Ivey Publishing

International Management: Managing in a Diverse and Dynamic Global Environment

Phatak, A.V., Bhagat, R.S., Kashlak, R.J.,2/e (United States, McGraw-Hill Irwin, 2009)
Prepared By Bassam Farah, Ph.D. Student (International Business and Strategy)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
An Introduction to International Management

COLOPLAST A/S - ORGANIZATIONAL CHALLENGES IN OFFSHORING
Torben Pedersen, Jacob Pyndt, Bo Bernhard Nielsen

Product Number: 9B08M031
Publication Date: 7/25/2008
Length: 16 pages

Coloplast's future global manufacturing strategy was based on relocation of volume production of mature product lines to low cost countries like Hungary and China, whereas most creative and innovative activities (pilot production, ramp-up and range care) were retained in Denmark. The large scale project of offshoring, first volume production and later perhaps other activities, to Tatabanya, Hungary constituted a major shift in the operational strategy for Coloplast, which resulted in a series of organizational and managerial challenges. An important feature of the case is the surprise to the management team of how challenging it was to globalize the operations despite Coloplast's international experience operating a network of subsidiaries in more than 26 countries. The management team learned how important it is to have the structure, the organization and the mindset in place when offshoring production. Sourcing internationally is very different from selling internationally as it involves the entire organization. The learning process of the management team and the challenges they faced is unfolded in this case.

Teaching Note: 8B08M31 (16 pages)
Industry: Manufacturing
Issues: Operations Management; Human Resources Management; Centralization; Management Science and Info. Systems; Management Information Systems; Organizational Behaviour; International Management; Change Management; Value Chain
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



RESINA: MANAGING OPERATIONS IN CHINA
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



RUTH'S CHRIS: THE HIGH STAKES OF INTERNATIONAL EXPANSION
Ilan Alon, Allen H. Kupetz

Product Number: 9B06A034
Publication Date: 1/9/2007
Revision Date: 5/18/2017
Length: 8 pages

In 2006, Ruth's Chris Steak House was fresh off of a sizzling initial public offering and was now interested in growing their business internationally. With restaurants in just four countries outside the United States, a model to identify and rank new international markets was needed. This case provides a practical example for students to take quantitative and non-quantitative variables to create a short list of potential new markets.

Teaching Note: 8B06A34 (6 pages)
Industry: Accommodation & Food Services
Issues: Market Strategy; International Business; International Strategy; Market Entry
Difficulty: 4 - Undergraduate/MBA



SAMSUNG ELECTRONICS (A): ENTERING INDIA
Sumit Chakraborty, Sushil K. Sharma, Sougata Ray

Product Number: 9B06M034
Publication Date: 3/11/2008
Revision Date: 9/21/2009
Length: 21 pages

Samsung Electronics (Samsung) managing director had presented the new management philosophy for achieving leadership in a global market. The three-part strategy would prioritize quality, globalization, and multifaceted integration, in that order. After a restructuring effort, Samsung had emerged as a leader in the global electronics industry. Now, considering the new management philosophy and several other factors, the managing director faced the decision of whether Samsung should enter the Indian market.

Teaching Note: 8B06M34 (7 pages)
Industry: Manufacturing
Issues: Foreign Entry Strategy; International Business Operations; Global Strategy
Difficulty: 5 - MBA/Postgraduate



SAMSUNG ELECTRONICS (B): IN INDIA
Sumit Chakraborty, Sushil K. Sharma, Sougata Ray

Product Number: 9B06M035
Publication Date: 3/11/2008
Revision Date: 9/21/2009
Length: 18 pages

In part A of this case, Samsung's managing director had to decide whether Samsung should enter the Indian market. Now, three years later, he was ready to relinquish the position. The three years had been very successful and the managing director was promoted to vice-president of global sales and marketing of display products. One of the first decisions facing the new managing director as he takes the position is what type of products Samsung should compete with in India. One option is to compete in the low and medium segments. Another option is to take the high end segment.

Teaching Note: 8B06M35 (5 pages)
Industry: Manufacturing
Issues: Global Strategy; Foreign Entry Strategy; International Business Operations
Difficulty: 5 - MBA/Postgraduate


Chapter 2:
The Global Macroeconomic Environment

RODAMAS GROUP: DESIGNING STRATEGIES FOR CHANGING REALITIES IN EMERGING ECONOMIES
Marleen Dieleman, Shawkat Kamal

Product Number: 9B09M049
Publication Date: 6/25/2009
Length: 16 pages

By 2008, Rodamas Group, owned by the ethnic Chinese Tan family, was one of the top-20 business groups in Indonesia. The company started as a trading firm in 1951 and, over time, became a joint venture partner in manufacturing businesses with a range of mainly Japanese partners. In the 1980s, the company transferred to the second generation leader. The businesses included glass manufacturing (with Asahi), personal care products (with Kao), packaging (with Dai Nippon) and MSG production. The role of Rodamas in these partnerships was to deal with local regulations, hire local personnel and distribute the products in Indonesia. When the then President Suharto was toppled in the Asian Crisis in 1998, Indonesia underwent several drastic changes, including the transition to democracy. Its economy became more open, and foreign firms were allowed to operate in the country without having a local partner. In addition, several global business developments, including the tendency of multinationals to rely on lawyers and consultants rather than local equity partners, threatened the Rodamas business model. In view of this, the current leader, Mucki Tan, is reconsidering the future of his company and weighing strategic options: 1) internationalize with existing partners; 2) develop own businesses that need little technology, such as property; 3) buy existing manufacturing firms; 4) focus on distribution of products for foreign multinationals; 5) focus on a traditional partnership role with a new wave of foreign direct investment (FDI) from developing market multinationals, more specifically, China. Students are asked to analyze the company and its environment, decide on a strategic direction and reflect on the consequences.

Rodamas Group: Designing the Portfolio (9B14M029) is available as a supplement to this case.


Teaching Note: 8B09M49 (10 pages)
Industry: Manufacturing
Issues: Joint Ventures; Emerging Markets; Strategic Scope; Strategic Change
Difficulty: 4 - Undergraduate/MBA



AKBANK: CREDIT CARD DIVISION
Mary M. Crossan, Marina Apaydin

Product Number: 9B09M002
Publication Date: 1/7/2009
Length: 29 pages

The Turkish financial sector has been developing rapidly and often unpredictably, offering an ideal backdrop to carry out an industry analysis in the dynamic environment of an emerging market. Akbank, one of the leading private Turkish banks, has been successful in taking advantage of the new opportunities that appeared in the credit card sector as a result of post-crisis restructuring of the financial services industry in the early 2000s. Launched in late 2001, Akbank's Axess credit card quickly gained a significant market share of 15 per cent and was popular with both customers and merchants. At the same time, the attractive margins in this sector have sparked many local and foreign competitor entries. Setting a sustainable strategy for the next few years is complicated by the change in the political, macro-economic and competitive environment. The new government leading the country since 2002 has improved overall stability in Turkey, which created both opportunities and threats for Akbank's business. The opportunities included an improved banking system and increasing customer disposable income, while the market for credit cards was not yet saturated. However, threats may come from unpredictable actions that banking authorities could implement and increasing competition from both local and international players. The dynamic nature of the banking industry in an emerging market provides a comprehensive case to anchor a discussion about developing flexible strategy in a changing environment. The purpose of the Akbank case is to help students develop environmental analysis skills. It is designed to be used in a strategy course (e.g. to accompany Chapters 4 and 5 of Crossan, Fry and Killing (2006) Strategic Analysis and Action) at an undergraduate or graduate level. Additionally, it may be used in a marketing course to illustrate issues related to loyalty programs or in an international business course to illustrate the impact of environmental uncertainty on managerial decision-making.

Teaching Note: 8B09M02 (20 pages)
Industry: Finance and Insurance
Issues: Strategy Development; Growth; Sustainable Development; Political Environment; Turkey
Difficulty: 4 - Undergraduate/MBA



H&R SEWING MACHINE COMPANY
Stephen Hummel, Kenneth Harling

Product Number: 9B08M082
Publication Date: 11/10/2008
Length: 20 pages

This case deals with H&R, a company that distributes sewing equipment in Toronto, Ontario, Canada. Its future is in jeopardy because of fundamental changes in the global sewing industries stemming from changes in trade restrictions. The consequence is that Canadian sewing activities are in decline as activities in low-cost foreign countries grow rapidly. As Canadian activities decline, H&R's performance has been suffering. But the management of the family-owned company has had trouble seeing the challenge it faces because it has been highly successful for two generations. The case asks what the new CEO and third generation owner should do to save the company.

Teaching Note: 8B08M82 (7 pages)
Industry: Wholesale Trade
Issues: Competition; Strategy Development; Managing Industry Change; Tariffs
Difficulty: 4 - Undergraduate/MBA



MOTE AQUACULTURE PARK - STURGEON PROJECT
William J. Ritchie, Jim Michaels

Product Number: 9B05M057
Publication Date: 1/13/2006
Revision Date: 10/1/2009
Length: 11 pages

Mote Aquaculture Park is raising sturgeon for the production of caviar. With eggs imported from Eastern Europe, the park is engaging in a unique venture, bringing Russian caviar harvesting to the United States. The project manager is faced with evaluating a number of issues such as political-legal forces, local and international economics, production technologies and socio-cultural forces. Further, industry factors also played a key role. As he considers Mote Aquacultural Park's current situation, he knows that a thorough review of these environmental factors are necessary. The case offers students the opportunity to determine what forces pose critical threats as well as potential opportunities for future growth. However, since sturgeon farming and caviar production in the United States is a new industry, the application of traditional models of evaluation may not universally apply.

Teaching Note: 8B05M57 (7 pages)
Industry: Manufacturing
Issues: Non-Profit Organization; Corporate Strategy; Business Policy
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 3:
The Political and Legal Environments

TALISMAN ENERGY INC.: THE DECISION TO ENTER IRAQ
Pratima Bansal, Natalie Slawinski

Product Number: 9B09M035
Publication Date: 5/13/2009
Revision Date: 7/2/2009
Length: 17 pages

In June 2008, the chief executive officer of Talisman Energy Inc. (Talisman) and his senior executive team met with the company's board of directors. The purpose of this meeting was to debate Talisman's proposed entry into the oil-rich Kurdistan region of Iraq. This move was potentially very lucrative for Talisman but was fraught with risks. These risks were exacerbated by Talisman's previous foray into Sudan; during that expansion Talisman had been accused of complicity in human-rights abuses, stemming from industry-accepted royalties and fees it had paid to the government. This payment of fees was held as an example by public interest groups to allege that Talisman was indirectly funding the Sudanese civil war. Talisman's reputation had suffered to the point where the ire of investors and U.S. and Canadian governments was sufficient for Talisman to exit Sudan in 2003. There were many questions about the proposed move to Iraq, including the political situation, the views of the U.S. and Canadian government, and especially the US$220 million fee payable to the Kurdistan Regional Government. Should Talisman enter Iraq, and if so, could they avoid experiencing the same outcome as Sudan?

Teaching Note: 8B09M35 (11 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Corporate Responsibility; Risk Management; Political Environment; Sustainable Development
Difficulty: 4 - Undergraduate/MBA



PRC & PETER ROSS
Frederick Keenan, Peter Ross

Product Number: 9B09M029
Publication Date: 4/22/2009
Length: 5 pages

The multi-million dollar technology licensing agreement was in danger of falling apart. It was late September 2001; some months previously, The University of Western Ontario's (UWO's) Industry Liaison Office had signed a conditional agreement with a major pharmaceutical company operating throughout the People's Republic of China (PRC). The agreement permitted the company to utilize specific technology developed at UWO in health products to be marketed throughout the PRC. The agreement was conditional upon ratification being signed not later than October 31, 2001 - but, within that period, terrorists attacked the World Trade Center and the Pentagon. In the months immediately following September 11, 2001, the appetite of the PRC for buying Western technology had greatly diminished, and the PRC Ministry of Foreign Trade and Economic Development continued to delay ratification of the agreement. UWO's legal counsel, Peter Ross, was asked by his university to lay out the framework and possible alternative courses of action within which a decision could be made as to what the university could do in this situation. The learning objectives of the case are: 1) to become aware of the forms of intellectual property (IP) that can be involved in international cooperation, the potential difficulties and risks involved in sharing IP, the types of agreements that can be drawn up to minimize the risks, and the legal frameworks within which disagreements can be resolved 2) to become aware of how different partner countries respect or allegedly disregard rights to IP and commercial transactions generally 3) to develop strategies for coping in this environment.

Teaching Note: 8B09M29 (10 pages)
Industry: Health Care Services
Issues: China; International Joint Venture; Intellectual Properties; Licensing; Research and Development
Difficulty: 4 - Undergraduate/MBA



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



LEE AND LI, ATTORNEYS-AT-LAW AND THE EMBEZZLEMENT OF NT$3 BILLION BY EDDIE LIU (A)
W. Glenn Rowe, Yeong-Yuh Chiang

Product Number: 9B08M079
Publication Date: 10/28/2008
Revision Date: 1/16/2009
Length: 9 pages

Dr. C.V. Chen received news that one of Lee and Li's senior assistants had found a loophole in a power of attorney from one of the firm's clients, SanDisk Corporation (SanDisk), that had allowed him to illegally sell the client's shares in a Taiwanese company and to sneak out of Taiwan with over NT$3 billion. Unfortunately, Lee and Li had no insurance to cover this embezzlement. Chen knew that the three senior partners needed to develop a plan of action to save the law firm, take care of the lawyers and other employees, maintain the reputation of the firm within Taiwan and abroad intact, do what was best for SanDisk and Lee and Li, and keep the more than 12,000 clients from deserting the firm.

Teaching Note: 8B08M79 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Crisis Management; Accountability; Management of Professionals; Leadership; Ethical Issues; Decision Making; Crisis and Change; Professional Firms; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA



LEE AND LI, ATTORNEYS-AT-LAW AND THE EMBEZZLEMENT OF NT$3 BILLION BY EDDIE LIU (B)
W. Glenn Rowe, Yeong-Yuh Chiang

Product Number: 9B08M080
Publication Date: 10/28/2008
Revision Date: 12/15/2008
Length: 6 pages

Dr. C.V. Chen learned that one of Lee and Li's senior legal assistants had illegally sold a client's shares in a Taiwanese company and sneaked out of Taiwan with over NT$3 billion. Lee and Li took several actions to minimize the impact of the situation on the firm, its clients and its employees. Now Chen began to review the events and the actions taken. Although he knew that the worst was behind, he also knew that a great deal of work needed to be done in order to ensure the reputation of the firm would remain intact in the future.

Teaching Note: 8B08M79 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Accountability; Leadership; Ethical Issues; Crisis Management; Decision Making; Professional Firms; Management of Professionals; Crisis and Change; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA



MALAYSIA'S MULTIMEDIA DEVELOPMENT CORPORATION (B)
David W. Conklin, Danielle Cadieux

Product Number: 9B06M057
Publication Date: 4/28/2006
Revision Date: 9/23/2009
Length: 5 pages

For the first five years, Malaysia's Multimedia Development Corporation (MDC) pursued its original mission and vision, seeking to create a research and design corridor (Multimedia Super Corridor - MSC) that would be at the leading edge of the new economy. However, many analysts criticized key elements of the MDC. Some analysts feared that civil servants lacked the technical capability. Others feared the MDC lacked the ability to encourage a risk-taking culture. Many pointed to the lack of entrepreneurial activity. Stan Shih concluded that there were simply not enough knowledge workers in Malaysia. By 2003, the MDC had shifted its focus to the development of labor-intensive IT-related activities at the low end of value chains, taking advantage of Malaysia's low costs and its geographical position as a potential Asian hub. This is a supplement to Malaysia's Multimedia Development Corporation (A), product 9A98G001.

Teaching Note: 8B06M57 (2 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: International Business; Government and Business; Business Policy
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
The Cultural Environment

CADIM: THE CHINA AND INDIA REAL ESTATE MARKET ENTRY DECISIONS
Stephen R. Foerster, Marc Folch

Product Number: 9B09N003
Publication Date: 1/30/2009
Revision Date: 7/6/2009
Length: 17 pages

The president and chief operating officer of Cadim, the real estate arm of the Caisse de Dépôt et Placement du Québec, Canada's largest pension fund management firm, was considering whether Cadim should enter India, China or both on a long-term basis to diversify its global real estate holdings and take advantage of the growth these two countries were experiencing. The fund's investment would potentially amount to hundreds of millions of dollars and could lead to substantial returns; however, these investments carried considerable risks. The case introduces many of the issues involved with managing an international portfolio of real estate and provides a detailed overview of the business environment and culture of both China and India. In doing so, the case exposes students to the complicated nature of regional risk assessment and the challenges of doing business in developing countries. Students must assess whether the complexity and risk levels involved with entering a new developing country are worth the potential returns.

Teaching Note: 8B09N03 (9 pages)
Industry: Real Estate and Rental and Leasing
Issues: China; International Strategy; International Joint Venture; Investments
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



NFC IN MONGOLIA
Lu Jiang, Michael Frechette, Dongmei Tu, Xia Wang, Marie Cheng

Product Number: 9B09M009
Publication Date: 6/10/2009
Revision Date: 6/15/2009
Length: 13 pages

NFC was a state-owned company listed on the China stock exchange. It had operations in Zambia, Iran and Kazakhstan before entering into Mongolia. Most of the prior projects were turn-key operations. Mongolia was the first country in which it had an international joint venture (IJV). The joint venture (JV) agreement was signed in 1998. Due to many delays, it was not until 2005 that it finally started operating. In mid-2007, the Mongolian parliament notified the JV that its 5-year 0 per cent and 5-year 50 per cent of income tax term (starting from 2005) had been cancelled. Not only would it need to pay full tax starting from 2007, it had to pay the exempted tax amount from 2005 and 2006. Inside the JV, the union desired another pay raise despite the fact that salaries had been increased 10 per cent just six months ago. Outside the JV, local shipping companies threatened to block the factory gate if the JV did not sign a shipping contract with them on their terms.

Teaching Note: 8B09M09 (6 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: China; Human Resources Management; Cross Cultural Management; International Business; Tsinghua/Ivey
Difficulty: 4 - Undergraduate/MBA



ROARING DRAGON HOTEL
Stephen Grainger

Product Number: 9B08M004
Publication Date: 3/5/2008
Length: 7 pages

The case looks at the takeover of the Roaring Dragon Hotel (RDH), a state owned enterprise in south-west China, by global hotelier Hotel International (HI) and discusses the cultural collision and organizational adoptions resulting from the intersections of two significantly different business cultures. Specifically in this case, the focus is on the challenge involved with downsizing, redundancy, communication, cultural sensitivity, strategic planning and in developing strategy. In south-west China in 2002, the RDH business environment was just emerging from the shadow of the planned economy and had retained its guanxi-based organizational culture. At RDH, relationship development and the exchange of favors were still important and occurring on a daily basis and there was little system or efficiency in the hotel's domestic management style and processes. In comparison, Hotel International had a wealth of international experience in providing accommodation, marketing and professional management in servicing the needs of a global market steeped in corporate governance. At the commencement of the management contract there was a deep division separating the organizational cultures of RDH and HI.

Teaching Note: 8B08M04 (8 pages)
Industry: Accommodation & Food Services
Issues: China; Cross Cultural Management; Strategic Planning; Cross Cultural Communication; Cultural Sensitivity
Difficulty: 4 - Undergraduate/MBA



TOIVONEN PAPER IN THE U.S.: HUMAN RESOURCE IMPLICATIONS OF FOREIGN CORPORATE OWNERSHIP
Jannifer David, Ahmed Maamoun

Product Number: 9B08C019
Publication Date: 10/20/2008
Length: 5 pages

The growing globalization of many industries has led many U.S.-based companies to open facilities overseas. In the process, researchers have counselled U.S. companies to adopt many local customs and policies to increase their probability of success in these new locations. During this same time period, many foreign-owned companies have moved into the United States and either purchased existing facilities or started new operations. The purpose of this case is to investigate how a non-American company (Toivonen) has adapted to the U.S. environment. It assesses the role of the parent company culture in the day-to-day operations of the American subsidiary.

Teaching Note: 8B08C19 (8 pages)
Industry: Manufacturing
Issues: Cultural Customs; Acquisition Strategy; Management in a Global Environment; Human Resources Management
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Strategies for International Competition

OTOYOL MOTOR COMPANY
Jim Kayalar

Product Number: 9B09M053
Publication Date: 8/27/2009
Length: 24 pages

Otoyol Motor Company, a large commercial vehicle manufacturer, is on the verge of being liquidated by its shareholders. Despite all efforts to maintain its competitive position, the company has been caught in a downward spiral. Erosion of its first mover advantages, shifts in industry core competencies and changes in consumer preferences have depreciated the company's value proposition and deteriorated its market share. Utilizing empirical data, this case illustrates the evolution of the commercial vehicle industry in Turkey, changes in industry conditions, and competitive strategies employed by the incumbent and its Japanese rivals in various life cycle stages. Puppy dog ploy, market penetration, product strategy, long term market share acquisition stratagems employed by challengers, and the incumbent's counter moves are chronicled.

Teaching Note: 8B09M53 (14 pages)
Industry: Manufacturing
Issues: Market Strategy; Competitive Strategy; Strategy; Competitiveness
Difficulty: 4 - Undergraduate/MBA



CANADA'S ECONOMY 2012
David W. Conklin, Danielle Cadieux

Product Number: 9B09M008
Publication Date: 1/7/2009
Revision Date: 5/28/2012
Length: 5 pages

This case points to the challenges that Canada faces in regards to its ongoing productivity gap with the United States and its ongoing failure in regard to international competitiveness. This case also discusses the regional differences within Canada in regard to international competitiveness. This case also discusses the regional differences within Canada in regard to economic structure and public policy issues. Finally, the case indicates a series of strategies that Canadian businesses and governments might pursue in order to deal more effectively with Canada's economic challenge.

Teaching Note: 8B09M08 (3 pages)
Industry: Public Administration
Issues: Government and Business; Globalization; Growth; Growth Strategy
Difficulty: 4 - Undergraduate/MBA



THE ASCENDANCE OF AIRASIA: BUILDING A SUCCESSFUL BUDGET AIRLINE IN ASIA
Thomas Lawton, Jonathan Doh

Product Number: 9B08M054
Publication Date: 10/31/2008
Revision Date: 7/21/2010
Length: 16 pages

In September 2001, Tony Fernandes left his job as vice president and head of Warner Music's Southeast Asian operations. He reportedly cashed in his stock options, took out a mortgage on his house, and lined up investors to take control of AirAsia, a struggling Malaysian airline. Three days later, terrorists destroyed the World Trade Center. Despite the negative aftermath of the 9-11 attacks, by 2003, AirAsia had demonstrated that the low-fare model epitomized by Southwest and JetBlue in the United States, and by Ryanair and easyJet in Europe, had great potential in the Asian marketplace. Now, Fernandes had to make plans to ensure that AirAsia maintained its momentum while considering the influx of new entrants into the low-fare segment of the airline industry in Asia.

Teaching Note: 8B08M54 (8 pages)
Industry: Transportation and Warehousing
Issues: International Business; Competitive Strategy; Strategic Positioning; Entrepreneurial Business Growth
Difficulty: 4 - Undergraduate/MBA



ECCO A/S - GLOBAL VALUE CHAIN MANAGEMENT
Bo Bernhard Nielsen, Torben Pedersen, Jacob Pyndt

Product Number: 9B08M014
Publication Date: 5/29/2008
Revision Date: 5/10/2017
Length: 21 pages

ECCO A/S (ECCO) had been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain from cow to shoe. As ECCO grew and faced increased international competition, various value chain activities, primarily production and tanning, were offshored to low-cost countries. The fully integrated value chain tied up significant capital and management attention in tanneries and production facilities, which could have been used to strengthen the branding and marketing of ECCO's shoes. Moreover, an increasingly complex and dispersed global value chain configuration posed organizational and managerial challenges regarding coordination, communication and logistics. This case examines the financial, organizational and managerial challenges of maintaining a highly integrated global value chain and asks students to determine the appropriateness of this set-up in the context of an increasingly market-oriented industry. It is suitable for use in both undergraduate and graduate courses in international corporate strategy, international management, international marketing, supply-chain management, cross-border strategic management and international business studies in general.

Teaching Note: 8B08M14 (15 pages)
Industry: Manufacturing
Issues: Marketing Management; Operations Management; Global Strategy; Vertical Integration; Value Chain; Competitor Analysis
Difficulty: 4 - Undergraduate/MBA



TRITORTRIC
Jean-Philippe Bonardi, Guy L.F. Holburn, Tony S. Frost

Product Number: 9B07M008
Publication Date: 1/2/2007
Length: 6 pages

This case looks at the issue of whether an investment bank should invest in Tritortric, a privately held Turkish company specializing in white goods. Tritortric is planning an expansion in Europe either as OEM or through the acquisition of an existing European brand. Students will evaluate the attractiveness of Tritortric as a company and to provide guidance related to the mode of international expansion. This case also allows a broader discussion of how a company from an emerging country can compete against companies/brands from a developed one.

Teaching Note: 8B07M08 (13 pages)
Industry: Manufacturing
Issues: Economic Analysis; Political Environment; Brand Extension; International Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Analyzing and Managing Foreign Modes of Entry

NORA-SAKARI: A PROPOSED JV IN MALAYSIA (REVISED)
Paul W. Beamish, R. Azimah Ainuddin

Product Number: 9B06M006
Publication Date: 11/30/2005
Revision Date: 5/23/2012
Length: 16 pages

This case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture with a Finnish firm, Sakari Oy. Negotiations have broken down between the firms, and students are asked to try to restructure a win-win deal. The case examines some of the most common issues involved in partner selection and design in international joint ventures.

Teaching Note: 8B06M06 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Intercultural Relations; Third World; Negotiation; Joint Ventures; Finland; Malaysia
Difficulty: 4 - Undergraduate/MBA



TAMING THE DRAGON: CUMMINS IN CHINA (CONDENSED)
Charles Dhanaraj, Maria Morgan, Jing Li, Paul W. Beamish

Product Number: 9B05M034
Publication Date: 9/22/2005
Revision Date: 10/1/2009
Length: 15 pages

This case documents more than 15 years of U.S.-based Cummins, a global leader in diesel and allied technology, and its investment activities in China. While the macro level indicators seem to suggest the possibility to hit $1 billion in revenues in China by 2005, there were several pressing problems that put into question Cummins' ability to realize this target. Students are presented with four specific situations and must develop an appropriate action plan. They are related to the respective streamlining and consolidation of several existing joint ventures, distribution and service, and staffing. The case presents the complexity of managing country level operations and the role of executive leadership of a country manager.

Teaching Note: 8B05M34 (14 pages)
Industry: Manufacturing
Issues: China; International Strategy; International Joint Venture; Country Manager; Global Strategy
Difficulty: 4 - Undergraduate/MBA



ALLISON TRANSMISSION: CREATING A EUROPEAN FACE
Charles Dhanaraj

Product Number: 9B04M045
Publication Date: 9/22/2005
Revision Date: 10/15/2009
Length: 17 pages

Allison Transmission Division is a $2 billion unit within General Motors (GM) with a very specialized product - heavy-duty automatic transmissions for commercial vehicles. Although the division is part of GM, more than 90 per cent of its output is directed to external customers. The case presents a familiar challenge faced by many globalizing firms: a pioneer and leader in a market holding more the 60 per cent of the market in North America, but less than 10 per cent outside North America. The presence of leading original equipment manufacturers in Europe who are the key customers for Allison, and the large market potential in Europe presents a strategic opportunity, but the cultural and institutional differences present a formidable challenge. The technological differences in Europe augments this challenge and the uncertainty surrounding a new hybrid technology that is emerging in Europe make the decision even more complex. Also presented is the company's attempts in Europe for a decade leading to the trigger issue - a decision between a joint venture in Austria and a wholly owned unit in Hungary. The case provides a rich organizational context to challenge students to go beyond a typical alternative analysis to consider the broad strategic issues and identify a comprehensive strategy for Europe.

Teaching Note: 8B04M45 (14 pages)
Industry: Manufacturing
Issues: Entry Mode; International Strategy; Legitimacy in International Marketplace; International Marketing
Difficulty: 4 - Undergraduate/MBA



ELI LILLY IN INDIA: RETHINKING THE JOINT VENTURE STRATEGY
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 (20 pages)
Industry: Manufacturing
Issues: Joint Ventures; Emerging Markets; International Management; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



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 7:
Organizing and Controlling International Operations

PACIFICLINK IMEDIA: BECOMING A FULL SERVICE INTERACTIVE AGENCY
Andrew Karl Delios

Product Number: 9B09M023
Publication Date: 8/27/2009
Length: 13 pages

This case presents the decisions facing the managing director/executive director of PacificLink iMedia (PacificLink), more than 10 years after he founded the company. The company had experienced periods of growth and decline since its founding and was facing a period of uncertain growth given the turmoil in world markets in 2009, following several years of strong growth and expansion. The director anticipated that the company could continue to grow into new geographic or product markets, or perhaps become fundamentally altered in its governance structure and financial resource base, through an initial public offering. The case involves analysis of these alternatives for growth. It can be used to teach about sources of competitive advantage and evaluations of growth alternatives. See also the first and third cases in the three-part series, 9B00M024 and 9B16M202.

Teaching Note: 8B09M23 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Internet Marketing; International Business; Growth Strategy; Strategy Development
Difficulty: 4 - Undergraduate/MBA



BEIJING EAPS CONSULTING INC.
Mitch Rothstein, Lily Jiao Li

Product Number: 9B09C005
Publication Date: 3/31/2009
Length: 9 pages

Beijing EAPs Consulting Inc. (BEC) is a rapidly growing consulting company whose number of employees has increased from six to 16 in just one year. BEC has adopted a new project management system, using project managers to coordinate several employees from various departments. Due to the heavy workload, most employees must work on multiple projects. Collaboration between projects and department managers is not very smooth. The chief executive officer must decide how he can improve the collaboration efforts across the company's different departments.

Teaching Note: 8B09C05 (4 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: China; Organizational Change; Communications; Project Management; Organizational Structure
Difficulty: 2 - Intro/Undergraduate



MAN B&W DIESEL A/S — MANAGING LICENSEES IN A GLOBALIZED WORLD
Torben Pedersen, Jacob Pyndt, Bo Bernhard Nielsen

Product Number: 9B09M030
Publication Date: 8/27/2009
Revision Date: 9/2/2011
Length: 20 pages

MAN B&W Diesel (MBD), a subsidiary of MAN AG, had become very successful by having its large two-stroke diesel engines produced under licence in Asia. The success had led it to the position of world leader in ship engines, with world market shares between 70 and 80 per cent. The relationship between MBD and the licensees was characterized by both parties leveraging each other’s competencies. It was critical for MBD to access new knowledge in order to optimize products from the producing licensees. Similarly, the licensees leveraged access to the design specifications of the engines as well as expert knowledge and service offerings from MBD. Despite MBD’s success with the licence business model during recent years, new developments had triggered some concerns over the model’s long-term sustainability and feasibility, particularly with regard to competitors and intellectual property rights in China. Hence, the main challenge facing MBD was how to future-proof and perhaps adjust its business model to secure more control of critical knowledge and the licensees without jeopardizing the productive and lucrative licensee relationships.

Teaching Note: 8B09M30 (15 pages)
Industry: Manufacturing
Issues: Licensing; Global Strategy; Value Chain; Shipbuilding; Intellectual Property Rights; Europe; Korea; China
Difficulty: 4 - Undergraduate/MBA



RICHTER: INFORMATION TECHNOLOGY AT HUNGARY’S LARGEST PHARMA
Deborah Compeau, Jordan Mitchell, Gyorgy Drotos, Emma Incze, Gyorgy Vas

Product Number: 9B07E021
Publication Date: 5/7/2008
Revision Date: 11/28/2008
Length: 23 pages

The director of information technology (IT) at Ritcher, a major Hungarian pharmaceutical company with operations throughout Eastern Europe, is planning for the IT department for the near future. The three main considerations for the coming year are: Is the current IT structure appropriate to meet the growing demands of the organization? To what extent should IT affiliates be centrally controlled? How can IT best serve the rest of the company?

Teaching Note: 8B07E21 (11 pages)
Issues: Information Systems; Enterprise Resource Planning; Corporate Governance; Organizational Structure
Difficulty: 4 - Undergraduate/MBA



JACQUES KEMP: TOWARDS PERFORMANCE EXCELLENCE
Rod E. White, Andreas Schotter

Product Number: 9B06M084
Publication Date: 1/9/2007
Revision Date: 9/21/2009
Length: 19 pages

Over the past two years, ING Insurance Asia/Pacific had successfully implemented a new organizational and operational framework called Towards Performance Excellence (TPE), which was developed with inputs from functional heads, senior management and staff at the business unit level. TPE detailed and organized everything ING Asia/Pacific needed to execute its strategy effectively. TPE divided ING's business processes into six core categories: portfolio, marketing, organizational, operational, reputation and financial. Each category included aspects of execution known as drivers, which required managers to identify specific objectives and key performance indicators (KPIs) for each driver or sub-driver. The case includes many original exhibits and is ideally taught as the follow up case of the ING Insurance Asia/Pacific, Ivey product #9B06M083 or as a standalone case, which illustrates a real example of regional versus local organizational management.

Teaching Note: 8B06M83 (12 pages)
Industry: Finance and Insurance
Issues: Organizational Design; Organizational Structure; International Management
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Managing Technology and Knowledge

BIOCON LTD.: BUILDING A BIOTECH POWERHOUSE
Alison Konrad, Charlene L. Nicholls-Nixon, Ramasastry Chandrasekhar

Product Number: 9B06M070
Publication Date: 10/12/2006
Length: 15 pages

The founder chairman and managing director wants to make Biocon, Ltd. one of the top 10 biotech firms by 2015. The company has dealt in low-risk enzymes and generic drugs for many years. In order for the company to grow, the chairman believes that Biocon must enter the riskier business of drug discovery and development. Without making large investments into new capabilities, the company cannot become a top 10 biotech firm.

Teaching Note: 8B06M70 (5 pages)
Industry: Health Care Services
Issues: Globalization; Growth Strategy; Biotechnology Management; Strategic Scope
Difficulty: 4 - Undergraduate/MBA



COMPETING BY THE BOOK: DESTINATION CHINA
Cyril Bouquet, William Hawkins, John J. Wegener

Product Number: 9B05M061
Publication Date: 10/28/2005
Revision Date: 10/3/2009
Length: 8 pages

Lingo Media is a leading publisher of English language learning programs in China. But market share leadership hasn't come easily for the Canadian-based company, and doesn't equate with impressive sales or tangible profitability. Described is the company's learning journey in China and looks at the lessons learned on choosing the right alliance partner, tailoring products to unique local Chinese customers, and what unique resources are necessary to successfully do business in 21st century China.

Teaching Note: 8B05M61 (11 pages)
Industry: Manufacturing
Issues: China; Managing a Small Firm; Strategic Alliances; Strategic Planning; Internationalization
Difficulty: 4 - Undergraduate/MBA



HILL & KNOWLTON: KNOWLEDGE MANAGEMENT
Darren Meister, Ken Mark

Product Number: 9B04E003
Publication Date: 3/4/2004
Revision Date: 10/9/2009
Length: 15 pages

Hill & Knowlton is a division of one of the world's largest communication services group. Tagging e-mail communications to support knowledge management codification and connection strategies is an important issue for managers. Issues related to privacy and performance need to be considered. The worldwide director of knowledge management at Hill & Knowlton needs to assess the degree to which tagging should be enforced in a communication services organization that supports numerous clients around the world.

Teaching Note: 8B04E03 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Knowledge Based Systems; Communications; Knowledge Management; Leveraging Information Technology
Difficulty: 4 - Undergraduate/MBA



MERIDCO MAGNESIUM: INTERNATIONAL TECHNOLOGY TRANSFER
Pratima Bansal, Ken Cole

Product Number: 9B01M006
Publication Date: 9/5/2001
Revision Date: 7/21/2008
Length: 14 pages

Meridco Magnesium is an international automotive parts supplier of magnesium die-cast components with manufacturing plants in Canada, the United States and France. The company has a strong market position in North America; however, two out of the three plants are not performing well. The vice-president of the company's Global Technologies Organization division believes the weaker performance in the two plants is due to resistance to technological innovations. He must determine the reasons for this resistance and develop a plan to resolve the weak performance in the plants before the upcoming annual board meeting. Three supplements further discuss the issues each of the plants have with new technology. Meridco Magnesium: The French Perspective, product 9B01M007; Meridco Magnesium: The Canadian Perspective, product 9B01M008, and Meridco Magnesium: The American Perspective, product 9B01M009. AWARD WINNING CASE - This case was a winner at the AIB Case Competition, Academy of International Business, 2001 and first place winner of the 2001 Indiana University Center for International Business Education and Research (IUCIBER) International Case Competition.

Teaching Note: 8B01M06 (7 pages)
Industry: Manufacturing
Issues: Technology Transfer; International Business; Knowledge Management; Strategy Implementation
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Communicating Across Borders and Cultures

ARLA FOODS AND THE CARTOON CRISIS (A)
Henry W. Lane, Mikael Sondergaard, David T.A. Wesley

Product Number: 9B08M005
Publication Date: 1/31/2008
Revision Date: 2/26/2010
Length: 12 pages

After a Danish newspaper publishes cartoons depicting the Prophet Muhammad, consumers across the Middle East decide to boycott Danish goods. Arla Foods (Arla) is one of Europe's largest dairy companies. Suddenly, it finds itself caught in the middle of a crisis that appears to be beyond its control. Prior to the boycott, the Middle East was Arla's fastest growing region and represented an important component of the company's long-term growth strategy. As the largest Danish company in the region, it stands to lose up to $550 million in annual revenues. Students are asked to take the role of the communication director for Arla, who, along with other members of the newly formed Crisis and Communication Group, must decide on a course of action to deal with the crisis. The case addresses a variety of topics, including culture and religion, international management, risk management, crisis communications, and managing in a boycott situation. It also creates an opportunity to discuss doing business in the Middle East and management in an Islamic context.

Teaching Note: 8B08M05 (16 pages)
Industry: Manufacturing
Issues: Intercultural Relations; Boycott; Crisis Management; Women in Management; Northeastern
Difficulty: 4 - Undergraduate/MBA



ARLA FOODS AND THE CARTOON CRISIS (B)
Henry W. Lane, Mikael Sondergaard, David T.A. Wesley

Product Number: 9B08M006
Publication Date: 1/31/2008
Revision Date: 5/26/2010
Length: 5 pages

The communications director of Arla Foods is hoping the decision to denounce to the cartoons will bring an end to the boycott. Instead, it brings complaints from Danish women's groups. This is a supplement to Arla Foods and the Cartoon Crisis (A), Ivey product 9B08M005.

Teaching Note: 8B08M05 (16 pages)
Industry: Manufacturing
Issues: Boycott; Intercultural Relations; Women in Management; Crisis Management; Northeastern
Difficulty: 4 - Undergraduate/MBA



ARLA FOODS AND THE CARTOON CRISIS (C)
Henry W. Lane, Mikael Sondergaard, David T.A. Wesley

Product Number: 9B08M007
Publication Date: 1/31/2008
Revision Date: 2/26/2010
Length: 2 pages

Just as Arla Foods has re-established its reputation in the Middle East, another provocative cartoon is released in a Swedish paper and the communications director of Arla Foods must decide how the company will respond. This is a supplement to Arla Foods and the Cartoon Crisis (A), Ivey product 9B08M005.

Teaching Note: 8B08M05 (16 pages)
Industry: Manufacturing
Issues: Intercultural Relations; Women in Management; Crisis Management; Boycott; Northeastern
Difficulty: 4 - Undergraduate/MBA



PAY ZONE CONSULTING: A GLOBAL VIRTUAL ORGANIZATION
Malcolm Munro, Sid L. Huff

Product Number: 9B08C004
Publication Date: 1/14/2008
Revision Date: 2/16/2008
Length: 11 pages

Pay Zone Consulting is a small, highly specialized global consulting group providing information management solutions for the exploration and production sector of the oil and gas industry. The company operates entirely virtually with consultants and software developers in different parts of the world. The principals are considering growth options but are intent on preserving the quality of life provided by their virtual business model. The case examines the communication technologies employed by the principals in support of their virtual teamwork and describes the administrative information technology infrastructure that enables the firm to operate with no administrative staff or office. The case also discusses the organizational and personal factors underlying the company’s ability to operate successfully virtually.

Teaching Note: 8B08C04 (9 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Difficulty: 4 - Undergraduate/MBA



ACME MEDICAL IMAGING
Donald A. Pillittere

Product Number: 9B08D004
Publication Date: 5/6/2008
Length: 6 pages

After negotiations with a key supplier for lower prices and quicker turnaround go nowhere, two employees of Acme Medical Imaging realize there's no more low-hanging fruit to pick to keep their project on time and on budget -- no more concessions from external parties, no more superficial, short-term fixes. They have to convince their chief executive officer and the project team to take a hard look at internal processes. From the perspective of Operations, this case examines the challenges that can arise - and some steps that can be taken - when the greatest obstacles to a project are the people and procedures responsible for its success.

Teaching Note: 8B08D04 (8 pages)
Industry: Health Care Services
Issues: Commercialization Process; Project Objective; New Product Development; Communications
Difficulty: 4 - Undergraduate/MBA



"HIPS FEEL GOOD" - DOVE'S CAMPAIGN FOR REAL BEAUTY
Thomas Gey, Nick Nugent, David T.A. Wesley

Product Number: 9B07A010
Publication Date: 5/1/2007
Revision Date: 2/24/2010
Length: 16 pages

Dove is one of Unilever's better-known personal care brands. It has significant top-of-mind awareness among women in many countries. In an attempt to increase sales volume by 80 per cent, Unilever re-launched Dove in 2004. The campaign asks the question What is real beauty? and attempts to redefine it in ways that challenge commonly portrayed stereotypes. This case examines the re-launch of Dove, Unilever's well-known international personal care brand, and the marketing issues behind its phenomenal success. It also raises questions about how to maintain the brand's momentum as the next phase unfolds. In 2007, Dove products are still well thought of by consumers and the campaign has attracted imitators, including brands outside the cosmetics and beauty care sector.

Teaching Note: 8B07A10 (17 pages)
Issues: Ethical Issues; Marketing Communication; Marketing Channels; International Marketing; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Negotiation and Decision Making Across Borders and Cultures

MATTEL AND THE TOY RECALLS (A)
Hari Bapuji, Paul W. Beamish

Product Number: 9B08M010
Publication Date: 2/21/2008
Revision Date: 5/18/2017
Length: 14 pages

On July 30, 2007 the senior executive team of Mattel under the leadership of Bob Eckert, chief executive officer, received reports that the surface paint on the Sarge Cars, made in China, contained lead in excess of U.S. federal regulations. It was certainly not good news for Mattel, which was about to recall 967,000 other Chinese-made children's character toys because of excess lead in the paint. Not surprisingly, the decision ahead was not only about whether to recall the Sarge Cars and other toys that might be unsafe, but also how to deal with the recall situation. The (A) case details the events leading up to the recall and highlights the difficulties a multinational enterprise faces in managing global operations. Use with Ivey case 9B08M011, Mattel and the Toy Recalls (B).

Teaching Note: 8B08M10 (28 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Offshoring; Outsourcing; Product Quality; Product Recall; Multinational Enterprise Stakeholders; the United States and China
Difficulty: 4 - Undergraduate/MBA



MATTEL AND THE TOY RECALLS (B)
Hari Bapuji, Paul W. Beamish

Product Number: 9B08M011
Publication Date: 2/25/2008
Revision Date: 9/15/2014
Length: 9 pages

This case, which outlines the product recall, is a supplement to Mattel and the Toy Recalls (A).

Teaching Note: 8B08M11 (16 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Offshoring; Outsourcing; Product Quality; Product Recall; Multinational Enterprise Stakeholders; the United States and China
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



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

Product Number: 9B08M039
Publication Date: 4/18/2008
Length: 4 pages

En route to Nigeria the decision maker learns that he is walking into a scam and must decide whether to show up for the scheduled meetings or to return home immediately. The case illustrates ways of being drawn into unethical situations, and the severe implications for both the individual and organization if they do participate. This (B) case can be distributed part way through the class (with undergraduates) or at the same time as the (A) case(9B08M038) with more experienced students.

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



MEARL OIL COMPANY: ENVIRONMENTAL IMPACT TARGETS (A)
Pratima Bansal, Tom Ewart

Product Number: 9B05M018
Publication Date: 7/15/2005
Revision Date: 9/30/2009
Length: 9 pages

Mearl Canada Limited does not want to implement Mearl Oil Company's environmental impact targets because, in Mearl Canada's opinion, the targets create an extra layer of regulation for considerable cost and negligible benefit. Mearl's position is that all Mearl worldwide operations must adopt these performance standards, as this will allow the company to make operational their stated environmental policy. Each party has an opportunity to make their case at the International Environmental Group meeting, and it will decide if Mearl Canada may deviate from the environmental impact target and continue with their own homegrown environmental management system and standards. This case is from the point of view of the manager, Mearl Support, environmental. The supplement Mearl Oil Company: Environmental Impact Targets (B), product 9B05M019, is from the senior environmental manager, Mearl Canada Limited view and the supplement Mearl Oil Company: Environmental Impact Targets (C), product 9B05M020, is from the International Environmental Group's perspective.

Teaching Note: 8B05M18 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Negotiation; Globalization; Management in a Global Environment; Environmental Business Management
Difficulty: 4 - Undergraduate/MBA



MEARL OIL COMPANY: ENVIRONMENTAL IMPACT TARGETS (B)
Pratima Bansal, Tom Ewart

Product Number: 9B05M019
Publication Date: 7/15/2005
Revision Date: 9/30/2009
Length: 9 pages

The Canadian division of Mearl Oil Company does not want to implement the company's environmental impact targets and would like to continue using its homegrown environmental management system and standards. The division is allowed to present its arguments to the International Environmental Group. This is a supplement to Mearl Oil Company: Environmental Impact Targets (A), product 9B05M018. The supplement Mearl Oil Company: Environmental Impact Targets (C), product 9B05M020 discusses the International Environmental Group's perspective.

Teaching Note: 8B05M18 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Negotiation; Globalization; Environmental Business Management; Management in a Global Environment
Difficulty: 4 - Undergraduate/MBA



MEARL OIL COMPANY: ENVIRONMENTAL IMPACT TARGETS (C)
Pratima Bansal, Tom Ewart

Product Number: 9B05M020
Publication Date: 7/15/2005
Revision Date: 9/30/2009
Length: 7 pages

Mearl Canada Limited and Mearl Oil Company are presenting their cases to the International Environmental Group, who will make a decision on whether or not the Mearl Canada must comply with the company's environmental impact targets. This is a supplement to Mearl Oil Company: Environmental Impact Targets (A) and (B), products 9B05M018 and 9B05M019.

Teaching Note: 8B05M18 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Globalization; Environmental Business Management; Management in a Global Environment; Negotiation
Difficulty: 4 - Undergraduate/MBA



MAJESTICA HOTEL IN SHANGHAI?
Paul W. Beamish, Jane W. Lu

Product Number: 9B05M035
Publication Date: 4/11/2005
Revision Date: 9/21/2011
Length: 14 pages

Majestica Hotels Inc., a leading European operator of luxury hotels, was trying to reach an agreement with Commercial Properties of Shanghai regarding the management contract for a new hotel in Shanghai. A series of issues require resolution for the deal to proceed, including length of contract term, name, staffing and many other control issues. Majestica was reluctant to make further concessions for fear that doing so might jeopardize its service culture, arguably the key success factor in this industry. At issue was whether Majestica should adopt a contingency approach and relax its operating philosophy, or stick to its principles, even if it meant not entering a lucrative market.

Teaching Note: 8B05M35 (8 pages)
Industry: Accommodation & Food Services
Issues: China; Market Entry; Negotiation; Control Systems; Corporate Culture
Difficulty: 4 - Undergraduate/MBA



SCOTTS MIRACLE-GRO: THE SPREADER SOURCING DECISION
John Gray, Michael Leiblein, Shyam Karunakaran

Product Number: 9B08M078
Publication Date: 11/14/2008
Revision Date: 6/22/2009
Length: 11 pages

The Scotts Miracle-Gro company is the world's largest marketer of branded consumer lawn and garden products, with a full range of products for professional horticulture as well. Headquartered in Marysville, Ohio, the company is a market leader in a number of consumer lawn and garden and professional horticultural products. The case describes a series of decisions regarding the ownership and organization of the assets used to manufacture fertilizer spreaders. This case is intended to illustrate the application of and tradeoffs between financial, strategic and operations perspectives in a relatively straightforward manufacturing make-buy decision. The case involves a well-known, easily-described product that most students would assume is made overseas. Sufficient information is provided to roughly estimate the direct financial cost associated with internal (domestic) production, offshore (non-domestic) production and outsourced production. In addition, information is included that may be used to estimate potential transaction costs as well as costs associated with foreign exchange risk.

Teaching Note: 8B08M78 (13 pages)
Industry: Manufacturing
Issues: China; Human Resources Management; Outsourcing; Globalization; Operations Management; Supply Chain Management; Operations Strategy
Difficulty: 5 - MBA/Postgraduate


Chapter 11:
Motivating and Leading Across Borders and Cultures

STRATEGIC LEADERSHIP AT COCA-COLA: THE REAL THING
W. Glenn Rowe, Suhaib Riaz

Product Number: 9B08M040
Publication Date: 11/4/2008
Length: 15 pages

Muhtar Kent had just been promoted to the CEO position in Coca-Cola. He was reflecting upon the past leadership of the company, in particular the success that Coca-Cola enjoyed during Robert Goizueta's leadership. The CEOs that had followed Goizueta were not able to have as positive an impact on the stock value. When his promotion was announced, Kent mentioned that he did not have immediate plans to change any management roles but that some fine-tuning might be necessary.

Teaching Note: 8B08M40 (8 pages)
Industry: Manufacturing
Issues: Performance Evaluation; Management Style; Leadership; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



THERE IS NOTHING PERMANENT EXCEPT CHANGE... EVEN AT THE ICELANDIC POLICE DEPARTMENT
Gerard Seijts

Product Number: 9B08C009
Publication Date: 8/14/2008
Revision Date: 2/25/2010
Length: 21 pages

The Minister of Justice for the Republic of Iceland is contemplating how to work with the various stakeholders to implement the recommendations for the structure of policing. The main issue to address is how to consolidate the number of region-based police forces. The minister's views on restructuring the police force are shared by the police association; however, a number of municipalities and police commissioners are not as enthusiastic about the proposed changes to the structure of the police organization. He understands that change is never a pain-free process. Formal reports have been submitted and now is the time to make some decisions.

Teaching Note: 8B08C09 (6 pages)
Industry: Public Administration
Issues: Implementation; Leadership
Difficulty: 4 - Undergraduate/MBA



JOHN MEREDITH OF HUTCHISON PORT HOLDINGS
Kathleen E. Slaughter, Jeffrey Gandz, Nigel Goodwin

Product Number: 9B07C027
Publication Date: 6/4/2007
Revision Date: 5/24/2007
Length: 18 pages

This case examines the life, career and leadership style of John Meredith, the group managing director of Hutchison Port Holdings (HPH). Meredith established the company in 1972 based on his vision for more efficient global trade. Under his leadership, the company grew to become the world's largest container port operator. The company grew from owning and managing a single container port to owning and managing 45 container ports by May 2007. This case also examines the importance of leadership at all levels of organizations. When a company grows quickly and sets up operations around the world, it must constantly train new leaders. However, HPH had difficulty finding and training enough leaders who were willing to lead the company's new port operations in far-off destinations. The case examines HPH's actions thus far and asks what other measures may be appropriate in the future.

Teaching Note: 8B07C27 (7 pages)
Industry: Transportation and Warehousing
Issues: Management in a Global Environment; Management Development; Leadership
Difficulty: 4 - Undergraduate/MBA



CAPITAL COAST HEALTH LIMITED: BEING A GOOD EMPLOYER IN THE MIDST OF CHANGE (A)
Anne Marie Francesco, Alvin Hwang

Product Number: 9B05M009
Publication Date: 2/21/2005
Revision Date: 9/30/2009
Length: 6 pages

Capital Coast Health Limited is a public healthcare facility in central New Zealand. The new chief executive is confronted with serious internal problems and a persistent annual financial deficit that has been with the organization since its inception. Working in an uncertain and rapidly changing healthcare environment and constrained by government regulations, the chief executive officer must find a way to deliver quality care to the community and at the same time, motivate a large team of professionals who were already weary after years of change. The supplement Capital Coast Health Limited: Being a Good Employer in the Midst of Change (B), product 9B05M010 looks at one of the policies the chief executive officer must focus on.

Teaching Note: 8B05M09 (6 pages)
Industry: Health Care Services
Issues: Environmental Change; Strategy Development; Change Management; Employment Equity
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
International Human Resources Management

QILING RESEARCH HOSPITAL
John S. Haywood-Farmer, Kevin Leung

Product Number: 9B09C002
Publication Date: 1/20/2009
Length: 17 pages

The QiLing Research Hospital (QiLing), located in Beijing, China, headed by Dr. Tien Tzu, CEO, is in a partnership with the China Research Network (CRN). This partnership was formed in an effort to mutually benefit both parties in terms of becoming a leader in health-care quality standards and creating more effective health-care techniques. Due to the intertwined nature of this relationship, the acquisition of human capital for specific positions within the hospital requires CRN to provide the candidates. Dr. Tien Tzu is increasingly concerned that CRN's hiring conditions are hindering QiLing's potential - specifically referencing the latest batch of candidates CRN has provided to fill a key spot in the neurology department. She is aware that the right people are the key to maintaining QiLing's growth and loyalty and has analyzed how the candidate selection process, overall compensation, and job retention efforts affect the quality of the human capital pool. She is entertaining thoughts about overhauling the process for the benefit of QiLing, and is unsure how CRN will respond to any proposals she might make.

Teaching Note: 8B09C02 (4 pages)
Industry: Health Care Services
Issues: China; Manpower Planning; Employee Selection; Career Development; Intercultural Relations
Difficulty: 4 - Undergraduate/MBA



HUMAN RESOURCE MANAGEMENT IN MULTINATIONAL BANKS IN TANZANIA
Paul W. Beamish, Aloysius Newenham-Kahindi

Product Number: 9B07C040
Publication Date: 10/30/2007
Length: 18 pages

The case examines how the best practices of two banks were organized and managed to provide financial services to a small niche of foreign customers in the mining, tourism and construction sectors in Tanzania. The two banks claimed to be similar in many ways. They both were from countries whose economies were run broadly on neo-liberal lines, in that there was little state intervention in either economy, however, differences existed with respect to how they managed their operations. The case is ideally suited to illustrate the on-going tension and different types of best practices in cross-market integration. It provides opportunities to explore the challenges faced by multinational company banks in managing global workforces, the evolution of the banking sector, and the influence of technology in shaping work in organizations.

Teaching Note: 8B07C40 (16 pages)
Industry: Finance and Insurance
Issues: International Management; Expatriate Management; Trade Unions; Management Training; Emerging Markets; Performance Evaluation; Recruiting; Subsidiaries; Career Development; Employee Selection
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



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


Chapter 13:
Global Social Enterprise

ITC IN RURAL INDIA
Sushil Vachani

Product Number: 9B09M036
Publication Date: 6/10/2009
Length: 17 pages

The case describes the Indian business environment and the enormous opportunities and challenges presented by rural markets as they expand rapidly. It focuses on the innovative business model deployed by ITC to engage the rural population in multiple ways and create a platform for procuring commodities and providing a range of goods and services to the bottom of the pyramid in rural India. It gives students the opportunity to evaluate the future of ITC's rural business.

Teaching Note: 8B09M36 (9 pages)
Industry: Retail Trade
Issues: Developing Countries; Information Technology; Innovation; Competitive Strategy
Difficulty: 4 - Undergraduate/MBA



COMPETING FOR DEVELOPMENT (A): FUEL EFFICIENT STOVES FOR DARFUR
Oana Branzei, Samer Abdelnour

Product Number: 9B08M061
Publication Date: 9/10/2008
Length: 18 pages

The new country director of CHF International (CHF), a U.S.-based organization that initiated operations in Sudan with USAID funding, must review the successes of CHF's early interventions, and its strategic interest in the fuel efficient stoves project. The practical decision concerns a US$65,000 investment in a local manufacturing facility that would allow CHF to scale up the production of a stove design endorsed by the Lawrence Berkeley National lab using locally tested prototypes with USAID support. Students are asked to contemplate whether and how economies of scale would bring the costs down to a tipping point where internally displaced persons (IDPs) in Darfuri camps could afford the benefits of greater efficiency and convenience. They also need to balance cost cutting considerations with alternative decision criteria for local development: the success of this project depends on IDPs' preference among alternative stove providers - which encompasses, in addition to fuel economies, the characteristics of the stoves themselves (i.e. quality, fuel efficiency), the engagement of the community in their production, and the ability to use and repair the stoves. The role play supplements 9B08M062A to 9B08M062F will highlight several aspects of the competitive dynamics among the key players. A summary of the dynamic interaction between the players is provided in the supplement Competing for Development (C): Success, Bittersweet.

Teaching Note: 8B08M61 (20 pages)
Industry: Public Administration, Social Advocacy Organizations
Issues: Non-Profit Organization; Sustainable Development; Emerging Markets; Simulation
Difficulty: 4 - Undergraduate/MBA



MICROFINANCE AND THE KIPSIGIS OF SOUTHWEST KENYA
Glenn Brophey, Robin Wiszowaty

Product Number: 9B08M059
Publication Date: 9/29/2008
Length: 16 pages

A group of business students and their professor travel to rural Kenya to work with Free The Children (FTC), an in-situ, non-governmental organization (NGO) that is focused on generational social change through education for children. This Canadian NGO has had considerable success in meeting this original objective and now sees health care and economic development concerns as being the next barriers to expansion of its educational thrust for the local population. The business group has focused on microcredit for hardcore poor mothers (mommas) as a means to economic development, as this approach has proven successful with similar populations in other parts of the world. At the level of the momma, the charitable NGO is considering loans or grants to implement some joint liability financing. The business students have been asked to gather the data, consider the implications of their analysis and make a recommendation as to which financial structure will be more effective to the NGO's management group within Kenya. The students also have been asked to create an action plan for implementation of their recommendation that considers the broader context of the organization's overall activities in Kenya.

Teaching Note: 8B08M59 (8 pages)
Issues: Decision Making; Organizational Behaviour; Social Agency Management; Strategic Decision Making; Social Entrepreneurship
Difficulty: 4 - Undergraduate/MBA



E+CO: A TIPPING POINT FOR CLEAN ENERGY ENTREPRENEURSHIP (A)
Oana Branzei, Kevin McKague

Product Number: 9B07M054
Publication Date: 8/3/2007
Revision Date: 8/16/2007
Length: 20 pages

This case describes E+Co's approach to promoting clean energy entrepreneurship in developing countries and its current strategic challenge; how to scale up its business model to reach 100 million unserved or underserved people in the developing world by 2020. In the last 12 years E+Co was successful at demonstrating and validating an "enterprise centered model" which offered reliable access and improved energy efficiency to the poor in emerging economies. Its approach to bringing the poor up the modern energy ladder, one step at a time, was initiated in response to a challenging project for the Rockerfeller Foundation, marked by a radical departure from the top-down, large scale infrastructure projects sponsored by international institutions. So far, these models had left 2.5 million people trapped into the double bind of energy poverty and energy waste. E+Co's approach was working well; by September 2006 it had invested in 138 enterprises in 30 countries. These local entrepreneurs currently provided clean energy to more than three million people. The next issue was scaling it all up; however, this risked straining the resources of E+Co's global team of 38 employees and could change the services the company provided to local entrepreneurs. Tenfold expansion within these constraints required an innovative growth strategy. Supplemental case, E+Co: The Path to Scale (B), product 9B07M055, presents a set of entrepreneurial growth strategies that preserve the core of the model.

Industry: Utilities
Issues: Business and Society; Entrepreneurial Business Growth; Emerging Markets; Energy
Difficulty: 4 - Undergraduate/MBA



CITY WATER TANZANIA (A): WATER PARTNERSHIPS FOR DAR ES SALAAM
Oana Branzei, Kevin McKague

Product Number: 9B07M025
Publication Date: 6/15/2007
Length: 17 pages

This case examines how the Tanzania government intends to address a pressing deterioration in the infrastructure and services of Dar es Salaam's Water and Sewage Authority. The decision process unfolds in the spring of 2002, on the heels of the Cochabamba uprising in Bolivia and an increasing dispute over the involvement of the International Finance Corporation and the World Bank in other water development projects in Ghana, Mauritania and South Africa. At that time, the World Bank was already sponsoring similar projects in Angola, Benin, Guinea-Bissau, Niger, Rwanda Sao Tome and Senegal, despite some vocal local opposition. This multi-part case series is ideally suited for core or elective courses in strategy and sustainability to illustrate the types of ongoing tensions and divergent decision angles that influence the formation and performance of public-private partnerships and managing in a global context. It also provides a rich and graphic account of the special threats and opportunities in the water sector - a wealth of complementary teaching resources can also stimulate larger debates by juxtaposing the case decision with a broader crisis of confidence in for-profit solutions to water and sewage provision in Africa and in Latin America.

Teaching Note: 8B07M25 (13 pages)
Industry: Utilities
Issues: Partnership; Strategic Alliances; Management in a Global Environment; Sustainable Development
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Ethics and Social Responsibility for International Firms

SCANDINAVIAN AIRLINES: THE GREEN ENGINE DECISION
Jennifer Lynes

Product Number: 9B09M028
Publication Date: 6/11/2009
Length: 11 pages

Scandinavian Airlines (SAS) is an innovator of strategic environmental management in the airline industry. Being a first-mover can have both its advantages and disadvantages. This case looks at the airline's decision of whether they should invest in the best available environmental technology for a fleet of new aircraft that would serve them for the next 25 years. While the technology for these low-emission engines had been around since the 1970s, it had never really been commercialized. SAS was feeling pressure from the regulatory authorities with regards to potential new charges and taxes that could affect the future operating costs of the fleet. Despite these anticipated future costs, at the time of the decision, the director of aircraft and engine analysis for SAS could not make an economic case for the more expensive engines. The challenge was for the fleet development team to try to convince the SAS management team to spend the extra kr5 million (Swedish Kronor) per aircraft for the dual combustor engine. Given that corporations are faced with increasing pressure with regards to greenhouse gas emissions and climate change, this case study presents an opportunity for discussion and analysis of various environmental concepts including strategic environmental management, adoption of best available environmental technologies, the role of internal environmental leadership in a large corporation and the effect of market-based mechanisms to improve a sector's environmental performance. The case illustrates the complexities of environmental decisions in striking a balance between meeting ambitious commitments and dealing with real capabilities of companies and external pressures.

Teaching Note: 8B09M28 (14 pages)
Issues: Corporate Culture; Management Decisions; Competitive Advantage; Environment
Difficulty: 4 - Undergraduate/MBA



ETHICS OF OFFSHORING: NOVO NORDISK AND CLINICAL TRIALS IN EMERGING ECONOMIES
Klaus Meyer

Product Number: 9B09M001
Publication Date: 1/9/2009
Revision Date: 5/3/2017
Length: 13 pages

The case outlines the conflicting ethical demands on a Danish pharmaceuticals company, Novo Nordisk, that is operating globally and is aspiring to high standards of corporate social responsibility. A recent report alleges that multinational pharmaceutical companies routinely conduct trials in developing countries under alleged unethical conditions. The company's director reflects on how to respond to a request from a journalist for an interview. This triggers a discussion on the appropriate ethical principles and how to communicate them. As a company emphasizing corporate responsibility, the interaction with the media presents both opportunities and risks to Novo Nordisk. The case focuses on clinical trials that are required to attain regulatory approval in, for example, Europe and North America, and that are conducted at multiple sites around the world, including many emerging economies. Novo Nordisk has implemented numerous procedures to protect its various stakeholders, yet will this satisfy journalists and non-governmental organizations, and how should the company communicate with these stakeholders?

Teaching Note: 8B09M01 (11 pages)
Industry: Manufacturing
Issues: Location Strategy; Ethical Issues; Emerging Markets; Research and Development
Difficulty: 4 - Undergraduate/MBA



GOEDEHOOP: WHEN SOCIAL ISSUES BECOME STRATEGIC
Margaret Sutherland, Verity Hawarden

Product Number: 9B08M067
Publication Date: 12/15/2008
Length: 17 pages

This case chronicles a change process to counteract the epidemic of HIV/AIDS on a coalmine in South Africa that impacts the sustainability of the organization. The case describes the business case for dealing with the problem and the sequence of events that were instituted. It illustrates the type of leadership activities needed to deal with a compelling environmental force impacting business. It shows how a wide range of stakeholders needs to be involved and systems and practices instituted for sustainable change to be implemented. It raises the question of the role of business in society. The case also provides insights into doing business in emerging economies. The challenge at the end of the case is how to roll out (replicate) the intervention into other divisions of a large multinational.

Teaching Note: 8B08M67 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Health; Cost/Benefit Analysis; Ethical Issues; Change Management; Leadership; Human Resources Management; Triple Bottom-line Reporting; Impact of HIV/AIDS on Business; Emerging Markets; GIBS
Difficulty: 5 - MBA/Postgraduate



MALAWI BUSINESS ACTION AGAINST CORRUPTION
Oonagh Fitzgerald, James Ng'ombe

Product Number: 9B07M037
Publication Date: 10/4/2007
Length: 18 pages

The founding executive director of the African Institute for Corporate Citizenship (AICC), felt very tense as he typed the last revisions to the speech he would be giving to a Llongwe merchants' association later in the week. He really enjoyed proudly describing his initiative, "Business Action Against Corruption", and the Business Code of Conduct for Combating Corruption in Malawi, to potential new partners. However, the founding executive director was beginning to feel concerned about its slow pace of adoption. He was particularly worried about how to manage the delicate relationship with the government.

Teaching Note: 8B07M37 (6 pages)
Issues: Negotiation; Ethical Issues; Corporate Responsibility; Globalization; Political Environment; Procurement
Difficulty: 4 - Undergraduate/MBA



MEDICAL EQUIPMENT INC. IN SAUDI ARABIA
Joerg Dietz, Ankur Grover, Laura Guerrero

Product Number: 9B07C042
Publication Date: 3/17/2008
Revision Date: 3/24/2009
Length: 14 pages

A recently hired U.S.-trained sales account manager at Medical Equipment Inc. (Medical Equipment) returned to his office after meeting with the head of the cardiology department at a specialist hospital and research center in Jeddah, Saudi Arabia. He had worked very hard to secure his first sale of US$725,000 for healthcare equipment, but was disheartened when the head of cardiology told him that the hospital's purchasing director intended to give the order to Medical Equipment's main competitor. The competition's sales representative and the purchasing director had known each other for 10 years and the head cardiologist implied that there might be side payments involved. The sales account manager knew Medical Equipment's product was superior and wondered how he could secure the order without having a history with the purchasing director or without engaging in practices he found ethically questionable.

Teaching Note: 8B07C42 (8 pages)
Industry: Manufacturing
Issues: Intercultural Relations; Sales Management; International Business; Ethical Issues
Difficulty: 4 - Undergraduate/MBA