Ivey Publishing

International Business: Competing in the Global Marketplace

Hill, C.W.L.,,8/e (United States, McGraw-Hill Irwin, 2011)
Prepared By Paul W. Beamish, Professor
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Globalization

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

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

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

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



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

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

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

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



GLOBALIZATION IS AN OPTION NOT AN IMPERATIVE. OR, WHY THE WORLD IS NOT FLAT
Pankaj Ghemawat

Product Number: 9B08TA06
Publication Date: 1/1/2008
Length: 12 pages

Most managers consider global expansion to be an imperative, and cross-border expansion commands wider support than cross-business expansion. This article not only counteracts such a bias, but provides a framework for valuing cross-border moves, called the ADDING Value Scorecard. There are two broad approaches to evaluating strategies: in terms of principles and in terms of analyzing their implications for value. While principles may help guide routine decisions, they should be seen in the context of important decisions as ways of complementing analysis of value rather than substituting for it. The ADDING Value Scorecard’s first component is Adding volume, and is followed by three levers for improving margins: Decreasing costs, Differentiating, and Improving industry attractiveness. The last two components, Normalizing risks and Generating knowledge (and other resources), are add-ons that reflect large discontinuities that can arise at national borders. As an example, the scorecard is applied to a cross-border move that clearly failed the ADDING Value test — the merger, recently dissolved, of Daimler-Benz and Chrysler.

Issues: Cross-border Expansion; Value Analysis; Strategy Evaluation; Automotive Industry




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



NOTE ON THE CUBAN CIGAR INDUSTRY
Paul W. Beamish, Akash Kapoor

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

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

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


Chapter 2:
National Differences in Political Economy

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



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

Product Number: 9B10M050
Publication Date: 5/19/2010
Revision Date: 5/23/2012
Length: 5 pages

By 2010, China's economy faced a series of challenges that could threaten its growth and trade balance. This case presents a structure for students to discuss China's economy in the context of these threats. Prior to this time, there had been general feeling that China could continue indefinitely with its exceptionally high growth rate of approximately 10 per cent annually. The substantial gap between wages in economically advanced nations and China might continue to attract huge volumes of foreign investment indefinitely. This optimism was being questioned by 2010.

Teaching Note: 8B10M50 (3 pages)
Industry: Public Administration
Issues: China; Growth; Government and Business; Growth Strategy; Globalization
Difficulty: 4 - Undergraduate/MBA



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

Product Number: 9B08M084
Publication Date: 1/7/2009
Revision Date: 8/21/2012
Length: 4 pages

Mexico had a history of repeated financial crises, with high inflation leading to current account deficits with volatile capital inflows, culminating in significant devaluations. Concerns persisted that this pattern might repeat itself in the future. In the years prior to 1980, the government of Mexico had put in place a command and control economy with an extensive array of regulations through which it intervened in the economy on an ongoing basis and with discretionary powers. Governments created barriers to entry for foreign investment and imports and put in place price controls that protected existing Mexican firms. After 1980, a series of trade and investment reforms opened the economy. Nevertheless, many expressed the view that Mexico's reform movement stalled under President Fox (2000-2006) and that extensive government intervention continued to stifle competition. Exhibits present macroeconomic data as well as World Bank Investment Climate Indicators. A series of challenges now confronted Mexico, including the U.S. financial crisis and recession, competition with China, appropriate monetary policy, opening oil production to foreign companies and a rise in corruption and violent crime.

Teaching Note: 8B08M84 (3 pages)
Industry: Public Administration
Issues: Growth; Government and Business; Growth Strategy; Globalization
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



BANK VOZROZHDENIYE (V.BANK) (B)
David W. Conklin, Danielle Cadieux

Product Number: 9B06M014
Publication Date: 2/6/2006
Revision Date: 5/31/2007
Length: 5 pages

By 2006, in spite of lack a of significant reforms, the Russian banking system had recovered from the 1998 crisis, and its indicators such as capital, assets, and loans greatly exceeded the levels prior to 1998. The Russian economy had expanded rapidly, largely as a result of higher energy prices. However, many analysts were concerned about the large role played by oil and gas, and feared that energy exports were keeping the value of the ruble so high that non-energy manufacturing was being hurt. V. Bank had survived the 1998 crisis, and was considered one of the top 25 banks. In spite of this progress, its financial reports emphasized a series of concerns. Furthermore, Russia's political situation seemed precarious, as illustrated in the Khodorkovsky crisis, as a result of which Gazprom and the Yukos assets returned to majority state ownership. Some analysts pointed to a revival of authoritarian and arbitrary state intervention, and debated the possibility of a liberal political reaction in Russia similar to the Orange Revolution in the Ukraine.

Teaching Note: 8B06M14 (3 pages)
Industry: Finance and Insurance
Issues: Government and Business; Business Policy; Financial Institutions
Difficulty: 4 - Undergraduate/MBA



TALISMAN ENERGY INC.
Lawrence G. Tapp, Gail Robertson

Product Number: 9B03M028
Publication Date: 5/28/2003
Revision Date: 10/26/2011
Length: 28 pages

Talisman Energy is the largest Canadian oil and gas producer, with main business activities in exploration, development, production and marketing of crude oil, natural gas and natural gas liquid. At a special board of directors meeting, the management and board of Talisman conducted a review of the Sudan operations to assess its fit within the current business portfolio. After years of direct and often angry criticism by human rights groups and the fact that the United States government was threatening to restrict firms operating in Sudan from listing their securities on American markets, the board was considering its options in the region. The Sudan project had good economic value for Talisman with good future prospects and production possibilities. Additionally, the company had gone to considerable lengths to develop and implement socially responsible policies and programs in Sudan. Senior management believed that they had contributed to an increased quality of life for the people of Sudan. Despite this, activist groups had continued to attack Talisman for their role in Sudan. The continued pressure from activists and governments were believed to be responsible for a steady decrease in share price. The issue before the board in conducting this review was to question whether continuing operations in Sudan was compatible with Talisman's mandate to operate in the best interests of the company and its shareholders.

Teaching Note: 8B03M28 (10 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Board of Directors; International Management; Corporate Governance; Ethical Issues
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Differences in Culture

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



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



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

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

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

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


Chapter 4:
Ethics in International Business

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

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

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

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



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

Product Number: 9B08M038
Publication Date: 4/18/2008
Length: 8 pages

The case deals with a scam that has been run out of Nigeria since 1990. In it, foreign companies are approached for their assistance in facilitating an international transfer of funds in order to receive a very large but unearned commission. In the case, a Hong Kong-based manager who is travelling to Nigeria is unaware that he is walking into a situation where his company is about to be cheated. The objective of the case is to raise the issue of ethics in the conduct of international business. A follow-up case (9B08M039) is available.

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



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



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

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

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

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


Chapter 5:
International Trade Theory

OTOYOL MOTOR COMPANY
Jim Kayalar

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

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

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



ACQUISITION AND RESTRUCTURING OF KIA MOTORS BY HYUNDAI MOTORS
Seungwha (Andy) Chung, Sunju Park

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

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

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



NANO TATA-LOGY: THE PEOPLE'S CAR
Oana Branzei, Ramasastry Chandrasekhar

Product Number: 9B08M074
Publication Date: 10/31/2008
Revision Date: 11/10/2008
Length: 32 pages

The case illustrates the opportunities, challenges and trade-offs involved in the design, prototyping, and marketing of the Nano - the People's Car - by Tata Motors Ltd (TML), a Tata Group Company. The case is set nine months after the January 2008 unveiling of the Nano concept car in New Delhi, India. The company's managing director faces multiple dilemmas in rolling the Nano off the production lines at the manufacturing plant in Singur, including growing local and global competition in the emerging low-cost, low-emission market, rising manufacturing costs, and stakeholder pressures. The decision reviews critical developments in global automotive markets from the point of view of TML's and Tata Group's deeply ingrained values for sustainable economic development and Indian-grown competitive advantage. It plots the promise of a rampant market growth and the emergence of an India-based small car cluster against international outcry about the proliferation of urban transportation, congestion, and pollution in emerging markets (particularly India and China). Students are asked whether Nano is a disruptive or sustainable innovation for the company and the group, and respectively for the Indian and global automotive industry. Smaller and cleaner than its well-established rival in the west, the Toyota Prius, the Nano promises reliable, safe transportation to India's emergent middle class as a fraction of the cost; the Nano is also 1.5-4 times cheaper than its Indian based rivals. However, production bottlenecks threaten Nano's launch in the last quarter of 2008. Speculating that first mover advantage may sway customer perception and breed loyalty, several competitors are quickly setting up India-based manufacturing of competing models. Market projections estimate over one million adoptions, mostly by prior two-wheeler motorists, and limited switches from higher emission options for fuel and emission conscious consumers. The case addresses the issue of carbon neutrality, and more broadly the role of emerging market companies in addressing global climate change issues.

Teaching Note: 8B08M74 (25 pages)
Industry: Manufacturing, Other Services, Social Advocacy Organizations
Issues: Marketing Management; Automotive; Emerging Markets; Sustainable Development; Innovation
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



STRATEGIZING AT MONARCHIA MATT INTERNATIONAL (MMI)
Michael J. Rouse, Jordan Mitchell

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

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

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


Chapter 6:
The Political Economy of International Trade

CANADIAN SOLAR
Paul W. Beamish, Jordan Mitchell

Product Number: 9B10M019
Publication Date: 4/5/2010
Revision Date: 11/19/2014
Length: 18 pages

In late September 2009, the CEO of the Nasdaq-traded solar cell and module manufacturer, Canadian Solar, was at an inflection point in the formation of its international strategy. The company had experienced dynamic growth during the past five years buoyed largely by aggressive incentive schemes to install solar photovoltaic (PV) technology in Germany and Spain. The credit crunch, coupled with changes in government incentive programs, caused a major decline in the demand for solar PV technology and analysts were predicting that full year 2009 sales would decline. Furthermore, competition in the industry was fierce with diverse players ranging from Japanese electronic giants to low-cost Chinese producers. Canadian Solar had decided to focus on 10 major markets in the next two to three years where strong renewable policies existed. Students are challenged with deciding if any changes to the company's global strategy are necessary.

Teaching Note: 8B10M19 (11 pages)
Industry: Manufacturing
Issues: China; International Business; Growth Strategy; Global Product; Internationalization
Difficulty: 4 - Undergraduate/MBA



BOMBARDIER VERSUS EMBRAER: CHARGES OF UNFAIR COMPETITION
David W. Conklin, Trevor Hunter

Product Number: 9A99M004
Publication Date: 7/20/1999
Revision Date: 1/15/2010
Length: 23 pages

One of Canada's high-tech success stories, Bombardier, changed the airline industry with the introduction of its short-haul turbo-prop planes and jets in the early 1990s. By the mid-1990s, a new player from Brazil, Embraer, had entered the market and was capturing a lot of business from Bombardier. Bombardier claimed that the success of Embraer was due to unfair subsidies through a government program, so Bombardier challenged the policies through the WTO. Embraer charged back that Bombardier had long received subsidies through Canadian government loans and grants. In an industry which was expected to double in the next five years, the stakes were high. This case discusses the dispute resolution process within the WTO, and the impacts that subsidies and WTO subsidy restrictions may have on industry structure.

Teaching Note: 8A99M04 (8 pages)
Industry: Transportation and Warehousing
Issues: Trade Agreements; Subsidies; Government and Business; Aerospace
Difficulty: 5 - MBA/Postgraduate



CEMEX: THE SOUTHDOWN OFFER
Ravi Sarathy, David T.A. Wesley

Product Number: 9B03M013
Publication Date: 4/2/2003
Revision Date: 10/21/2009
Length: 21 pages

Cemex, a cement multinational from Mexico, has become one of the three largest cement companies in the world, through internal growth and a series of global acquisitions over the 1999 to 2000 period. It is a relatively small player in the United States with insignificant market share. It has had conflicts with the U.S. cement industry over its cement exports to the United States, being the object of a successful anti-dumping suit brought by the U.S. cement industry before the International Trade Commission. One of its key opponents is Southdown which has testified before the USITC against Cemex. Southdown's chief executive officer is unhappy with his firm's stock price and frustrated by the lack of market recognition despite profitable operations and growth. He is considering selling his company and has talked with Cemex about being acquired. The case allows students to analyze the strategic rationale for an acquisition of Southdown by Cemex, and has information to allow students to probe questions of strategic fit and value.

Teaching Note: 8B03M13 (8 pages)
Industry: Manufacturing
Issues: Developing Countries; International Business; Anti-Dumping Action; Acquisitions; Northeastern
Difficulty: 4 - Undergraduate/MBA



CITIGROUP IN POST-WTO CHINA (B)
David W. Conklin, Danielle Cadieux

Product Number: 9B06M043
Publication Date: 3/17/2006
Revision Date: 9/21/2009
Length: 4 pages

Citigroup had become too complex for investors to understand, and so share values stagnated. Furthermore, over the period 2000 to 2005, many divisions within Citigroup were charged with illegal or unethical behavior. It seemed that Citigroup had simply become too large and complex for central management to prevent inappropriate decisions on the part of various groups scattered throughout the world. It appeared that Citigroup needed a new corporate culture to guide globally decentralized decision-making. Meanwhile, Citigroup undertook a substantial expansion in China. However, many other giant financial institutions were also expanding in China, intensifying competition. By 2006, analysts throughout the world were becoming increasingly concerned about the possibility of rapid inflation in China, and the government of China shared this concern.

Teaching Note: 8B06M43 (5 pages)
Industry: Finance and Insurance
Issues: China; Financial Institutions; International Business; Globalization
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



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

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

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

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



H&R SEWING MACHINE COMPANY
Stephen Hummel, Kenneth Harling

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

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

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



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

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

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

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


Chapter 7:
Foreign Direct Investment

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



UTV AND DISNEY: A STRATEGIC ALLIANCE (A)
Atanu Adhikari, Rama Deshmukh

Product Number: 9B10M043
Publication Date: 8/16/2010
Revision Date: 3/13/2013
Length: 20 pages

In 2006, the senior vice-president of business development and strategy has to decide whether UTV Software Communications Ltd. (UTV) should go ahead with a joint venture with Walt Disney Company (Disney) even if it means selling Hungama TV, the leading children's channel in India, to Disney. UTV was a large media company in India and had diversified interests, including TV content, movies, animation and new media content. Although UTV had opened operations in the United States, the United Kingdom and other countries two years before, its international presence was limited. The CEO of UTV wanted UTV's business to increase from Rs2 billion to Rs5 billion by 2008 and to Rs10 billion by 2010. This seemed possible if UTV went ahead with a strategic alliance with Disney. UTV anticipated that an alliance with Disney in India would help it increase its business in all other verticals globally. On the other hand, Disney had a track record of acquisitions. The vice-president of UTV was concerned that Disney's interest in a strategic alliance could be part of a long-term plan to acquire the company. Since UTV had established itself in the Indian media industry over the last 15 years, it could collaborate with different companies through its various verticals, thereby reducing the threat of losing its identity.



Teaching Note: 8B10M43 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Stakeholders; Opportunity Recognition; Strategy Development; Strategic Alliances; Mergers & Acquisitions; Integration; Expansion
Difficulty: 5 - MBA/Postgraduate



GM: THE OPEL DECISION
Darren Meister, Ramasastry Chandrasekhar

Product Number: 9B10M022
Publication Date: 3/8/2010
Revision Date: 3/22/2010
Length: 19 pages

In July 2009, General Motors Company (GM),the world's second largest automotive enterprise, has come out of a bankruptcy orchestrated by the U.S. federal government. Leaner and focused after a 40-day exercise, GM is still a long way from a full-fledged financial recovery. The company is under a mandate to concentrate first on its U.S. market. Its European subsidiary, which manufactures the Opel cars, has been struggling for nearly a decade. The business seems fundamentally sound. Opel requires capital infusion and managerial skills for which GM has been talking to potential investors, such as Fiat of Italy, BAIC of China, Magna of Canada and RHJI of Belgium. The board of GM has to decide whether GM should liquidate Opel, retain it within its fold or go for partial divestiture. In the event of a sale of stake, the board has to decide whom, from among those short-listed by the chief executive officer and his team, it should bring aboard. The case provides an opportunity for students to use available data and their judgment to choose a bidder who can drive shareholder value. It helps them deal with issues such as timing and biases in a typical retain/liquidate/divest decision and also whether a company should have, on the lines of a more common M&A strategy, an ongoing divestiture strategy.

Teaching Note: 8B10M22 (6 pages)
Industry: Manufacturing
Issues: Portfolio Analysis; Strategic Management; International Business; Divestitures
Difficulty: 4 - Undergraduate/MBA



ALCAN (A): ANTICIPATING INDUSTRY CHANGE
Gregory Vit, Johnny Boghossian, Amrita Nain, Karl Moore

Product Number: 9B09M071
Publication Date: 12/8/2009
Length: 18 pages

In December 2006, Alcan was the second largest producer of aluminum in the world, but the industry was consolidating. The case traces the development of the aluminum industry since World War II to the recent emergence of China as an economic power and the accompanying rise in commodity prices. Alcan had to decide between two offers: to be acquired or to go it alone. The first offer was from Alcoa and the other from Rio Tinto. Alcoa was the world leader in the production of aluminum and, like Alcan, was engaged in significant technological research and development. Meanwhile, Rio Tinto was one of the largest mining companies in the world, but had minor aluminum operations and, in general, few downstream processing plants or technologies. Students are asked to identify Alcan's key resources and consider which strategy would make best use of them.

Teaching Note: 8B09M71 (6 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Government and Business; Strategy and Resources; Globalization; Mergers & Acquisitions
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



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

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

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

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



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

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

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

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


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


Chapter 8:
Regional Economic Integration

ARE WE READY FOR AN AUTOMOTIVE PLANT?
Yi-Chia Wu, Joo Y. Jung

Product Number: 9B09D014
Publication Date: 2/5/2010
Length: 15 pages

The city of McAllen, Texas and its partners have worked on attracting an automotive assembly plant to the region for over fifteen years. Under the North American Free Trade Agreement (NAFTA) provision, this region enjoys the advantages offered by both sides of the Mexican-U.S. border. Even during the economic downturn of 2007 to 2008, McAllen experienced a lower unemployment rate compared to other cities in the United States. One of the primary reasons was its close proximity and economic ties to Mexico. Lower labour cost, a right-to-work state and proximity to Mexico were some of this region's strengths, while a high illiteracy rate, limited numbers of automotive suppliers and small workforce were among its weaknesses. Based on publicly available data and aggregate score evaluation methods, McAllen is compared to other potential sites. The case addresses a wide range of issue regarding site selection factors within the automotive industry. Teaching objectives include: 1) to examine essential factors for site location of different industries, including the automotive industry 2) to evaluate the potential sites based on a quantitative method, such as the relative aggregate score 3) to understand other qualitative factors that can affect the decision. The case is suitable for courses and workshops concerning operations management, supply chain management, production management, project management, decision science and management science. Exhibits can be omitted for graduate and executive levels, requiring the students to research and come up with their own factors.

Teaching Note: 8B09D14 (6 pages)
Industry: Manufacturing
Issues: Automotive; Site Selection; Global Strategy; Decision Making
Difficulty: 4 - Undergraduate/MBA



AIG AND CHINA'S ACCESSION TO THE WTO
Jean-Philippe Bonardi, Tony S. Frost

Product Number: 9B02M021
Publication Date: 10/29/2002
Revision Date: 12/3/2009
Length: 5 pages

AIG is an American insurance company. A trade dispute between the United States and the European Union threatens to block the accession of China to the World Trade Organization, and AIG plays a role - it is the only foreign firm to own fully-controlled subsidiaries in China. The disagreement concerns what will happen to these existing subsidiaries, as well as potential new ones that AIG might seek to establish in China in the future. What are the issues from the perspective of each of the stakeholders and what options are available that will resolve this dispute?

Teaching Note: 8B02M21 (12 pages)
Industry: Finance and Insurance
Issues: China; International Management; Trade Agreements; Political Environment
Difficulty: 4 - Undergraduate/MBA



ING AND GLOBAL FINANCIAL INTEGRATION (B)
David W. Conklin, Danielle Cadieux

Product Number: 9B08M027
Publication Date: 4/1/2008
Length: 3 pages

Global financial markets had changed dramatically in the decade following the ING (A) case, product # 9A99M022. This (B) case points to the nature of these changes, creating an opportunity for students to discuss them. Meanwhile, ING had also altered its global strategy, eliminating its attempts to create a global investment bank, and focusing its activities on specific financial sectors, each of which reported directly to head office. This new structure enabled ING head office to maintain closer control over its numerous local institutions. Students can analyze alternative potential strategies for ING in the context of the major financial changes. The (B) case presents summaries of: the 2007-08 global financial crisis; the attempts, like Basel II, to establish global reserve requirements; the economic prospects of the European Union and emerging markets; and ING Direct's success in e-banking.

Teaching Note: 8B08M27 (2 pages)
Issues: Financial Institutions; Globalization; Government Regulation
Difficulty: 5 - MBA/Postgraduate


Chapter 9:
The Foreign Exchange Market

PIXONIX INC. - ADDRESSING CURRENCY EXPOSURE
Colette Southam, Karim Moolani

Product Number: 9B08N013
Publication Date: 6/30/2008
Length: 4 pages

The chief financial officer of Pixonix Inc. is trying to decide if she should hedge, given the current strength of the Canadian dollar. Her company licenses proprietary software through a U.S. company that will cost $7.5 million in three months time. The case provides the students with the opportunity to understand the impact of exchange rate fluctuations on her firm's cash flows and some of the instruments available to manage risk, including puts and calls and forward contracts.

Teaching Note: 8B08N13 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Hedging; Foreign Exchange
Difficulty: 2 - Intro/Undergraduate



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

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

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

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


Chapter 10:
The International Monetary System

THAILAND, 1997
David M. Currie

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

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

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



CHAUVCO RESOURCES LTD: THE ARGENTINA DECISIONS (B)
David W. Conklin, Danielle Cadieux

Product Number: 9B06M024
Publication Date: 2/6/2006
Revision Date: 9/21/2009
Length: 5 pages

Argentina's fiscal deficit rose suddenly and substantially after 1995. This increase in deficits caused an increase in Argentina's debt. Argentina's problem was that it did not generate enough foreign exchange through exporting or through foreign investment in Argentina to cover its debt service payments in U.S. dollars. In order to prevent a run on its currency, the government of Argentina raised interest rates, but this caused high unemployment and business losses. In 2001, a foreign exchange panic did develop, and the peso fell by two-thirds vis-a-vis the dollar. Argentina was no longer able to service its debt, resulting in a debt default. This drastic action of devaluing the peso and defaulting on debt lead to economic recovery. However, by 2005, inflation had climbed once more. Perhaps the inflation/devaluation cycle was about to reappear. Meanwhile, external debt was still very high. Perhaps Argentina would have to default once again. Argentina's president rejected IMF policy recommendations, and he pointed to the IMF as the cause of the 2001-2002 recession. Instead, he relied on price controls and borrowed from Hugo Chavez in Venezuela.

Teaching Note: 8B06M24 (3 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Business Policy; International Business; Government and Business
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



INTERNATIONAL MONETARY FUND
David M. Currie

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

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

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


Chapter 11:
The Global Capital Market

EAST CAMERON PARTNERS: THE SUKUK BOND
Stephen Sapp, Brooke Harley

Product Number: 9B10N014
Publication Date: 8/19/2010
Length: 9 pages

The chief executive officer (CEO) of East Cameron Partners LP, is interested in raising capital to buy out his existing 50 per cent partner thereby regaining control of the firm and enabling him to finance new growth. Because of the risky nature of the oil and gas business and relatively small size of East Cameron, the CEO has limited alternatives available to him. The case discusses the standard alternatives available to small and medium sized enterprises to raise capital but it also provides particular focus on a new alternative, a Sukuk Bond.

Teaching Note: 8B10N14 (10 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Islamic Finance; Financial Instruments; Capital Markets; International Finance; Financial Strategy
Difficulty: 4 - Undergraduate/MBA



TATA STEEL LIMITED: CONVERTIBLE ALTERNATIVE REFERENCE SECURITIES (A)
Vasant Sivaraman, Adithya Anand

Product Number: 9B08N001
Publication Date: 4/1/2008
Revision Date: 1/12/2011
Length: 17 pages

Shortly after the acquisition of Corus in 2007, Tata Steel Limited entered the international markets with a convertible bond offering (CARS) that had distinct features. The offering of US$875 million was the first of its kind from India. The successful issuance reflected investor confidence in the country and the company. This case covers a full analysis of the CARS with a scope that spans valuation, structuring of the financing instrument to suit the issuer's strategic imperatives and investment analysis.

Teaching Note: 8B08N01 (12 pages)
Industry: Manufacturing
Issues: Conversion Option; Differential Shares; Depositary Receipts; Convertible Bonds
Difficulty: 4 - Undergraduate/MBA


Chapter 12 & :
The Strategy of International Business, & The Organization of International Business

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



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

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

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

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



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



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 14:
Entry Strategy and Strategic Alliances

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



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



NOTE ON INTERNATIONAL LICENSING
Paul W. Beamish

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

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

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



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 15:
Exporting, Importing, and Countertrade

AFRICAN TIGER (A)
Rajinder Raina

Product Number: 9B10M009
Publication Date: 4/21/2010
Length: 26 pages

AWARD WINNING CASE - This case series won top prize in the 2010 Association of African Business Schools (AABS)/EMERALD case competition. In early 2005, South African company Tiger Wheels Limited (Tiger) had established a global footprint in the manufacture of aluminum alloy wheels with customers comprising several high-end automotive producers. It was the 10th largest alloy wheel company in the world with a solid balance sheet and net current assets of $42 million. Tiger had a chance to expand and grow with the potential purchase of a new world-class alloy wheel facility in Kentucky, United States for half of its estimated value. The Kentucky plant came with a significant long-term Ford contract to supply aluminum wheels at attractive prices. To Tiger's chairman, it seemed an attractive offer, but the pros and cons of purchasing the plant would have to be carefully evaluated by the board of directors. An African Tiger Case A is a part of An African Tiger case series, which includes A and B cases.

Teaching Note: 8B10M09 (34 pages)
Industry: Manufacturing
Issues: International Strategy; Global Strategy; Strategic Scope; Core Competence; Developing Countries; Planning; Growth Strategy; Diversification; Corporate Strategy; GIBS
Difficulty: 5 - MBA/Postgraduate



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

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

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

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



EXPORTING TO GHANA
David J. Sharp, Ken Mark

Product Number: 9B05B006
Publication Date: 1/31/2005
Revision Date: 9/24/2009
Length: 4 pages

A loan assessment officer at Export Development Canada is evaluating a proposed deal involving the export of refurbished machines used in the forestry industry. He must decide whether Export Development Corporation should extend loans to a foreign firm that is interested in purchasing from a Canadian supplier. Issues include international business risk and the role of an export development agency in facilitating a country's exports.

Teaching Note: 8B05B06 (4 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Uncertainty; Risk Analysis; Forestry; Exports
Difficulty: 4 - Undergraduate/MBA



PAN BORICUA: DEVELOPING A MARKET STRATEGY FOR THE HISPANIC MARKET IN THE UNITED STATES
Victor Quiñones, Julia Sagebien, Marisol Perez-Savelli, Eva Perez, Jennifer Catinchi

Product Number: 9B09A020
Publication Date: 8/27/2009
Length: 10 pages

Two inexperienced, but strongly committed, entrepreneurs face the hassles of a new venture: exporting dough from Puerto Rico to cities in the United States with large numbers of Puerto Rican immigrants who are longing nostalgically for their beloved pan sobao (bread made with vegetable shortening). With thousands of Puerto Ricans living in and/or moving to the United States and after several incidents of fraud by partners of the entrepreneurs, they are thinking about how to take advantage of what seems to be an opportunity for doing business outside their Caribbean home. These entrepreneurs are confronting several challenges: 1) Preparing to detect opportunities and to get personally involved in a demanding export business 2) Differentiating and positioning the brand in a crowded market. Is a nostalgic feeling enough of a motivator to engage customers with the brand? 3) Deciding whether institution is a substitute for market data and feasibility determination.

Teaching Note: 8B09A20 (7 pages)
Industry: Wholesale Trade
Issues: Hispanic; Minority; Market Adaptation; New Markets
Difficulty: 4 - Undergraduate/MBA



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


Chapter 16:
Global Production, Outsourcing, and Logistics

OPERATIONS STRATEGY AT GALANZ
Stephen (Chi Hung) Ng, Barbara Li, Xiande Zhao, Xuejun Xu, Yang Lei

Product Number: 9B10D005
Publication Date: 8/20/2010
Revision Date: 5/4/2017
Length: 17 pages

Starting from a humble beginning of being a manufacturer of down feather products owned by Shunde Township, Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. This case describes the competitive and operational strategies that Galanz used to achieve such a meteoric growth. The company started out with a clear competitive strategy based on cost leadership. It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.

Teaching Note: 8B10D05 (14 pages)
Industry: Manufacturing
Issues: China; Competitive Strategy; Operations Strategy
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



HUXLEY MAQUILADORA
Paul W. Beamish, Jaechul Jung, Joyce Miller

Product Number: 9B02M033
Publication Date: 11/29/2002
Revision Date: 6/28/2011
Length: 14 pages

A senior manager in a U.S. manufacturing firm must make a recommendation about whether 57 labour intensive jobs should be moved from the existing California plant to a new facility in a Mexican maquiladora. If the Mexican opportunity is pursued, decisions are also required regarding the entry mode (subcontracting, shelter operator or wholly-owned subsidiary) and location (border or interior).

Teaching Note: 8B02M33 (7 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Plant Location; Third World; Subsidiaries
Difficulty: 4 - Undergraduate/MBA



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



PALLISER FURNITURE LTD.: THE CHINA QUESTION
Paul W. Beamish, Jing'an Tang

Product Number: 9B04M005
Publication Date: 3/4/2004
Revision Date: 11/18/2014
Length: 12 pages

Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?

Teaching Note: 8B04M05 (7 pages)
Industry: Manufacturing
Issues: China; Expansion; Imports; Outsourcing; Plant Location
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



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

Product Number: 9B08M048
Publication Date: 5/9/2008
Revision Date: 5/23/2017
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


Chapter 17:
Global Marketing and R&D

BEST BUY INC. - DUAL BRANDING IN CHINA
Niraj Dawar, Ramasastry Chandrasekhar

Product Number: 9B09A016
Publication Date: 6/26/2009
Revision Date: 5/11/2010
Length: 17 pages

A month after Best Buy Inc. (Best Buy), the largest retailer of consumer electronics in the United States, acquired Five Star, the third largest retailer of appliances and consumer electronics in China in May 2006, the management of Best Buy is weighing in on a branding option. Should Five Star lose its identity and be marketed as Best Buy? Or should Best Buy retain the Five Star brand and let the two brands compete with each other in the Chinese market? The option has a sense of déjà vu because, when it first stepped out of its home turf in January of 2002 by acquiring Future Shop, the largest consumer electronics retailer in Canada, Best Buy was facing a similar dilemma. The company had decided, at the time, in favour of dual brand strategy. It had worked. There was no evidence of cannibalization, the single largest risk in dual branding. Best Buy and Future Shop had both grown together as independent brands in Canada. But, does dual brand strategy work in the vastly different retail environment of China?

Teaching Note: 8B09A16 (9 pages)
Industry: Retail Trade
Issues: China; Brand Management; Retailing; International Business
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



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



TIME WARNER INC. AND THE ORC PATENTS
Paul W. Beamish, John Adamson

Product Number: 9B01M059
Publication Date: 1/29/2002
Revision Date: 8/28/2009
Length: 16 pages

Optical Recording Corporation (ORC) secured the rights to a technology known as digital optical audio recording. During the time it took to negotiate the final transfer of the technology ownership, it was rumored that some major electronics manufacturers were developing compact disc (CD) players that recorded digital optical audio signals. A patent lawyer advised ORC that the compact disc players and compact discs recently released by these companies might be infringing the claims of ORC's newly acquired patents. Based on this information, the company proceeded to successfully negotiate licensing agreements with the two largest CD manufacturers, Sony of Japan, and Philips of the Netherlands The third largest manufacturer, WEA Manufacturing, a subsidiary of Time Warner Inc., maintained a position of non-infringement and invalid patents. With the U.S. patent expiry date looming, ORC decided to sue Time Warner for patent infringement. When the defense counsel presented testimony that questioned the integrity of the licensing agreement, ORC's president realized that the entire licensing program was in jeopardy and must decide whether he should accept a settlement or proceed with the lawsuit.

Teaching Note: 8B01M59 (11 pages)
Industry: Manufacturing
Issues: Business Law; Intellectual Capital; Licensing; Patents
Difficulty: 4 - Undergraduate/MBA



MAKING WAVES IN RURAL KENYA
Sebastian Herrmann, Glenn Brophey, Denyse Lafrance-Horning

Product Number: 9B09A015
Publication Date: 8/27/2009
Length: 10 pages

The developers of a simple, inexpensive, locally produced rain water harvesting system tackle the social marketing issues in the undeveloped market of rural Kenya. The benefits of the product are obvious but the poverty levels and entrenched traditions create significant and unique marketing challenges.

Teaching Note: 8B09A15 (7 pages)
Industry: Social Advocacy Organizations
Issues: New Products; International Marketing; Market Entry; Marketing Communication; Marketing Channels; Marketing without Advertising; International Management; Decision Making
Difficulty: 4 - Undergraduate/MBA



CHERRIES WITH CHARM: TURKEY'S ALARA AGRI
Michael R. Pearce, Jordan Mitchell

Product Number: 9B09A019
Publication Date: 6/25/2009
Revision Date: 7/15/2009
Length: 20 pages

The chief executive officer (CEO) and owner of Alara Agri, a major Turkish cherry and fig producer, wants to convince retailers in Belgium and Germany (and, later, other parts of Europe) to change cherries from a bulk product to a higher-end luxury product packaged in small carry bags. The move from bulk to small packages has been highly successful in the United Kingdom where retailers reduced waste and increased margins. The German and Belgian retailers are resisting the change, claiming greater price sensitivity in their consumer base. The CEO thinks he needs a detailed test marketing plan to offer to selected retailers.

Teaching Note: 8B09A19 (13 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Consumer Marketing; Agriculture; Test Marketing; Market Analysis; International Marketing
Difficulty: 4 - Undergraduate/MBA



MARKET STRETCH
Gavin Price, Margaret Sutherland

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

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

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



LOUIS VUITTON IN INDIA
Shih-Fen Chen, Ramasastry Chandrasekhar

Product Number: 9B08A020
Publication Date: 12/23/2008
Length: 16 pages

The case portrays a subtle situation in international marketing -- the marketing of a high-end brand into a low-income nation, or the expansion of Louis Vuitton into India. This luxury good marketer faced practical problems in India, such as the challenge of identifying potential customers, the lack of media to build its brand, and the absence of high streets to open stores. In Europe and the U.S., luxury goods are often sold through company-owned stores that cluster in a particular area of the city (i.e., luxury retail cluster). After opening a store each in New Delhi and Mumbai inside two luxury hotels, Louis Vuitton teamed up with other western brands to develop a shopping mall. The case is designed to explore the possibility of using a luxury mall as a replacement of luxury retail clusters.

Teaching Note: 8B08A20 (9 pages)
Industry: Retail Trade
Issues: International Marketing; Store Formats; Retail Marketing; Marketing Channels
Difficulty: 4 - Undergraduate/MBA


Chapter 18:
Global Human Resource Management

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



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

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

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

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



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

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

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

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



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



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

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

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

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



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

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

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

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



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



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

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

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

Teaching Note: 8B07C40 (16 pages)
Industry: Finance and Insurance
Issues: International Management; Expatriate Management; Trade Unions; Management Training; Emerging Markets; Performance Evaluation; Recruiting; Subsidiaries; Career Development; Employee Selection
Difficulty: 4 - Undergraduate/MBA


Chapter 19:
Accounting in the International Business

CIBC-BARCLAYS: ACCOUNTING FOR THEIR MERGER
Archibald Campbell, Noel Reynolds

Product Number: 9B04B022
Publication Date: 3/7/2005
Revision Date: 10/8/2009
Length: 12 pages

The Canadian Imperial Bank of Commerce (CIBC) and Barclays Bank PLC have signed an agreement to combine their retail, corporate and offshore banking operations in the Caribbean to create FirstCaribbean International Bank. In principle, it appeared that both parties were agreeing to a combination of their assets to form a new entity, in which case a new holding company could be constituted to absorb the assets being merged. Alternately, as Barclays interest in the merger was substantially greater than that of CIBC, the transaction could be construed as an outright purchase of the CIBC interests by Barclays. The problem with this second approach, however, was that Barclays Caribbean presently had no separate legal form in the region. This case illustrates the procedures for accounting for mergers and acquisition, and lends itself to discussion on a myriad of issues and concepts. This case may be taught on a stand alone basis or in combination with any of the four additional cases which deal with various functional issues regarding the actual merger/integration which occurred. The four additional cases are Harmonization of Compensation and Benefits for FirstCaribbean Bank, product 9B04C053; Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032; CIBC-Barclays: Should Their Caribbean Operations be Merged?, product 9B04M067; and Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04B22 (10 pages)
Industry: Finance and Insurance
Issues: Accounting - Tax; Accounting - Transactions; Mergers & Acquisitions; Integration; University of West Indies
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



FORTUNE MOTORS (TAIWAN): IMPLEMENTING STRATEGY CHANGE USING THE BALANCED SCORECARD (A)
David J. Sharp, Anne Wu

Product Number: 9B08M060
Publication Date: 8/14/2008
Length: 5 pages

The chief executive officer (CEO) of Fortune Motors, the largest Mitsubishi dealership in Taiwan, has to consider his vision for the survival of the company. Fortune Motors' sales in 2003 had fallen below 50,000 units for the first time in 10 years, and market share had been falling for several years. The CEO had a plan to enter the business of financing used-car purchases. He thought that the balanced scorecard would be a useful tool to help him implement this change. The first step was to construct a corporate scorecard.

Teaching Note: 8B08M060 (4 pages)
Industry: Retail Trade
Issues: Strategy Implementation; Balanced Scorecard; Performance Management; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA


Chapter 20:
Financial Management in the International Business

INTRODUCTION TO CREDIT DEFAULT SWAPS
Walid Busaba, Zeigham Khokher, Muhammad Fuad Farooqi

Product Number: 9B10N027
Publication Date: 9/24/2010
Length: 9 pages

Credit Default Swaps (CDS) are derivative instruments that allow investors protection against credit events such as downgrades of or defaults by single-name or a basket of obligors. Estimated by the Band of International Settlements to be at $32.6 trillion in December 2009, these instruments represent one of the largest and fastest growing financial product markets globally. This note is intended to introduce students to CDS, the pricing basics as well as the role in the 2008 subprime crisis.

Teaching Note: 8B10N27 (5 pages)
Industry: Finance and Insurance
Issues: Derivatives
Difficulty: 4 - Undergraduate/MBA



ALCAN (B): REACTING TO THE ALCOA OFFER
Johnny Boghossian, Karl Moore, Amrita Nain, Gregory Vit

Product Number: 9B09N024
Publication Date: 12/8/2009
Length: 12 pages

In May 2007, aluminum giant Alcoa announced its intentions to perform a hostile takeover of Alcan. Case B is set at this point and before Rio Tinto was in a position to announce its own offer. Students are asked to perform valuations of Alcan to determine the premium offered by Alcoa, consider the strategies Alcan can employ, and supply the suggestions Alcan managers should provide shareholders.

Teaching Note: 8B09N24 (6 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Strategy and Resources; Globalization; Mergers & Acquisitions; Government and Business
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



CASH TECHNOLOGY LIMITED: A CHINESE IPO IN SINGAPORE
Larry Wynant, Nigel Goodwin

Product Number: 9B06N006
Publication Date: 1/13/2006
Revision Date: 8/2/2011
Length: 19 pages

Cash Technology Limited is a Xiamen-based manufacturer of self-service banking machines, touchscreens and related software. The company was set to issue its initial public offering on the Singapore Exchange. The proceeds from the IPO would help the mid-sized, entrepreneurial and private company secure its position in the burgeoning Chinese market for automated teller machines and related equipment. With six weeks left before the IPO, the chief executive officer and chief financial officer attempted to value their company by various methods and assess the reasonableness of the offering price proposed by the IPO manager. The case challenges students to examine the attractiveness and value of a business from the perspective of the issuer and potential investors, and can also provide the opportunity for students to develop a strategy for communicating with institutional investors.

Teaching Note: 8B06N06 (19 pages)
Industry: Manufacturing
Issues: China; Financial Analysis; Initial Public Offerings; Cost of Capital; Valuation; Nanyang
Difficulty: 4 - Undergraduate/MBA



CLEARWATER SEAFOODS
Stephen Sapp, Ramasastry Chandrasekhar

Product Number: 9B07N004
Publication Date: 6/4/2007
Revision Date: 6/4/2007
Length: 17 pages

Clearwater Seafoods (Clearwater) is a seafood company located on the east coast of Canada. It is an income trust with operations around the world. As a result of the increasing value of the Canadian dollar relative to other currencies around the world, Clearwater has recently ceased paying its distributions. The case considers the decision faced by the chief financial officer to determine the strategy the firm should take to enable it to reinstate its distributions. This involves the choice between different financial and operational means to hedge the foreign exchange risk which brought the firm into its current situation.

Teaching Note: 8B07N04 (9 pages)
Industry: Manufacturing
Issues: Foreign Exchange; Options; Capital Markets; Risk Management
Difficulty: 4 - Undergraduate/MBA