Ivey Publishing

Understanding Global Strategy

Segal-Horn, S., Faulkner, D.,1e (South-Western Cengage Learning, 2010)
Prepared By Paul Peamish, Professor
Chapter and Title Chapter Matches: Case Information
Chapter 2:
The Nature of World Trade

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

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

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

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



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


Chapter 3:
Globalization, Anti-Globalization and Regionalization

SOMPACK: IF YOU CAN'T BEAT THEM, JOIN THEM?
Sema Dube, Manu Dube

Product Number: 9B10M071
Publication Date: 10/22/2010
Length: 10 pages

This case considers attempts by a Turkish manufacturer of cosmetics packaging to trade off quality for cost, in order to compete with the influx of low-cost products from China. It describes the challenges faced by SomPack management in their effort to survive in the face of low-cost Chinese competition as well as the credit crisis. The company had grown because of its focus on quality and customer relations, but had to slash costs first in response to foreign competition and then again due to the global credit crisis. The case discusses many facets of the company's strategy: company efforts at automation to reduce labour costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; use of cheaper raw material that required specialized equipment; use of cheaper costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; use of cheaper raw material that required specialized equipment; use of cheaper machines that were not acceptable to customers who required high-quality manufacturing; implementation issues with a lower-cost ERP system; and attempts at outsourcing certain components. Decisions to reduce the quality of either processes or products must be made with great care: even though they are meant to be short-term survival measures, they can create significant short-term disruptions apart from potential long-term problems, such as making the company less attractive as a supplier to customers who may still prefer quality and service over cost.

Teaching Note: 8B10M71 (9 pages)
Industry: Manufacturing
Issues: Strategic Change; Industry Globalization; Enterprise Resource Planning; Outsourcing; Quality; International Trade; Production Management/Control; Marketing Management; Information Systems; Cost Control; Automation; Competition
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



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

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

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

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


Chapter 4:
Emerging Economies

BANK OF AMERICA AND THE CHINESE CREDIT CARD MARKET
Charles Dhanaraj, Jing Li, Justin W. Evans

Product Number: 9B10M055
Publication Date: 8/12/2010
Revision Date: 10/19/2010
Length: 11 pages

This case addresses Bank of America Corporation's contemplated joint venture with China Construction Bank to enter the Chinese credit card market. The case builds on the questions of strategic alliances in foreign markets and the state of the banking and credit industries in China generally.

Teaching Note: 8B10M55 (10 pages)
Industry: Finance and Insurance
Issues: China; Credit Card Business; Joint Ventures; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



GENICON: A SURGICAL STRIKE INTO EMERGING MARKETS
Allen H. Kupetz, Adam P. Tindall, Gary Haberland

Product Number: 9B10M041
Publication Date: 5/5/2010
Revision Date: 5/3/2017
Length: 13 pages

A critical question facing a company's ability to grow its business internationally is where it should go next. One company facing that decision was GENICON, a U.S.-based firm that manufactured and distributed medical instruments for laparoscopic surgeries. Although the minimally invasive surgical market in the United States had long been the largest in the world, international markets were anticipated to grow at a much faster rate than the U.S. market for the foreseeable future. GENICON was already in over 40 international markets and was looking in particular at the rapidly emerging markets - Brazil, Russia, India and China - as potential new opportunities for growth. This case is appropriate for use in an international business course to introduce market selection strategy. It can also be used in sessions on international marketing, entrepreneurship and business strategy.

Teaching Note: 8B10M41 (9 pages)
Industry: Manufacturing
Issues: China; International Expansion; Entrepreneurial Marketing; Emerging Markets; International Business
Difficulty: 4 - Undergraduate/MBA



COLA WARS IN CHINA: THE FUTURE IS HERE
Niraj Dawar, Nancy Dai

Product Number: 9B03A006
Publication Date: 8/6/2003
Revision Date: 5/24/2017
Length: 18 pages

AWARD WINNING CASE - This case won the Emerging Chinese Global Competitors, 2003 EFMD Case Writing Competition. The Wahaha Hangzhou Group Co. Ltd. is one of China's largest soft-drink producers. One of the company's products, Future Cola, was launched a few years ago to compete with Coca Cola and PepsiCo and has made significant progress in the soft-drink markets that were developed by these cola giants. The issue now is to maintain the momentum of growth in the face of major competition from the giant multinationals, and to achieve its goal of dominant market share.

Teaching Note: 8B03A06 (7 pages)
Industry: Manufacturing
Issues: China; Market Strategy; Competition; Brand Management; Emerging Markets
Difficulty: 5 - MBA/Postgraduate


Chapter 5:
The Information Industries

GOOGLE IN CHINA (B)
Deborah Compeau, Yulin Fang, Majela Yin

Product Number: 9B10E011
Publication Date: 6/18/2010
Length: 11 pages

This case, a supplement to Google in China (A), details the search engine’s cyber attack from within China, as well as Google’s response.

Teaching Note: 8B10E11 (6 pages)
Industry: Other Services
Issues: Ethical Issues; Management in a Global Environment; Information Systems; Government and Business; China
Difficulty: 4 - Undergraduate/MBA



RESEARCH IN MOTION: MANAGING EXPLOSIVE GROWTH
Rod E. White, Paul W. Beamish, Daina Mazutis

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

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

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



GLOBALIZATION OF WYETH
Munir Mandviwalla, Jonathan Palmer

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

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

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


Chapter 6:
Small is Valuable

EXPATICA.COM: 10 YEARS OF A DUTCH BORN-GLOBAL
Christopher Williams

Product Number: 9B10M029
Publication Date: 5/5/2010
Length: 12 pages

In December 2009, the management team at Expatica.com was undertaking a strategic review of the progress of the company and of the future opportunities for growth. The management team needed to take stock: the external environment was rapidly changing and threats from competitors were on the rise. Expatica.com was founded 10 years earlier to provide English language information and news to the expatriate community in Europe, delivering its services primarily over the Internet. Over the course of the 10 years, Expatica.com had experienced significant challenges in its organization and environment. The central issue was how to make its core business effective across multiple markets. The company had made tremendous progress over the decade but now needed to re-evaluate its position and identify new opportunities for growth. The management team realized that it needed to make a number of critical decisions, especially in the areas of internationalization and product development. 1) How should Expatica.com now internationalize into new markets? Which markets should it consider? How should it select new markets? Should it pull out of any existing markets? 2) What product development strategy should it adopt? What line extensions should it make to existing products? What kinds of more radical innovation could be appropriate? Should it phase out any existing products? 3) What else should the company do to drive success?

Teaching Note: 8B10M29 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Product Development; Media; Internet; Internationalization
Difficulty: 4 - Undergraduate/MBA



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

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

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

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

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


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



TAINO CONSTRUCTION SUPPLIES: MANAGING INNOVATION RISKS AT AN SME IN A SMALL, DEVELOPING NATION
Carmen Rios Figueroa, Julia Sagebien

Product Number: 9B09M085
Publication Date: 10/13/2010
Length: 16 pages

The president of Taino Construction has to make several strategic decisions that can guide the firm during very difficult times for the construction industry - globally and locally. He is trying to find ways to capitalize on the company's innovations and international advantages. At the same time, he is trying to adapt the company to the needs of the local market, which requires smaller volumes and simpler products. In order to do this, management must assess the level of risk inherent in the company's portfolio of innovations by estimating the potential of the markets for these products, determining how to strategically position the products in the markets and making a sober assessment of the company's financial strength.

The case can be used in a marketing strategy course. The objectives of the case are 1) to allow students an opportunity to analyze a company's innovation portfolio and, more specifically, the level of risk inherent in market opportunities 2) to explore how innovative international strategies can help a company survive adverse local market conditions, though it may add to the overall risk of the innovation portfolio of the company 3) to showcase a company committed to green products, allowing for a discussion on sustainability in the construction industry, as well as on how what is considered a green product by some stakeholders is not considered a green product by others 4) to showcase the complexity of the relationship between a company's clients/competitors/partners and the way in which government initiative can offer opportunities and challenges to a company 5) to offer an opportunity to conduct financial performance analysis.


Teaching Note: 8B09M85 (13 pages)
Industry: Construction
Issues: Managing Industry Change; Innovation; Family Business; Green Products
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Traditional MNC Structure Frameworks

CIPUTRA GROUP: SHAPING THE CITY IN ASIA
Marleen Dieleman

Product Number: 9B09M084
Publication Date: 12/8/2009
Length: 15 pages

The Ciputra Group was set up by Mr. Ciputra in the 1980s, after a long entrepreneurial career with a vision to provide a business for his children. The case describes the development of this group, which evolved into a prominent and innovative player in the Indonesian property sector. Under Ciputra's guidance, the company became known for its satellite cities, in which the group combined technical, construction and urban planning qualities, along with the ability to understand and manoeuvre in the difficult Indonesian environment. The Ciputra Group moved into areas where the government was weak (public facilities, roads, sewerage, city management, security, etc) and as such became an institutional entrepreneur that shaped Indonesia's cities. This model was later exported to other emerging markets. The case ends with the company facing two sets of interlinked problems. One set is strategic, as the company's business model has proven to be vulnerable, and it is undergoing various changes. The question is what strategic option the company should choose. The second set of issues concerns the leadership and corporate structure of the group. Since Ciputra is in his late 70s, a generational change in leadership is imminent, and students are asked to reflect on the most appropriate path towards further development of the business from one led by a charismatic entrepreneur towards a professional family business. The two sets of issues are interlinked with each other and pose opportunities and constraints.

Teaching Note: 8B09M84 (9 pages)
Industry: Real Estate and Rental and Leasing
Issues: Entrepreneurial Business Growth; Family Business; Emerging Markets; Change Management
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



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


Chapter 8:
How to Organize MNCs: What Matters Now

YOLA: MANAGING MULTIPLE CHALLENGES
Helena Barnard, Bryan Muir

Product Number: 9B10M031
Publication Date: 8/20/2010
Length: 15 pages

The South-African founder of Yola, a San Francisco-based company that provides simple website creation software, has developed a vibrant business that went from eight to more than 40 employees in only a year. He has secured two rounds of funding from a South African venture capitalist, and the growth in the Yola user base has been exceeding that predicted in the business plan. Yet the business faces multiple challenges. There are offices in both Cape Town (because of both personal ties and a substantial cost advantage) and San Francisco (because of the need to be connected to the heart of the industry), but managing across a 10-hour time difference is challenging. The rapid growth in employees is also placing demands on the company in terms of integrating people into the culture, and in finding an appropriate organization structure. The business model for online offerings is also not yet established, and Yola has to deal with substantial complexity in terms of its revenue models. In addition, the market place is heating up, and Yola may be losing its relative position in the market place.The case maps the challenges of managing a successful company in an emerging and fast-growing industry, and specifically focuses on the integrated decisions that an entrepreneur has to take.

Teaching Note: 8B10M31 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Location Strategy; Competition; Startups; Organizational Structure; GIBS
Difficulty: 5 - MBA/Postgraduate



LUNDBECK KOREA: MANAGING AN INTERNATIONAL GROWTH ENGINE
Paul W. Beamish, Michael Roberts

Product Number: 9B10M012
Publication Date: 2/11/2010
Revision Date: 2/12/2010
Length: 16 pages

In 2005, the vice-president of Lundbeck, a Danish based pharmaceutical firm, needed to decide what to do with one of his most promising subsidiaries, Lundbeck Korea. Over its short lifetime, under the leadership of the country manager and the Asia regional manager, the subsidiary had grown well beyond the original goals set for it. The vice-president wanted to create a reporting structure and management mix that would balance the local demands that Lundbeck Korea required for growth with Lundbeck's overall strategy of specialization, speed, integration and results. The case also traces Lundbeck's internationalization efforts in Asia over the past 20 years. The company had grown from pure licensing arrangements to establishing its own country level subsidiaries. This case introduces the dynamic tensions between taking advantage of local management expertise and executing a corporate strategy developed for an entire global group. In addition, it illustrates the importance, but difficulties, of being sensitive to local management goals, while promoting a global corporate culture.

Teaching Note: 8B10M12 (19 pages)
Industry: Manufacturing
Issues: MNE Reporting Structures; International Strategy; Emerging Markets
Difficulty: 4 - Undergraduate/MBA



SELKIRK GROUP IN ASIA
Paul W. Beamish, Lambros Karavis

Product Number: 9A99M003
Publication Date: 2/20/1999
Revision Date: 5/24/2017
Length: 16 pages

A family-owned brick manufacturer has built an export business to Japan and other Asian markets from zero to 10 per cent of its volume in seven years. The case examines the company's export strategy and organization in light of the recent Asian economic crisis and the reasons for their competitive success both in Australia and Asia. The managing director is raising the question of whether it is time to change their regional export strategy and organizational structure.

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


Chapter 9:
Strategic Networks and the Virtual Corporation

LAUNCH OF DURRA: WOMEN IN ISLAMIC BANKING
Alexandra Roth, David T.A. Wesley

Product Number: 9B10M035
Publication Date: 4/19/2010
Length: 9 pages

AWARD WINNING CASE - Euro-Mediterranean Managerial Practices and Issues Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. The case focuses on the vice-president and regional head of corporate banking for Noor Islamic Bank in Dubai as she arrives in the United States to promote the first global network for women in Islamic banking and finance, known as Durra. As a result, Islamic banks have been growing at a rate of 15 per cent per year, and have assets approaching $1 trillion, despite the recent banking crisis. Islamic banks also have a hard time filling the 30,000 new jobs created each year because of the specialized training required. One of the purposes of Durra is to help more women fill critical positions in Islamic banking and to help them manage their careers in order to assume leadership positions. The case also raises questions about how best to build a non-profit organization. Issues include how to attract new members and financial backers and how to build a useful and robust website that fulfills the needs of the organization.

Teaching Note: 8B10M35 (5 pages)
Industry: Finance and Insurance
Issues: Cultural Customs; Non-Profit Organization; Women in Management; International Finance; Northeastern
Difficulty: 4 - Undergraduate/MBA



RIBE MASKINFABRIK A/S - DEVELOPING NEW BUSINESS AREAS
Bo Bernhard Nielsen, Torben Pedersen, Jacob Pyndt

Product Number: 9B09M012
Publication Date: 3/31/2009
Revision Date: 9/2/2011
Length: 9 pages

Ribe Maskinfabrik A/S (RM) had, during the last 15 years, developed from a simple machine works operating out of Southern Jutland (Denmark) to the modern and globalized RM Group consisting of three distinct business units. This change had developed gradually as its outsourcing activities became increasingly important during the last years. In the beginning, outsourcing activities developed in an ad-hoc and reactive manner. However, RM gained important knowledge on how to optimize the outsourcing processes, and it developed a very extensive network of suppliers, many of which it had relationships with for many years. This network was offered to RM's customers and represented a high value to them. RM had already established these contacts and was able to assure the quality of its partners, which saved its customers valuable time and effort. In that sense, RM exploited its own experience and network of suppliers and became an outsourcing consultant.

Teaching Note: 8B09M12 (12 pages)
Industry: Manufacturing
Issues: Global Strategy; Networks; Value Chain; Supplier Relations
Difficulty: 4 - Undergraduate/MBA



VESTAS WIND SYSTEMS A/S - EXPLOITING GLOBAL R&D SYNERGIES
Torben Pedersen, Marcus Moller Larsen

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

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

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


Chapter 10:
Co-operative Strategies

CIBC MELLON: MANAGING A CROSS-BORDER JOINT VENTURE
Paul W. Beamish, Michael Sartor

Product Number: 9B10M091
Publication Date: 11/5/2010
Revision Date: 5/24/2012
Length: 15 pages

During his 10-year tenure, the president and CEO of CIBC Mellon had presided over the dramatic growth of the jointly owned, Toronto-based asset servicing business of CIBC and The Bank of New York Mellon Corporation (BNY Mellon). In mid-September 2008, the CEO was witnessing the onset of the worst financial crisis since the Great Depression. The impending collapse of several major firms threatened to impact all players in the financial services industry worldwide. Although joint ventures (JVs) were uncommon in the financial sector, the CEO believed that the CIBC Mellon JV was uniquely positioned to withstand the fallout associated with the financial crisis. Two pressing issues faced the JV’s executive management team. First, it needed to discuss how to best manage any risks confronting the JV as a consequence of the financial crisis. How could the policies and practices developed during the past decade be leveraged to sustain the JV through the broader financial crisis? Second, it needed to continue discussions regarding options for refining CIBC Mellon’s strategic focus, so that the JV could emerge from the financial meltdown on even stronger footing.

Teaching Note: 8B10M91 (13 pages)
Industry: Finance and Insurance
Issues: Financial Crisis; Joint Ventures; Leadership; Alliance Management; Managing Multiple Stakeholders; Canada; United States
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



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


Chapter 11:
Global Mergers and Acquisitions

DOW'S ACQUISITION PROGRAM
Koen H. Heimeriks, Stephen Gates

Product Number: 9B10M058
Publication Date: 9/30/2010
Revision Date: 6/26/2014
Length: 23 pages

This case illustrates how Dow Chemical acquired and integrated Wolff Walsrode, a German specialty chemicals firm that was part of the Bayer Group. This acquisition, combined with Dow's existing cellulosics unit, helped it create a new specialty business with a forecasted $1.1 billion in annual sales and strengthen its footprint in Central and Eastern Europe.

The main challenge in this case concerns the complexities of acquisition integration, which are demanding in spite of Dow's extensive experience and track record. Dow is confronted with various integration challenges and faces several decisions concerning the degree and speed of integration of Wolff Walsrode and one of its units, Probis. The decisions pit considerations of rapid cost synergy capture via leveraging global systems platforms against process technology transfer and accommodating different customers and their requirements. Along with providing a review of the importance of a multitude of codified implementation templates and tacit integration mechanisms, this case illustrates how Dow's M&A integration personnel prove their worth by ensuring Wolff's successful integration.


Teaching Note: 8B10M58 (20 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Integration; Cross-border Merger & Acquisition Integration; Target Acquisition Integration; United States; Germany
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



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 12:
Cross-Border Culture: Barriers and Benefits

LOUIS VUITTON IN JAPAN
Justin Paul, Charlotte Feroul

Product Number: 9B10M067
Publication Date: 10/19/2010
Revision Date: 2/22/2017
Length: 20 pages

This case deals with the opportunities and challenges of Louis Vuitton, the leading European luxury-sector multinational firm, in Japan, taking into account the unique features of brand management and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton’s most profitable market, but the global economic crisis has presented challenges.

Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market. The days of relying on a logo and a high price seem to be gone, as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works.

Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton’s successful business model in the Japanese market?


Teaching Note: 8B10M67 (8 pages)
Industry: Manufacturing
Issues: International Marketing; Strategic Management; Brand Management; Luxury Goods; Financial Crisis; Japan; France
Difficulty: 4 - Undergraduate/MBA



MIA, PHILIPPINES
Jim Kayalar

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

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

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



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

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

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

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


Chapter 13:
Learning with MNCs

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



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

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

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

Teaching Note: 8B08M31 (16 pages)
Industry: Manufacturing
Issues: Operations Management; Human Resources Management; Centralization; Management Science and Info. Systems; Management Information Systems; Organizational Behaviour; International Management; Change Management; Value Chain
Difficulty: 4 - Undergraduate/MBA



WIL-MOR TECHNOLOGIES: IS THERE A CRISIS?
Andrew C. Inkpen

Product Number: 9A99M042
Publication Date: 2/16/2000
Revision Date: 5/23/2017
Length: 11 pages

The CEO of Wilson Industries, a U.S. firm, is concerned about the performance of a joint venture between Wilson Industries and a Japanese firm, Morota Manufacturing. He wants the joint venture president to make some changes to improve financial performance. However, the president is unsure of what action to take because the Japanese partner, Morota, is satisfied with the performance and is considering expansion plans.

Teaching Note: 8A99M42 (11 pages)
Industry: Manufacturing
Issues: International Business; Manufacturing Strategy; Management Philosophy; Joint Ventures
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Global Strategy in Services

RESUMING INTERNATIONALIZATION AT STARBUCKS
Mario Koster, Rob Alkema, Christopher Williams

Product Number: 9B10M073
Publication Date: 9/23/2010
Revision Date: 5/4/2017
Length: 17 pages

Starbucks enjoyed tremendous growth over the previous two decades. In 2007, it had a global reach of over 17,000 stores in 56 countries. Between 2007 and 2009, however, Starbucks' relentless march was slowed by three forces: increasingly intense competition, rising coffee bean prices and a global economic recession. In order to remain profitable, the company started to scale back its overseas operations. In 2010, Starbucks was faced with a critical strategic decision: Should the company resume its international expansion and once again intensify its commitments in overseas markets? If so, what approach should the company take? Had the pace of Starbucks' internationalization (i.e. the rate of opening new stores abroad), the rhythm of its internationalization (i.e. the regularity by which stores were opened abroad) and geographical scope of its internationalization (i.e. number of new countries entered) had an impact on the company's performance in previous years? Could Starbucks learn from its prior internationalization within the coffee industry in order to guide its future international strategy?

Teaching Note: 8B10M73 (10 pages)
Issues: Decision Making; International Strategy; Market Entry; Internationalization
Difficulty: 4 - Undergraduate/MBA



IMAX: LARGER THAN LIFE
Anil Nair

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

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

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



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



DELL INC. IN 2009
Stewart Thornhill, Ken Mark

Product Number: 9B08M093
Publication Date: 1/20/2009
Revision Date: 5/3/2017
Length: 18 pages

The Dell story is well-known in the business world: a young Michael Dell, while attending the University of Texas in Austin, founds a computer sales company that eventually revolutionizes the industry. The case puts students in the position of a senior executive at Dell who is preparing for an investor relations meeting. As the senior executive reviews information on his company, he wonders how best to convey to skeptical investors that Dell's strategy will return the company to growth. In examining the Dell story, students learn about how Dell built up a set of competitive advantages that seemed unassailable until the early 2000s. The second part of the case illustrates the impermanence of competitive advantages - it describes how Dell is attempting to remake itself after falling behind its competitors.

Teaching Note: 8B08M93 (5 pages)
Industry: Manufacturing
Issues: Strategy Development; Strategic Change; Globalization; Strategic Balance
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
The Ethical MNC

BARRICK GOLD CORPORATION - TANZANIA
Aloysius Newenham-Kahindi, Paul W. Beamish

Product Number: 9B10M020
Publication Date: 10/20/2010
Revision Date: 11/19/2014
Length: 15 pages

This case examines the giant Canadian mining corporation, Barrick Gold Corporation (Barrick), (called Africa Barrick Gold plc since 2009), and the way it engages in sustainable community developments that surround its mining activities in Tanzania. Following recent organized tensions and heightened criticism from local communities, media, international social lobbyists and local not-for-profit organizations (NFOs), Barrick has attempted to deal with the local communities in a responsible manner. At issue for senior management was whether there was much more that it could reasonably do to resolve the tensions.

The case considers: how MNEs seek social license and local legitimacy; the relevance of hybrid institutional infrastructures; the evolving global roles for MNEs and their subsidiaries. The case is appropriate for use in courses in international management, global corporations and society, and international development and sustainable value creation.


Teaching Note: 8B10M20 (18 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Subsidiaries; Business and Society; Corporate Social Responsibility; Cross Sector Social Partnership; Government Relations
Difficulty: 5 - MBA/Postgraduate



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

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

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

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



CARREFOUR CHINA, BUILDING A GREENER STORE
Andreas Schotter, Paul W. Beamish, Robert Klassen

Product Number: 9B08M048
Publication Date: 5/9/2008
Revision Date: 9/24/2018
Length: 19 pages

Carrefour, the second largest retailer in the world, had just announced that it would open its first Green Store in Beijing before the 2008 Olympic Games. David Monaco, asset and construction director of Carrefour China, had little experience with green building, and was struggling with how to translate that announcement into specifications for store design and operations. Monaco has to evaluate the situation carefully both from ecological and economic perspectives. In addition, he must take the regulatory and infrastructure situation in China into account, where no official green building standard exists and only few suppliers of energy saving equipment operate. He had already collected energy and cost data from several suppliers, and wondered how this could be used to decide among environmental technology options. Given that at least 150 additional company stores were scheduled for opening or renovation during the next three years in China, the project would have long term implications for Carrefour.

Teaching Note: 8B08M48 (13 pages)
Industry: Retail Trade
Issues: China; Strategy Implementation; Emerging Markets; Environmental Business Management; Operations Management
Difficulty: 4 - Undergraduate/MBA