Ivey Publishing

Strategic Management: A Dynamic Perspective - Concepts and Cases

Carpenter, M. A., Sanders, W. G.,2e (United States, Pearson, 2009)
Prepared By Mehdi H Nejad, Ph.D. Student (Strategy)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introducing Strategic Management

Stewart Thornhill, Ken Mark

Product Number: 9B09M063
Publication Date: 9/24/2009
Revision Date: 8/26/2010
Length: 18 pages

Thirteen years after it began operations with three airplanes, WestJet is the second-largest airline in Canada. It has grown revenues at an annual rate of 37 per cent per year for the past 11 years, and is poised to become the country’s dominant airline in the future. As it has grown, WestJet seems to have made changes to its original strategy of low-cost, no-frills, point-to-point, single-class service. The case examines WestJet’s strategy over the years and focuses on the company’s latest decision point: whether to add smaller planes to its single-model Boeing fleet. The objective of the case is to examine changes in a company’s strategy over time, and to review the potential impact of these changes on a company’s future performance.

Teaching Note: 8B09M63 (10 pages)
Industry: Transportation and Warehousing
Issues: Strategic Planning; Strategy Development; Strategic Positioning; Change Management; Airline Industry
Difficulty: 4 - Undergraduate/MBA

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

Michael J. Rouse, David Maslach

Product Number: 9B08M055
Publication Date: 12/9/2008
Length: 12 pages

On March 12, 2005, the founder and chief executive officer (CEO) of Chartwell Technologies (Chartwell), a company that specialized in Internet gaming development, noticed something interesting. The CNN headline news ticker on his television read: Online Poker Industry Expected to Grow by Billions within the Year. The CEO and his partner, the vice-president of business development, were about to decide whether to acquire MicroPower Inc. (MicroPower), an online poker company, for US$2.6 million in cash. The industry certainly had the potential for explosive growth. The CEO had to decide whether Chartwell should upgrade its current technology or purchase MicroPower to gain instant access to its C++ platform to take advantage of the growth on the online poker industry.

Teaching Note: 8B08M55 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services, Arts, Entertainment, Sports and Recreation, Manufacturing
Issues: Human Resources Management; Integration; Technological Growth; Acquisitions
Difficulty: 4 - Undergraduate/MBA

Rod E. White, Ken Mark

Product Number: 9B06M080
Publication Date: 11/6/2006
Revision Date: 2/7/2007
Length: 7 pages

In July 2006, Apple Computer Inc. (Apple) is enjoying increased sales due to its popular iPod portable digital music player. The iPod and iTunes, Apple's online music store, each have about 70 per cent of the market share. In the 1980's, Apple had a great deal of success in the personal computer (PC) business. However, Apple saw its market share fall from over 30 per cent to less than five per cent. Most experts agree that this occurred because Apple had control over the production and distribution of its hardware, software and operating system. The Windows and Intel computers eventually took Apple's lead in the market. Analysts are starting to wonder if Apple will face the same problems as it uses the same business model for its iPod and iTunes products.

Industry: Manufacturing
Issues: Industry Analysis; Corporate Strategy; Expansion; Market Strategy; System Design; Product Strategy; Strategic Positioning; Competitive Advantage
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
Leading Strategically Through Effective Vision and Mission

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

Charlene Zietsma, Jordan Mitchell

Product Number: 9B05M049
Publication Date: 9/22/2005
Revision Date: 10/1/2009
Length: 22 pages

In June 2005, the Ontario Science Centre (OSC) was in the midst of the Agents of Change renewal plan - a $45 million, five-year project aimed at refreshing a third of the centre's exhibit halls. With more than 600 exhibits in 11,000 square metres of exhibit space, the OSC has been communicating science and technological ideas in an interactive way since it opened in 1969. Throughout its history, the OSC has conceived, designed and built its own exhibits. In the mid-1980s, this led to consulting, selling and renting out its exhibit design and construction to other science centres around the world. Funded 50 per cent by the Ontario government, the OSC faced the challenge of raising private funds and generating enough earned revenues to cover its operating expenses and continue innovating and renewing its facilities. To avoid getting stuck in the status quo once the Agents of Change renewal plan was complete, the OSC's chief executive officer and her management team set high goals: to double the visitor count and generate $10 million in operating profit by 2010. The CEO must determine how to reach these goals while maintaining its primary mission.

Teaching Note: 8B05M49 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Growth Strategy; Strategy Development; Mission Statements; Non-Profit Organization
Difficulty: 4 - Undergraduate/MBA

Mary M. Crossan, Nick Bontis

Product Number: 9A95M015
Publication Date: 12/8/1995
Revision Date: 2/19/2010
Length: 8 pages

This case describes the visioning process at Xerox Canada. The chairman, CEO and president of Xerox Canada has been meeting with her leadership team since eight o'clock in the morning to craft the organization's new vision statement. Three and a half hours into the meeting the team hits a road block. With 30 minutes left in the session, the CEO must decide whether and how to proceed. (A three-minute video can be purchased with the case, video 7A95M015.

Teaching Note: 8A95M15 (20 pages)
Industry: Manufacturing
Issues: Visioning; Mission Statements
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Examining the Internal Environment: Resources, Capabilities, and Activities

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

Product Number: 9B05M037
Publication Date: 6/14/2005
Revision Date: 10/1/2009
Length: 13 pages

Harlequin Enterprises is a well-known publisher of series romantic fiction. The company is facing threats to its leading position as the world's largest romance publisher. While Harlequin was the dominant and very profitable producer of series of romance novels, research indicated that many customers were reading as many single-title romance and women's fiction as series romances. Facing a steady loss of share, Harlequin convened a task force to study the possibility of re-launching a single title women's fiction program. Students must analyze the organization's capabilities and resources as it considers the launch of this new business line.

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

Pratima Bansal, Lindsay Sgro

Product Number: 9B04M008
Publication Date: 1/15/2004
Revision Date: 10/9/2009
Length: 9 pages

While McDonald's breakfast and snack sales have been increasing, they have not kept pace with industry growth. The primary barrier to this sales growth in the Canadian market, according to a franchise owner, is the quality of the coffee. McDonald's in Canada has been attempting to build its coffee brand equity for many years. They had switched to the Higgins and Burke coffee but had little success changing customers' negative perceptions. To truly change customer perceptions, McDonald's needed to revolutionize their coffee program. McCafe was introduced in response to this coffee issue. McCafe was full service coffee bar, located in a McDonald's restaurant as an extension to the front counter or located as a stand-alone restaurant. Over 300 McCafes existed worldwide. While McDonald's would like to get a piece of the lucrative coffee market, McCafe's main objective was to eliminate coffee as a barrier to breakfast and snack sales. The question for one franchise owner is whether McCafe's strong initial sales can be sustained.

Teaching Note: 8B04M08 (9 pages)
Industry: Manufacturing
Issues: Diversification; Corporate Strategy; Strategy Development; Strategy and Resources
Difficulty: 4 - Undergraduate/MBA

Louis Hébert, Mary M. Crossan, Ken Mark

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

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

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

Mary M. Crossan, Ariff Kachra

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

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

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

Chapter 4:
Exploring the External Environment: Macro and Industry Dynamics

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

Pierre-Xavier Meschi

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

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

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

Charlene Zietsma, Ramasastry Chandrasekhar

Product Number: 9B04M082
Publication Date: 1/28/2005
Revision Date: 9/21/2011
Length: 20 pages

The president of Loblaw Companies Limited must decide what to do in response to the rumoured introduction of Wal-Mart's SuperCenters (combining grocery and non-food items) in Canada. The potential launch of SuperCenters in Canada was seen by observers as a threat to Loblaw, the market leader in Canadian grocery. Wal-Mart is a vigorous competitor, and the Every Day Low Prices strategy of Wal-Mart's SuperCenters could wean away traffic from Loblaw's various banners.

Teaching Note: 8B04M82 (8 pages)
Industry: Retail Trade
Issues: Food and Drug; Industry Analysis; Competition
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Akash Kapoor

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

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

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

Chapter 5:
Creating Business Strategies

Anil Nair

Product Number: 9B09M019
Publication Date: 5/22/2009
Revision Date: 5/4/2017
Length: 18 pages

IMAX was involved in several aspects of the large-format film business: production, distribution, theatre operations, system development and leasing. The case illustrates IMAX's use of its unique capabilities to pursue a focused differentiation strategy. IMAX was initially focused on large format films that were educational yet entertaining, and the theatres were located in institutions such as museums, aquariums and national parks. However, IMAX found that its growth and profitability were constrained by its niche strategy. In response, IMAX sought to grow by expanding into multiplexes. Additionally, IMAX expanded its film portfolio by converting Hollywood movies, such as Harry Potter and Superman, into the large film format. This shift in strategy was supported by the development of two technological capabilities - DMR for conversion of standard 35 mm film into large format, and DMX to convert standard multiplexes to IMAX systems. The shift in strategy was partially successful, but carried the risk of IMAX losing its unique reputation.

Teaching Note: 8B09M19 (11 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Business Policy; Strategic Positioning; Industry Analysis; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA

Rod E. White, Paul W. Beamish, Daina Mazutis

Product Number: 9B08M046
Publication Date: 5/15/2008
Revision Date: 5/24/2017
Length: 19 pages

Research in Motion (RIM) is a high technology firm that is experiencing explosive sales growth. David Yach, chief technology officer for software at RIM, has received notice of an impending meeting with the co-chief executive officer regarding his research and development (R&D) expenditures. Although RIM, makers of the very popular BlackBerry, spent almost $360 million in R&D in 2007, this number was low compared to its largest competitors, both in absolute numbers and as a percentage of sales (e.g. Nokia spent $8.2 billion on R&D). This is problematic as it foreshadows the question of whether or not RIM is well positioned to continue to meet expectations, deliver award-winning products and services and maintain its lead in the smartphone market. Furthermore, in the very dynamic mobile telecommunications industry, investment analysts often look to a firm's commitment to R&D as a signal that product sales growth will be sustainable. Just to maintain the status quo, Yach will have to hire 1,400 software engineers in 2008 and is considering a number of alternative paths to managing the expansion. The options include: (1) doing what they are doing now, only more of it, (2) building on their existing and satellite R&D locations, (3) growing through acquisition or (4) going global.

Teaching Note: 8B08M46 (19 pages)
Industry: Manufacturing
Issues: Telecommunication Technology; Change Management; Globalization; Staffing; Growth Strategy
Difficulty: 4 - Undergraduate/MBA

Michael J. Rouse, Jordan Mitchell

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

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

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

Chapter 6:
Crafting Business Strategy for Dynamic Contexts

Sayan Chatterjee, Elizabeth Carroll, David M. Spencer

Product Number: 9B09M093
Publication Date: 2/3/2010
Length: 20 pages

This case describes how Netflix created the business model of delivering DVDs using mail services. Essentially, Netflix exploited a whitespace that other players, such as Blockbuster, could not engage in primarily because they were constrained by their own business models. The case allows the instructor to develop the details of the capabilities that have allowed Netflix to deliver the values its customers desire. The case can then explore the competitive dynamics between Blockbuster, Netflix and Wal-Mart, a new entrant, in this space. Finally, the case describes future technologies, such as Video on Demand (VOD), that in turn pose a threat to Netflix's business model.

There are two follow-up cases: Netflix Inc.: The Second Act - Moving into Streaming, 9B16M080 and Netflix: Proving the Skeptics Wrongs, 9B16M081.

Teaching Note: 8B09M93 (19 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Planning; Business Model Design; Competitive Strategy
Difficulty: 4 - Undergraduate/MBA

Kyle Murray, Miranda R. Goode, Fabrizio Di Muro

Product Number: 9B09A026
Publication Date: 1/11/2010
Length: 12 pages

Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30 year existence, the company had seen a lot of changes in the computer industry. What would the future hold for the computer giant in a rapidly changing world? How should the company allocate resources between its more traditional offerings (computers) and its newer products (iPods, iPhones, Apple TV, etc.) in order to maintain and improve its market position. Also, how should Apple's unique retail strategy be used to support the company's product decisions, and by capitalizing on new and emerging trends thus further maintaining its competitive advantage.

Teaching Note: 8B09A26 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Competitive Advantage; Strategic Planning; Retailing; New Products
Difficulty: 4 - Undergraduate/MBA

Omar Merlo

Product Number: 9B09A021
Publication Date: 10/14/2009
Length: 16 pages

The case follows the rise and decline of Pets.com from its inception in 1994 until 2000. It starts with a look at the birth of Pets.com, followed by a discussion of the market, consumer behaviour and key competitors. It then focuses on Pets.com's business strategy and marketing mix. The case study provides the basis for class discussion of a number of key issues, including but not limited to a) the decision whether to enter a strategic partnership, b) the pursuit of an aggressive growth strategy, c) the design and management of the marketing mix, d) the use of aggressive communication and pricing strategies, and e) brand-building decisions. Pets.com is often cited alongside the Edsel, New Coke, Betamax and others as one of the biggest marketing blunders of all times. As such, students find it a fascinating story. The case study also asks students to reflect on some common challenges faced by organizations, such as entry and survival in a highly competitive market, how to deal with a dominant player, venture capital and entrepreneurial issues, business model design, brand management, marketing mix decisions, and the benefits and perils of a growth strategy. The case has been used successfully in the following courses: a) an MBA elective course dealing with popular marketing mistakes and failures, b) a postgraduate strategic marketing course dealing with growth strategies, c) a marketing management course at the undergraduate level focused on the design and management of the marketing mix, and d) a services marketing module at the undergraduate level on the topic of online marketing.

Teaching Note: 8B09A21 (13 pages)
Industry: Retail Trade
Issues: Marketing Mix; Business Growth; Online Retail; Market Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Developing Corporate Strategy

Roberto Galang, Andrew Karl Delios

Product Number: 9B09M074
Publication Date: 12/8/2009
Revision Date: 9/27/2012
Length: 20 pages

San Miguel Corporation is one of the oldest and largest companies in the Philippines. In its 100 year history, it has established a clear leadership position in the Philippine beer industry, as well as having made successful forays into other related and unrelated product areas. In the late 2000s, Eduardo Cojuangco, the CEO of San Miguel Corporation, which was South Asia's largest food and beverage company, found himself in a quandary. Cojuanco wanted to move San Miguel into industries that had scale and good future growth possibilities, to build leadership positions in key industries that would drive growth not just for San Miguel but also for the Philippines. At the same time, San Miguel Corporation would reverse its international expansion plans. The case involves discussion of this strategy, tracing issues of internationalization versus a domestic product focused growth in non-allied businesses in the Philippines, such as energy, mining, infrastructure and other utilities.

The case is part of the Beer Cases series: Anheuser-Busch InBev (9B11M124), Groupo Modelo (9B11M125), Tsingtao Brewery (9B11M126), San Miguel and Thai Bev (9B13M065).

Teaching Note: 8B09M74 (9 pages)
Industry: Manufacturing
Issues: Corporate Strategy; International Strategy; Strategy; Diversification
Difficulty: 4 - Undergraduate/MBA

Charles Dhanaraj, Kavil Ramachandran, Swetha Dasari

Product Number: 9B09M089
Publication Date: 11/11/2009
Revision Date: 12/21/2011
Length: 13 pages

This case presents the management challenges of a high-growth manufacturing company based in India that is contemplating a major international acquisition. Its decision will involve both geographic and product diversification. Students have to grapple with the trade-offs of an exciting growth opportunity that can bring the company to new heights against significant risks and challenges that such an acquisition would entail. The case also provides an excellent context for studying the evolution of international strategy in a firm, as it shows Havells growing from an entrepreneurial start-up trading company to a successful manufacturing firm and then a global company.

Teaching Note: 8B09M89 (10 pages)
Industry: Manufacturing
Issues: International Acquisition; Mergers & Acquisitions; Growth Strategy; Diversification; India; Ivey/ISB
Difficulty: 4 - Undergraduate/MBA

Graham Hubbard, Judy Hubbard

Product Number: 9B08M035
Publication Date: 8/29/2008
Length: 10 pages

This is a chronological series of two cases. The (A) case is about the fall from grace of a revered, high-performing Australian company that had gone international in its quest for growth. The (B) case is about the turnaround that followed. The (A) case covers the period 2000 to 2004. It includes the National Australia Bank (NAB) 2000 corporate/business strategy, the MLC acquisition, the sale of Michigan National, the HomeSide financial disaster and consequent sale, and the 2003 foreign exchange trading disaster that ultimately led to recognition that NAB was truly in trouble. The (B) case is about the turnaround that followed. It covers the period 2004 to 2006, at which point the new chief executive officer (CEO) declares that the three year turnaround is almost over and the new NAB is back in business. It covers the investigation of the foreign exchange trading scandal disaster, the changes in personnel in the top management team and the board, the introduction of new external people to support the new CEO and many other detailed events that took place as part of the turnover. The (A) case is primarily about implementation of strategy and the (B) case is primarily about implementation of strategy for a turnaround. Both cases are mainly corporate strategy cases, though they could be used in the business strategy section of a strategic management course, since the corporation is narrowly diversified and centrally controlled, so it acts like a business.

Teaching Note: 8B08M35 (5 pages)
Industry: Finance and Insurance
Issues: Success and Failure; Turnaround; Positioning; Corporate Strategy
Difficulty: 5 - MBA/Postgraduate

Graham Hubbard, Judy Hubbard

Product Number: 9B08M036
Publication Date: 8/29/2008
Length: 13 pages

This is a chronological series of two cases. The (A) case is about the fall from grace of a revered, high-performing Australian company that had gone international in its quest for growth. The (B) case is about the turnaround that followed. The (A) case covers the period 2000 to 2004. It includes the National Australia Bank (NAB) 2000 corporate/business strategy, the MLC acquisition, the sale of Michigan National, the HomeSide financial disaster and consequent sale, and the 2003 foreign exchange trading disaster that ultimately led to recognition that NAB was truly in trouble. The (B) case is about the turnaround that followed. It covers the period 2004 to 2006, at which point the new chief executive office (CEO) declares that the three year turnaround is almost over and the new NAB is back in business. It covers the investigation of the foreign exchange trading scandal disaster, the changes in personnel in the top management team and the board, the introduction of new external people to support the new CEO and many other detailed events that took place as part of the turnover. The (A) case is primarily about implementation of strategy and the (B) case is primarily about implementation of strategy for a turnaround. Both cases are mainly corporate strategy cases, though they could be used in the business strategy section of a strategic management course, since the corporation is narrowly diversified and centrally controlled, so it acts like a business.

Teaching Note: 8B08M36 (4 pages)
Industry: Finance and Insurance
Issues: Positioning; Corporate Strategy; Success and Failure; Turnaround
Difficulty: 5 - MBA/Postgraduate

Chapter 8:
Looking at International Strategies

Shih-Fen Chen, Ramasastry Chandrasekhar

Product Number: 9B09M078
Publication Date: 10/21/2009
Length: 25 pages

In September 2004, the chief executive officer (CEO) of General Electric Capital International Services (Gecis) was examining the company's options. Based near New Delhi, India, Gecis was a business process outsourcing (BPO) company. Gecis was set up in 1997 as an off-shore unit of General Electric Company (GE) and was a wholly-owned subsidiary. Earlier in July of 2004, GE divested itself of 60 per cent of its stake in Gecis with the result that Gecis was no longer a subsidiary of GE and was thus free to seek non-GE business. As part of several changes underway, there was a name change to Genpact Inc. (Genpact). The change in identity required the creation of management bandwidth, particularly in new client acquisition and business development. Also called for was a re-examination of the BPO business as a product line to be delivered to unaffiliated clients. The CEO recognized the need to begin negotiations with potential global clients. Each deal would involve many complexities in terms of geographies, languages and services. The CEO also was aware that all clients had areas of concern including loss of control, operations stability, savings targets and cultural compatibility. The CEO wondered how to develop a client acquisition strategy for Genpact as it moved from being a captive to an independent service provider.

Teaching Note: 8B09M78 (11 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Globalization; Service Outsourcing; Strategic Management; Customer Acquisition
Difficulty: 4 - Undergraduate/MBA

Albert Wöcke

Product Number: 9B09M005
Publication Date: 5/22/2009
Revision Date: 6/2/2010
Length: 22 pages

In 2008, the acquisition of the General Healthcare Group (GHG) in the United Kingdom had propelled Netcare Limited (Netcare) from a predominantly South African operation into one of the largest private hospital groups in the world. One of Netcare's key long-term goals was to deliver innovative, quality health-care solutions to patients in every continent. Recent South African parliamentary legislation had introduced the potential for regulated pricing and collective bargaining in medical centres, which could change the industry structure and possibly affect Netcare's strategy. As acquisition at home would be increasingly subject to stringent scrutiny from competition regulators, Netcare wondered what the impact of global acquisition would have on executing its strategy. What lessons could be learned from the GHG acquisition, how could those lessons be leveraged for further international growth, and what continent would be best suited to expansion? The case illustrates the international expansion strategies of Netcare, and illustrates the challenges of operating in an emerging market. The ability to overcome these challenges is the basis of a competitive advantage when entering developed markets.

Teaching Note: 8B09M05 (4 pages)
Industry: Health Care Services
Issues: Business and Society; Global Strategy; Emerging Markets; Hospitals; GIBS
Difficulty: 5 - MBA/Postgraduate

Paul W. Beamish, Nikhil Celly

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

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

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

Chapter 9:
Understanding Alliances and Cooperative Strategies

Paul W. Beamish, Chwo-Ming (Joseph) Yu

Product Number: 9B09M044
Publication Date: 5/25/2009
Length: 10 pages

This case describes the history and activities of the A-Team, a major alliance of bicycle assembly firms and parts suppliers in Taiwan, which was created in 2003. A strategic alliance with competitors posed challenges. For the A-Team, it was more complicated because the alliance was between both competing bicycle assembly firms and between parts suppliers. By 2006, progress had been made in making the alliance work but the senior executives were wondering what they could do to ensure future progress. The case can be used in a strategy module or course on alliances/joint ventures in a section examining the competition versus cooperation challenge.

Teaching Note: 8B09M44 (8 pages)
Industry: Manufacturing
Issues: Networks; Location Strategy; Learning; Competitive Strategy; Alliances; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, George Peng

Product Number: 9B06M088
Publication Date: 1/23/2007
Revision Date: 9/21/2011
Length: 17 pages

In 2003, 3M initiated contact with Yunnan Baiyao Group Co., Ltd. to discuss potential cooperation opportunities in the area of transdermal pharmaceutical products. Yunnan Baiyao (YB), was a household brand in China for its unique traditional herbal medicines. In recent years, the company had been engaged in a series of corporate reforms and product/market diversification strategies to respond to the change in the Chinese pharmaceutical industry and competition at a global level. By 2003, YB was already a vertically integrated, product-diversified group company with an ambition to become an international player. The proposed cooperation with 3M was attractive to YB, not only as an opportunity for domestic product diversification, but also for international diversification. YB had been attempting to internationalize its products and an overseas department had been established in 2002 specifically for this purpose. On the other hand, YB had also been considering another option namely, whether to extend its brand to toothpaste and other healthcare products. YB had to make decisions about which of the two options to pursue and whether it was feasible to pursue both.

Teaching Note: 8B06M88 (12 pages)
Industry: Health Care Services
Issues: China; Product Diversification; Internationalization; Brand Extension; Alliances
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Studying Mergers and Acquisitions

Francesca Spigarelli, Ilan Alon, William Wei

Product Number: 9B09M097
Publication Date: 12/23/2009
Revision Date: 9/30/2010
Length: 16 pages

In 2005, the Qianjiang Group (QJ), a large-scale Chinese state-owned group, acquired the Italian company Benelli to expand its business in Western markets beyond Italy. Benelli's brand advantage was intended to provide the core competency for QJ to compete in the global motorbike markets; in addition, Benelli's capabilities and know-how in motorbike and scooter engineering also helped QJ complete its product portfolio. After a successful start, the many cultural differences related to an Italian business model and a Chinese company became problematic. Problems arose in integrating Chinese and Italian cultures and in coping with a completely different way of doing business, and the company was facing stiff competition from Japanese competitors. Despite excellent press and large industrial investments aimed at gaining efficiency and reducing prices, penetration of Western markets was difficult.

Teaching Note: 8B09M97 (18 pages)
Industry: Manufacturing
Issues: China; Competitiveness; Mergers & Acquisitions; Internationalization
Difficulty: 4 - Undergraduate/MBA

Seungwha (Andy) Chung, Sunju Park

Product Number: 9B09M015
Publication Date: 2/9/2009
Length: 16 pages

In recent years, greater competition and diminished profits, due to domestic and global oversupplies as well as higher development costs, have led the automobile industry to engage in domestic and international mergers and strategic collaboration. This case examines one of the largest mergers and acquisitions (M&As) in the Korean automobile market in recent years: the acquisition of Kia Motors (Kia) by Hyundai Motors (Hyundai). The case describes the background conditions of the acquisition, the integration processes after the acquisition, and the requisites for Kia Motors to normalize management within a short time. Hyundai, in acquiring Kia, enhanced its competitive power in both domestic and global markets, achieving economies of scale and scope and strengthening its global market basis. That said, Hyundai/Kia faced several pressing challenges, among them the cooperation of Renault and Samsung Motors, the unclear domestic treatment of Daewoo Motors, and M&As taking place among top motor companies worldwide. This case study asks students to analyze the process of post-acquisition restructuring and the resulting synergy effects, inviting them to think through the strategies by which Hyundai/Kia may thrive in the global automobile market. Further, it illustrates both the current state of the domestic Korean automobile industry and recent trends in the global automobile market.

Teaching Note: 8B09M15 (12 pages)
Industry: Manufacturing
Issues: Restructuring; Mergers & Acquisitions; Organizational Change; Integration; Ivey/Yonsei
Difficulty: 4 - Undergraduate/MBA

Meera Harish, Sanjay Singh, Kulwant Singh

Product Number: 9B08M094
Publication Date: 2/2/2009
Revision Date: 5/3/2017
Length: 15 pages

In January 2004, the chairman of the India-based Tata Group, announced that the Tata Group would focus its efforts on international expansion to become globally competitive. This largely domestic vehicle manufacturing firm subsequently acquired a leading established South Korean firm, Daewoo Commercial Vehicle Company (DCVC). This case focuses on the background of the firms and the acquisition, and the bidding and acquisition process. It provides information on the interests of the acquirer and target, and how both came to see the value in the acquisition. The Tata Group acquisition presents an uncommon situation of how an Indian firm acquired a firm in South Korea while overcoming a series of cultural and other barriers. An analysis of this case provides the basis for determining what criteria should be considered to guide a successful acquisition. A companion case is also available, Tata Motors' Integration of Daewoo Commercial Vehicle Company.

Teaching Note: 8B08M94 (10 pages)
Industry: Manufacturing
Issues: International Strategy; International Expansion; Management Decisions; Market Entry; Mergers & Acquisitions; Corporate Strategy; Business Policy
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Organizational Structure, Systems, and Processes

Tom A. Poynter, Paul W. Beamish

Product Number: 9B08M037
Publication Date: 4/15/2008
Revision Date: 5/18/2017
Length: 12 pages

Victoria Heavy Equipment (Victoria) was a family owned and managed firm which had been led by an ambitious, entrepreneurial chief executive officer who now wanted to take a less active role in the business. Victoria had been through two reorganizations in recent years, which contributed to organizational and strategic issues which would need to be addressed by a new president.

Teaching Note: 8B08M37 (7 pages)
Industry: Manufacturing
Issues: Growth Strategy; Organizational Structure; Leadership; Decentralization
Difficulty: 4 - Undergraduate/MBA

Munir Mandviwalla, Jonathan Palmer

Product Number: 9B08M017
Publication Date: 5/6/2008
Length: 19 pages

During the last decade, Wyeth transformed itself from a holding company to a global company using information technology (IT) as an important enabler. The first half of the case details the importance of global integration and how globalization was initiated at Wyeth. The original role of IT is introduced along with the challenges and barriers of starting a globalization strategy. This is followed by a discussion of how the role of IT started changing at Wyeth. An ambitious IT globalization plan is outlined. The second half of the case details the implementation of the IT globalization plan. The implementation started slowly, faced many challenges, and took longer than expected. The original plan was modified several times to address funding and management challenges. The case ends by discussing how Wyeth was able to complete the IT globalization plan. The case is anchored in the United States but considers global issues. The case includes issues and concepts that make it suitable for teaching management information systems, international business and strategy.

Teaching Note: 8B08M17 (6 pages)
Industry: Manufacturing
Issues: Globalization; Process Design/Change; Information Technology; Strategy Implementation; Management Science and Info. Systems
Difficulty: 5 - MBA/Postgraduate

W. Glenn Rowe, John R. Phillips

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

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

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

Chapter 12:
Considering New Ventures and Corporate Renewal

Anne T. Lawrence

Product Number: 9B09M011
Publication Date: 2/19/2009
Length: 11 pages

How can a biotechnology start-up navigate a complex regulatory and stakeholder terrain to bring to market an innovative product with potentially significant public health benefits? This case focuses on the challenges facing Ventria Bioscience, a small biotechnology firm based in California. The company had developed an innovative technology for growing medical proteins useful in the treatment of childhood diarrhea in genetically modified rice. The company's efforts to obtain regulatory approval in California to commercialize its invention met with a firestorm of opposition from a wide range of stakeholders, including environmentalists, food safety activists, consumer advocates and rice farmers. The case presents the hurdles faced by Ventria as it has attempted to commercialize its invention in the context of the broader debate over the ethics of plant-based medicines. This case is suitable for an upper-division undergraduate or graduate course in entrepreneurship, small business, the management of technology or biotechnology. In such a course, it is best positioned in a discussion of the regulatory environment and stakeholder relations. Alternatively, the case may be used in a segment on technology or stakeholder relationships in a course in business and society.

Teaching Note: 8B09M11 (10 pages)
Issues: Genetically Modified Crops; Stakeholders; Biotechnology; Government Regulation
Difficulty: 4 - Undergraduate/MBA

Torben Pedersen, Marcus M. Larsen

Product Number: 9B09M079
Publication Date: 12/23/2009
Length: 17 pages

With a change in management in 2005 came a radical reorganization and the announcement of several new strategic initiatives. Among the initiatives was the establishment of the Vestas Technology research and development (R&D) business unit with an aim of achieving global leadership in all core technology areas and, consequently, strengthening the core competence for the company. By 2008, Vestas had succeeded in setting up a global R&D network with R&D centres in Denmark, the United Kingdom, Singapore and India, and, in early 2009, a centre was opened in the United States. This transformed Vestas into a high-tech company and put a greater emphasis on its technological innovations.

Teaching Note: 8B09M79 (13 pages)
Industry: Manufacturing
Issues: Research and Development; Global Strategy; Value Chain; Technology Transfer
Difficulty: 4 - Undergraduate/MBA

Michael H. Zack, Ben Compaine, David T.A. Wesley

Product Number: 9B07M064
Publication Date: 10/4/2007
Revision Date: 2/26/2010
Length: 20 pages

Undergroundhiphop.com (UGHH) was the leading source of independent hip-hop on the Internet. Although company revenues remained small compared to major online music retailers, the opening of a storefront in 2005 helped create new opportunities within the music industry, but also proved to be a drain on company resources. As the founder tried to expand the company, he faced a number of choices. However, his conservative financial strategy was limiting the company's potential. UGHH desperately needed to hire programmers, designers and managers to keep up with new technological developments and social trends, such as music downloads, blogs and online social networking. Yet the cost of running a bricks and mortar retail store left little to invest in other areas of the business. The case provides a classic example of entrepreneurship that can be used in introductory and intermediate level entrepreneurship classes. It can be used as a platform to illustrate an entrepreneur who fails to make the transition to a manager. The discussion will provide an opportunity to introduce or review the concept of franchising.

Teaching Note: 8B07M64 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Franchising; E-Business; Growth Strategy; Northeastern
Difficulty: 4 - Undergraduate/MBA

Chapter 13:
Corporate Governance in the Twenty-First Century

Lawrence G. Tapp, Trevor Hunter

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

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

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

Amy J. Hillman, Marilyn Seymann

Product Number: 9B04M019
Publication Date: 6/24/2004
Revision Date: 10/13/2009
Length: 12 pages

Good Hands Healthcare is a large nursing home provider with more than 400 facilities across the United States. This case series looks at the governance issues facing the board of a firm with declining performance set within the eldercare industry. The (A) case revolves around whether to replace the chief executive officer, who founded and built the firm, due to poor performance. The supplements, Governance Challenges at Good Hands Healthcare (B), (C) and (D), products 9B04M020, 9B04M021 and 9B04M022, discuss the replacement decision, the selection decision and the change in strategy brought on by the new CEO.

Teaching Note: 8B04M19 (7 pages)
Industry: Health Care Services
Issues: Corporate Governance; Succession Planning; Compensation; Strategic Change
Difficulty: 4 - Undergraduate/MBA

Amy J. Hillman

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

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

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