Ivey Publishing

International Management: Cross-Cultural Dimensions

Mead, R.,3/e (United States, Blackwell Publishers, 2005)
Prepared By Paul W. Beamish, Professor
Chapter and Title Chapter Matches: Case Information
Chapter 1:
International Management and Culture

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



RED CROSS CHILDREN'S HOME: BUILDING CAPABILITIES IN GUYANA (A)
Joerg Dietz, Michelle Goffin, Alan Marr

Product Number: 9B02C042
Publication Date: 11/29/2002
Revision Date: 11/9/2009
Length: 10 pages

An orphanage and foster care home for young children in Guyana was staffed by women who were paid a small monthly stipend. The facility was in poor physical state, the 54-hour workweek was exhausting and absenteeism was rampant. The new director tried to turn the facility around by repairing the building, improving the working conditions and seeking staff input. On the country's national holiday, however, none of the staff reported for work. The director considered her options: resignation, asking for additional resources, giving the staff more responsibility or disciplining the staff. Supplement case Red Cross Children's Home: Building Capabilities in Guyana (B), product 9B02C047 describes the actions taken by the director and their outcome. In supplemental case Red Cross Children's Home: Building Capabilities in Guyana (C), product 9B02C048, the former director visits the children's home after an absence of nearly two years and reflects on her management efforts. A 22 minute video is available, product 7B02C042 and a PowerPoint slide presentation, product 5B02C42.

Teaching Note: 8B02C42 (10 pages)
Industry: Social Advocacy Organizations
Issues: International Business; Non-Profit Organization; Organizational Change
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Comparing Cultures

A FEW TIPS ABOUT CORRUPTION IN THE U.S.
Andrew Karl Delios

Product Number: 9B06M089
Publication Date: 11/6/2006
Length: 7 pages

This case presents the situation faced by three people in the United States as they exit a restaurant in California. They are discussing whether tipping is a form of private sector corruption, similar to public sector corruption that pervades many countries worldwide. Discussion ensues on what constitutes corruption, and whether private and public sector corruption are required and ethical business practices.

Teaching Note: 8B06M89 (9 pages)
Industry: Manufacturing
Issues: China; Ethical Issues; Political Environment; International Business; Internationalization
Difficulty: 4 - Undergraduate/MBA



CHINA MINMETALS CORPORATION AND NORANDA INC.
Isaiah A. Litvak

Product Number: 9B06M013
Publication Date: 2/6/2006
Revision Date: 10/26/2011
Length: 16 pages

The proposed takeover of Noranda Inc. (one of the biggest mineral players in the world) by the Chinese state owned enterprise, China Minmetals Corporation, was cause for Canadian government concern as it required some understanding about the workings and objectives of state owned enterprises. There was particular concern around the labour issues and human rights violations in China, and the possible impact of these on the proposed takeover. Equally important, Canada ran the substantial risk of sending the wrong message to the People's Republic of China if it was to block such a takeover, and in some respects, to be seen as shutting its doors to one of the world's largest and most powerful emerging economies.

Teaching Note: 8B06M13 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: China; Government and Business; Ethical Issues; Business and Society; Politics
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Shifts in the Culture

YAHOO V. SURVIVORS OF THE HOLOCAUST
Henry W. Lane, David T.A. Wesley

Product Number: 9B02C051
Publication Date: 10/29/2002
Revision Date: 11/9/2009
Length: 15 pages

Yahoo Inc. was the second largest Internet portal worldwide and the leading Internet portal in France. After Nazi-era memorabilia was posted on one of its English-language auction sites, the company was ordered under a French law to block access to neo-Nazi content. Yahoo filed a countersuit, alleging that compliance would violate free speech, as guaranteed under U.S. and international laws. Angered by the company's response, survivors of the Holocaust charged the chief executive officer with war crimes, for supporting the atrocities of the Nazi regime through its Web site. The borderless nature of the Internet raises many issues for the company: conflicting laws and cultures of other countries, differing views on freedom of speech and suppression of objectionable material, ethical considerations and the impact of extraterritoriality.

Teaching Note: 8B02C51 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Competitiveness; International Law; Ethical Issues; International Business; Northeastern
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


Chapter 4:
Organizational Culture

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 5:
Culture and Communication

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



BP AND CORPORATE GREENWASH
Michael Sider

Product Number: 9B05C010
Publication Date: 2/21/2005
Revision Date: 9/28/2009
Length: 7 pages

Bp's green re-branding efforts began officially with the unveiling of its new bp Helios mark, named after the Greek sun god. The new logo did away with 70 years of corporate branding, replacing the bp shield, long associated in consumers' minds with the strength of British imperialism. The Helios mark cost US$7 million to develop and was forecast to cost the company another US$100 million a year to integrate into marketing and operations over the next two years. At the logo's unveiling, the company's chief executive officer directed attention to the company's recent purchase of the solar energy company Solarex, an acquisition that made bp the world's largest solar energy company. The unveiling of the Helios logo was a formalization of a re-branding strategy that had begun to emerge the year before with the CEO's announcement that 200 new bp sites around the world would be powered in part by solar energy, through solar panels placed on the roofs of gas pumps, and his commitment to reducing bp's own carbon dioxide emissions by 10 per cent by the year 2010. From the start, however, environmental groups heaped scorn on bp's green re-branding. Greenpeace gave the company its Greenhouse Greenwash Award, given to the largest corporate climate culprit on earth.

Teaching Note: 8B05C10 (4 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Ethical Issues; Communications; Public Relations; Marketing Management
Difficulty: 4 - Undergraduate/MBA



KATE ARCHER IN HAITI (A)
Joerg Dietz, Kate Archer

Product Number: 9B01C035
Publication Date: 4/25/2002
Revision Date: 12/17/2009
Length: 10 pages

Helped the Aged Canada, a non-profit organization, has hired Kate Archer to manage their prosthetic clinic in Haiti. After her arrival in Haiti she learns that its key employee does not meet her performance expectations. Communicating with the employee, a deaf-mute, however, was very difficult and required the use of another employee as translator. She must communicate her performance expectations to the employee. The supplement to this case, Kate Archer In Haiti (B), product number 9B01C036 describes how Kate develops a contract and finalizes the agreement with the employee.

Teaching Note: 8B01C35 (11 pages)
Industry: Health Care Services
Issues: Non-Profit Organization; Communications; International Management; Cross Cultural Management
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Needs and Incentives

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



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


Chapter 7:
Dispute Resolution and Negotiation

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



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

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

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

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


Chapter 8:
Formal Structures

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



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:
Informal Systems

CHARLES FOSTER SENDS AN EMAIL (A)
Henry W. Lane

Product Number: 9B05C019
Publication Date: 8/12/2005
Revision Date: 9/28/2009
Length: 5 pages

After the U.S. sales manager of a large multinational company emails his supervisor regarding the supply of a new product, the message is forwarded to two others. The final recipient, the president of the Franco-Japanese joint venture partner that is manufacturing the new product, is offended by what he perceives as unfair criticism. The supplemental case, Charles Foster Sends an Email (B), product number 9B05C020, includes the sales manager's response to the president, and the ensuing correspondence from the joint venture. Together, the (A) and (B) cases present a setting for discussing three issues; the relationship between a communication situation and the medium chosen to deliver it, the effects on business relationships when an inappropriate communications medium is chosen and the processes needed to communicate effectively in multicultural business relationships.

Teaching Note: 8B05C19 (6 pages)
Industry: Manufacturing
Issues: Interpersonal Relations; International Business; Management Communication; Northeastern
Difficulty: 4 - Undergraduate/MBA



CHARLES FOSTER SENDS AN EMAIL (B)
Henry W. Lane

Product Number: 9B05C020
Publication Date: 8/12/2005
Revision Date: 9/28/2009
Length: 3 pages

After the U.S. sales manager of a large multicultural company emails his supervisor regarding the supply of a new product, the message is forwarded to two others. The final recipient, the president of the Franco-Japanese joint venture partner that is manufacturing the new product, is offended by what he perceives as unfair criticism. The sales manager draws on his recent training in intercultural management to try to salvage the situation. The companion case, Charles Foster Sends and Email(A), product number 9B05C019, includes the complete series of email. Together, the (A) and (B) cases present a setting for discussing three issues: the relationship between a communications situation and the medium chosen to deliver it, the effects on business relationships when an inappropriate communications medium is chosen and the processes needed to communicated effectively in multicultural business relationships.

Teaching Note: 8B05C19 (6 pages)
Industry: Manufacturing
Issues: International Business; Interpersonal Relations; Management Communication; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Planning Change

INFORMATION TECHNOLOGY DIVISION AT THE HONG KONG JOCKEY CLUB
Anne Marie Francesco, Bee-Leng Chua

Product Number: 9B05C005
Publication Date: 3/22/2005
Revision Date: 9/28/2009
Length: 10 pages

The Hong Kong Jockey Club, a non-profit gaming organization and social club founded in 1884, was unusual, for through its payment of taxes and donations to the community, it had over the years funded a sizeable portion of Hong Kong government expenses and charitable work. The newly hired director of the information technology department is concerned about inefficient operation. The IT division had been an established part of the club for many years, and throughout time, had been organized and reorganized to meet the changing needs of the club. A task force is put together and an external consultant is brought in to review the division's organization. Upon completion of the review, the director of the division learns that the person heading the review plans to resign and must decide what to do.

Teaching Note: 8B05C05 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Organizational Structure; Group Behaviour; Corporate Culture; Change Management
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Globalization and Localization

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:
Family Companies

ALPES S.A.: A JOINT VENTURE PROPOSAL (A)
Henry W. Lane, Dennis Shaughnessy, David T.A. Wesley

Product Number: 9B06M027
Publication Date: 2/16/2006
Revision Date: 9/21/2009
Length: 13 pages

The senior vice-president for corporate development for Charles River Laboratories must prepare a presentation to the company's board of directors requesting up to a $2 million investment in a Mexican joint venture with a family-owned animal health company. However, the chief executive officer views the proposed joint venture as a potential distraction while his company continues to expand rapidly in the United States. He is also worried about the risks of investing in a country like Mexico and the plan to partner with a small, family-owned company. Moreover, the Mexican partner is unable to invest any cash in the joint venture, which would need to be fully funded by Charles River Laboratories. The supplement Alpes S.A.: A Joint Venture Proposal (B) looks at what happened.

Teaching Note: 8B06M27 (7 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Cross Cultural Management; Risk Analysis; International Business; Joint Ventures; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Designing and Implementing Strategy

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


Chapter 14:
Headquarters and Subsidiary

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


Chapter 15:
International Joint Ventures

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


Chapter 16:
Staffing to Control

GUAN HAN
James A. Erskine, Guan Han

Product Number: 9B04C047
Publication Date: 11/23/2004
Revision Date: 10/9/2009
Length: 10 pages

The administration director at an assembly plant for optical communication products in a US-Chinese joint venture in Shenzhen is wondering what he should do about a recent situation with one of his peers. The director was responsible for all non-production staff and his peer was responsible for production-related staff, both working on a pilot project for the company. Shortly after the project started, the director noticed his peer was becoming more aggressive and making comments about firing staff inside and outside his department. Tension was increasing between them and among other members of the project. He decided to discuss the issue with his peer but was unprepared for the response. He must decide if he should bring this to the attention of senior officers or continue with his approach in resolving the situation.

Teaching Note: 8B04C47 (4 pages)
Industry: Information, Media & Telecommunications
Issues: China; Organizational Behaviour; Intercultural Relations; Organizational Structure; Joint Ventures
Difficulty: 4 - Undergraduate/MBA



MABUCHI MOTOR CO., LTD.
Paul W. Beamish, Anthony Goerzen

Product Number: 9A98M034
Publication Date: 10/30/1998
Revision Date: 9/19/2017
Length: 11 pages

A year had elapsed since Mabuchi Motor Co., Ltd. of Japan, the world's most successful producer of small electric motors, had implemented a new management training program at one of its foreign operations in China. The program had two objectives. First, it was intended to enable the corporation to maintain its strategy of cost minimization by making it possible to reduce Japanese expatriate levels by improving the management skills of local managers in foreign subsidiaries. Second, by overcoming the shortage of qualified Japanese managers, the program would also allow the continued aggressive expansion of production that had become a cornerstone of corporate strategy. The teaching purpose is to illustrate the difficulties associated with transferring a management style and corporate culture into a different national culture.

Teaching Note: 8A98M34 (11 pages)
Industry: Manufacturing
Issues: China; Organizational Change; Corporate Culture; Management Training; Subsidiaries
Difficulty: 4 - Undergraduate/MBA



SALCO (CHINA)
Joerg Dietz, Alan (Wenchu) Yang

Product Number: 9B03C025
Publication Date: 8/19/2003
Revision Date: 10/17/2009
Length: 12 pages

Salco (China) is a global manufacturer of burners for hot-water boilers and industrial furnaces and ovens. The company has recently hired a new operations manager for their plant in China whose mandate is to improve the efficiency of the Beijing office, to eliminate Salco's Chinese distributors' poaching behavior and to elevate Salco's brand equity in the Chinese market. After implementation, the initiative to eliminate distributors' poaching had failed and the company's operations manager must determine why this initiative failed and prepare a report for senior management.

Teaching Note: 8B03C25 (11 pages)
Industry: Manufacturing
Issues: China; Management in a Global Environment; Personnel Management; Organizational Behaviour; Change Management
Difficulty: 4 - Undergraduate/MBA



OMEGA AIR CHARTERS: TROUBLE IN AZERBAIJAN
Gerard Seijts, Simon Taggar, Ken Mark

Product Number: 9B02C064
Publication Date: 2/6/2003
Revision Date: 11/9/2009
Length: 7 pages

Omega Air Charters is an air transportation company that provides service to the global mining industry. The company has negotiated a contract with a group of European mining companies that requires Omega Air to provide air service in Azerbaijan - once part of the former Soviet Union. Based on the agreement made with the country, the company must staff the operation with Azerbaijan pilots and engineers who resent a western corporation operating western aircraft in their country. The executive vice-president must resolve this issue and gain the trust of the pilots and engineers if this project is to succeed.

Teaching Note: 8B02C64 (3 pages)
Industry: Transportation and Warehousing
Issues: Career Development; Cross Cultural Management; Women in Management; Management Behaviour
Difficulty: 4 - Undergraduate/MBA


Chapter 17:
Expatriate Assignments

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



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


Chapter 18:
Training and Supporting a Expatriate Assignment

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



WUHAN ERIE POLYMERS JOINT VENTURE
Thomas Begley, Cynthia Lee, Kenneth Law

Product Number: 9B03C002
Publication Date: 4/2/2003
Revision Date: 10/15/2009
Length: 17 pages

The Erie Performance Polymers division manager in China and general manager of Wuhan Erie Polymers joint venture, has just received approval for his requested transfer to divisional headquarters in the United States. In preparing the division and joint venture for the change, a key decision concerns his successor. He has received information on six candidates under consideration and knows that his recommendation will carry heavy weight in the final decision. The general manager has attempted to inculcate in his mainly Chinese workforce an appreciation for Western business practices and ability to enact them. At the same time, acknowledging their substantial differences, he has tried to mix elements of both Chinese and Western values in creating a culture for the joint venture. He believes strongly that his successor must be responsive to the tensions between the relevant cultures. As he compares them, he wonders which candidate has the best set of qualities to succeed him as general manager.

Teaching Note: 8B03C02 (13 pages)
Industry: Manufacturing
Issues: China; Cross Cultural Management; International Business; Human Resources Management; Employee Selection; Northeastern
Difficulty: 4 - Undergraduate/MBA