Ivey Publishing

Business and its Environment

Baron, D.,6/e (United States, Pearson, 2010)
Prepared By Mehdi H. Nejad, Ph.D. Student (Strategy)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Market and Nonmarket Environments

FARMING PHARMACEUTICALS: VENTRIA BIOSCIENCE AND THE CONTROVERSY OVER PLANT-MADE MEDICINES
Anne T. Lawrence

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

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

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



GENERAL MOTORS: ACTING STRATEGICALLY?
David W. Conklin, Danielle Cadieux

Product Number: 9B05M059
Publication Date: 10/21/2005
Revision Date: 10/3/2009
Length: 18 pages

General Motors (GM) had a history of bold strategies in a wide variety of areas, including the creation of Saturn, the development of global operations and the formation of strategic alliances with Fiat, SAIC and Daewoo. Non-market strategies included pursuing government financial assistance, coping with new environmental regulations, and agreeing to very expensive health care and pension schemes. Meanwhile, GM had failed to create strategies to compete effectively with foreign automakers. By 2005, many of GM's strategic decisions seemed to have been inappropriate. Some that were undertaken for short-term gain had disastrous long-term consequences, and GM performed poorly compared with other global automakers. Many strategies had seemed disconnected, lacking an overall vision or purpose. While students may discuss each strategic decision and understand why GM acted as it did, nevertheless, students can see that the compendium of strategic decisions had moved GM into a serious crisis. In 2005-2006, GM introduced several new strategies. Whether these strategies could achieve sustainable profitability,or whether they would also bring undesirable consequences, was a subject of importance to employees, shareholders, and governments throughout the world.

Teaching Note: 8B05M59 (5 pages)
Industry: Manufacturing
Issues: Globalization; International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA



PORTER AIRLINES: A POLITICAL FIGHT FOR FLIGHT
Guy L.F. Holburn, Michael Deluce

Product Number: 9B09M025
Publication Date: 5/11/2009
Revision Date: 5/14/2010
Length: 15 pages

The case describes the political, regulatory and stakeholder challenges confronting the founder of Porter Airlines, located in Toronto, Ontario, during the 2002/03 period when he was seeking formal permits to launch the airline from Toronto City Centre airport. The case also includes information on the market opportunity for a new airline, enabling students to assess a) the business case for new entry into a hyper-competitive industry, b) the appropriate competitive strategies for successful performance and c) the political or non market strategies for managing stakeholder and political opposition.

Industry: Transportation and Warehousing
Issues: Political Environment; Market Entry; Entrepreneurial Business Growth; Government and Business
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Integrated Strategy

NEW BALANCE: DEVELOPING AN INTEGRATED CSR STRATEGY
Vesela Veleva

Product Number: 9B10M011
Publication Date: 1/28/2010
Length: 21 pages

This case focuses on New Balance, a privately held company and the fourth largest athletic footwear manufacturer in the world. Founded over 100 years ago, New Balance has a strong social responsibility culture and mission established by its owners. Its commitment to employees, for example, was expressed through maintaining domestic manufacturing in the United States (the only large footwear manufacturer to do so presently) and avoiding layoffs in the deep recession of 2007-2009. In the late 1990s, the company established the Responsible Leadership Steering Committee to address human rights issues in overseas factories. Throughout the years, private ownership had allowed New Balance to take risks and make choices that publicly held companies might not have been able to do; at the same time, private ownership also meant lower pressures to disclose social and environmental performance. The owners were also very humble and hesitant to talk aloud about social responsibility. As a global player, the present challenge for the company has become to move corporate social responsibility (CSR) to the next level from doing what's right to fully integrating CSR into the business strategy. The overall goal of the case is to use the provided information from a comprehensive company assessment to identify a few key areas where New Balance can focus on and demonstrate industry leadership while also supporting the bottom line. A set of key questions is included at the end of the paper to guide student's discussion around critical issues for building an integrated CSR strategy for New Balance, considering its culture, structure and present level of corporate citizenship management.

Teaching Note: 8B10M11 (8 pages)
Industry: Manufacturing
Issues: Corporate Social Responsibility; Strategy Development; Business Sustainability; Performance Assessment
Difficulty: 4 - Undergraduate/MBA



GVM EXPLORATION LIMITED
Michael J. Rouse, Guo-Liang Frank Jiang

Product Number: 9B07M007
Publication Date: 12/15/2006
Length: 10 pages

GVM Exploration Limited's (GVM) $2 million environmental assessment project at Grizzly Valley was disrupted by a road blockade set up by a small group of local First Nation people. How GVM handled this situation would not only affect the progress of the Grizzly Valley project but also other ongoing projects. The case challenges students to address an emergent situation. Students will need to think through the short-term and long-term implications of the potential project delay or legal actions. They must assess the issues, alternatives, and decision criteria before selecting the actions to be recommended. The case introduces stakeholder management and corporate social responsibility (CSR). However, the case provides a fairly inclusive scenario where a stakeholder or CSR perspective alone does not dictate strategic directions. Students will need to take into account both stakeholder and business imperatives.

Teaching Note: 8B07M07 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Resource Allocation; Stakeholder Analysis; Growth; Ethical Issues
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
The News Media and Nonmarket Issues

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



NIKE INC.: DEVELOPING AN EFFECTIVE PUBLIC RELATIONS STRATEGY
Kathleen E. Slaughter, Donna Everatt

Product Number: 9A99C034
Publication Date: 5/29/2000
Revision Date: 1/14/2010
Length: 20 pages

It had been almost a decade since the first article surfaced in the media alleging that factories sub-contracted by Nike in China and Indonesia were forcing workers to work long hours for low pay, and for physically and verbally abusive managers. The article was the seed of a media campaign that created a public relations nightmare for the company. A financial crisis in Asia and intense competition in the domestic market contributed to a decline in Nike's revenue and market share after three years of record performance. Though no direct correlation could be proven between the consumer's negative perceptions of Nike and the company's decline in market share and stock, it certainly did not help in their efforts to establish themselves as the global leader in a hotly competitive industry. A linear overview of the adverse publicity that Nike received, and the perspectives of Nike senior management, demonstrates to students the importance and elements of the timely development of an effective media and consumer relations campaign.

Teaching Note: 8A99C34 (14 pages)
Industry: Manufacturing
Issues: China; Public Relations; Consumer Relations; Management Philosophy; Corporate Responsibility
Difficulty: 4 - Undergraduate/MBA



WHAT ARE WE POURING IN OUR MORNING CEREAL? (A)
Gerard Seijts, Dan Crim

Product Number: 9B05C028
Publication Date: 10/13/2005
Length: 10 pages

A husband and wife investigative reporting team had created a four-part TV series on a genetically modified bovine growth hormone produced by a large biotech company. The hormone was injected into dairy cows to increase milk yields. The TV series raised concerns about the health effects of the hormone on humans who consumed the milk. Shortly before the series was to air, an attorney for the biotech company contacted the TV network and demanded that the script for the series be altered. The investigative reporters has to decide options they have. The supplement, What Are We Pouring In Our Morning Cereal? (B), product 9B05C029, discusses the aftermath of their decision.

Teaching Note: 8B05C28 (6 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Product Safety; Whistleblower; Leadership; Ethical Issues; Accountability
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Private Politics

RBC - FINANCING OIL SANDS (A)
Michael Sider, Jana Seijts, Ramasastry Chandrasekhar

Product Number: 9B10M015
Publication Date: 1/27/2010
Revision Date: 4/27/2010
Length: 16 pages

Under pressure from the Rainforest Action Network to make their lending policies more sustainable, executives at the Royal Bank of Canada who deal with issues of corporate citizenship and sustainability must decide whether to continue financing companies involved in extracting oil from the tar sands of Alberta, Canada. The case asks students to consider the following questions: 1) Should banks lend to any business or industry the government deems to be sustainable? 2) What are the risks of lending to businesses some stakeholders deem unsustainable? 3) How should banks respond when pressured by an interest group? 4) How does a bank decide what is sustainable lending practice? The supplement B case RBC-Financing Oil Sands (B), product number 9B10M016, is also available.

Teaching Note: 8B10M15 (7 pages)
Industry: Finance and Insurance
Issues: Sustainable Development; Environment
Difficulty: 5 - MBA/Postgraduate



RBC - FINANCING OIL SANDS (B)
Michael Sider, Jana Seijts, Ramasastry Chandrasekhar

Product Number: 9B10M016
Publication Date: 1/27/2010
Length: 5 pages

Under pressure from the Rainforest Action Network to make their lending policies more sustainable, executives at the Royal Bank of Canada who deal with issues of corporate citizenship and sustainability must decide whether to continue financing companies involved in extracting oil from the tar sands of Alberta, Canada. The case asks students to consider the following questions: 1) Should banks lend to any business or industry the government deems to be sustainable? 2) What are the risks of lending to businesses some stakeholders deem unsustainable? 3) How should banks respond when pressured by an interest group? 4) How does a bank decide what is sustainable lending practice? This is a supplement to RBC-Financing Oil Sands (A), product number 9B10M015.

Teaching Note: 8B10M15 (7 pages)
Industry: Finance and Insurance
Issues: Sustainable Development; Environment
Difficulty: 5 - MBA/Postgraduate



KILLER COKE: THE CAMPAIGN AGAINST COCA-COLA
Henry W. Lane, David T.A. Wesley

Product Number: 9B07C003
Publication Date: 1/31/2007
Revision Date: 2/24/2010
Length: 23 pages

The CEO of Coca-Cola is faced with increasing criticism over the company's handling of alleged human rights abuses in Colombia. A grass roots protest movement known as The Campaign to Stop Killer Coke has built international support for a boycott of Coca-Cola products on college campuses. The campaign centers specifically on the intimidation and murder of union leaders at a specific Coca-Cola bottling plant in Colombia. Coca-Cola asserted that it was not responsible for such abuses. Rather, the violence at the Coca-Cola plant was the product of a political situation that was beyond the company's control. The company further argued that it was in compliance with local labor laws, and had been dismissed as the defendant in lawsuits filed in Colombia and U.S. courts. At the time of the case, Coca-Cola is faced with anti-Coke campaigns at more than 100 college campuses worldwide and official boycotts of its products at a number of large well-known campuses in the United States. In response, the company has undertaken an audit of its bottling plants in Colombia. It also launched a public relations campaign aimed at refuting accusations of human rights violations. The case can be used to discuss corporate ethics, extraterritoriality, marketing and public relations.

Teaching Note: 8B07C03 (11 pages)
Industry: Manufacturing
Issues: Trade Unions; Ethical Issues; Emerging Markets; Supplier Selection; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Crisis Management

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



MATTEL AND THE TOY RECALLS (B)
Hari Bapuji, Paul W. Beamish

Product Number: 9B08M011
Publication Date: 2/25/2008
Revision Date: 9/15/2014
Length: 9 pages

This case, which outlines the product recall, is a supplement to Mattel and the Toy Recalls (A).

Teaching Note: 8B08M11 (16 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Offshoring; Outsourcing; Product Quality; Product Recall; Multinational Enterprise Stakeholders; the United States and China
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Nonmarket Analysis for Business

TEMBEC INC. (A): CREATING VALUE BY MANAGING STAKEHOLDER TENSION
Pratima Bansal, Tom Ewart

Product Number: 9B05M051
Publication Date: 9/22/2005
Revision Date: 10/1/2009
Length: 14 pages

AWARD WINNING CASE - This case won the 2007 Oikos Sustainability Case Writing Competition. Throughout the 1990s there was increasing competition for Ontario's forest land. The forest industry, including Tembec Inc., demanded from the Ontario government more certainty in the lands available to them. To reach a consensus on strategic land use, the government launched Lands for Life process and undertook extensive public consultations. Unfortunately the consultation process resulted in a polarization of stakeholders, and the 242 controversial recommendations threatened to spark a war in the woods, primarily between the forestry industry and environmentalists. Tembec's chief executive office foresaw this conflict and was determined to take a different course of action that would bring a real solution that would meet both the objectives of the forestry industry and environmentalists. He was cognizant that losing access to timber would have a devastating effect on his company, but confident that a consensus could be reach if a rational approach were followed. Students will learn to recognize the long-term opportunity associated with sustainability, and the short-term risks associated with ignoring it, to illustrate the opportunity for stakeholder consultation and partnerships, and to introduce the best practices on stakeholder collaboration and innovative problem solving. The supplement Tembec Inc. (B), product 9B05M052, presents the situation in 2005.

Teaching Note: 8B05M51 (24 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Negotiation; Human Resources Management; Stakeholder Analysis; Environmental Business Management
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


Chapter 7:
Nonmarket Strategies for Government Arenas

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



VIC YOUNG AND FISHERY PRODUCTS INTERNATIONAL (B): WINDS OF CHANGE
John Melnyk, W. Glenn Rowe, Tami Hynes

Product Number: 9B04M003
Publication Date: 1/14/2004
Revision Date: 10/8/2009
Length: 22 pages

This case follows the Vic Young and Fishery Products International (A), product 9B03M011, but can be used without it. It focuses on a contest for control of Fishery Products International Ltd. leading up to the company's annual general meeting on May 1, 2001. The owner of a Nova-Scotia-based competitor of Fishery Products International is the leading dissident shareholder. This proxy battle quickly becomes a matter of public and political debate, because Fishery Products International is economically and socially important to its home province, Newfoundland and Labrador. As such, it is subject to company-specific provincial legislation, the FPI Act, that is one of the bases for legal maneuvering in the contest for control. The supplement, Vic Young and Fishery Products International (C), product number 9B04M004, reports the proceedings and results of the annual general meeting.

Teaching Note: 8B04M03 (18 pages)
Industry: Manufacturing
Issues: Government and Business; Proxy Battle; Corporate Governance; Leadership
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Implementing Nonmarket Strategies in Government Arenas

ANCHOR INN BAR & GRILL - GOING SMOKE FREE
John S. Haywood-Farmer, Jenni Denniston

Product Number: 9B05C018
Publication Date: 8/2/2005
Revision Date: 9/28/2009
Length: 11 pages

The owners of a bar & grill located in a major tourist area must decide how to deal with the non-smoking bylaw that is being considered for the township it's located in. The bar & grill serves two different groups: a large number of tourists during the summer and local patrons who frequent the bar throughout the year. The owners are concerned how this bylaw will affect business during the slower winter months. The case allow students to produce a plan that deals with how to influence public-sector decision-makers, deal with multiple customer groups with the possibly conflicting interests, and motivating staff to implement a course of action with which they might not personally agree.

Teaching Note: 8B05C18 (7 pages)
Industry: Accommodation & Food Services
Issues: Lobbying; Motivation; Customer Relations; Government and Business
Difficulty: 1 - Introductory



RENT-TO-OWN INDUSTRY
Gerry Keim, Doug Schuler

Product Number: 9B01M046
Publication Date: 1/24/2002
Revision Date: 12/22/2009
Length: 11 pages

The rent-to-own industry is a four billion-dollar industry that rents appliances, furniture and electronic goods to customers. There is a potential threat to the rent-to-own industry as a result of an article in a national newspaper that accused the industry of taking advantage of poor consumers. Law makers and politicians were becoming active on the issue and the industry must formulate a response. Would the public really care enough about the rent-to-own industry for new laws to be passed that would change their operations? This case deals with the relationship between business, government and society and implications of public perception.

Teaching Note: 8B01M46 (5 pages)
Industry: Retail Trade
Issues: Government and Business; Ethical Issues
Difficulty: 4 - Undergraduate/MBA



PHARMAPLUS IN HUNGARY
David W. Conklin, Jeffrey Gandz, Trevor Hunter

Product Number: 9A98G002
Publication Date: 3/5/1998
Revision Date: 1/29/2010
Length: 20 pages

A Hungarian Pharmaceuticals producer/wholesaler is attempting to enter the retail drugstore industry, an industry that does not yet exist in Hungary. Hungary has strict laws defining what can be sold in a pharmacy and a druggery, (which are two separate entities), yet PharmaPlus, (no connection with the North American chain Pharma Plus Drugmart), is attempting to combine the two with its one existing store. Management of PharmaPlus are facing opposition from the regulatory body of pharmacists which has authority over a pharmacy's operations and the stakeholders in the current industry structure, despite having the support of the Minister of Health and strong evidence that the concept is popular with customers. The case deals with issues of lobbying the stakeholders who have power, finding a sustainable competitive advantage in a market that has never seen this type of business, the idea of a global concept of service, shaping an industry to one's own advantage, an industry of pure competition (many players), and potential international expansion and the impact of Hungary entering the EU.

Teaching Note: 8A98G02 (7 pages)
Industry: Retail Trade
Issues: New Enterprises; Uncertainty; Government Regulation; Lobbying
Difficulty: 4 - Undergraduate/MBA



ETHYL CORPORATION OF VIRGINIA: THE MMT BATTLE IN CANADA (A)
Tony S. Frost, Gerry Keim, David T.A. Wesley

Product Number: 9B02M048
Publication Date: 2/27/2003
Revision Date: 12/3/2009
Length: 5 pages

When its main products, gasoline lead additives, were banned in most developed countries, a U.S. company introduced an environmentally friendly, octane-boosting gasoline additive, methylcyclopentadienyl manganese tricarbonyl (MMT). The product was approved for use in Canada, but not sanctioned for use in Europe or the United States, due to health concerns. In response to public concerns about environmental hazards, the Canadian government introduced legislation that would ban both the import and transport of manganese-based substances, including MMT. Faced with the possibility of losing both its current Canadian market and the possibility of trade in other countries, the company considers a political strategy. Supplement to this case is Ethyl Corporation of Virginia: The MMT Battle in Canada (B), product number 9B02M049.

Industry: Manufacturing
Issues: Politics; Political Environment; Government Regulation; Trade Agreements
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Antitrust: Economics, Law, and Politics

BOWATER'S ACQUISITION OF ALLIANCE FOREST PRODUCTS: CONSOLIDATION IN THE FOREST PRODUCTS INDUSTRY
David W. Conklin, Danielle Cadieux

Product Number: 9B02M046
Publication Date: 2/6/2003
Revision Date: 12/3/2009
Length: 23 pages

The takeover of Alliance Forest Products by United States-based Bowater Inc. resulted in job loss for members of the Canadian board of directors and head office staff as well as loss of corporation shares from the Toronto Stock Exchange. Bowater's strategy to reduce costs and enhance productivity may result in additional Canadian job losses in the future. Corporations in the forest products industry are merging or acquiring companies to stay competitive. These mergers are a public policy concern for both Canada and the United States. The frequency and the size of the mergers raise concerns whether antitrust and competition policies should be used to restrain the price increases that the consolidation might entail.

Teaching Note: 8B02M46 (13 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Globalization; International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA



MICROSOFT CORPORATION: ANTITRUST SUITS
Christina A. Cavanagh, Ken Mark

Product Number: 9B01C040
Publication Date: 4/25/2002
Revision Date: 12/17/2010
Length: 6 pages

The Microsoft Corporation is one of the most successful software developers in the world. The company has been involved in an anti-trust suit with the U.S. Justice Department since the early 1990s and is about to launch the latest version of their combined personal computer operating and Internet browser software. The company, when faced with government intervention, must determine how to effectively rally support to fight the challenge and continue with normal business at the same time.

Teaching Note: 8B01C40 (4 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Relationship Management; Communications
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Regulation: Law, Economics, and Politics

COMPETITION AND CHANGE IN THE HONG KONG MOBILE TELECOM INDUSTRY
Tony S. Frost, Nigel Goodwin

Product Number: 9B05M044
Publication Date: 7/15/2005
Revision Date: 10/1/2009
Length: 12 pages

This note examines Hong Kong's deregulated telecommunications industry from both industry and public policy points of view in March 2005. In recent years, the industry had been viewed as a model of deregulation and free enterprise, offering high quality service to consumers at a low price. However, the industry conditions were exceedingly challenging for the operators. Cutthroat competition had resulted in low margins and a high degree of fragmentation. The operators faced new challenges in the form of disruptive technology, new market opportunities in mainland China and the possibility of new competition at home. This note allows students to examine the determinants of industry structure, the goals and mechanisms of industry regulation, and market and non-market strategies that firms may use to respond to market conditions.

Teaching Note: 8B05M44 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Managing Industry Change; Telecommunication Technology; Market Structure; Competition; Nanyang
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


Chapter 11:
Environmental Management and Sustainability

SCANDINAVIAN AIRLINES: THE GREEN ENGINE DECISION
Jennifer Lynes

Product Number: 9B09M028
Publication Date: 6/11/2009
Length: 11 pages

Scandinavian Airlines (SAS) is an innovator of strategic environmental management in the airline industry. Being a first-mover can have both its advantages and disadvantages. This case looks at the airline's decision of whether they should invest in the best available environmental technology for a fleet of new aircraft that would serve them for the next 25 years. While the technology for these low-emission engines had been around since the 1970s, it had never really been commercialized. SAS was feeling pressure from the regulatory authorities with regards to potential new charges and taxes that could affect the future operating costs of the fleet. Despite these anticipated future costs, at the time of the decision, the director of aircraft and engine analysis for SAS could not make an economic case for the more expensive engines. The challenge was for the fleet development team to try to convince the SAS management team to spend the extra kr5 million (Swedish Kronor) per aircraft for the dual combustor engine. Given that corporations are faced with increasing pressure with regards to greenhouse gas emissions and climate change, this case study presents an opportunity for discussion and analysis of various environmental concepts including strategic environmental management, adoption of best available environmental technologies, the role of internal environmental leadership in a large corporation and the effect of market-based mechanisms to improve a sector's environmental performance. The case illustrates the complexities of environmental decisions in striking a balance between meeting ambitious commitments and dealing with real capabilities of companies and external pressures.

Teaching Note: 8B09M28 (14 pages)
Issues: Corporate Culture; Management Decisions; Competitive Advantage; Environment
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



BP AND CORPORATE GREENWASH
Michael Sider

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

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

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


Chapter 12:
Law and Markets

ONLINE PIRACY: JAYWALKING OR THEFT?
Alex Beamish, Paul W. Beamish

Product Number: 9B09C018
Publication Date: 9/18/2009
Revision Date: 3/24/2010
Length: 8 pages

In September 2009, Brian Lee purchased a computer game developed by a major company and, like other customers, he was experiencing difficulty running it. The source of the problems was a highly restrictive system of digital rights management (DRM), which, while more or less universally disliked, was causing serious technical problems for a minority of users. Lee began to share his experience on the company's message board and was engaging in a debate about online piracy with a company representative. He was curious about piracy in the file-sharing age and wondered why it would be wrong to download a pirated version of the game with the DRM circumvented. The case deals with an issue which resonates with students. Although the context is simple, the problem is complex, thus giving instructors wide latitude on how to teach the case. It is suitable for modules or courses focused on ethics, service operations, intellectual property rights and information technology.

Teaching Note: 8B09C18 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Service Recovery; Intellectual Property; Internet; Ethical Issues
Difficulty: 4 - Undergraduate/MBA



PRC & PETER ROSS
Frederick Keenan, Peter Ross

Product Number: 9B09M029
Publication Date: 4/22/2009
Length: 5 pages

The multi-million dollar technology licensing agreement was in danger of falling apart. It was late September 2001; some months previously, The University of Western Ontario's (UWO's) Industry Liaison Office had signed a conditional agreement with a major pharmaceutical company operating throughout the People's Republic of China (PRC). The agreement permitted the company to utilize specific technology developed at UWO in health products to be marketed throughout the PRC. The agreement was conditional upon ratification being signed not later than October 31, 2001 - but, within that period, terrorists attacked the World Trade Center and the Pentagon. In the months immediately following September 11, 2001, the appetite of the PRC for buying Western technology had greatly diminished, and the PRC Ministry of Foreign Trade and Economic Development continued to delay ratification of the agreement. UWO's legal counsel, Peter Ross, was asked by his university to lay out the framework and possible alternative courses of action within which a decision could be made as to what the university could do in this situation. The learning objectives of the case are: 1) to become aware of the forms of intellectual property (IP) that can be involved in international cooperation, the potential difficulties and risks involved in sharing IP, the types of agreements that can be drawn up to minimize the risks, and the legal frameworks within which disagreements can be resolved 2) to become aware of how different partner countries respect or allegedly disregard rights to IP and commercial transactions generally 3) to develop strategies for coping in this environment.

Teaching Note: 8B09M29 (10 pages)
Industry: Health Care Services
Issues: China; International Joint Venture; Intellectual Properties; Licensing; Research and Development
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Information Industries and Nonmarket Issues

GOOGLE IN CHINA
Deborah Compeau, Prahar Shah

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

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

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



REGENT STREET BANK
Denis Shackel, Ken Mark

Product Number: 9B05C013
Publication Date: 8/12/2005
Revision Date: 9/28/2009
Length: 7 pages

The chief information officer of Regent Street Bank is trying to weighing the merits of installing word recognition software at Regent. In light of recent financial scandals, a compliance tool like word recognition software would enable Regent to electronically monitor transactions between employees and clients. From a business standpoint, the ability to reduce the risk of illegal activities would reassure stakeholders in the bank: employees, clients and investors. Besides, Regent's email policy, available to all employees, clearly stipulated that electronic mail systems provided by Regent are its property and that the bank reserves the right to access, monitor and archive all email messages without prior notice. On the other hand, what if the word recognition software flagged a personal email message, resulting in his or her direct manager finding out about a private situation? After all, Regent's email policy did allow employees to use email for personal reasons. More importantly, how should the CIO consider the potential ethical issues, such as privacy.

Industry: Administrative, Support, Waste Management and Remediation Services
Issues: New Economy; Privacy Issues; Business and Society; Ethical Issues
Difficulty: 4 - Undergraduate/MBA



DOUBLECLICK INC.: GATHERING CUSTOMER INTELLIGENCE
Scott L. Schneberger, Ken Mark

Product Number: 9B01E005
Publication Date: 3/5/2001
Length: 16 pages

DoubleClick Inc., with global headquarters in New York City and over 30 offices around the world, was a leading provider of comprehensive Internet advertising solutions for marketers and Web publishers. It combined technology, media and data expertise to centralize planning, execution, control, tracking and reporting for online media companies. DoubleClick was able to track Internet-users' surfing habits (but not the surfers' identities) allowing it to personalize ads for specific market groups. When DoubleClick announced it was merging with Abacus Direct, a direct marketing company with a database of consumer names, addresses and retail purchasing habits of 90 per cent of American households, it raised many privacy-related questions and concerns. Several Internet privacy activists had filed a formal complaint with the Federal Trade Commission after being informed by media sources that DoubleClick had the ability to divulge a person's identity by merging the databases of the two companies and matching the information in cookies with a surfer's profile. The president of DoubleClick was confident that its internal practices were sound, but he wondered if they would placate advertising clients afraid of consumer backlash, the concerns of Internet surfers and the company's investors.

Teaching Note: 8B01E05 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: High Technology Products; E-Commerce; Privacy Issues; Risk Management
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
The Political Economy of Japan

TAKAHIKO NARAKI, THE THREE MILLION YEN ENTREPRENEUR
Eric Morse, Jason Inch

Product Number: 9B04M054
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 10 pages

Takahiko Naraki is a young entrepreneur in Japan who is trying to make his Internet-based business model work in the challenging Tokyo business world, and must make a key decision: whether and how to expand his business. In addition to discussing the work-life balance of entrepreneurs in general, and this one Japanese entrepreneur in particular, the case also introduces aspects of the Japanese entrepreneurial environment including the importance of networking, the business laws regulating entrepreneurial activity, social perceptions of entrepreneurship, and the capital market for small companies in Japan.

Teaching Note: 8B04M54 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Entrepreneurial Business Growth; Work-life Balance; Networks; Internet Marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
The Political Economy of the European Union

PRIVATIZING POLAND'S TELECOM INDUSTRY: OPPORTUNITIES AND CHALLENGES IN THE NEW ECONOMY AND E-BUSINESS (B) - REVISED
David W. Conklin, Danielle Cadieux

Product Number: 9B08M001
Publication Date: 1/31/2008
Revision Date: 8/21/2012
Length: 5 pages

This case is a follow up to Privatizing Poland's Telecom Industry: Opportunities and Challenges in the New Economy and e-business (A), Ivey product 9B00M023 and contains information in regard to Telekomunikacja Polska S.A. (TPSA) over the period of 2000-2008. Students will be interested to see what actually happened related to the issues raised in the (A) case. Many will have expected that France Telecom moved quickly to consolidate its control over TPSA. However, few will have expected that TPSA was able to cut their workforce in half so quickly and achieve a substantial profit increase by 2004. Yet, France Telecom was blocked by the slow development of e-business in Poland, and so many of the expectations in regard to revenue from value-added activities had still failed to materialize by 2008. A focus for discussion of the (B) case concerns the likely regulatory changes in Poland's telecom sector. Students will be interested in providing advice to Poland's new parliamentary leaders regarding the regulatory reforms they would recommend. Students can also debate whether the European Union (EU) will be able to impose uniform regulations throughout the EU that can stimulate the growth of new competitors. Their recommendations for a political strategy for France Telecom and TPSA should also generate debate.

Teaching Note: 8B08M01 (3 pages)
Issues: International Business; Government and Business; Deregulation
Difficulty: 4 - Undergraduate/MBA



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

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

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

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


Chapter 16:
China: History, Culture, and Political Economy

SANLU GROUP AND THE TAINTED MILK CRISIS
Shih-Fen Chen, Francis Sun

Product Number: 9B09M077
Publication Date: 10/21/2009
Length: 27 pages

In late summer of 2008, a tainted milk scandal unfolded in China and shocked the world. Lethally high levels of melamine were detected in infant formula being sold on the market. Sanlu Group Inc. (Sanlu), the core firm in the scandal, had manufactured a product containing melamine that was 5,125 times higher than the European Union (EU) safety units. The scandal swept through the Chinese dairy industry and all over the world where Chinese dairy products were recalled and banned. By December 2008, the official records indicated over 290,000 infants were sickened, 51,900 were hospitalized, and 11 deaths were suspected and three confirmed. Two managers of Sanlu's raw milk suppliers were sentenced to death and four of Sanlu's executive team (including the chief executive officer and chairwoman) were sentenced to varying jail terms. By analyzing the lead-up and background to the scandal, the global reactions to the crisis, the Chinese political climate and the resulting social and cultural transformations, can it be determined what could - and should - be done to prevent similar incidents of food and product safety issues in the future?

Teaching Note: 8B09M077 (14 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: China; Cultural and Political Environment; Industry Structure; Supply Chain Management; Joint Ventures
Difficulty: 4 - Undergraduate/MBA



ROARING DRAGON HOTEL
Stephen Grainger

Product Number: 9B08M004
Publication Date: 3/5/2008
Length: 7 pages

The case looks at the takeover of the Roaring Dragon Hotel (RDH), a state owned enterprise in south-west China, by global hotelier Hotel International (HI) and discusses the cultural collision and organizational adoptions resulting from the intersections of two significantly different business cultures. Specifically in this case, the focus is on the challenge involved with downsizing, redundancy, communication, cultural sensitivity, strategic planning and in developing strategy. In south-west China in 2002, the RDH business environment was just emerging from the shadow of the planned economy and had retained its guanxi-based organizational culture. At RDH, relationship development and the exchange of favors were still important and occurring on a daily basis and there was little system or efficiency in the hotel's domestic management style and processes. In comparison, Hotel International had a wealth of international experience in providing accommodation, marketing and professional management in servicing the needs of a global market steeped in corporate governance. At the commencement of the management contract there was a deep division separating the organizational cultures of RDH and HI.

Teaching Note: 8B08M04 (8 pages)
Industry: Accommodation & Food Services
Issues: China; Cross Cultural Management; Strategic Planning; Cross Cultural Communication; Cultural Sensitivity
Difficulty: 4 - Undergraduate/MBA



SUN LIFE FINANCIAL: ENTERING CHINA
Paul W. Beamish, Ken Mark, Jordan Mitchell

Product Number: 9B04M066
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 17 pages

Sun Life Financial is a large insurance conglomerate with $14.7 billion in annual revenues. The vice-president for China must formulate an approach for his company's entrance into China. Sun Life has achieved two important milestones: the right to apply for license and the signing of a Memorandum of Understanding for Joint Venture with China Everbright, a local securities company. The financial vice-president must consider strategic options for entry and choose a city in which to focus his efforts in getting a license. In doing so, he needs to consider Sun Life's overall priorities, strategic direction and how he will sell the concept to senior management in Canada. Intended for use in an introduction to international business course, the case includes assessing internal capabilities against an environmental scan, formulating strategy and making operational decisions relating to city selection. It also introduces the idea of joint venture management and government relations.

Teaching Note: 8B04M66 (12 pages)
Industry: Finance and Insurance
Issues: China; Joint Ventures; Market Entry; Risk Analysis; International Business
Difficulty: 4 - Undergraduate/MBA



GM IN CHINA - ABRIDGED
David W. Conklin, Danielle Cadieux

Product Number: 9B05M030
Publication Date: 3/22/2005
Revision Date: 10/1/2009
Length: 10 pages

For General Motors (GM) China, 2004 brought a wide variety of new challenges that added to an already complex business environment. Industry structure was changing quickly, demand and supply projections for motor vehicles had promised substantial increases in sales and profits but suddenly optimism faded. China's membership in the World Trade Organization created expectations of a level playing field for foreign investors, but major barriers remained, including continuing government intervention, competition from government-owned assembly firms, arbitrary rules such as sector-specific credit restrictions and violation of intellectual property with the copying of foreign automobile designs and false-branding of parts. Meanwhile, inflation was increasing and the government was unsure whether and how to use monetary and fiscal policies. This is an abridged version of GM in China, product 9B05M007.

Teaching Note: 8B05M07 (6 pages)
Industry: Manufacturing
Issues: China; Business Policy; International Business; Manufacturing; Globalization
Difficulty: 4 - Undergraduate/MBA


Chapter 17:
Emerging Markets

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



BARING PRIVATE EQUITY PARTNERS INDIA LIMITED: BANKING SERVICES FOR THE POOR IN BANGLADESH
Ram Kumar Kakani, Munish Thakur

Product Number: 9B09M052
Publication Date: 9/16/2009
Length: 23 pages

From the 1970s onward, after the emergence of microfinance, lending for the poor started shifting from informal sources (e.g. moneylenders) to formal sources. The Grameen Bank (Grameen) led this change, primarily due to its chief executive officer (CEO) and his innovative microcredit model. On the basis of the CEO's rich understanding of on-the-ground realities, he began to experiment and modify the business model for microfinance, which, in the past few years in Bangladesh, was largely dominated by a few big players. As a result of some very interesting and insightful experiments that had been conducted, the microfinance landscape was changing the way banking services were modeled for the poor, not only in Bangladesh but throughout the world. The case profiles a situation wherein Baring Private Equity Partners India, one of the largest private equity players in emerging markets, was looking to invest in the high-growth, profitable microfinance industry of South Asia.This case is oriented toward helping students understand the credit needs of the poor and their perspective on money management, hunger, investment and savings. Students should be made to appreciate how an innovative business model can be developed through a deeper understanding of the local context combined with conceptual thinking. The case strongly vouches for the development of sustainable solutions that require both financial viability and sensitivity to the conditions of the poor. The most important point to be highlighted about the microfinance landscape is that the entrepreneurship model is changing from being socially focused to being business focused. Earlier, most players entered the microfinance arena as a not-for-profit venture; however, many for-profit organizations have now entered this sector.

Teaching Note: 8B09M52 (18 pages)
Industry: Finance and Insurance, Social Advocacy Organizations
Issues: Micro Finance; Private Equity; Innovation; Industry Analysis
Difficulty: 5 - MBA/Postgraduate



NETCARE'S INTERNATIONAL EXPANSION
Saul Klein, Albert Wöcke

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

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

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



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

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

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

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


Chapter 18:
The Political Economy of International Trade Policy

CHINA'S TRADE DISPUTES
David W. Conklin, Danielle Cadieux

Product Number: 9B09M018
Publication Date: 3/9/2009
Revision Date: 8/5/2009
Length: 17 pages

By 2009, China's exports had increased dramatically from $250 billion in 2000 to a projected $1,500 billion in 2009. This enormous growth of exports severely damaged competing businesses in the advanced nations, particularly the United States and Europe. China's entry into the World Trade Organization (WTO) in 2001 guaranteed China's right to export to these nations, but at the same time the WTO required China to adhere to certain rules that sought to support fair trade and create a level playing field. Several broad subjects each gave rise to a series of trade disputes: the protection of intellectual property, health and safety concerns about China's products, labour and environmental standards, China's manipulation of their currency, and costs and prices determined by the government rather than free markets. This case examines each set of trade disputes and China's attempts to resolve them. Many disputes were embedded in cultural practices and ideological positions and so they might not disappear quickly. Shortcomings in China's legal and judicial system hampered enforcement. In addition, many rested on the government's desire to protect the interests of Chinese businesses and their employees, and so China might alter its practices only if confronted with credible retalitory threats. China's central government experienced the principal-agent problem where its wishes and decisions could be ignored by local governments and firms. Meanwhile, changes in industry structure within the advanced nations were altering the negotiation positions of Western governments. The case examines the WTO dispute resolution procedures and enforcement mechanisms that have been directed at China's trade disputes.

Teaching Note: 8B09M18 (8 pages)
Issues: China; International Business; Government and Business; Globalization
Difficulty: 4 - Undergraduate/MBA



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



CAMPBELL SOUP COMPANY LTD.
Mary M. Crossan, Ken Mark

Product Number: 9B02M006
Publication Date: 4/25/2002
Revision Date: 12/1/2009
Length: 16 pages

The president and chief executive officer of a large food manufacturer is preparing his company's strategic agenda for the next five years. One of the top five food manufacturers in Canada, the company went public and restructured its management team six years ago. The efforts were successful, resulting in an increase in the company's market share. Recent food industry trends, however, added box stores and private label brands to the domestic competition. At the same time, the terms of the Canada-U.S. Free Trade Agreement are expected to abolish food-related tariffs within two years, opening up competition from across the border. While the company has experienced success in the past five years, the president and chief executive officer needs a strategic plan that will take the company to the next level.

Teaching Note: 8B02M06 (6 pages)
Industry: Manufacturing
Issues: Communications; Crisis Management; Change Management; Strategy Development
Difficulty: 4 - Undergraduate/MBA


Chapter 19:
Part V: Ethics and Corporate Social Responsibility

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



SAMSUNG TESCO HOMEPLUS AND CORPORATE SOCIAL RESPONSIBILITY
Youngchan Kim, Kwangho Ahn

Product Number: 9B09M040
Publication Date: 7/13/2009
Revision Date: 7/29/2009
Length: 17 pages

Samsung Tesco Homeplus (STH), one of Korea's large hypermarkets, increased its investment in social contribution activities and systemized the organization in charge in the aftermath. It especially focused on education and cultural services, saving the environment and sharing with others. As a consequence, by December 2008, STH was considered one of the most innovative companies and one that realized true customer value. It had won a variety of awards, such as the Green Management award, Social Contribution Company award and the Eco-friendly Management award. After creating a corporate social responsibility (CSR) team in 2005, it won the CSR award given by the British Chamber of Commerce in Korea and was selected as one of Korea's Most Admired Companies. While much progress had been made, company executives wondered what factors would be the keys to their continuing CSR activities. This case presents points of contention and issues in the practice of corporate social responsibility by STH. Social contribution activities and STH were aligned with both sustainable management and customer value-oriented management. Various activities in extended education, environment and charity ultimately led customers to view STH as not just a discount store that simply sold products, but a value store. STH conducted systematic programs and activities in the areas of extended education environment and charity after having declared itself a social contribution company. This case illustrates how a company can develop its social contribution activities. In addition, discussion will centre on the long-term impacts that social contribution activities have on enterprises.

Teaching Note: 8B09M40 (10 pages)
Industry: Retail Trade
Issues: Corporate Social Responsibility; Customer Value Management; Ivey/Yonsei
Difficulty: 4 - Undergraduate/MBA



GOOGLE'S WAY - DON'T BE EVIL
Pratima Bansal, Marlene J. Le Ber

Product Number: 9B07M067
Publication Date: 1/4/2008
Revision Date: 7/3/2008
Length: 14 pages

Wall Street's darling, Google Inc., offered more than a pretty financial picture. Poverty, communicable diseases and climate change - some of the world's largest problems - were also key interests of Google's cofounders. By applying innovation and significant resources, Google's cofounders hoped that their efforts in these areas would one day eclipse Google itself in worldwide impact. On February 22, 2006, Google Inc. announced the appointment of an executive director of the newly created Google.org. With one per cent of Google Inc.'s equity and profit as seed money, Google.org's mandate was to address climate change, global public health, economic development and poverty. Although charity by successful entrepreneurs was not unusual, this press release signaled a new organizational form, a for-profit philanthropic company. The new executive director's task ahead was unprecedented. How could he leverage the company's for-profit status to make the biggest impact possible with the resources trusted to Google.org? What decision-making criteria should be used for strategic investments? How would he measure Google.org's success?

Teaching Note: 8B07M67 (11 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Governance; Strategic Decision Making; Business Sustainability; New Organizational Forms
Difficulty: 4 - Undergraduate/MBA


Chapter 20:
Ethics Systems: Utilitarianism

ADAPTING TO CLIMATE CHANGE: THE CASE OF SUNCOR ENERGY AND THE ALBERTA OIL SANDS
Pratima Bansal, Jijun Gao

Product Number: 9B08M073
Publication Date: 9/22/2008
Revision Date: 11/18/2008
Length: 17 pages

The chief executive officer of an oil and gas company must decide whether he wants to invest heavily in reducing greenhouse gases. Specifically, Suncor Energy must evaluate whether it should invest $425 million in carbon capture and storage or wait until there is greater certainty in the political, social and business environment. The case will help students develop skills of analyzing business decisions under higher environmental uncertainty, especially when the outcome is a long-term goal. Further, the issues presented in the case open up discussions about climate change and the interaction between business actions and societal expectations. There is also an opportunity to speak about the interaction between business and public policy.

Teaching Note: 8B08M73 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Decision Making; Tradeoff Analysis; Uncertainty
Difficulty: 4 - Undergraduate/MBA



SINYI REAL ESTATE IN TAIWAN
Terence Tsai, Borshiuan Cheng, Shubo Philip Liu

Product Number: 9B08M077
Publication Date: 1/12/2009
Revision Date: 6/11/2009
Length: 20 pages

As the economies of Greater China continued the process of rapid transformation and industrialization, newly industrialized countries (NICs), such as Taiwan and mainland China, experienced dramatic changes in their business settings. Accompanying the industrialization of east Asian economies, business ethics were in a state of flux, as traditional values were often swept aside to justify profit maximization. In this ever-changing business environment, what were the characteristics and benefits of Chinese business ethics? What role did they play? Could an integrity-based business practice serve as a source of competitive advantage? What business settings were supporting business ethics? Few studies have paid attention to these kinds of questions. Sinyi was one of the most successful real estate agent companies in Taiwan and mainland China. From a Confucian perspective, Sinyi's founder cultivated a people-centered culture for both its customers and employees. By applying business ethics as a central differentiating strategy, Sinyi established an excellent corporate image and was regarded by many as the role model of responsible business. Sinyi service was regarded as premier in Taiwan. Its customer satisfaction rating was also far above the industry average. Trustworthiness and fair dealing were the company's guiding principles. This was in contrast to the-then chaotic environment of the real estate industry in Taiwan, where basic trust between buyers and sellers was rare and deceit existed everywhere. Focusing on using business ethics as a central differentiating strategy, Sinyi had grown into Sinyi Group, which successfully integrated upstream, midstream and downstream industries and established a highly-acclaimed business model. Over the past two decades, Sinyi Group had expanded its operations to mainland China and forged an alliance with global real estate brokerage Coldwell Banker. The case can be used for MBA and EMBA courses in business ethics (in a module on culture and business ethics) and strategic management (in a module on strategic business ethics). This case should provoke holistic thinking and discussion on sustainable business, Confucian entrepreneurship and the relationship between business ethics and competitive advantages.

Teaching Note: 8B08M77 (13 pages)
Industry: Real Estate and Rental and Leasing
Issues: Ethical Issues; Sustainability; Management Science and Info. Systems; Human Resources Management; Corporate Social Responsibility; Differentiation; Strategy; CEIBS
Difficulty: 5 - MBA/Postgraduate


Chapter 21:
Ethics Systems: Rights and Justice

AGCHEMCO COMPANY
William J. Russell

Product Number: 9B08C001
Publication Date: 10/31/2008
Length: 14 pages

This case involves a personnel matter at an agricultural chemical industry mining complex. A middle-level supervisor has been accused of gender-based and other discrimination. The complaint has come primarily from one employee who works under that supervisor's direction, but is supported at least in part by the testimony of other employees. The evidence is typical of the sorts of evidence that usually attend human resource disputes. Company policy manuals bear on the propriety of the mill coordinator's conduct apart from the issue of discrimination. Ultimately, an appellate process is also integrated into the procedural tools. This case considers the process by which the employment discrimination complaint is investigated, considered and resolved, including the weighing and evaluation of information gathered from those in the workplace. Various practical, legal and ethical issues typical to such cases are apparent.

Teaching Note: 8B08C01 (12 pages)
Issues: Perception; Work-Force Management; Risk Management; Morale; Mining; Ethical Issues; Employee Grievances
Difficulty: 4 - Undergraduate/MBA



STAFFING WAL-MART STORES, INC. (A)
Alison Konrad, Ken Mark

Product Number: 9B04C006
Publication Date: 1/26/2004
Revision Date: 10/6/2009
Length: 9 pages

Wal-Mart Stores, Inc. is a large Fortune 500 retail chain. The distinction of being the top-ranked company comes with intense scrutiny from the public and, especially, critics. Wal-Mart, a company lauded for its rapid response capability and stated commitments to gender equality is shown to be deficient in some glaring areas - the percentage of women compared to men at all levels of the company, and the compensation paid to women versus men at all levels of the company, to cite two examples. An executive vice-president must examine why these inequalities exist when the company seems to be doing everything else right. The company is the target of several gender discrimination lawsuits and the executive vice-president has the opportunity to obtain information that would be useful in the current situation, and must determine what information is needed. In the supplement, Staffing Wal-Mart Stores, Inc. (B), product 9B04C007, the executive vice-president receives information and must determine how to address the situation.

Teaching Note: 8B04C06 (7 pages)
Industry: Retail Trade
Issues: Management Decisions; Pay Equity
Difficulty: 4 - Undergraduate/MBA


Chapter 22:
Implementing Ethics Systems

NESTLE'S NESCAFE PARTNERS' BLEND: THE FAIRTRADE DECISION (A)
Niraj Dawar, Jordan Mitchell

Product Number: 9B06A020
Publication Date: 7/27/2006
Revision Date: 1/9/2008
Length: 24 pages

AWARD WINNING CASE - Corporate Social Responsibility Award, 2006 European Foundation for Management Development (EFMD) Case Writing Competition. In early 2005, Nestle is in the midst of a decision: whether or not the Fairtrade mark should be applied on Partners' Blend, a new instant coffee product to be marketed in the growing UK 'ethical' coffee segment. Application of the Fairtrade mark on the Partners Blend product means that Nestle must go against its historical position of not offering minimum guaranteed prices to coffee farmers. As part of their deliberations, Nestle executives must consider their coffee sourcing program at large, their corporate social responsibility framework, Nescafe and corporate Nestle branding, the UK market and the potential consumer benefits or backlash that could result from releasing such a product.

Teaching Note: 8B06A20 (12 pages)
Industry: Manufacturing
Issues: New Products; Corporate Responsibility; Brand Management; Product Strategy
Difficulty: 4 - Undergraduate/MBA



MEARL OIL COMPANY: ENVIRONMENTAL IMPACT TARGETS (A)
Pratima Bansal, Tom Ewart

Product Number: 9B05M018
Publication Date: 7/15/2005
Revision Date: 9/30/2009
Length: 9 pages

Mearl Canada Limited does not want to implement Mearl Oil Company's environmental impact targets because, in Mearl Canada's opinion, the targets create an extra layer of regulation for considerable cost and negligible benefit. Mearl's position is that all Mearl worldwide operations must adopt these performance standards, as this will allow the company to make operational their stated environmental policy. Each party has an opportunity to make their case at the International Environmental Group meeting, and it will decide if Mearl Canada may deviate from the environmental impact target and continue with their own homegrown environmental management system and standards. This case is from the point of view of the manager, Mearl Support, environmental. The supplement Mearl Oil Company: Environmental Impact Targets (B), product 9B05M019, is from the senior environmental manager, Mearl Canada Limited view and the supplement Mearl Oil Company: Environmental Impact Targets (C), product 9B05M020, is from the International Environmental Group's perspective.

Teaching Note: 8B05M18 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Negotiation; Globalization; Management in a Global Environment; Environmental Business Management
Difficulty: 4 - Undergraduate/MBA


Chapter 23:
Ethics Issues in International Business

ARLA FOODS AND THE CARTOON CRISIS (A)
Henry W. Lane, Mikael Sondergaard, David T.A. Wesley

Product Number: 9B08M005
Publication Date: 1/31/2008
Revision Date: 2/26/2010
Length: 12 pages

After a Danish newspaper publishes cartoons depicting the Prophet Muhammad, consumers across the Middle East decide to boycott Danish goods. Arla Foods (Arla) is one of Europe's largest dairy companies. Suddenly, it finds itself caught in the middle of a crisis that appears to be beyond its control. Prior to the boycott, the Middle East was Arla's fastest growing region and represented an important component of the company's long-term growth strategy. As the largest Danish company in the region, it stands to lose up to $550 million in annual revenues. Students are asked to take the role of the communication director for Arla, who, along with other members of the newly formed Crisis and Communication Group, must decide on a course of action to deal with the crisis. The case addresses a variety of topics, including culture and religion, international management, risk management, crisis communications, and managing in a boycott situation. It also creates an opportunity to discuss doing business in the Middle East and management in an Islamic context.

Teaching Note: 8B08M05 (16 pages)
Industry: Manufacturing
Issues: Intercultural Relations; Boycott; Crisis Management; Women in Management; Northeastern
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



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

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

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

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