Ivey Publishing

International Marketing and Export Management

Albaum, G., Duerr, E.,7/e (United States, Prentice Hall/Financial Times, 2011)
Prepared By Paul W. Beamish, Strategy/General Management
Chapter and Title Chapter Matches: Case Information
Chapter 1:
International Marketing and Exporting

BESTSELLER — FACING A NEW COMPETITIVE LANDSCAPE IN CHINA
Michael W. Hansen, Marcus Moller Larsen, Torben Pedersen

Product Number: 9B11M054
Publication Date: 8/29/2011
Length: 20 pages

In the fall of 1996, Bestseller became one of the first international fashion companies to enter the Chinese retail market. Earlier that year, Allan Warburg and Dan Friis had made contact with the CEO of Bestseller A/S, Troels Holch Povlsen, regarding the prospect of selling Bestseller brands in China, where they felt there were many business opportunities. Holch Povlsen found himself convinced by the two entrepreneurs’ enthusiasm for the Chinese market.

They quickly proved that they had been right about China. A decade after the first store opened, Bestseller China had almost 2,000 stores, and accounted for more than one-third of the total turnover of Bestseller A/S. The secret to Bestseller China’s extraordinary success was its ability to sell price-competitive European designs with a Chinese touch, which was achieved by locating all production in China and modifying Bestseller A/S’s designs to suit the size and tastes of Chinese middle-class consumers. With a 10-year headstart over potential competitors, Bestseller China had by the end of 2007 managed to establish a strong presence in China. However, high economic growth and the growing middle class were making the Chinese market highly attractive for other companies. Although global giants, such as Zara and H&M, were devoting big chunks of their budgets to entering China and capturing market share, these aggressive new entrants were not Bestseller China’s biggest concern. In fact, the competition from local companies was seen as the real threat.


Teaching Note: 8B11M054 (14 pages)
Industry: Manufacturing
Issues: Franchising; Marketing Management; Global Strategy; Fashion; Clothing; Denmark; China
Difficulty: 4 - Undergraduate/MBA



WHERE HAVE YOU BEEN?: AN EXERCISE TO ASSESS YOUR EXPOSURE TO THE REST OF THE WORLD’S PEOPLES
Paul W. Beamish

Product Number: 9B11M107
Publication Date: 11/8/2011
Length: 11 pages

This exercise assesses one’s exposure to the rest of the world’s peoples. A series of worksheets require the respondents to check off the number and names of countries they have visited and the corresponding percentage of world population which each country represents. By summing a group’s collective exposure to the world’s people, the result will inevitably be the recognition that together they have seen much, even if individually some have seen little. The teaching note provides assignments and discussion questions which look at: why there is such a high variability in individual profiles; the implications of each profile for one’s business career; and, what it would take for the respondent to change his/her profile.

For marketers, it underscores the need to gather greater base knowledge about opportunities abroad.


Teaching Note: 8B11M107 (6 pages)
Issues: Career Development; Intercultural Relations; Team Building; Internationalization
Difficulty: 4 - Undergraduate/MBA



PAN BORICUA: DEVELOPING A MARKET STRATEGY FOR THE HISPANIC MARKET IN THE UNITED STATES
Victor Quiñones, Julia Sagebien, Marisol Perez-Savelli, Eva Perez, Jennifer Catinchi

Product Number: 9B09A020
Publication Date: 8/27/2009
Length: 10 pages

Two inexperienced, but strongly committed, entrepreneurs face the hassles of a new venture: exporting dough from Puerto Rico to cities in the United States with large numbers of Puerto Rican immigrants who are longing nostalgically for their beloved pan sobao (bread made with vegetable shortening). With thousands of Puerto Ricans living in and/or moving to the United States and after several incidents of fraud by partners of the entrepreneurs, they are thinking about how to take advantage of what seems to be an opportunity for doing business outside their Caribbean home. These entrepreneurs are confronting several challenges: 1) Preparing to detect opportunities and to get personally involved in a demanding export business 2) Differentiating and positioning the brand in a crowded market. Is a nostalgic feeling enough of a motivator to engage customers with the brand? 3) Deciding whether institution is a substitute for market data and feasibility determination.

Teaching Note: 8B09A20 (7 pages)
Industry: Wholesale Trade
Issues: Hispanic; Minority; Market Adaptation; New Markets
Difficulty: 4 - Undergraduate/MBA



FIRSTCARIBBEAN INTERNATIONAL BANK: THE MARKETING AND BRANDING CHALLENGES OF A START-UP
Gavin Chen, Derrick Deslandes

Product Number: 9B05A012
Publication Date: 6/22/2005
Revision Date: 9/24/2009
Length: 17 pages

FirstCaribbean International Bank was the new banking entity created from the combination of the Caribbean operations of two foreign banks, Barclays Bank plc of the United Kingdom and headquarters in London, England and CIBC - formally the Canadian Imperial Bank of Commerce - of Canada and headquartered in Toronto, Ontario. A marketing team was formed with the specific responsibility of developing the marketing function and the brand strategy, as well as guiding the branding process of the new entity. The head of the marketing team has a number of concerns: Would geography, history and commercial practices support or mitigate against a single, centralized marketing strategy for the entire region, what should the new brand be and how should it be articulated, should the new brand reflect one or both of the heritage banks or should the new brand break with the past and reflect a totally new identity, and how quickly could the new brand be rolled out? This case may be taught on a stand alone basis or in combination with any of the five additional Cross-Enterprise cases that deal with various functional issues associated with the eventual merger: Human Resources - Harmonization of Compensation and Benefits for FirstCaribbean, product 9B04C053; Information Systems - Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032; General Management - CIBC-Barclays: Should Their Caribbean Operations Be Merged?, product 9B04M067; Accounting and Finance - CIBC-Barclays: Accounting For Their Merger, product 9B04B022; FirstCaribbean International Bank: The Marketing and Branding Challenges for a Start-up, product 9B05A012; and technical note - Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B05A12 (7 pages)
Industry: Finance and Insurance
Issues: Brand Management; Brand Positioning; Market Strategy; Marketing Planning; University of West Indies
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Bases of International Marketing

FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY - GREEN MAKEOVER OR "GREENWASHING"?
James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA



PHIL CHAN (A)
Paul W. Beamish, Jean-Louis Schaan

Product Number: 9B08M038
Publication Date: 4/18/2008
Length: 8 pages

The case deals with a scam that has been run out of Nigeria since 1990. In it, foreign companies are approached for their assistance in facilitating an international transfer of funds in order to receive a very large but unearned commission. In the case, a Hong Kong-based manager who is travelling to Nigeria is unaware that he is walking into a situation where his company is about to be cheated. The objective of the case is to raise the issue of ethics in the conduct of international business. A follow-up case (9B08M039) is available.

Teaching Note: 8B08M38 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Negotiation; Human Behaviour; Ethical Issues; Personal Values
Difficulty: 4 - Undergraduate/MBA



KILLER COKE: THE CAMPAIGN AGAINST COCA-COLA
Henry W. Lane, David T.A. Wesley

Product Number: 9B07C003
Publication Date: 1/31/2007
Revision Date: 2/24/2010
Length: 23 pages

The CEO of Coca-Cola is faced with increasing criticism over the company's handling of alleged human rights abuses in Colombia. A grass roots protest movement known as The Campaign to Stop Killer Coke has built international support for a boycott of Coca-Cola products on college campuses. The campaign centers specifically on the intimidation and murder of union leaders at a specific Coca-Cola bottling plant in Colombia. Coca-Cola asserted that it was not responsible for such abuses. Rather, the violence at the Coca-Cola plant was the product of a political situation that was beyond the company's control. The company further argued that it was in compliance with local labor laws, and had been dismissed as the defendant in lawsuits filed in Colombia and U.S. courts. At the time of the case, Coca-Cola is faced with anti-Coke campaigns at more than 100 college campuses worldwide and official boycotts of its products at a number of large well-known campuses in the United States. In response, the company has undertaken an audit of its bottling plants in Colombia. It also launched a public relations campaign aimed at refuting accusations of human rights violations. The case can be used to discuss corporate ethics, extraterritoriality, marketing and public relations.

Teaching Note: 8B07C03 (11 pages)
Industry: Manufacturing
Issues: Trade Unions; Ethical Issues; Emerging Markets; Supplier Selection; Northeastern
Difficulty: 4 - Undergraduate/MBA



MONSANTO EUROPE (A)
Francis Spital, Henry W. Lane, David T.A. Wesley

Product Number: 9B02A007
Publication Date: 5/1/2002
Revision Date: 10/28/2009
Length: 15 pages

Monsanto, one of the world's largest producers of commodity chemicals, had decided to focus its operations on the biotechnology and pharmaceutical industries. The first shipment of genetically modified soybeans arrived in Europe in November of 1996. Genetic engineering promised to reduce the use of pesticides and curtail world hunger. Therefore, Monsanto was dismayed at the powerful opposition that developed over the next few years. A series of food safety concerns, the foremost being mad cow disease, only added to consumer skepticism. The company must examine its strategy and the relationships with key stakeholders (including governments, farmers, industry groups, environmentalists, grocers and consumers). The (A) case provides background on Monsanto, their corporate strategies and the climate in which they introduced genetically modified products in the United States and Europe. The supplement Monsanto (B), product 9B02A008, focuses on the roles of government and other regulatory bodies in the acceptance of genetically modified products.

Teaching Note: 8B02A07 (12 pages)
Industry: Manufacturing
Issues: Agriculture; International Trade; European Market; International Marketing; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
The International Environment: Culture; Economic Forces; and Competition

THE ULTIMATE FIGHTING CHAMPIONSHIP AND CULTURAL VIABILITY
Tara Ceranic

Product Number: 9B11M040
Publication Date: 6/9/2011
Length: 18 pages

The Ultimate Fighting Championship (UFC) is an American mixed martial arts (MMA) company based in Las Vegas, Nevada. The UFC is controlled by its parent company, Zuffa LLC, which is owned by Frank and Lorenzo Fertitta and Dana White. The UFC has seen a great deal of success since its purchase from its founders in 2001 for $2 million. The owners have made MMA a highly marketable product in terms of live event ticket sales, at-home pay-per-view purchases, and general popularity among their key demographic: men aged 18 to 34. However, this success has mainly occurred within the United States and Lorenzo, current UFC chief executive officer, wants to expand the organization’s reach across the globe. The UFC has held several successful international events in countries that are fairly culturally comparable to the United States (the United Kingdom, Germany, and Canada), and Lorenzo must decide if the organization can be culturally viable in several new international markets — specifically, China, India, and South Korea.

Teaching Note: 8B11M040 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: International Expansion; Ticket Sales; Pay-per-view; Mixed Martial Arts; Las Vegas, United States
Difficulty: 4 - Undergraduate/MBA



CHINESE FIREWORKS INDUSTRY
Paul W. Beamish

Product Number: 9B11M006
Publication Date: 1/11/2011
Revision Date: 5/4/2017
Length: 13 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 in 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: 8B11M006 (16 pages)
Industry: Manufacturing
Issues: Market Analysis; Industry Analysis; International Marketing; Exports; China
Difficulty: 4 - Undergraduate/MBA



JUST US! COMMUNITY-BASED TOURISM
Ian McKillop, Julia Sagebien, Alba Brugueras

Product Number: 9B10M108
Publication Date: 3/3/2011
Length: 10 pages

The development coordinator for Just Us! Development Education Society (JUDES) was reviewing the preliminary agenda for the JUDES Annual General Meeting (AGM). The meeting would take place some time between May 1 and May 14, 2010, during Canada’s National Fair Trade Weeks. The coordinator was preparing her to-do list for the event. Just Us!, a Nova Scotia-based cooperative that offered fair trade products, had a very loyal regional following, and the coordinator wanted to communicate how the premium paid for fair trade products actually helped producer communities. She was planning several events for the AGM, most importantly presentations and discussions of the Community-based Tourism (CBT) trip that JUDES personnel had taken to Oaxaca, Mexico, in 2009, and planned to take again in 2010. For the AGM presentation, she wanted to organize the trip guidelines and the budget information into a triple bottom line format.

Teaching Note: 8B10M108 (13 pages)
Industry: Other Services, Retail Trade, Social Advocacy Organizations
Issues: Fair Trade; Cultural Preservation; Tourism; Triple Bottom-line Reporting; Cultural Sensitivity; Canada; Mexico
Difficulty: 4 - Undergraduate/MBA



HONG KONG DISNEYLAND
Michael N. Young, Dong Liu

Product Number: 9B07M013
Publication Date: 10/4/2007
Revision Date: 5/23/2017
Length: 16 pages

Disney began internationalizing its theme park operations with the opening of Tokyo Disneyland in 1983, which is regarded as one of the most successful amusement parks in the world. Disney attempted to replicate this success in France, which is the largest consumer of Disney products outside of the United States. In 1992, they opened Disneyland Resort Paris, which is largely regarded to be much less successful than the park in Japan. This case explores Disney's efforts to open its third park outside the United States; Hong Kong Disneyland. It begins by discussing the experience of Tokyo and Paris Disneylands, and then discusses the opening of Hong Kong Disneyland, including the structure of the deal, and how the operations, human resources management and marketing were tailored to fit the Chinese cultural environment. The case also discusses the tourism industry in Hong Kong and the particular problems that were encountered during the first year of operations. The stage is set for students to discuss whether Disney's strategic assets have a good semantic fit with Chinese culture.

Teaching Note: 8B07M13 (5 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Industry Positioning; Cross Cultural Management; International Expansion; Competitive Dynamics
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
The International Environment: Government, Political and Legal Forces

CHINA'S TRADE DISPUTES
David W. Conklin, Danielle Cadieux

Product Number: 9B09M018
Publication Date: 3/9/2009
Revision Date: 8/5/2009
Length: 17 pages

By 2009, China's exports had increased dramatically from $250 billion in 2000 to a projected $1,500 billion in 2009. This enormous growth of exports severely damaged competing businesses in the advanced nations, particularly the United States and Europe. China's entry into the World Trade Organization (WTO) in 2001 guaranteed China's right to export to these nations, but at the same time the WTO required China to adhere to certain rules that sought to support fair trade and create a level playing field. Several broad subjects each gave rise to a series of trade disputes: the protection of intellectual property, health and safety concerns about China's products, labour and environmental standards, China's manipulation of their currency, and costs and prices determined by the government rather than free markets. This case examines each set of trade disputes and China's attempts to resolve them. Many disputes were embedded in cultural practices and ideological positions and so they might not disappear quickly. Shortcomings in China's legal and judicial system hampered enforcement. In addition, many rested on the government's desire to protect the interests of Chinese businesses and their employees, and so China might alter its practices only if confronted with credible retalitory threats. China's central government experienced the principal-agent problem where its wishes and decisions could be ignored by local governments and firms. Meanwhile, changes in industry structure within the advanced nations were altering the negotiation positions of Western governments. The case examines the WTO dispute resolution procedures and enforcement mechanisms that have been directed at China's trade disputes.

Teaching Note: 8B09M18 (8 pages)
Issues: China; International Business; Government and Business; Globalization
Difficulty: 4 - Undergraduate/MBA



NOTE ON THE CUBAN CIGAR INDUSTRY
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



AIG AND CHINA'S ACCESSION TO THE WTO
Jean-Philippe Bonardi, Tony S. Frost

Product Number: 9B02M021
Publication Date: 10/29/2002
Revision Date: 12/3/2009
Length: 5 pages

AIG is an American insurance company. A trade dispute between the United States and the European Union threatens to block the accession of China to the World Trade Organization, and AIG plays a role - it is the only foreign firm to own fully-controlled subsidiaries in China. The disagreement concerns what will happen to these existing subsidiaries, as well as potential new ones that AIG might seek to establish in China in the future. What are the issues from the perspective of each of the stakeholders and what options are available that will resolve this dispute?

Teaching Note: 8B02M21 (12 pages)
Industry: Finance and Insurance
Issues: China; International Management; Trade Agreements; Political Environment
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Market Selection: Definition and Strategies

VERTU: NOKIA’S LUXURY MOBILE PHONE FOR THE URBAN RICH
Ken Kwong-Kay Wong

Product Number: 9B11A040
Publication Date: 9/28/2011
Revision Date: 12/1/2011
Length: 22 pages

Nokia, headquartered in Finland, was a global telecommunications equipment manufacturer. It operated Vertu, a luxury mobile phone brand that had pioneered the luxury mobile phone market in the late 1990s by using precious materials such as diamonds, sapphires, titanium, and exotic leather for phone production. The company had enjoyed impressive growth in almost 70 countries and had sold hundreds of thousands of phones in the eight years since its launch. On February 11, 2011, Stephen Elop, the new CEO of Nokia, announced a new mobile strategy to adopt Microsoft’s new but unproven Windows Phone as its primary smartphone operating system. The market reacted poorly, and the company’s share price took a 14 per cent dive on the day of announcement. How should Vertu respond to this new Nokia mobile strategy? Was Vertu well positioned to take the brand forward under the new Nokia? Should this U.K.-based wholly owned subsidiary be left alone and continue to be managed at arm’s length from Nokia? Changes to Vertu were inevitable — it was not a matter of if, but when.

Teaching Note: 8B11A040 (9 pages)
Industry: Manufacturing
Issues: Brand Positioning; Market Segmentation; Product Design; Telecommunications; Luxury Goods; United Kingdom; Finland
Difficulty: 4 - Undergraduate/MBA



CAMERON AUTO PARTS (A) - REVISED
Harold Crookell, Paul W. Beamish

Product Number: 9B06M015
Publication Date: 1/11/2006
Revision Date: 9/17/2009
Length: 10 pages

This case is about a small American auto parts producer trying to diversify his way out of dependence on the major automakers. A promising new product is developed and the company gets a chance to license it to a Scottish manufacturer. The issue of whether to license or go it alone in international markets is central to the case. (A sequel to this case is available titled Cameron Auto Parts (B) - Revised, case 9B06M016.)

Teaching Note: 8B06M15 (8 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Exports; Licensing; International Business
Difficulty: 4 - Undergraduate/MBA



CAMERON AUTO PARTS (B) - REVISED
Harold Crookell, Paul W. Beamish

Product Number: 9B06M016
Publication Date: 1/11/2006
Revision Date: 9/17/2009
Length: 10 pages

Two years after signing a license agreement in the U.K., the company now faces an opportunity to establish with another firm a joint venture in France for the European market. However, the prospect upsets the U.K. licensee who is clearly doing very well, and who even wants Cameron to consider joint venturing with him in Australia. The case ends with Cameron, run off its feet in North America, trying to decide whether to enter Europe via licensing, joint venture or direct investment. (This case is a sequel to Cameron Auto Parts (A) - Revised, case 9B06M015.)

Teaching Note: 8B06M16 (7 pages)
Industry: Manufacturing
Issues: Licensing; Joint Ventures; International Business; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Information for International Market(ing) Decisions

CAMPBELL SOUP: GAINING CUSTOMER INSIGHTS THROUGH MARKETING RESEARCH
Dante Pirouz, Ramasastry Chandrasekhar

Product Number: 9B11A029
Publication Date: 10/11/2011
Revision Date: 8/15/2016
Length: 14 pages

In early 2008, Campbell Soup Company, a global food and beverage enterprise, is experimenting with a new way of understanding the mindset of its consumers. This has been prompted by the stagnation in sales of its soup products in the United States, its home market, where the soups category has matured. For decades, the company’s focus in marketing research has been on tracking how the end users, having bought its soup products at stores, consume them at home. But now, it is keen on tracking the shoppers while they are searching the retail aisles. The company is planning to deploy the techniques of consumer neuroscience, a relatively new discipline, for this purpose.

Teaching Note: 8B11A029 (9 pages)
Issues: Consumer Neuroscience; Packaged Goods Marketing; Consumer Insights; Merchandising and Retailing; United States
Difficulty: 4 - Undergraduate/MBA



THE CHALLENGES OF INTERNATIONAL ENTREPRENEURSHIP AT EXPATICA.COM
Christopher Williams, Judith vanHerwaarden

Product Number: 9B11M085
Publication Date: 9/23/2011
Revision Date: 5/25/2017
Length: 11 pages

In April 2011, the management team at Expatica Communications B.V. was reviewing the progress of the company and the opportunities for future growth. The management team had to take stock: the external environment was rapidly changing, and threats from competitors were on the rise. Expatica had been founded 11 years earlier to provide English-language information and news to the expatriate community in Europe, delivering its services primarily over the Internet. One of the central issues Expatica faced was how to make its core business model effective across multiple markets. Recent launches of the online platform in new countries were not as successful as hoped and the performance of traditional “bricks and mortar” offerings was also mixed. The company had made tremendous progress over the years but needed to re-evaluate its position and decide which new opportunities for growth, if any, should be pursued.

Teaching Note: 8B11M085 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Company Expansion; Product Development; E-Business; Expatriate Community; the Netherlands
Difficulty: 4 - Undergraduate/MBA



KIDS MARKET CONSULTING
Paul W. Beamish, Stephanie Taylor, Oleksiy Vynogradov

Product Number: 9B04M065
Publication Date: 11/23/2004
Revision Date: 10/15/2009
Length: 8 pages

The founder of Kids Market Consulting, a market research firm dedicated to the kids, tweens and teens segment, was faced with increasing competition and slowing revenue, and was exploring a variety of possibilities for the future strategic direction of the business. In particular, she had to formulate the best plan for protecting the niche market and decide how aggressively to pursue expansion. In addition, there was the existing relationship with her business partner, and Kids Market Consulting was part of his group of marketing firms. Any changes the founder chose had to respect this relationship and she was therefore restricted to a limited number of options. The over-arching corporate objective for the company was to defend the market from larger businesses who were trying to increase their share of the market research industry.

Teaching Note: 8B04M65 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategic Change; Strategy Development; Strategic Planning; Market Analysis
Difficulty: 4 - Undergraduate/MBA



QUEST FOODS ASIA PACIFIC AND THE CRM INITIATIVE
Allen Morrison, Donna Everatt

Product Number: 9B01M011
Publication Date: 4/30/2001
Revision Date: 5/18/2017
Length: 15 pages

Quest Foods International is one of the world's largest manufacturers of fragrances, flavors and textures for the food, beverage and consumer products industries. Quest Foods' regional vice-president is in the process of implementing a business process re-engineering project for the company. His current efforts focus on developing an information technology-based customer relationship management (CRM) system that he believes could give the company a sustainable competitive advantage with customers in the region and throughout the world. His ultimate goal is to bring Quest to the next phase of e-business. Despite high ambitions, his initiatives are making little headway. Internal opposition to change is significant and some key customers are growing concerned that Quest's CRM plans might miss the mark. Faced with considerable time and resource pressures, he is wondering how to set priorities and where to focus his energies.

Teaching Note: 8B01M11 (13 pages)
Industry: Manufacturing
Issues: International Business; Leveraging Information Technology; Business Process Re-Engineering; Customer Relations
Difficulty: 5 - MBA/Postgraduate


Chapter 7:
Market Entry Strategies

CHABROS INTERNATIONAL GROUP: A WORLD OF WOOD
Paul W. Beamish, Bassam Farah

Product Number: 9B10M100
Publication Date: 11/30/2010
Revision Date: 4/17/2014
Length: 16 pages

AWARD WINNING CASE - MENA Business Cases Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. The Chabros International Group case examines how a Lebanese multinational wood company confronts a drastic drop in its largest subsidiary's sales after 2008's global economic crisis. Antoine Chami, Chabros's owner and president, was reviewing his company's 2009 end-of-year financial statements and, in particular, a 30 per cent drop in sales in Dubai. In 2007, a year before the global economic crisis, Chami had invested more than $11 million to acquire and expand a sawmill in Serbia to meet Chabros's growing lumber sales demand. With a much higher capacity to produce lumber and a much lower probability to sell it, Chami had to decide what to do to overcome this challenge. Should he close parts of his Serbian sawmill? Should he try to boost his company's sales to use all of his sawmill's available capacity? If so, should Chabros try to increase sales within the countries where it already operated (UAE, Saudi Arabia, Qatar, Oman, Egypt) or should it expand into a new country (Algeria, Bahrain, Iran, Iraq, Jordan, Kuwait, Libya, Syria, Tunisia)? Would Morocco, among other countries, be the best country to expand into? Was it the right time to embark on such an expansion?

Teaching Note: 8B10M100 (15 pages)
Industry: Manufacturing
Issues: International Expansion; Market Entry; Growth Strategy; Exports
Difficulty: 4 - Undergraduate/MBA



TAVAZO CO.
Paul W. Beamish, Majid Eghbali-Zarch

Product Number: 9B10M093
Publication Date: 11/12/2010
Revision Date: 9/21/2011
Length: 13 pages

In June 2010, Naser Tavazo, one of the three owner/manager brothers of both Tavazo Iran Co. and Tavazo Canada Co., was considering the company's future expansion opportunities, including further international market entry. Candidate cities of interest were Los Angeles, Dubai and other cities with a high Iranian diaspora. Another question facing the owners was where to focus on the value chain. Should the family business use its limited resources to expand its retailer business into more international markets, or to expand their current retailer/wholesale activities within Canada and Iran?

The objectives of this case are: (A) to discuss the typical problems that small companies confront when growing internationally and the implication of being a family business in this transition; (B) to provide a vehicle for developing criteria for market selection; (C) to highlight the importance of focus in the value chain regarding horizontal vs. vertical integration.

This case can be used in international business, strategic management or family business (entrepreneurship) courses. In international business, it may be used as an internationalization case and positioned early in the course. In a strategic management course, it might be positioned in sections dealing with managerial preferences, or diversification.


Teaching Note: 8B10M93 (9 pages)
Industry: Agriculture, Forestry, Fishing and Hunting, Manufacturing
Issues: Market Selection; Family Business; Internationalization; Imports; Exports
Difficulty: 4 - Undergraduate/MBA



NOTE ON INTERNATIONAL LICENSING
Paul W. Beamish

Product Number: 9B06M005
Publication Date: 11/28/2005
Revision Date: 9/17/2009
Length: 18 pages

Licensing is a strategy for technology transfer; and an approach to internationalization that requires less time or depth of involvement in foreign markets, compared to exports, joint ventures, and foreign direct investment. This note examines when licensing is employed, risks associated with it, intellectual property rights, costs of licensing, unattractive markets for licensing, and the major elements of the license agreement.

Issues: Technology Transfer; Licensing; Corporate Strategy; Internationalization
Difficulty: 4 - Undergraduate/MBA



BEN & JERRY'S - JAPAN
James M. Hagen

Product Number: 9A99A037
Publication Date: 4/13/2000
Revision Date: 5/23/2017
Length: 17 pages

The CEO of Ben & Jerry's Homemade, Inc. needed to give sales and profits a serious boost; despite the company's excellent brand equity, it was losing market share and struggling to make a profit. The company's product was on store shelves in all U.S. states, but efforts to enter foreign markets had only been haphazard with non-U.S. sales accounting for just three per cent of total sales. The CEO needed to focus serious attention on entering the world's second largest ice cream market, Japan. An objective of Ben & Jerry's was to use the excess manufacturing capacity it had in the U.S., and it found that exporting ice cream from Vermont to Japan was feasible from a logistics and cost perspective. The company identified two leading partnering options. One was to give a Japanese convenience store chain exclusive rights to the product for a limited time. The other was to give long-term rights for all sales of the product in Japan to a Japanese-American who would build the brand. For the company to enter Japan in time for the upcoming summer season, it would have to be through one of these two partnering arrangements.

Teaching Note: 8A99A37 (6 pages)
Industry: Manufacturing
Issues: Strategic Alliances; Market Entry; International Marketing; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



MAHINDRA & MAHINDRA LTD. - FARM EQUIPMENT SECTOR: ACQUISITION OF JIANGLING TRACTOR COMPANY
Jean-Louis Schaan, Ramasastry Chandrasekhar

Product Number: 9B07M035
Publication Date: 3/16/2007
Length: 18 pages

Farm Equipment Services (FES), the tractor manufacturing division of Mahindra & Mahindra Ltd. (M&M), is considering entering the Chinese tractor industry through a joint venture with Jiangling Tractor Company (JTC), a state-owned automotive enterprise. M&M had seeded the Chinese tractor market with exports and had concluded that the most efficient and prudent way to serve the Chinese tractor market was through a joint venture with a local partner. JTC had good brand recognition and strong position in the small tractor market. However, due to the lack of interest from the parent company, Jiangling Motor Company Group, JTC was facing severe operational challenges: was over staffed, had high overhead, owed significant amounts to suppliers and dealers were fleeing the company. M&M saw an opportunity to work with a management team they were comfortable with and to leverage JTC's potential to grow in China and to export tractors as well as components. The challenge was to determine how management should proceed to restructure and integrate the joint ventures assets.

Teaching Note: 8B07M35 (11 pages)
Industry: Manufacturing
Issues: China; Joint Venture Restructuring; Joint Design and Integration; Foreign Market Entry
Difficulty: 4 - Undergraduate/MBA



MASTER INTERNATIONAL FRANCHISING IN CHINA: THE ATHLETE'S FOOT INC.
Ilan Alon, Amber Xu

Product Number: 9B06M054
Publication Date: 4/28/2006
Revision Date: 9/21/2009
Length: 11 pages

Franchising in China is a relatively new and growing phenomenon. Among the franchising pioneers in China are the large and well-known food and beverage brands such as Kentucky Fried Chicken and McDonald's. Less known, but equally important, are the non-food retailing and service industries, such as The Athlete's Foot company. This U.S. born company made early entry into China using master international franchising. As the industry continues to grow, The Athlete's Foot franchise is losing its first-mover advantage and faces increased competition from department stores and brand-specific retailers, among other challenges. The case describes franchising in China, the Athlete's Foot company, and the experiences of the Chinese master franchisee.

Teaching Note: 8B06M54 (14 pages)
Industry: Retail Trade
Issues: China; Competition; Franchising; Retailing; CEIBS
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Export Entry Modes

PRINCE EDWARD ISLAND PRESERVE COMPANY: TURNAROUND
Paul W. Beamish, Nathaniel Lupton

Product Number: 9B08M049
Publication Date: 5/15/2008
Revision Date: 11/17/2014
Length: 18 pages

In April 2008, Bruce MacNaughton, president of Prince Edward Island Preserve Co. Ltd. (P.E.I. Preserves), was focused on turnaround. The company he had founded in 1985 had gone into receivership in May 2007. Although this had resulted in losses for various mortgage holders and unsecured creditors, MacNaughton had been able to buy back his New Glasgow shop/cafe, the adjacent garden property and inventory, and restart the business. He now needed a viable product-market strategy.

Teaching Note: 8B08M49 (9 pages)
Industry: Manufacturing, Retail Trade
Issues: Bankruptcy; Product Diversification; Growth Strategy; Exports
Difficulty: 4 - Undergraduate/MBA



GOLDAS: QUALITY IS A FACT
Susan Greenfeld, Susan Rawson-Zacur

Product Number: 9B04M075
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 11 pages

Goldas is a Turkish-based manufacturer and exporter-importer of gold jewelry. The company is looking at expanding the number of retail stores and increasing revenues through export and its overseas stores. The international relations director must decide what to do first: increase the number of retail stores or increase revenues, and must factor the financing and production issues for each.

Teaching Note: 8B04M75 (6 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Globalization; International Business; Expansion
Difficulty: 4 - Undergraduate/MBA



PLASTICS R US LTD.
Terry H. Deutscher, Ying-Ru Chen

Product Number: 9B02A016
Publication Date: 8/28/2002
Revision Date: 10/28/2009
Length: 16 pages

A Taiwanese plastic manufacturer exports one of its products, bathtub covers, solely to Japanese distributors. The company's president has been approached to form a partnership in a new production facility in China with its second largest customer, a Japanese distributor that also produces bathtub covers. The president must assess the company's options: turn down the proposal and expand on its own in Taiwan, form a partnership and produce bathtub covers exclusively for the other company in China or turn down the proposal and invest in its own factory in China. The president considers the company's long-term strategies, the political future of a Taiwanese company in China, status of its intellectual property under a partnership and the potential loss of its second largest customer. He also needs to address plans for the company's other products and decide whether the company should be more actively pursuing a sales strategy to expand its market share.

Teaching Note: 8B02A16 (10 pages)
Industry: Manufacturing
Issues: Relationship Management; Strategic Planning; Marketing Channels; Partnership
Difficulty: 5 - MBA/Postgraduate



HUXLEY MAQUILADORA
Paul W. Beamish, Jaechul Jung, Joyce Miller

Product Number: 9B02M033
Publication Date: 11/29/2002
Revision Date: 6/28/2011
Length: 14 pages

A senior manager in a U.S. manufacturing firm must make a recommendation about whether 57 labour intensive jobs should be moved from the existing California plant to a new facility in a Mexican maquiladora. If the Mexican opportunity is pursued, decisions are also required regarding the entry mode (subcontracting, shelter operator or wholly-owned subsidiary) and location (border or interior).

Teaching Note: 8B02M33 (7 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Plant Location; Third World; Subsidiaries
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Nonexport Entry Modes

VALUE CHAIN AND IT TRANSFORMATION AT DESKO (A)
Jean Ethier, Pierre Hadaya

Product Number: 9B11E007
Publication Date: 5/20/2011
Revision Date: 5/20/2011
Length: 9 pages

This case describes the history of Desko, a Canadian manufacturer of wood office furniture, as it faced a crisis that threatened its own existence. The president and CEO needed to decide which actions to take to improve the effectiveness of the value chain activities of the firm and the information technology (IT) supporting it. He was considering outsourcing parts of certain value chain activities, including manufacturing, to specialized partners. The case also depicts the main characteristics of the Canadian wood office furniture industry and the external factors that played an important role in the development of Desko.

Teaching Note: 8B11E007 (11 pages)
Issues: Information Technology; Manufacturing; Value Chain; Operations Management; Office Furniture
Difficulty: 4 - Undergraduate/MBA



CURRIE ROAD CONSTRUCTION LIMITED (A)
Paul W. Beamish

Product Number: 9B11M001
Publication Date: 1/7/2011
Revision Date: 11/20/2014
Length: 13 pages

A successful Canadian road construction and maintenance company is contemplating U.S. market entry via a subsidiary in Texas. The case deals with market entry considerations: speed of entry, the need to invest in learning about a market, and the importance of staying focused on what is a reasonable, original strategy.

Teaching Note: 8B11M001 (8 pages)
Industry: Construction
Issues: International Business; Corporate Strategy; Market Analysis; Location Strategy; United States and Canada
Difficulty: 4 - Undergraduate/MBA



JEWELLWORLD.COM - ONLINE JEWELRY SHOPPING IN CHINA
Shige Makino, Anthony Fong

Product Number: 9B05A009
Publication Date: 9/23/2005
Revision Date: 9/24/2009
Length: 19 pages

The marketing manager of Jewellworld.com was faced with the problem of a saturated Hong Kong market, and has to consider ways in which to expand the business. In a meeting with the marketing director, who was responsible for the development of the Hong Kong and Chinese Jewelry markets, one of the main topics was the expansion of the online shopping strategy into the B2C area in China; however, the staff of the marketing department held different views. The immediate question was whether Jewellworld.com should move into the B2C area at full speed or wait and see how other competitors fared in the China online market. The other issue was the segmentation that Jewellworld should employ if they decide to enter the B2C market in China. A competitor had established retail stores across China. The question was whether Jewellworld should aim to cover all market segments and product lines, or target young people who tend to use the Internet more frequently.

Teaching Note: 8B05A09 (6 pages)
Industry: Retail Trade
Issues: International Marketing; Internet; Retail Marketing; International Business
Difficulty: 4 - Undergraduate/MBA



VINCOR AND THE NEW WORLD OF WINE
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 10:
Product Decisions

NESTLE'S NESCAFE PARTNERS' BLEND: THE FAIRTRADE DECISION (A)
Niraj Dawar, Jordan Mitchell

Product Number: 9B06A020
Publication Date: 7/27/2006
Revision Date: 1/9/2008
Length: 24 pages

AWARD WINNING CASE - Corporate Social Responsibility Award, 2006 European Foundation for Management Development (EFMD) Case Writing Competition. In early 2005, Nestle is in the midst of a decision: whether or not the Fairtrade mark should be applied on Partners' Blend, a new instant coffee product to be marketed in the growing UK 'ethical' coffee segment. Application of the Fairtrade mark on the Partners Blend product means that Nestle must go against its historical position of not offering minimum guaranteed prices to coffee farmers. As part of their deliberations, Nestle executives must consider their coffee sourcing program at large, their corporate social responsibility framework, Nescafe and corporate Nestle branding, the UK market and the potential consumer benefits or backlash that could result from releasing such a product.

Teaching Note: 8B06A20 (12 pages)
Industry: Manufacturing
Issues: New Products; Corporate Responsibility; Brand Management; Product Strategy
Difficulty: 4 - Undergraduate/MBA



STELLA ARTOIS IN THE U.K.
Paul W. Beamish, Anthony Goerzen

Product Number: 9B01A017
Publication Date: 12/6/2001
Revision Date: 12/4/2009
Length: 15 pages

Stella Artois, Interbrew company's flagship brand of beer, has experienced phenomenal success on the international market. The United Kingdom market has played a critical role in that success, and Interbrew needs to assess the reasons for this. Interbrew's managing director and its chief marketing officer are meeting to have a discussion about how to proceed in developing the Stella Artois brand. First, they need to understand what part of the company's success was due to expert marketing practices and what part might possibly be due to being in the right place at the right time. As well, they want to assess what possible steps might be taken to spread these practices across the corporation for use in the company's global marketing strategy.

Teaching Note: 8B01A17 (8 pages)
Industry: Manufacturing
Issues: Brand Management; European Market; Product Strategy; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA



GLOBAL BRANDING OF STELLA ARTOIS
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 11:
Pricing Decisions

AIR DECCAN (A): CHANGING THE FACE OF INDIAN AVIATION
Srinivas Sridharan, Ramasastry Chandrasekhar

Product Number: 9B07A001
Publication Date: 12/12/2006
Revision Date: 9/12/2007
Length: 10 pages

The founder and chief executive officer of Air Deccan, India's first low-cost airline, ponders the imminent launch of the airline. His mind goes back to his passion and vision of empowering every Indian to fly, a bold dream in a country of one billion people who travelled predominantly by buses and trains. Would Air Deccan fly?

Industry: Transportation and Warehousing
Issues: Pricing Strategy; Entrepreneurial Business Growth; Emerging Markets; Brand Positioning
Difficulty: 4 - Undergraduate/MBA



ARVIND MILLS: RE-EVALUATING PROFITABILITY
Murray J. Bryant, Rajeev Khera

Product Number: 9B04B008
Publication Date: 8/10/2004
Revision Date: 10/8/2009
Length: 11 pages

Arvind Mills, a large Indian textile and garment manufacturer, has to assess the costs of a large order, as a basis for a price quotation. The company is in a significant loss position. The textile industry in India is constrained by government regulations and the industry is critical as both an export earner and a major employer in the economy. However, the industry is losing share to China and must change to meet that threat. The vice-president of operations must assess the costs associated with the order, including an assessment whether to use the traditional cost system or the customer and manufacturing based activity cost system. The decision is also strategic as this order is at the core of the company's new strategy to be both a designer and manufacturer.

Teaching Note: 8B04B08 (2 pages)
Industry: Manufacturing
Issues: Pricing; Internationalization; Government Regulation; Cost Systems
Difficulty: 4 - Undergraduate/MBA



KOMANDOR SA (A)
David J. Sharp, Karen Bong

Product Number: 9B01B013
Publication Date: 10/18/2001
Revision Date: 12/7/2009
Length: 9 pages

Komandor SA is a subsidiary of a Polish holding company that manufactures sliding doors and closet organizer systems. The company president and his Canadian counterpart must decide on a transfer pricing policy for consulting services and associated components shipped between the two countries. Polish tax regulations seem unclear and arbitrary and the tax auditor has disallowed the consulting fees. The two presidents must decide whether allocating the consulting fee to product overhead will solve the problem.

Teaching Note: 8B01B13 (8 pages)
Industry: Manufacturing
Issues: International Accounting; International Trade; Transfer Pricing; Ethical Issues
Difficulty: 5 - MBA/Postgraduate



MAVESA'S NELLY BRAND: PRICING TO GAIN MARKET CONTROL
Niraj Dawar, Natasha Ebanks

Product Number: 9B00A008
Publication Date: 6/19/2000
Revision Date: 1/6/2010
Length: 23 pages

The economy segment in the market for mayonnaise in Venezuela has become extremely competitive. Mavesa, Venezuela's largest and most professional consumer goods firm, finds its pioneer Nelly brand under assault from large players such as Kraft, and small nimble regional players such as Albeca. In this competitive scenario, Nelly's managers decide to cut price on the brand. The managers must analyze the implications of cutting price, including both the profitability impact of a pricing decision, as well as strategic competitive considerations.

Teaching Note: 8B00A08 (7 pages)
Industry: Manufacturing
Issues: Emerging Markets; Brand Management; Pricing; Competitiveness
Difficulty: 5 - MBA/Postgraduate



3M CHILE - HEALTH CARE PRODUCTS (A)
Terry H. Deutscher, Daniel D. Campbell

Product Number: 9A99A004
Publication Date: 5/5/1999
Revision Date: 11/7/2002
Length: 17 pages

Looking for a creative option to promote 3M products to medical professionals, a 3M Chile sales manager developed the idea of a first-aid kit or botiquin that could be used as a promotional gift. Managers at the company's world headquarters had not previously focused on branded first-aid kits. It was the same all over the world, a plain white box with the red cross in front. You just can't brand a first-aid kit! they replied. At the same time, the Chilean managers lacked the resources necessary for adequate market research. Should they go ahead with the botiquin concept anyway? If they did, questions such as channels, packaging, promotion, and pricing, would still have to be addressed. (A sequel to this case is available, titled 3M Chile - Health Care Products (B), case 9A99A005.)

Teaching Note: 8A99A04 (11 pages)
Industry: Wholesale Trade
Issues: International Marketing; Management in a Global Environment; Marketing Channels; Marketing Research
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Financing and Methods of Payment

EAT2EAT.COM
Kenneth G. Hardy, Nigel Goodwin

Product Number: 9B06A018
Publication Date: 8/30/2006
Revision Date: 9/11/2009
Length: 13 pages

Eat2Eat.com was an Internet-based restaurant reservation service covering a dozen cities in the Asia Pacific region. It was the principal business of Singapore-based Eat2Eat Pte Ltd. It was launched in 2000 by an entrepreneur and former investment banker with US$1 million of his own capital. He quickly established the capabilities and business model, but after five years, the registered user base remained relatively small at about 12,000. He thought the next step for the company was to expand that user base and hoped that the company could change the way people made plans to eat out. Resources - specifically, time and money - were limited, so any promotional efforts would have to be innovative and efficient. The case focuses on entrepreneurial marketing with sub-themes of financing and small enterprise management. It is a story of an entrepreneur who had an idea and enough money to launch it, but then struggles to achieve adequate scale.

Teaching Note: 8B06A18 (8 pages)
Industry: Accommodation & Food Services
Issues: E-Commerce; Startups; Entrepreneurial Finance; Entrepreneurial Marketing; Nanyang
Difficulty: 4 - Undergraduate/MBA



EXPORTING TO GHANA
David J. Sharp, Ken Mark

Product Number: 9B05B006
Publication Date: 1/31/2005
Revision Date: 9/24/2009
Length: 4 pages

A loan assessment officer at Export Development Canada is evaluating a proposed deal involving the export of refurbished machines used in the forestry industry. He must decide whether Export Development Corporation should extend loans to a foreign firm that is interested in purchasing from a Canadian supplier. Issues include international business risk and the role of an export development agency in facilitating a country's exports.

Teaching Note: 8B05B06 (4 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Uncertainty; Risk Analysis; Forestry; Exports
Difficulty: 4 - Undergraduate/MBA



OBUHIV AUTOCLAVED AERATED CONCRETE BLOCK PLANT
Basil A. Kalymon, Roman Kachur

Product Number: 9B03N010
Publication Date: 11/5/2003
Revision Date: 10/22/2009
Length: 22 pages

The chief executive officer of a large concrete block manufacturing facility is preparing a report for the board of directors meeting. The plant is looking at expanding its production capacities and the chief executive officer must determine the size of the expansion and the sources of financing. The company has been experiencing an excessive demand for its product and the expansion seems like the next step. The financial sources, like in many emerging markets, were substantially limited, five options needed to be considered: a commercial loan, a government guaranteed loan, a loan from the European Bank of Reconstruction and Development, a corporate bond issue and internal financing.

Industry: Manufacturing
Issues: Financing; Funding; Financial Strategy; International Finance
Difficulty: 4 - Undergraduate/MBA



THE ANTAMINA COPPER-ZINC PROJECT: POLITICAL RISK INSURANCE
Stephen Sapp

Product Number: 9B02N018
Publication Date: 2/6/2003
Revision Date: 12/5/2009
Length: 20 pages

Compania Minera Antamina S.A. is a consortium of three large multinational Canadian mining companies set up to exploit a very large copper-zinc deposit north central Peru. The project requires about US$2 billion of financing for the development and exploitation of the deposit. The finance committee needs to determine the best means to raise the necessary funds: loans guaranteed by the sponsors or project finance. The costs and benefits are different across alternatives because the project involves both business and political risks to which the exposure for all of the stakeholders is different.

Teaching Note: 8B02N18 (14 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Financing; Political Environment; Risk Analysis; International Finance
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Promotion and Marketing Communication

EXPERIENCE CHINA: A NATIONAL IMAGE CAMPAIGN IN THE UNITED STATES
William Wei, Yuanfang Lin, Mei Qin Kok

Product Number: 9B11A033
Publication Date: 10/6/2011
Revision Date: 7/26/2017
Length: 8 pages

The China national image film “People Chapter” — officially a sub-series of the “Experience China” campaign — was launched by the Chinese government to coincide with President Hu Jintao’s visit to the United States in mid-January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per day, and had appeared approximately 8,400 times when the broadcast ended on February 14, 2011. The video showed a series of Chinese people, ranging from ordinary citizens to celebrities. It was a publicity effort aimed at promoting a truer image of China abroad, and signalling that China was opening to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly mixed since the initial release of the promotional film. Experts from China and abroad were skeptical of the effectiveness of the campaign in promoting the national image of modern China to the world. This case presents the opportunity to examine the basic elements in the marketing communication process, analyze how decisions in marketing design affect outcomes, and understand the differences between nation and product promotion.

Teaching Note: 8B11A033 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Advertising Strategy; Advertising Media; Cultural Sensitivity; Public Relations; Target Market; China and United States
Difficulty: 4 - Undergraduate/MBA



ARAVIND EYE CARE SYSTEM: PROVIDING TOTAL EYE CARE TO THE RURAL POPULATION
Sanal Kumar Velayudhan, R. Meenakshi Sundaram, R.D. Thulasiraj

Product Number: 9B11A028
Publication Date: 9/29/2011
Length: 17 pages

The case deals with poor acceptance of Aravind’s eye care service by the rural population in the South Indian state of Tamil Nadu. One of the factors causing poor acceptance is the lack of awareness among the rural population that many cases of blindness are curable. Fear of surgery and cost are the other major barriers to acceptance by these consumers. Aravind is the largest eye care provider in the world and has pioneered many process innovations that have reduced the cost of eye treatment substantially. The company has a culture that encourages responsive service by a trained and motivated staff. It has experimented with a number of options to educate and provide eye care service to rural consumers. The manager must examine options in the areas of promotion and service delivery to enhance the acceptance of eye care service by rural consumers.

Teaching Note: 8B11A028 (12 pages)
Industry: Health Care Services
Issues: Emerging Markets; Services Marketing; Rural Marketing; Health Care; Eye Care; Distribution; Tamil Nadu, India
Difficulty: 4 - Undergraduate/MBA



BRAND IN THE HAND: MOBILE MARKETING AT ADIDAS
Andy Rohm, Fareena Sultan, David T.A. Wesley

Product Number: 9B05A024
Publication Date: 9/26/2005
Revision Date: 5/23/2017
Length: 22 pages

The Global Media manager for adidas International is responsible for developing and championing a new marketing strategy at adidas called brand in the hand that is based on the convergence of cell phones and wireless Internet. The case presents company background information, data on the penetration of mobile devices such as cell phones, the growth of global mobile marketing practices, and several mobile marketing communications campaigns that adidas launched in 2004, such as a mobile newsticker for the 2004 European soccer championship. The case then introduces a specific campaign - Respect M.E. - featuring Missy Elliott, a popular female hip-hop artist, and discusses the company's mobile marketing strategy to support MissyElliott's new line of sportswear. This case can be used to highlight the role of new technology in overall marketing strategy and integrated marketing communications.

Teaching Note: 8B05A24 (13 pages)
Industry: Manufacturing
Issues: Marketing Channels; Marketing Communication; International Marketing; Telecommunication Technology; Northeastern
Difficulty: 4 - Undergraduate/MBA



BOOTS: HAIR-CARE SALES PROMOTION
Robert J. Fisher, Murray J. Bryant, Pankaj Shandilya

Product Number: 9B05A022
Publication Date: 9/1/2005
Revision Date: 9/24/2009
Length: 11 pages

Boots Group PLC, one of the best known and respected retail names in the United Kingdom, provided health and beauty products and advice that enhanced personal well being. The marketing manager at Boots was planning his sales promotion strategy for a line of professional hair-care products. The professional hair-care line consisted primarily of shampoos, conditioners and styling products (gels, wax, mousse, etc.) developed in collaboration with United Kingdom's top celebrity hairdressers. The marketing manager's challenge was to select one of three promotional alternatives - get three for the price of two, receive a gift with purchase or an on-pack coupon - for the Christmas season. He realized that the alternative he selected would have both immediate effects on costs and sales, but also long-term implications for the brands involved. His primary objective was to drive sales volumes and trade-up consumers from lower-value brands, while retaining or building brand equity.

Teaching Note: 8B05A22 (6 pages)
Industry: Retail Trade
Issues: Sales Promotion; Advertising Management; Brands
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Supply Chain Management/Logistics and Handling Export Orders

SANLU GROUP AND THE TAINTED MILK CRISIS
Shih-Fen Chen, Francis Sun

Product Number: 9B09M077
Publication Date: 10/21/2009
Length: 27 pages

In late summer of 2008, a tainted milk scandal unfolded in China and shocked the world. Lethally high levels of melamine were detected in infant formula being sold on the market. Sanlu Group Inc. (Sanlu), the core firm in the scandal, had manufactured a product containing melamine that was 5,125 times higher than the European Union (EU) safety units. The scandal swept through the Chinese dairy industry and all over the world where Chinese dairy products were recalled and banned. By December 2008, the official records indicated over 290,000 infants were sickened, 51,900 were hospitalized, and 11 deaths were suspected and three confirmed. Two managers of Sanlu's raw milk suppliers were sentenced to death and four of Sanlu's executive team (including the chief executive officer and chairwoman) were sentenced to varying jail terms. By analyzing the lead-up and background to the scandal, the global reactions to the crisis, the Chinese political climate and the resulting social and cultural transformations, can it be determined what could - and should - be done to prevent similar incidents of food and product safety issues in the future?

Teaching Note: 8B09M077 (14 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: China; Cultural and Political Environment; Industry Structure; Supply Chain Management; Joint Ventures
Difficulty: 4 - Undergraduate/MBA



MIA, PHILIPPINES
Jim Kayalar

Product Number: 9B09M016
Publication Date: 2/9/2009
Length: 20 pages

The newly appointed country director of MIA Philippines, a non-profit organization with a mandate to alleviate poverty in developing countries, is faced with the challenge of designing and managing a development assistance project that would establish a go-to-market supply chain for a remote Filipino fishing village. The country director has to enter a new country, launch the project, deal with the constraints of a foreign culture, manage the expectations of major stakeholders whilst trying to manage a multi-cultural team and conclude the project on time. The value of the case lies in the realistic assessment of stakeholders' motivation, their capabilities and assets, and project constraints during the design and implementation stages. Value chain analysis, value added analysis and stakeholder analysis are used to assess the applicability of project design, impact and long term success.

Teaching Note: 8B09M16 (11 pages)
Industry: Social Advocacy Organizations
Issues: Value Chain; Cross Cultural Management; Project Management; Project Design/Development
Difficulty: 4 - Undergraduate/MBA



MARSHALLS INTERNATIONAL, INC.
Michael R. Pearce, Samira Amini

Product Number: 9B03A019
Publication Date: 9/25/2003
Revision Date: 10/15/2009
Length: 12 pages

Warners Inc. is a world-leading packaged goods company that supplies a large number of packed goods to Marshalls International Inc., a leading mass merchandiser. The health and beauty category manager at Warners has been asked to examine its hair care category for opportunities to allow Marshalls to achieve leadership position in the category among its competitors. He must examine the leading retailers in the category and their marketing strategies, and compare them against Marshalls' strategy.

Teaching Note: 8B03A19 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Retail Marketing; Category Management; Consumer Marketing; Distribution
Difficulty: 4 - Undergraduate/MBA



TRICON LOGISTICS CHINA
Claude P. Lanfranconi, Michael Wang

Product Number: 9B01B037
Publication Date: 1/8/2002
Revision Date: 12/7/2009
Length: 10 pages

Tricon Logistics China is the logistics department of Tricon Restaurants International (China) and is responsible for supervising the operations and cost management of supplies to Kentucky Fried Chicken and Pizza Hut restaurants from 12 distribution centres in China. The market manager of one of the regional companies is concerned about the performance of his company's affiliated distribution centre in Suzhou. The director of Tricon Logistics China must determine why the actual cost of the distribution centre have exceeded the targets by analysing performance, cost variance and internal price negotiation.

Teaching Note: 8B01B37 (8 pages)
Industry: Retail Trade
Issues: China; Cost Systems; Cost Control; Control Systems
Difficulty: 4 - Undergraduate/MBA



GINO SA: DISTRIBUTION CHANNEL MANAGEMENT
Terry H. Deutscher, Alan (Wenchu) Yang

Product Number: 9B02A013
Publication Date: 4/25/2002
Revision Date: 10/28/2009
Length: 15 pages

Gino SA was a major European-based manufacturer of burner units that are sold in China through exclusive contracts with three distributors. As a result, the three Chinese distributors have significant bargaining power with Gino. A leading boiler manufacturer, who is currently purchasing through a distributor, has approached Gino to receive OEM treatment (a further discount by purchasing the burners direct from the manufacturer, in return for a commitment to purchase a percentage of their burners from Gino). In deciding whether or not to pursue the company's first direct OEM relationship, the marketing manager must consider the impact of his decision on the distributors, the competition and the company's corporate management.

Teaching Note: 8B02A13 (15 pages)
Industry: Manufacturing
Issues: China; Distribution; Emerging Markets; Marketing Channels; Market Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Organization of International Marketing Activities

SUZLON ENERGY LTD.
Srinivas Sridharan, Ramasastry Chandrasekhar

Product Number: 9B09M037
Publication Date: 6/26/2009
Length: 17 pages

An Indian wind energy company with global ambitions of being among the top three in its business worldwide, Suzlon Energy Ltd. (Suzlon) manufactures and markets turbines, which harness wind to product electricity. Several of its customers are going global and increasingly expect global service (including pricing) consistent across geographies. Suzlon could consider the rapidly increasing business practice of global account management (GAM) to meet these needs. However, it would be a new trend in the wind energy industry and Suzlon would have to pioneer it. That presents several challenges, including persuading top management to approve a pilot exercise with a key customer, and managing incentives and morale within the organization and across country borders.

Teaching Note: 8B09M37 (7 pages)
Industry: Utilities
Issues: Globalization; International Sales; Global Account Management; Green Energy
Difficulty: 4 - Undergraduate/MBA



MARIMEKKO
Alison Konrad, Jordan Mitchell

Product Number: 9B06C014
Publication Date: 1/30/2007
Revision Date: 9/16/2009
Length: 19 pages

Kirsti Paakkanen has achieved a celebrity status in Finland for her enigmatic leadership of the Finnish design company Marimekko. Purchasing the company in a state of near bankruptcy in 1991, Paakkanen took several actions to restore profitability and realize growth. As of 2006, the company has sales of $64 million (of which 80 per cent are from Finland) and net profits of $8.4 million. Over the last few years, Paakkanen and her team have focused on growing international sales. Recently, the company has opened concept shops in Japan, United Arab Emirates, Iceland, Sweden and the United States owned by foreign partners. In light of the international expansion, Paakkanen is wondering if any changes to Marimekko's personnel policies and/or organization structure are necessary.

Teaching Note: 8B06C14 (12 pages)
Industry: Manufacturing
Issues: Succession Planning; Women in Management; Organizational Structure; Internationalization
Difficulty: 4 - Undergraduate/MBA



SELKIRK GROUP IN ASIA (CONDENSED)
Paul W. Beamish, Lambros Karavis

Product Number: 9B02M041
Publication Date: 11/29/2002
Revision Date: 12/3/2009
Length: 10 pages

Selkirk Group is a family-owned brick manufacturer which has built an export business to Japan and other Asian markets from zero to 10% of its volume in seven years. The managing director of the company raises the question of whether it is time to change their regional export strategy and organizational structure in light of the Asian economic crisis and the reasons for their competitive success in both Australia and Asia.

Teaching Note: 8A99M03 (9 pages)
Industry: Manufacturing
Issues: International Business; Exports; Organizational Structure; International Marketing
Difficulty: 4 - Undergraduate/MBA