go-it-alone with emphasis on continual improvement? A decision needed to be made within the coming week. This case may be taught on a stand alone basis or in combination with any of the six additional Cross-Enterprise cases that deal with the various functional issues associated with the actual merger: Accounting and Finance - CIBC-Barclays: Accounting for Their Merger, product 9B04B022, Information Systems - Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032, Marketing and Branding - FirstCaribbean International Bank: The Marketing and Branding Challenges of a Start-up, product 9B05A012, Human Resources - Harmonization of Compensation and Benefits for FirstCaribbean International Bank, product 9B04C053, Finance - FirstCaribbean Merger: The Proposed Merger, product 9B06N004, and technical note - Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04M67 (8 pages)
Industry: Finance and Insurance
Issues: Corporate Strategy; Emerging Markets; Mergers & Acquisitions; Integration; University of West Indies
Difficulty: 4 - Undergraduate/MBA

Rod E. White, Mary M. Crossan, Ken Mark

Product Number: 9B03M007
Publication Date: 5/28/2003
Revision Date: 1/31/2018
Length: 15 pages

Harlequin Enterprises is a well-known publisher of series romantic fiction and is facing threats to its leading position as the world's largest romance publisher. This threat comes from the growing popularity of single title women's fiction novels. While Harlequin was the dominant and very profitable producer of series of romance novels, research indicated that many customers were reading as many single-title romance and women's fiction books as series romances. Facing a steady loss of share in a growing total women's fiction market, Harlequin convened a task force to study the possibility of re-launching a single title women's fiction program. (A video is available, product 7B03M007, that features four senior managers discussing the challenges the company faced.)

Teaching Note: 8B03M07 (16 pages)
Industry: Manufacturing
Issues: Strategy Development; Product Design/Development
Difficulty: 4 - Undergraduate/MBA