Ivey Publishing

International Business

Griffin, R.W., Pustay, M.W.,6/e (United States, Pearson, 2010)
Prepared By Majid Eghbali-Zarch, Ph.D. Student
Chapter and Title Chapter Matches: Case Information
Chapter 1:
An Overview of International Business

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

Product Number: 9B09M086
Publication Date: 10/19/2009
Length: 11 pages

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

Teaching Note: 8B09M86 (6 pages)
Issues: Career Development; Intercultural Relations; Team Building; Internationalization
Difficulty: 4 - Undergraduate/MBA



LYONBIOPÔLE: THE CHALLENGE OF BECOMING A WORLD-CLASS BIOTECHNOLOGY CLUSTER
Anthony Goerzen, Ana Colovic

Product Number: 9B09M075
Publication Date: 11/20/2009
Length: 13 pages

In December 2007, the Economics & International Affairs director of the competitiveness cluster, Lyonbiopôle, was responsible for the international development of the cluster. Lyonbiopôle was one of seven biotechnology clusters in France. Although Lyonbiopôle performed very well at the national level, its visibility as an international cluster in the biotechnology field was uncertain. Yet, for its member firms to thrive in the globalized world of biotechnology clusters, establishing international connections for the cluster was crucial. That is why the management team of Lyonbiopôle developed an internationalization program through alliances with foreign clusters (i.e. interclusteral alliances). By improving its international visibility and reputation through alliances with world-class biotechnology clusters, Lyonbiopôle hoped to create new technological partnerships, increase investment, and create other kinds of opportunities for member firms. After having successfully established alliance partnerships in Europe, Lyonbiopôle was preparing for the second stage in its internationalization process. The case highlights the questions - in the context of industrial clusters - whether or not a smaller organization can approach an industry leader to create a mutually beneficial alliance, and how it might accomplish this.

Teaching Note: 8B09M75 (7 pages)
Industry: Manufacturing
Issues: Industry Globalization; Internationalization; Pharmaceuticals; Industry Clusters; Alliances
Difficulty: 4 - Undergraduate/MBA



GENPACT INC. - BUSINESS PROCESS OUTSOURCING TO INDIA
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



THE MYTHS OF GLOBALIZATION
Alan Rugman, Karl Moore

Product Number: 9B01TE12
Publication Date: 9/1/2001
Length: 5 pages

Much of the discussion about globalization has missed a very important point, these co-authors claim, and seeing this point and understanding it are critical if executives are to really grasp what globalization is all about. The co-authors write that far from a single, global market, most trade takes place within regional blocks or clusters. Trade activity effectively occurs in the triad of North America, the European Union and Japan, and an approach based on national or regional realities, not global ones, will make the most sense for companies. The authors have ample evidence to substantiate their argument and they suggest what executives can do to counter and manage despite the widely propagated myth of globalization.

Issues: Globalization; International Trade




SWATCH AND THE GLOBAL WATCH INDUSTRY
Allen Morrison, Cyril Bouquet

Product Number: 9A99M023
Publication Date: 5/9/2000
Revision Date: 5/23/2017
Length: 22 pages

The efforts of Swatch to reposition itself in the increasingly competitive global watch industry are reviewed in this case. Extensive information on the history and structure of the global watch industry is provided and the shrinking time horizons decision makers face in formulating strategy and in responding to changes in the industry are highlighted. In particular, the case discusses how technology and globalization have changed industry dynamics and have caused companies to reassess their sources of competitive advantage. Like other companies, Swatch faces the difficult task of deciding whether to emphasize product breadth, or focus on a few key global brands. It also must decide whether to shift manufacturing away from Switzerland to lower cost countries like India.

Teaching Note: 8A99M23 (10 pages)
Industry: Manufacturing
Issues: International Business; Industry Analysis; Competing with Multinationals; Globalization
Difficulty: 5 - MBA/Postgraduate


Chapter 2:
Global Marketplaces and Business Centers

ACQUISITION AND RESTRUCTURING OF KIA MOTORS BY HYUNDAI MOTORS
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



DABUR INDIA LTD. - GLOBALIZATION
Niraj Dawar, Ramasastry Chandrasekhar

Product Number: 9B09A017
Publication Date: 6/26/2009
Length: 18 pages

Dabur, an Indian consumer package goods company, had established a strong brand equity in India by offering, for decades, a vast portfolio of over-the-counter products. In seeking international expansion in 1987, it first took the export route. It also followed the customer, targeting the Indian diaspora in the Middle East, Africa and the United States, already familiar with the brand. By 2006, Dabur had set up five manufacturing facilities outside India. In June 2007, Dabur had to make, in countries such as Nigeria for example, some critical choices. It had to choose between sticking to the diaspora, a market it understood best, and targeting the mainstream population. It had to choose its growth options between categories like personal care, in which it had built up competencies, and categories such as oral care and home care, which were the new engines of growth in its international markets but in which the company had no track record, either on the home front or overseas. The case study helps students deal with issues of growth and consolidation in a global market from the perspective of the company's chief executive officer and the head of its international operations.

Teaching Note: 8B09A17 (4 pages)
Industry: Wholesale Trade
Issues: Growth Strategy; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Legal, Technological, Accounting and Political Environment

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



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



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



DIVESTING THE ZAMBIAN MINING INDUSTRY
Luka Powanga

Product Number: 9B04M060
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 19 pages

The Zambian government embarked on a divesture of its mining industry in 1992. However, by July of 2004, 67 per cent of the mining assets were still in government hands and the government is still looking for equity partners. This case can be used as a basis for discussing political and country risk analysis, international negotiations, feasibility study analysis, managing strategic failure, and ethical and social responsibility issues.

Teaching Note: 8B04M60 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Mining; Nationalization; Political Environment; International Business
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



CHAUVCO RESOURCES LTD.: THE ARGENTINA DECISIONS (A) (ABRIDGED)
David W. Conklin, John Knowles

Product Number: 9B01M014
Publication Date: 9/27/2001
Revision Date: 12/21/2009
Length: 15 pages

Chauvco quickly became one of the top 30 oil companies in Canada. Rising costs and diminishing oil and gas reserves led Chauvco to consider investing in other countries. In 1992, Chauvco purchased an interest in an Argentine oil and gas block that was being privatized. Chauvco's success in Argentina depended on the country's future political stability and the continuance of government policies. Prior to the 1989 election of Carlos Menem, Argentina experienced decades of political and economic instability, the government nationalized many businesses and imposed detailed regulations throughout the economy - a set of policies that led to low growth, budget and trade deficits, hyperinflation, and currency devaluation. Whether Menem's reforms could achieve long-term success remained to be seen. Chauvco encountered a number of difficulties, as well as some positive aspects of the environment of business. The company initially entered a joint venture partnership and then developed an independent set of operations. By 1995, Chauvco had to decide in what proportions it should divide its future investments between Canada, Argentina and other countries, and what criteria it should use in evaluating investment opportunities. This is an abridged version of 9A95H003.

Teaching Note: 8A95H03 (5 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Investments; International Business; Government and Business; Economic Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
The Role of Culture

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



NES CHINA: BUSINESS ETHICS (A)
Joerg Dietz, Xin Zhang

Product Number: 9B01C029
Publication Date: 10/18/2001
Revision Date: 12/16/2009
Length: 9 pages

NES is one of Germany's largest industrial manufacturing groups. The company wants to set up a holding company to facilitate its manufacturing activities in China. They have authorized representatives in their Beijing office to draw up the holding company application and to negotiate with the Chinese government for terms of this agreement. In order to maximize their chances of having their application accepted, the NES team in Beijing hires a government affairs coordinator who is a native Chinese and whose professional background has familiarized her with Chinese ways of doing business. NES's government affairs coordinator finds herself in a difficult position when she proposes that gifts should be given to government officials in order to establish a working relationship that will better NES's chance of having its application approved. This method of doing business is quite common in China. The other members of the NES team are shocked at what would be considered bribery and a criminal offence in their country. The coordinator must find a practical way to bridge the gap between working within accepted business practices in China and respecting her employers' code of business ethics. The complementary (B) case (9B01C030) gives a brief summary of the eventual solution to this problem.

Teaching Note: 8B01C29 (9 pages)
Industry: Manufacturing
Issues: China; Ethical Issues; Cross Cultural Management; Management Behaviour; International Business
Difficulty: 4 - Undergraduate/MBA



TEXTRON LTD.
Lawrence Beer

Product Number: 9B01M070
Publication Date: 3/28/2002
Revision Date: 11/9/2012
Length: 10 pages

Textron Ltd. is a family-owned manufacturer of cotton and sponge fabricated items. The company wants to expand its business with an offshore manufacturing enterprise that will fit with the company's policy of caring for their employees and providing quality products. The company is looking at two options: a guaranteed outsourcing purchase agreement or a joint venture. After several meetings with offshore alliance candidates the vice-president of the company must analyse the cross-cultural differences to established corporate guidelines of global ethics and social responsibility that the company can use in their negotiations with a foreign manufacturing firm.

Teaching Note: 8B01M70 (5 pages)
Industry: Manufacturing
Issues: China; International Business; Ethical Issues; Business and Society; Developing Countries
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Ethics and Social Responsibility in International Business

CORRUPTION: THE INTERNATIONAL EVOLUTION OF NEW MANAGEMENT CHALLENGES
David W. Conklin

Product Number: 9B09M065
Publication Date: 10/21/2009
Length: 21 pages

Many countries have become increasingly concerned with the subject of corruption, and managers today must deal with changes in ethical norms and laws. New laws and international agreements seek to create a worldwide shift towards the reduction of corruption, and so management responsibilities are continually evolving. Both Transparency International and the World Bank provide estimates of the relative pervasiveness of corruption in different countries. Yet this subject is ambiguous and complex, creating significant challenges for managers. Both Volkswagen and Siemens have recently experienced public criticism and legal prosecution over corruption issues, some relating to internal and inter-corporate relations. Some cultures appear to accept corrupt practices as part of normal business-government relations. In China, guanxi is widely seen as a requirement for business success with the establishment of personal relationships that include an ongoing exchange of gifts and personal favours. Some managers may argue that the giving of gifts is acceptable, that bribes to expedite decisions may be necessary, and that only certain types of bribes should be seen as inappropriate corruption. However, this perspective involves the difficulty of drawing a line to guide decisions of corporate employees, and for many managers it is now necessary to implement clear corporate guidelines in regard to what they consider to be corruption. In this context, some managers may decide to avoid investing in certain countries until the culture of corruption has changed.

Teaching Note: 8B09M65 (3 pages)
Industry: Public Administration
Issues: Globalization; International Business; Business and Society
Difficulty: 4 - Undergraduate/MBA



REPUTATION RISK IN THE GLOBAL ART MARKET
Kimberley Howard, William Wei, Eric Zengxiang Wang

Product Number: 9B09M062
Publication Date: 10/9/2009
Revision Date: 7/27/2017
Length: 6 pages

When Yves Saint Laurent died in June 2008, his estate passed to his business partner, Pierre Bergé. Bergé decided to auction several items from Laurent's estate at Christie's international auction house, including two antique bronzes from China. The general feeling in China was that these artifacts had been looted and should be repatriated rather than auctioned. The case highlights issues of ethics, corporate governance and corporate responsibility.

Teaching Note: 8B09M62 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: ethical issues; corporate responsibility; customer relationship management; corporate governance; luxury goods
Difficulty: 4 - Undergraduate/MBA



HONEY CARE AFRICA (A): A DIFFERENT BUSINESS MODEL
Oana Branzei, Michael Valente

Product Number: 9B07M022
Publication Date: 4/2/2007
Revision Date: 4/24/2007
Length: 16 pages

The founding entrepreneur of Honey Care Africa revitalized Kenya’s national honey industry by focusing on small-holder farmers across the country. Central to success was an innovative business model: a synergistic partnership between the development sector, the private sector, and rural communities that drew on the core competencies of each party as well as their complementary roles. This tripartite model was combined with local manufacturing of beehives, effective beekeeping training, a guaranteed market for small-holder farmers through forward contracts, and prompt payments. Four years later, Honey Care had achieved a 68 per cent market share in Kenya and distributed several brands of organic, fair-trade honey internationally, and was a lead distributor of beeswax. The business model had been successfully replicated in neighbouring Tanzania, and there were plans to expand to Uganda and Sudan.

Teaching Note: 8B07M22 (15 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Competitive Advantage; Sustainable Development; Alliances; Africa
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



GOOGLE IN CHINA
Deborah Compeau, Prahar Shah

Product Number: 9B06E019
Publication Date: 5/1/2007
Revision Date: 5/23/2017
Length: 9 pages

The case describes the circumstances surrounding the introduction of www.google.cn. In order to comply with Chinese government requirements, google.cn censors web results. This appears to contradict Google’s stated philosophy and its mission to organize and make accessible the world’s information. A public outcry ensues and Google is forced to defend its controversial decision. The case presents both sides of the debate and asks students to consider what they feel is right.

Teaching Note: 8B06E19 (4 pages)
Industry: Other Services
Issues: Information Systems; Government and Business; Ethics; Censorship; Internet; China
Difficulty: 4 - Undergraduate/MBA



ROYAL DUTCH SHELL IN NIGERIA: OPERATING IN A FRAGILE STATE
Isaiah A. Litvak

Product Number: 9B06M021
Publication Date: 3/17/2006
Revision Date: 3/3/2009
Length: 19 pages

Stuck in a quagmire of violence and political issues in Nigeria, Royal Dutch Shell's challenge was to establish socially responsible business practices to enable the company to sustain and expand its operations in Nigeria and the Niger Delta in particular. A conflict resolution and public policy consultant was brought in to develop some constructive ideas on how best to address the problems Royal Dutch Shell faced in Nigeria. This case is intended to introduce students to some of the complex issues faced by multinational corporations in developing countries.

Teaching Note: 8B06M21 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Corporate Responsibility; Corporate Governance; Conflict Resolution; Pressure Groups
Difficulty: 4 - Undergraduate/MBA



STATOIL IRAN
Henry W. Lane, David T.A. Wesley

Product Number: 9B05C036
Publication Date: 11/28/2005
Revision Date: 9/28/2009
Length: 3 pages

Less than one year after being awarded a contract to develop one of the world's largest offshore petroleum fields, Statoil's future in Iran appeared to be in jeopardy. Statoil was at the center of a corruption investigation that had resulted in the resignations of three of the company's top executives, including its CEO. The issue was alleged bribes paid by Horton Investments, on Statoil's behest, to secure lucrative petroleum development contracts. According to the Iranian government, Statoil used Horton to channel $15 million in secret bribes to unnamed government officials. Statoil's country manager, who had considerable experience in the region and was unaware of the secret deals, is left with the difficult task of trying to salvage the operation and rebuild the social capital he had established between Statoil and its Iranian counterparts.

Teaching Note: 8B05C36 (5 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Management Behaviour; Ethical Issues; Energy; International Management; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
International Trade and Investment

CADIM: CHINA AND INDIA REAL ESTATE DEALS
Stephen R. Foerster, Marc Folch

Product Number: 9B09N004
Publication Date: 1/30/2009
Revision Date: 7/6/2009
Length: 15 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, had recently been approached with several interesting multimillion-dollar investment opportunities in India and China. Although Cadim was still deciding whether to invest in either country (see Cadim: The China and India Real Estate Market Entry Decisions case), if the company chose to do so, it wanted suitable partners and deals lined up. Each deal had its pros and cons, but the president knew all too well that the wrong combination of partner and deal could have dire consequences for Cadim's profits and the team's reputation. The case analysis involves risk assessment, partner assessment, cash flow analysis and portfolio fit analysis.

Teaching Note: 8B09N04 (10 pages)
Industry: Real Estate and Rental and Leasing
Issues: China; Internal Rate of Return; Valuation; Investments
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



INDIA'S FAILURE TO ATTRACT FDI
David W. Conklin, Danielle Cadieux

Product Number: 9B06M082
Publication Date: 8/29/2006
Revision Date: 9/21/2009
Length: 15 pages

This case uses several reports to compare China and India, and it encourages students to analyse the long list of public policies that have restrained India's economic growth and FDI inflows, and that have acted as barriers to liberalization reforms. Presented are the historical realities that supported India's political philosophy of autarky and government intervention. Finally, the case leads students to consider the future prospects for India, and potential foreign investors there, through comparisons with China.

Teaching Note: 8B06M82 (6 pages)
Industry: Public Administration
Issues: Developing Countries; Government Regulation; International Business; Deregulation
Difficulty: 4 - Undergraduate/MBA



HUNGARY'S REFORM PROCESS
David W. Conklin, Danielle Cadieux

Product Number: 9B06M081
Publication Date: 8/22/2006
Revision Date: 9/21/2009
Length: 17 pages

By 2006, Hungary had experienced more than 15 years of transition from central planning to free markets. The reform process had involved several distinct phases. The initial leap to the market, with its widespread privatizations, included a dramatic deregulation with a guillotine procedure. A more refined process of regulatory impact assessments (RIAs) followed this period. A newly empowered competition office sought to strengthen the extent of competition within markets dominated by a single firm or a small group of firms. The goal of EU membership was a consistent driver of the reforms as early as 1991, since the EU model was compulsory for EU members. These years had been turbulent, and the transition was not yet complete. In 2006, Hungary faced the challenge of a fiscal deficit that was 9.5 per cent of GDP, and responded by raising corporate tax rates from 16 per cent to 20 per cent as an attempt to close the fiscal gap. However, Hungary was in an intense competition with Poland, the Czech Republic and Romania to attract opportunities. Tax rates were an important element in this competition, but so were the regulatory impediments and distortions that still remained in the economy. How to create a rapidly growing economy was a question at the forefront of public policy debate. A 2006 Financial Times article discussed this dilemma.

Teaching Note: 8B06M81 (8 pages)
Industry: Public Administration
Issues: Government Regulation; Globalization; International Business; Deregulation
Difficulty: 5 - MBA/Postgraduate



WANXIANG GROUP: EXPLORING THE INTERNATIONAL MARKET
Wang Jianmao, Shu Jinsi

Product Number: 9B06M091
Publication Date: 9/27/2006
Length: 14 pages

In 1984, when it was a small factory in Xiaoshan, Zhejiang, Wanxiang signed its first export contract. Ten years later in 1994, when Wanxiang America Inc was just registered, the company was headed only by a Chinese overseas student. In 2003, Wanxiang sold its products all around the world, and had acquired dozens of companies in the United States and Europe, becoming a true multinational corporation. The chairman of the board and the president were full of confidence, Wanxiang will become a large multinational company in the foreseeable future, with its unique core values and core competence. It will be named China Wanxiang Holdings. This case mainly discusses the process of Wanxiang's overseas expansion, tracing its development at different stages and presenting how the success had been achieved.

Teaching Note: 8B06M91 (4 pages)
Industry: Manufacturing
Issues: China; Mergers & Acquisitions; Exports; Expansion; Corporate Strategy; CEIBS
Difficulty: 4 - Undergraduate/MBA



GLOBAL BRANDING OF STELLA ARTOIS
Paul W. Beamish, Anthony Goerzen

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

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

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


Chapter 7:
The International Monetary System and the Balance of Payments

MINISTRY OF FINANCE, JAPAN
David M. Currie, Laurel Adams

Product Number: 9B08M013
Publication Date: 5/6/2008
Length: 4 pages

In June 1997, the Bank of Thailand must decide whether to continue or to abandon the peg of the baht to the U.S dollar. Recent economic performance in Thailand has caused speculation that the central bank will abandon the currency peg, but the bank's stated policy for many years has been that it will maintain the peg. Background about the Thai economy is presented in the core case, product 9B01M025. Other cases enable students to play roles of importer, exporter, investor, lender, currency speculator, the International Monetary Fund, Japan's Ministry of Finance and the Bank of Thailand. The teaching purpose is to provide students with an understanding of the forces influencing a decision about the appropriate policy relating to exchange rates.

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Developing Countries; Economic Conditions; Exchange Rates; Government and Business
Difficulty: 4 - Undergraduate/MBA



INTERNATIONAL MONETARY FUND
David M. Currie

Product Number: 9B01M028
Publication Date: 9/27/2001
Revision Date: 3/26/2008
Length: 3 pages

This role play supplement to Thailand, 1997 (product 9B01M024), discusses the International Monetary Fund conditions that will be put in effect should Thailand request assistance.

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Developing Countries; Economic Conditions; Exchange Rates; Government and Business
Difficulty: 5 - MBA/Postgraduate



THAILAND, 1997
David M. Currie

Product Number: 9B01M024
Publication Date: 9/27/2001
Revision Date: 12/21/2009
Length: 20 pages

For most of the 1990's, Thailand's economy was one of the fastest growing in the world. Thailand was popular with foreign investors, and the country's currency was stable due to the central bank's currency peg. However, overspeculation, high interest rates, lower than expected exports and job losses were causing speculation that the central bank would abandon the currency peg. The Bank of Thailand must decide whether to continue or to abandon the peg of the baht to the U.S. dollar. Was the country through the worst of the economic problems or was there more to come? The supplementary cases enable role plays designed to provide an understanding of the forces influencing a decision about appropriate monetary policy as importer (9B01M022 - Exclusive Autos of Bangkok), exporter (9B01M023 - Thai Shoes PCL), investor (9B01M027 - International Assets Investment Company), lender (9B01M026 - Hokkaido Bank), currency speculator (9B01M029 - Quantile Investment Fund), the IMF (9B01M028 - International Monetary Fund), and the Bank of Thailand (9B01M025 - Bank of Thailand in June 1997).

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Economic Conditions; Developing Countries; Government and Business; Exchange Rates
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
Foreign Exchange and International Financial Markets

EXCLUSIVE AUTOS OF BANGKOK
David M. Currie

Product Number: 9B01M022
Publication Date: 9/27/2001
Revision Date: 3/25/2008
Length: 3 pages

A Thai import of automobiles benefits from appreciation of the baht against the deutsche mark, and will want to maintain the currency peg for two reasons - to maintain import competitiveness and to benefit from the interest differential. This role play is a supplement to Thailand, 1997, product 9B01M024.

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Economic Conditions; Developing Countries; Government and Business; Exchange Rates
Difficulty: 5 - MBA/Postgraduate



BANK OF THAILAND IN JUNE 1997
David M. Currie

Product Number: 9B01M025
Publication Date: 9/27/2001
Revision Date: 12/21/2009
Length: 3 pages

Bureaucrats from the Thailand central bank and Ministry of Finance meet to discuss the implications of abandoning the peg of the baht to the U.S. dollar. This is a role play supplement to Thailand, 1997, product 9B01M024.

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Economic Conditions; Developing Countries; Government and Business; Exchange Rates
Difficulty: 5 - MBA/Postgraduate



HONG KONG DOLLAR PEG (REVISED)
Stephen Sapp, Robert W. White, Satish Asdhir

Product Number: 9B00N027
Publication Date: 1/30/2001
Revision Date: 1/12/2009
Length: 21 pages

The financial uncertainty in Hong Kong and Asia from mid-1997 to mid-1998 was caused in part by the Asian flu and the return of Hong Kong to the People's Republic of China. A large North American-based insurance company was faced with the decision of managing its Asian assets in light of this uncertainty, especially the possible breaking of the peg between the Hong Kong dollar and the U.S. dollar. As the vice-president of capital markets at Manulife Financial contemplated what strategy he would recommend to the senior executive group, he considered the concepts of fixed/pegged exchange rates and the use of different strategies to manage the risks, as well as the potential profit opportunities that may arise when a fixed/pegged exchange rate is under attack and may break.

Teaching Note: 8B00N27 (12 pages)
Industry: Finance and Insurance
Issues: Exchange Rates; Economic Conditions; Risk Management; International Finance
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Formulation of National Trade Policies

THE U.S. ECONOMY, 2009
David W. Conklin, Danielle Cadieux

Product Number: 9B09M045
Publication Date: 6/26/2009
Length: 4 pages

For 200 years, there were substantial differences among U.S. regions in per capita incomes and economic growth. Each region had a distinct set of economic activities and, to a major degree, the differences in regional economic performance were linked to the differences in economic structure. Individual states experienced periods of expansion and contraction as the basic business activities dominating their economy expanded and contracted. These changes led to significant migration of people and businesses among regions and to a gradual narrowing, since the 1930s, of regional disparities. Over the period of 1990 to 2007, the United States experienced outstanding economic success. Many analysts expressed the view that this economic success rested on consistently high productivity growth. The public philosophy supported low taxes and low government expenditure for health, education and welfare, with a heavy reliance on the need for each individual to succeed on one's own. In the second half of the 20th century, a general recognition developed that knowledge has a major impact on economic growth, and that increasingly intense international competition is based upon knowledge and innovation. Each nation, as well as each region within a nation, has a distinct innovation system. At the forefront has been the United States. By the fall of 2008, it was clear that the United States had entered a major financial and economic crisis, and that reforms might be needed to achieve recovery and to prevent a recurrence.

Teaching Note: 8B09M45 (2 pages)
Industry: Public Administration
Issues: Globalization; Government Regulation; Business and Society
Difficulty: 4 - Undergraduate/MBA



HUGO CHAVEZ'S PUBLIC POLICY VISION FOR VENEZUELA: ROOTED IN THE PAST, DOOMED IN THE FUTURE?
David W. Conklin, Danielle Cadieux

Product Number: 9B06M059
Publication Date: 4/28/2006
Revision Date: 9/21/2009
Length: 12 pages

Hugo Chavez often pointed to Simon Bolivar as the model for his political philosophy, centered on Bolivar's vision of a unified and independent Latin America. In 1998, Chavez ran in the presidential election, on a platform that opposed what he termed the savage neoliberalism of the 1990s. Chavez's speeches in the presidential election campaign emphasized the importance of national sovereignty and economic justice. As president, Chavez passed a new Hydrocarbons Law to enhance the share oil revenue that would be owed to the government; he created a new government-owned bank; he introduced a radical land reform law; and he encouraged takeovers by the government and employees of privately-owned factories. Venezuela sold oil to Cuba at reduced prices in return for professionals, especially doctors who created health missions in many low-income areas. Chavez sought to foment socialist anti-American revolutions throughout Latin America. In the context of this socialist agenda, analysts expected that Venezuela's economy would experience serious challenges in the coming years. The combination of high inflation, fiscal pressure, and slow growth would be a boiling political cauldron in which violent opposition could ferment.

Teaching Note: 8B06M59 (7 pages)
Industry: Public Administration
Issues: Developing Countries; Globalization; International Business; Government and Business
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
International Cooperation Among Nations

TRADE AND INVESTMENT SANCTIONS: SHERRITT INTERNATIONAL, THE UNITED STATES AND CUBA
David W. Conklin, Danielle Cadieux

Product Number: 9B06M073
Publication Date: 8/22/2006
Revision Date: 8/4/2006
Length: 15 pages

This case presents a summary of U.S. trade and investment sanctions in effect as of 2006. The case examines in detail the U.S. sanctions against Cuba, and it discusses the challenges and opportunities that these sanctions have created for Cuba's largest foreign investor, Sherritt International. The discussion concerning Sherritt presents the wide array of forces that impact a business that is contemplating trade or investment with a country against which sanctions have been imposed. In spite of U.S. sanctions, Sherritt International, based in Canada, developed profitable businesses in Cuba, in mining, oil and gas, hotels and food processing. The U.S. policies, while imposing costs, also reduced the competition that Sherritt would otherwise have faced. The ability to work with the Communist government gave Sherritt a strong competitive advantage and a protected market. Sherritt had positioned itself with a first mover advantage if sanctions were lifted.

Teaching Note: 8B06M73 (5 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Globalization; International Business; Government and Business
Difficulty: 5 - MBA/Postgraduate



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



GLOBALIZATION AND THE LEGITIMACY OF DISSENT
Jeffrey Gandz

Product Number: 9B01TF04
Publication Date: 11/1/2001
Length: 4 pages

It may be inexorable and championed by some, even many, but to others, globalization is a juggernaut that needs to be stopped, if not reversed. Those others are the critics and demonstrators who, over the past few years, have come to variously protest, disrupt and destroy the calm, official proceedings of meetings to further the advance of globalization. But, as the author points out, leaders need to listen to and accommodate those voices of protest. As he maintains, dissent is virtually synonymous with democracy, and organizations like the World Trade Organization must not only uphold the democratic tradition but also carefully consider the criticism that protesters from trade unionists to peace groups voice.

Issues: Corporate Responsibility; Globalization



Chapter 11:
International Strategic Management

LAUNCH OF THE SONY PLAYSTATION 3
Gloria Barczak, David T.A. Wesley

Product Number: 9B07A014
Publication Date: 8/3/2007
Revision Date: 6/28/2012
Length: 18 pages

The PlayStation 3 (PS3) was the successor of the acclaimed PlayStation 2 (PS2), recognized as the world's best-selling video game console with more than 100 million units sold. The unprecedented display of enthusiasm for the PS3 suggested that Sony had another winner on its hands. The company projected sales of six million PS3 consoles worldwide between November 2006 and March 2007, a level that the PS2 took almost a year to reach. Sony's initial euphoria was short-lived. By February 2007, more than a third of PS3 consoles remained unsold, while some retailers reported a higher number of returns than sales. Consumers said they felt let down by Sony. The PS3 looked no better than Microsoft's Xbox 360, they complained, even though the Xbox 360 had already been on the market for more than a year, and sold for $200 less than the PS3. Customers also lamented the PS3's lack of interesting games, spotty support for PlayStation 2 games, and uninspiring online capabilities. Meanwhile, Nintendo's inexpensive and quirky Wii console had become all the rage, despite its underpowered processor and comparatively basic graphics. The case examines the characteristics of a successful new product launch, particularly product features, brand loyalty, content availability, third-party support, and adherence to industry standards. The case also considers how radical innovations can be used to win market share from technically superior products focused on incremental innovations. Finally, we use a 4P marketing analysis to compare video game systems offered by Sony, Microsoft and Nintendo.

Teaching Note: 8B07A14 (15 pages)
Industry: Manufacturing
Issues: Product Design/Development; New Products; Generating Profit from New Technology; Market Strategy; Northeastern
Difficulty: 4 - Undergraduate/MBA



MICHELIN IN THE LAND OF THE MAHARAJAHS (A): NOTE ON THE TIRE INDUSTRY IN INDIA
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



ASIAN PAINTS LTD. INTERNATIONAL BUSINESS DIVISION
Jean-Louis Schaan, Ramasastry Chandrasekhar

Product Number: 9B06M058
Publication Date: 6/21/2006
Revision Date: 9/21/2009
Length: 24 pages

Asian Paints, recognized as one of the best managed companies in India, has recently embarked on a significant push to internationalize its activities. The president of the international division is faced with the challenge of simultaneously meeting sales volumes expected, and to contribute to the company's goal of becoming one of the top five decorative paint companies in the world.

Teaching Note: 8B06M58 (12 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Emerging Markets; International Strategy
Difficulty: 4 - Undergraduate/MBA



VINCOR AND THE NEW WORLD OF WINE
Paul W. Beamish, Nikhil Celly

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

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

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



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

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

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

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


Chapter 12:
Strategies for Analyzing and Entering Foreign Markets

MARKET STRETCH
Gavin Price, Margaret Sutherland

Product Number: 9B09M046
Publication Date: 6/25/2009
Length: 11 pages

Bio-Oil is a multi-purpose skin care product that has gone from being sold only in South Africa to being the No. 1 scar treatment product in 16 of the 17 countries in which it is distributed. Retail sales have jumped from R3 million per annum to R1 billion from 2000 to 2008. Justin and David Letschert made key decisions to eliminate all of the other 119 products that were being manufactured by the company that they took over in 2000, and focused on the mainstay product of Bio-Oil. Union-Swiss accomplished its successful sales through the use of a hybrid distribution model that compelled its distributors in each country to communicate and share knowledge with each other. Union-Swiss also ensured that it remained focused on building the brand through limiting its activities in the value chain to that of marketing. It did this to such an extent that it created a separate entity to run the distribution of Bio-Oil in South Africa.

Teaching Note: 8B09M46 (8 pages)
Industry: Wholesale Trade
Issues: Market Entry; International Business; Supply Chain Management; Strategic Positioning; GIBS
Difficulty: 5 - MBA/Postgraduate



NOTE ON INTERNATIONAL LICENSING
Paul W. Beamish

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

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

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



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



YUNNAN BAIYAO: TRADITIONAL MEDICINE MEETS PRODUCT/MARKET DIVERSIFICATION
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



SPLASH: READY TO MAKE WAVES?
Hari Bapuji, Niraj Dawar, Nigel Goodwin

Product Number: 9B06A033
Publication Date: 3/20/2007
Length: 19 pages

Splash Corporation has been dubbed the next Unilever - not bad for a consumer packaged goods company that was started in a garage in the Philippines no more than 20 years ago. As one of the largest consumer packaged goods companies in the Philippines, it is now considering international expansion options. Should the company tackle the nearby markets of Indonesia and Malaysia, or should it look farther afield at the lucrative markets of Europe and North America? The company is not short of ambition but resources are scarce.

Teaching Note: 8B06A33 (8 pages)
Industry: Manufacturing
Issues: Consumer Goods; Strategy; Competitive Strategy; Internationalization; Nanyang
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



CIBC-BARCLAYS: SHOULD THEIR CARIBBEAN OPERATIONS BE MERGED?
Don Wood, Paul W. Beamish

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

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

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


Chapter 13:
International Strategic Alliances

GIANT INC.: FORMATION OF THE A-TEAM
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



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



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



STRATEGIC ALLIANCES THAT WORK: SHOULD YOU BUILD A STRATEGIC ALLIANCE
Micheal Kelly, Jean-Louis Schaan

Product Number: 9B05M022
Publication Date: 2/22/2005
Revision Date: 10/1/2009
Length: 9 pages

This note is part of a series entitled Strategic Alliances That Work. It provides guidelines to determine whether an alliance is an appropriate vehicle to pursue business objectives. Specifically, it covers areas such as the strategic rationale for the alliance, the identification of competence and resource gaps in relation to strategic objectives, and a firm's readiness to enter a collaborative arrangement. Related cases Strategic Alliances That Work: Selecting the Right Partner, Strategic Alliances That Work: Negotiating and Designing an Alliance and Strategic Alliances That Work: Implementing Winning Conditions, products 9B05M023, 9B05M024 and 9B05M025 are also available.

Issues: Alliances; Competitiveness; Joint Ventures
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
International Organization Design and Control

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



VICTORY BANK LIMITED (A)
W. Glenn Rowe, Unnat Kohli

Product Number: 9B08M096
Publication Date: 3/31/2009
Length: 8 pages

The vice-president of corporate and institutional banking at Victory Bank Limited (VBL) finds himself in a political imbroglio. He needs to respond to the request by VBL's head of retail and private banking to join his team, even though the vice-president shares an excellent relationship with his current boss and is a star performer within the organization. The vice-president needs to decide his next steps: whether to accept that new role or to decline it. Students will come to understand how they can get caught in political battles and how best to manage the politics within the organization. Students will also learn to think their way through the various options faced when tackling similar situations.

Teaching Note: 8B08M96 (2 pages)
Industry: Finance and Insurance
Issues: Managing Upward; Managing Politics in a Large Organization; Career Management
Difficulty: 3 - Undergraduate



ASIAN PAINTS LTD. INTERNATIONAL ARCHITECTURE
Jean-Louis Schaan, Ramasastry Chandrasekhar

Product Number: 9B07M056
Publication Date: 10/24/2007
Length: 13 pages

The president of Asian Paints Ltd., India's largest paint manufacturer, was wondering how he could improve the way the company's International Business division was managing its team of 120 global managers. The company had operations throughout Asia in various locations such as China, Singapore and Thailand; throughout Africa in countries such as Oman, Egypt and Mauritius; and in the Americas in Jamaica. The team of global management was critical to the success of the company's globalization endeavour, which was expected to gather momentum once the ongoing consolidation was complete. The president must decide how to structure the management of this global team.

Teaching Note: 8B07M56 (8 pages)
Industry: Manufacturing
Issues: Global Manager; Growth; Management Systems; Organizational Structure
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



ING INSURANCE ASIA/PACIFIC
Rod E. White, Paul W. Beamish, Andreas Schotter

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

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

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



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



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



BOMBARDIER TRANSPORTATION AND THE ADTRANZ ACQUISITION
Allen Morrison, David Barrett

Product Number: 9B04M023
Publication Date: 5/14/2004
Revision Date: 9/21/2011
Length: 18 pages

Bombardier Transportation, one of the world's largest manufacturers of passenger rail cars, has successfully negotiated the purchase of Adtranz, a large European manufacturer of rail equipment. The newly appointed chief executive officer has been brought in to manage the acquisition. The new CEO faces many challenges including decisions about the pace of integration, location of headquarters, organization structure, personnel retention and personal management style. Students may use this case to discuss post-acquisition strategy and how fast companies should move to integrate acquisitions.

Teaching Note: 8B04M23 (13 pages)
Industry: Transportation and Warehousing
Issues: Management Decisions; Management in a Global Environment; Mergers & Acquisitions; Change Management
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Leadership and Employee Behavior in International Business

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



JINJIAN GARMENT FACTORY: MOTIVATING GO-SLOW WORKERS
Tieying Huang, Junping Liang, Paul W. Beamish

Product Number: 9B04M033
Publication Date: 5/14/2004
Revision Date: 10/14/2009
Length: 6 pages

Jinjian Garment Factory is a large clothing manufacturer based in Shenzhen with distribution to Hong Kong and overseas. Although Shenzhen had become one of the most advanced garment manufacturing centres in the world, managers in this industry still had few effective ways of dealing with the collective and deliberate slow pace of work by the employees, of motivating workers, and of resolving the problem between seasonal production requirements and retention of skilled workers. However, the owner and managing director of the company must determine the reasons behind the deliberately slow pace of the workers, the pros and cons of the piecework system and the methods he could adopt to motivate the workers effectively.

Teaching Note: 8B04M33 (11 pages)
Industry: Manufacturing
Issues: China; Productivity; Employee Attitude; Piece Work; Performance Measurement; Work-Force Management; Peking University
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
International Marketing

"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



ANDURO MARKETING: INTERNET SERVICES VS. SOFTWARE SALES
Malcolm Munro, Sid L. Huff

Product Number: 9B07A018
Publication Date: 10/1/2007
Length: 14 pages

Anduro Marketing is a Canadian company that sells technical services to companies wanting to improve their search engine website rankings. Though small, Anduro has attracted several major clients in both Canada and the United States, and expects steady profitability and growth. Anduro believes it can generate substantial additional profit by developing and selling a suite of software products that automate its technical service offerings. Anduro's managers must decide whether Anduro is better off staying with its current safe and profitable strategy or if Anduro should instead pursue a riskier but potentially more profitable software sales model. Several tough questions must be answered to determine whether the risk is worth the reward. The Anduro case provides an interesting description of an Internet technical/marketing services business and contrasts this with software sales.

Teaching Note: 8B07A18 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Search Engines; Internet Software; Internet Marketing; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



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

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

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

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



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

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

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

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



MARKETING MYOPIA RE-VISITED: WHY EVERY COMPANY NEEDS TO LEARN FROM THE WORLD
Yves Doz, Jose Santos, Peter Williamson

Product Number: 9B04TA10
Publication Date: 1/1/2004
Length: 7 pages

To learn from the world, a firm needs to devise new ways to work in the global environment. It must become a global prospector, looking for hotbeds of emerging technology or bellwether customers that foreshadow future trends. Subtle, complex knowledge can only be gained through distributors; partnerships with lead customers; suppliers; collaboration with universities and public research centres; and targeted acquisitions. To leverage engagement with the world, CEOs should choose a potential innovation, a new business area, a new product, or a new service, where the relevant knowledge is not all situated locally. Firms should choose a pilot project of strategic importance that is largely outside the realm of existing operational experience; use the project to get people involved in prospecting the world for new knowledge; allow others to lead; err on the side of excessive interaction and communication among members of the project team; and, as the project’s deliverables take shape, forge a direct link between the project team and people in day-to-day operations. These authors identify three firms in particular who improved business by searching for knowledge outside their local area: ST Microelectronics, a European semi-conductor firm; Shiseido, a Japanese cosmetics and skin care firm; and Polygram, a major record company.

Issues: International Business; Global Economy; Innovation; Partnerships; Knowledge Capture



Chapter 17:
International Operations Management

WAL-MART CHINA: SUSTAINABLE OPERATIONS STRATEGY
David J. Robb, Ben Hopwood, Lei Wang, Jun Cheng

Product Number: 9B08D009
Publication Date: 5/5/2009
Length: 20 pages

A German expatriate had moved to China in 2005 to take up a merchandizing position at the Wal-Mart China headquarters in Shenzen. By 2008 he had been promoted to the new position of senior director for sustainability for Wal-Mart China (retail) and Global Procurement. His new position required that he lead the rapidly-approaching inaugural Wal-Mart Sustainability Summit. The senior director must ensure that Wal-Mart China's five Strategic Value Networks (SVNs), which were tasked with leading sustainability change within the organization, continued to engage stakeholders by implementing innovative solutions that not only cut costs but also lead to more sustainable operations. The case describes Wal-Mart China's operations (including purchasing, distribution and retail) in the context of the company's desire to improve sustainability in a manner appropriate to China. The immediate issue is to identify opportunities to improve the sustainability of Wal-Mart China's distribution systems and retail operations.

Teaching Note: 8B08D09 (14 pages)
Industry: Retail Trade
Issues: China; Distribution; Purchasing; Logistics; Supply Chain Management; Sustainability; Tsinghua/Ivey
Difficulty: 4 - Undergraduate/MBA



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



WAL-MART STORES, INC
Mary M. Crossan

Product Number: 9B06M068
Publication Date: 8/28/2006
Revision Date: 6/4/2008
Length: 18 pages

A Wal-mart vice-president is preparing to meet with her new colleagues from a Brazilian company Wal-mart had just acquired. She thinks about how she should explain how Wal-mart operates, how it competes and what role its international operations will play in its future. The case describes several aspects of Wal-mart's operations in the context of the U.S. retail industry. Several items are described including employee wages and benefits, merchandise assortment, the Retail Link database, and the supply chain. The retailer's financial position is also depicted. The case notes Wal-mart's public relations woes as well as its international ventures and its competitors.

Teaching Note: 8B06M68 (8 pages)
Industry: Retail Trade
Issues: Strategic Positioning; Operations Management; Financial Analysis
Difficulty: 4 - Undergraduate/MBA



TECHNOLOGY ADOPTION IN DEVELOPING COUNTRIES: THE CASE OF PAKISTAN STATE OIL
Fareena Sultan, David T.A. Wesley

Product Number: 9B06D018
Publication Date: 11/8/2006
Revision Date: 2/24/2010
Length: 20 pages

The managing director of Pakistan State Oil (PSO) must oversee the most significant transformation in the company's 29-year history, from a lumbering bureaucracy-laden state enterprise to the most technologically sophisticated oil marketing company in Pakistan. The company had recently embarked on a New Vision marketing program, which included loyalty cards, a 24 hour toll-free customer relations line, and renovated state-of-the-art service stations replete with convenience stores and Internet kiosks. However, at the time of the case, only about one in four service stations had been renovated under the New Vision program. A more recent proposal involved automating the company's retail outlets by linking online tracking of fuel deliveries to retail outlets, where specially designed sensors could monitor gasoline inventory and automatically place orders when stocks were low. Retail automation would allow PSO to know its exact inventory at any given time and thereby more efficiently manage its supply chain and logistics. To keep capital expenditure costs within limits, the managing director must decide whether or not to invest in retail automation or expand the company's New Vision program. At the same time, deregulation of Pakistan's oil industry was expected to result in increased levels of competition.

Teaching Note: 8B06D18 (12 pages)
Industry: Retail Trade
Issues: Management of Technology; Operations Management; Developing Countries; Retail Marketing; Northeastern
Difficulty: 4 - Undergraduate/MBA



FOREFRONT MANUFACTURING: PRODUCTION PROCESSES AND CHANGE MANAGEMENT IN MAINLAND CHINA
Chris J. Piper, Nigel Goodwin

Product Number: 9B06D020
Publication Date: 10/12/2006
Revision Date: 9/16/2009
Length: 15 pages

ForeFront Wood Products produces high quality wooden door-sets. The company faces capacity constraints and inefficiencies resulting from its processes and culture. As a consequence, it struggles to be profitable. ForeFront's parent company, ForeFront Holdings, plans an initial public offering in 2007. It has recently hired a new operations manager with the mandate to turn the factory around. As the operations manager begins his job he tours the manufacturing facilities to gather information on production processes and factors affecting capacity, cost and conformance. The case describes the firm's manufacturing and managerial processes. Many issues are described, including high costs, low yields, unreported defects and equipment that fails to operate near its rated capacity. Organizational and change management challenges, including high employee turnover, excessive use of overtime and failure of supervisors to observe or report employee errors are also described.

Teaching Note: 8B06D20 (12 pages)
Industry: Manufacturing
Issues: China; Production Management/Control; Organizational Behaviour; Automation; Bottlenecks; Nanyang
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 18:
International Financial Management

RBC FINANCIAL GROUP - THE EQUATOR PRINCIPLES IN QATARGAS II LNG PROJECT
Robert Klassen, Matias Gancberg

Product Number: 9B06M055
Publication Date: 10/12/2006
Revision Date: 3/31/2011
Length: 17 pages

The environmental manager at the Royal Bank of Canada (RBC) has finally received the detailed environmental and social risk assessment of Qatargas II LNG Project. RBC was a potential participant in a syndicated loan for a project financing venture in Qatar. The project would extract and process liquid natural gas there and transport it to the United Kingdom market. RBC was among the first banks to use an environmental and social risk assessment process based on the Equator Principles that supported the principles underlying sustainable development. However, environmental non-government organizations further complicated any financing decision; they were only too quick to point out publicly any shortcomings. Moreover, it was not clear if problems might occur in monitoring and enforcing any loan covenants. Two basic questions remained: first, does the Qatargas II Project make sense to RBC as it attempts to balance economic, environmental and social performance (i.e. the triple-bottom line); and second, do the Equator Principles provide a competitive advantage?

Teaching Note: 8B06M55 (7 pages)
Industry: Finance and Insurance
Issues: Sustainable Development; Environment; Financing; International Finance
Difficulty: 4 - Undergraduate/MBA



VOYAGES SOLEIL: THE HEDGING DECISION
Stephen Sapp

Product Number: 9B05N024
Publication Date: 11/28/2005
Revision Date: 11/4/2009
Length: 8 pages

The president of a small Canadian tour operator of packaged vacations faces foreign exchange risk resulting from a future transaction in which the firm is committing to pay in U.S. dollars where the company's revenues are in Canadian dollars. The thin profit margins require the company to consider different hedging alternatives. The case provides significant information that will allow students to discuss international parity conditions and various hedging strategies within a relatively simple context.

Teaching Note: 8B05N24 (6 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Derivatives; Strategic Planning; Hedging; Risk Management
Difficulty: 4 - Undergraduate/MBA



MOBITELL (A): MOBILE COMMUNICATIONS IN RUSSIA
Murray J. Bryant, Craig Dunbar, Konstantin Markov

Product Number: 9B05B015
Publication Date: 10/13/2005
Revision Date: 9/24/2009
Length: 15 pages

The Mobitell case series examines the choice and implementation of a currency strategy for a telecommunications company operating in Russia with substantial exposure to the euro and U.S. dollar through various debt instruments. Students have to assess the financial strategy and the appropriate financial reporting under the International Accounting Standards. Mobitell (A): Mobile Communications in Russia, product 9B05B015 provides company and currency exposure history. Supplements Mobitell (B): Hedging Alternatives, product 9B05B016 and Mobitell (C): Accounting For the SWAP Deal, product 9B05B017 follow the situation with a pending deal with AO Citibank Moscow and the finalizing of the deal.

Industry: Information, Media & Telecommunications
Issues: Accounting Standard Setting; Hedging; Foreign Exchange; Debt Policy
Difficulty: 4 - Undergraduate/MBA



LUFTHANSA: TO HEDGE OR NOT TO HEDGE . . .
Stephen Sapp

Product Number: 9B00N022
Publication Date: 2/2/2001
Revision Date: 1/12/2010
Length: 3 pages

Lufthansa, the flagship German airline, was undertaking an aggressive expansion program. The chairman of the board had negotiated a deal with Boeing for the purchase of 20 new aircraft at a cost of US$500 million. The U.S. dollar was at historic highs and he had to decide how much, if any, of the US$500 million purchase price to hedge and best method to use. Since Lufthansa's revenues were mainly in deutsche marks and this amount was payable in one year, he needed to determine how to deal with the resulting foreign exchange risk by examining principle foreign exchange hedging strategies. Covenants restricting Lufthansa to take on new debt made it critical that he be sure of the financing and risk exposure before finalizing the deal.

Teaching Note: 8B00N22 (6 pages)
Industry: Transportation and Warehousing
Issues: Exchange Rates; Risk Management; International Finance; Hedging
Difficulty: 4 - Undergraduate/MBA



PEPSICO CHANGCHUN JOINT VENTURE: CAPITAL EXPENDITURE ANALYSIS
Larry Wynant, Claude P. Lanfranconi, Peter Yuan, Geoff Crum

Product Number: 9B00N016
Publication Date: 2/2/2001
Revision Date: 1/12/2010
Length: 15 pages

PepsiCo Inc. spanned more than 190 countries and accounted for approximately one-quarter of the world's soft drinks. The vice-president of finance for PepsiCo East Asia had been collecting data on the firm's proposed equity joint venture in Changchun, People's Republic of China (PRC). While PepsiCo was already involved in seven joint ventures in the PRC, this proposal would be one of the first two green-field equity joint ventures with PepsiCo control over both the board and day-to-day management. Every investment project at PepsiCo had to go through a systematic evaluation process that involved using capital budgeting tools such as new present value (NPV) and internal rate of return (IRR). He needed to decide if the proposed Changchun joint venture would meet PepsiCo's required return on investment. He was also concerned what the local partners would think of the project. The final decision would be made after a presentation to the president of PepsiCo Asia-Pacific.

Teaching Note: 8B00N16 (11 pages)
Industry: Manufacturing
Issues: China; Net Present Value Method; Joint Ventures; Financial Analysis; Internal Rate of Return
Difficulty: 4 - Undergraduate/MBA


Chapter 19:
International Human Resource Management and Labor Relations

SARAH JAMES IN MEXICO: OFTEN WRONG BUT NEVER IN DOUBT?
William A. Andrews

Product Number: 9B09C006
Publication Date: 1/27/2009
Length: 4 pages

A college student, Sarah James, attends a Mexican university (INI) for the summer to develop her language and cross-cultural capabilities. At the end of a successful semester, she e-mails the director of international recruitment for the Mexican University - with a copy to her major professor back in the United States - complaining about the treatment she received from her host family. She appears to have alienated all parties involved as she makes her exodus. The reader must decide how Professor McGill should respond. McGill had been attempting to build a relationship with the administration at INI in hopes of sending more students there for cross-cultural and language training. The reader must also evaluate Sarah's complaints to determine if they are a result of her own inflexibility or whether the host family was inappropriately screened or prepared. Will the remedy be found in having better policies governing host families or in having more culturally-attuned students?

Teaching Note: 8B09C06 (5 pages)
Industry: Educational Services
Issues: Partnership; Cultural Customs; Conflict Resolution
Difficulty: 4 - Undergraduate/MBA



HONG KONG'S OCEAN PARK: TAKING ON DISNEY (REVISED)
Michael N. Young, Dong Liu, Derek Au, Karen Hung, Crystal Wong, Marty Yam, Olivia Yau

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

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

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



BAX GLOBAL LIMITED: STAFF TURNOVER IN MAINLAND CHINA
Jean-Louis Schaan, Nigel Goodwin

Product Number: 9B05C035
Publication Date: 11/28/2005
Revision Date: 9/28/2009
Length: 13 pages

The human resources manager for logistics and supply chain management at BAX China must consider her company's high rate of staff turnover. In her monthly report to the managing director, the turnover had reached 12 per cent in the first eight months of the year. The human resources manager must evaluate the company's current methods of dealing with turnover and consider what additional action should be taken. Logistics was a complex and rapidly growing industry, particularly in mainland China. Many multinational and domestic service providers were entering the marketing and expanding their operations; however, these companies had to respond to complex operational challenges and escalating customer demands. The resulting demand for skilled workers led to high turnover rates across the industry and at all organizational levels, and created margin pressure and other management challenges. The case offers a uniquely Chinese perspective on workforce recruitment, management and retention. The industry and the broader economy were growing rapidly. Skilled workers were in short supply because logistics was a new and developing discipline in the former command economy. Also, in the human resources manager's opinion, cultural attitudes resulted in low loyalty among the workers.

Teaching Note: 8B05C35 (9 pages)
Industry: Transportation and Warehousing
Issues: China; Employee Retention; Recruiting; Compensation; Nanyang
Difficulty: 4 - Undergraduate/MBA



HARMONIZATION OF COMPENSATION AND BENEFITS FOR FIRSTCARIBBEAN INTERNATIONAL BANK
Edward Akhentoolove Corbin, Betty Jane Punnett

Product Number: 9B04C053
Publication Date: 4/11/2005
Revision Date: 10/9/2009
Length: 9 pages

The merger of the Caribbean holdings of Barclays Bank Plc. and the Canadian Imperial Bank of Commerce (CIBC) is going ahead, and the reality of integration of very diverse systems and procedures has to be faced. The case deals with understanding the current situation in terms of existing policies and designing policies that would be acceptable to employees from both banks in the organization - FirstCaribbean International Bank - which would be created by the merger. A critical aspect of the merger is the harmonization of compensation and benefits that must be resolved as a matter of priority. This case may be taught on a stand alone basis, or in combination with any of four additional cases that deal with various functional issues: 1) General Management - CIBC and Barclays: Should Their Operations be Merged, product 9B04M067. 2) Information Systems - Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032. 3) Accounting and Finance: CIBC Barclays: Accounting for Their Merger, product 9B04B022 4) Technical note: Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04C53 (6 pages)
Industry: Finance and Insurance
Issues: Consolidations and Mergers; Benefits Policy; Compensation; Change Management; University of West Indies
Difficulty: 4 - Undergraduate/MBA



LARSON IN NIGERIA (REVISED)
Paul W. Beamish, Isaiah A. Litvak, Harry Cheung

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

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

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



GTI IN RUSSIA
Mikhail Grachev, Peggy C. Smith, Mariya A. Bobina

Product Number: 9B03C008
Publication Date: 2/27/2003
Revision Date: 10/17/2009
Length: 14 pages

GTI is Global Traffic Inc., a U.S.-based sign manufacturer. The vice-president of the company is asked to recommend a human resources strategy for possible entry in the Russian market. He must develop a plan for expatriate assignment, the selection and compensation of personnel and the training needs, as well as outline the organizational culture.

Teaching Note: 8B03C08 (6 pages)
Industry: Manufacturing
Issues: Expatriate Management; Compensation; Management Training; Cross Cultural Management
Difficulty: 4 - Undergraduate/MBA