Ivey Publishing

Essentials of Strategic Management

Hunger, D., Wheelen, T.,5/e (United States, Pearson Prentice Hall, 2011)
Prepared By Manohar (Manu) Mahbubani, PhD Candidate
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Basic Concepts of Strategic Management

BLACK CANYON COFFEE
Brian K. Boyd

Product Number: 9B11M074
Publication Date: 9/28/2011
Revision Date: 4/27/2012
Length: 18 pages

This case focuses on Black Canyon Coffee, as it begins to develop its strategy for the firm’s second decade. Founded in 1993, Black Canyon had grown to become the largest chain of coffee houses in Thailand in 2003. Over its first decade, it grew from a single location to 78 retail outlets, serving a mix of hot and cold coffee beverages, as well as Asian cuisine. Thus far, the company had been profitable, and had managed the threat posed by local and foreign competitors, including Starbucks. The coffee house market in Thailand was an emerging industry segment that was expected to grow rapidly. While the company was in a strong position in 2003, competition in the industry was expected to become more intense. One key issue was determining what goals and markets the company should pursue in coming years. Managing director Pravit C. Pong believed that the company should strive for a total of 200 stores in the next decade, while business consultant Michael Holland suggested a more ambitious goal of 1,000 locations. Additionally, the company needed to consider the relative emphasis of domestic versus international expansion, as well as the potential to diversify into other markets. Access to capital and supply chain infrastructure were both tied to the growth targets that the firm pursued.

Teaching Note: 8B11M074 (12 pages)
Industry: Accommodation & Food Services
Issues: Growth Strategy; Entrepreneurial Business Growth; Strategic Positioning; International Expansion; Thailand
Difficulty: 4 - Undergraduate/MBA



IMAX: LARGER THAN LIFE
Anil Nair

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

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

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



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



SWATCH AND THE GLOBAL WATCH INDUSTRY
Allen Morrison, Cyril Bouquet

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

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

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


Chapter 2:
Corporate Governance and Social Responsibility

SUSTAINABILITY IN THE ARAB WORLD: THE ARAMEX WAY
Dima Jamali, Cedric Dawkins

Product Number: 9B11M060
Publication Date: 7/25/2011
Revision Date: 1/5/2017
Length: 16 pages

In 1982, Fadi Ghandour founded Aramex, a leading provider of logistics and transportation solutions with headquarters in Amman, Jordan. From its early inception, Ghandour strategically included principles and practices of corporate social responsibility (CSR) and sustainability in the company’s culture in order to align business interests and competence with stakeholders’ needs. The community and environment were regarded as key stakeholders driving Aramex to act as a responsible citizen. Since its inception, Aramex had been involved in sustainability activities grouped into six primary areas: education and youth empowerment; community development; entrepreneurship; sports; environment; and emergency relief. Committed to growth and opening new offices globally, Aramex faced the challenge of preserving CSR as an integral part of its expansion strategy. In late January 2011, Ghandour and Hattar began brainstorming ways to address the need to harmonize CSR and sustainability values and practices across operations and ensure that sustainability principles were firmly institutionalized across branches and subsidiaries.

Teaching Note: 8B11M060 (9 pages)
Industry: Transportation and Warehousing
Issues: Business and Society; Corporate Social Responsibility; Logistics and Transportation; Jordan, Middle East
Difficulty: 4 - Undergraduate/MBA



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

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

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

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


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



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



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 3:
Environmental Scanning and Industry Analysis

QANTAS: WHICH ROUTE OUT OF THE TURBULENCE?
Nitin Pangarkar, Hari Bapuji, Braden Loader

Product Number: 9B11M068
Publication Date: 8/24/2011
Revision Date: 10/5/2011
Length: 24 pages

In May 2011, Alan Joyce, chief executive officer of Qantas Group, needed to think about the future strategy of the airline group. Over the past few years, it had launched a number of strategic initiatives to defend its current position and penetrate new markets and segments. Qantas had discontinued its first-class service on many flights, opting to bolster its business-class service instead. Its forays into the budget travel segment through Jetstar proved to be successful and contributed to the overall financial performance of the group. Qantas had also placed a bet on emerging economies such as China, despite experiencing adverse performance in its international routes. However, the financial performance of the company was far from healthy. Qantas was fighting hard to retain its Australian position in the face of attempts by Virgin Blue and Tiger Airways to compete aggressively and gain market share. Analysts wondered whether Qantas was trying to do too much and, in the process, spreading itself too thinly. Would the Qantas Group be better off simply prioritizing across its various alternatives, or did it have sufficient resources (financial as well as managerial) to pursue all the initiatives? And if a narrow focus was better, then which strategic alternatives should Qantas pursue aggressively?

Teaching Note: 8B11M068 (11 pages)
Industry: Transportation and Warehousing
Issues: Business Policy; Emerging Markets; Environmental Analysis; Growth Strategy; Airline Industry; Australia
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



APPLE INC.: IPODS AND ITUNES
Mary M. Crossan, Ken Mark

Product Number: 9B05M046
Publication Date: 8/2/2005
Revision Date: 4/15/2010
Length: 13 pages

Apple Computer, Inc. has enjoyed tremendous market success with its digital music initiative consisting of software (iTunes), hardware (iPods and Shuffles), and content (iTunes Music Store). Highlighted is the development of the online music industry within the context of the overall music industry, the major record labels, Napster, and the Recording Industry Association of America. Students will be able to conduct an industry analysis of the music industry and determine why Apple Computer has succeeded in profiting from digital music while others have failed.

Teaching Note: 8B05M46 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: New Economy; Strategy Implementation; Industry Analysis; Business and Society
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Internal Scanning: Organizational Analysis

CHINESE FIREWORKS INDUSTRY
Paul W. Beamish

Product Number: 9B11M006
Publication Date: 1/11/2011
Revision Date: 5/4/2017
Length: 13 pages

The Chinese fireworks industry thrived after China adopted the open-door policy in the late 1970s, and grew to make up 90 per cent of the world’s fireworks export sales. However, starting in the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. Students are asked to undertake an industry analysis, estimate the industry attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor’s point of view. Jerry Yu is an American-born Chinese in New York who has been invited to buy a fireworks factory in Liuyang, Hunan.

Teaching Note: 8B11M006 (16 pages)
Industry: Manufacturing
Issues: Market Analysis; Industry Analysis; International Marketing; Exports; China
Difficulty: 4 - Undergraduate/MBA



ENTREPRENEURS AT TWITTER: BUILDING A BRAND, A SOCIAL TOOL OR A TECH POWERHOUSE?
Simon Parker, Ken Mark

Product Number: 9B10M028
Publication Date: 3/22/2010
Revision Date: 5/4/2017
Length: 10 pages

Twitter has become an incredibly popular micro-blogging service since its launch in 2006. Its founders have ambitious plans for the service, and are backed by hundreds of millions of dollars of venture capital funding, which values the company at $3.7 billion in 2011. Twitter seems to attract a diverse audience of users, such as political organizers looking to disseminate information to their followers; businesses looking to reach out, in real time, to potential customers; and social users. The company charges consumers nothing for its service. By 2011, competitors have emerged, some of whom are financially strong. It remains unclear - at least to some observers - whether the company will ever make money from its service.

Teaching Note: 8B10M28 (10 pages)
Industry: Other Services
Issues: Social Networking Media; Strategic Positioning; New Venture
Difficulty: 4 - Undergraduate/MBA



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



STARBUCKS
Mary M. Crossan, Ariff Kachra

Product Number: 9A98M006
Publication Date: 5/14/1998
Revision Date: 5/10/2017
Length: 23 pages

Starbucks is faced with the issue of how it should leverage its core competencies against various opportunities for growth, including introducing its coffee in McDonald’s, pursuing further expansion of its retail operations, and leveraging the brand into other product areas. The case is written so that students need to first identify where Starbucks competencies lie along the value chain, and assess how well those competencies can be leveraged across the various alternatives. It also provides an opportunity for students to assess what is driving growth in this company. Starbucks has a tremendous appetite for cash since all its stores are corporate, and investors are betting that it will be able to continue its phenomenal growth, so it needs to walk a fine line between leveraging its brand to achieve growth while not eroding it in the process. This is an exciting case that quickly captures the attention of students.

Teaching Note: 8A98M06 (13 pages)
Industry: Accommodation & Food Services
Issues: competitiveness; industry analysis; growth strategy; core competence; coffee
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Strategy Formulation: Situational Analysis and Business Strategy

OPERATIONS STRATEGY AT GALANZ
Ng Chi Hung, 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



BP IN RUSSIA: SETTLING THE JOINT VENTURE DISPUTE
Gevork Papiryan

Product Number: 9B08M099
Publication Date: 12/15/2008
Length: 22 pages

In September 2003, British Petroleum (BP) formed a 50/50 international joint venture (JV) company, TNK-BP, with a group of Russian investors: Alfa Group, Access Industries and Renova (AAR). This JV was established as a result of the merger of Russian oil companies TNK and Sidanko, owned by AAR, with the majority of BP's Russian oil assets. On May 26, 2008, TNK-BP's chief executive officer, Robert Dudley, told Vedomosti, Russia's leading business daily, about a conflict between British and Russian shareholders. During this dispute, AAR declared that BP treated TNK-BP as its subsidiary and not as a JV. Also, the Russian shareholders criticized the JV's leadership of the company's expansion strategy and climate. As the conflict escalated, BP's leadership needed to decide whether to walk away or continue its participation in the JV.

Teaching Note: 8B08M99 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Corporate Strategy; Emerging Markets; Globalization; Joint Ventures
Difficulty: 4 - Undergraduate/MBA



DELL INC. IN 2009
Stewart Thornhill, Ken Mark

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

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

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



WAL-MART STORES, INC
Mary M. Crossan

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

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

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


Chapter 6:
Strategy Formulation: Corporate Strategy

LEGO GROUP: BUILDING STRATEGY
Darren Meister, Paul Bigus

Product Number: 9B11M086
Publication Date: 9/13/2011
Revision Date: 2/1/2013
Length: 12 pages

The world famous toymaker, The LEGO Group, assembled an internal management team to create a strategic report on LEGO’s different product lines and business operations. In recent years, numerous threats to LEGO had emerged in the toy industry. The acquisition of Marvel Entertainment by The Walt Disney Company created major implications for valuable toy license agreements. LEGO had also recently lost a long legal battle with major competitor MEGA Brands, makers of MEGA Bloks, with a European Union court decision that removed the LEGO brick trademark. Furthermore, the second-largest toymaker in the world, Hasbro, was preparing to launch a new rival product line called Kre-O. It was critical for the management team to identify where to expand LEGO’s product lines and business operations, in order to develop a competitive strategy to continue the organization’s recent years of financial success and dominance in the building toy market.

Teaching Note: 8B11M086 (6 pages)
Industry: Other Services
Issues: Opportunity Recognition; Licensing; Competitive Strategy; Business Growth; Toy Industry; Denmark
Difficulty: 4 - Undergraduate/MBA



DEVELOPING AN INTERNATIONAL GROWTH STRATEGY AT NEW YORK FRIES
W. Glenn Rowe, Christopher Williams, Sharda Prashad

Product Number: 9B11M082
Publication Date: 8/19/2011
Revision Date: 11/18/2014
Length: 10 pages

New York Fries’ president and executive vice president were preparing for the next biannual meeting of domestic and international franchisees. They planned to provide an update on all aspect of corporate strategy and planning for the year ahead, but they only had a few days to formulate a new international growth strategy. The president and executive vice president were hesitant to expand into new territories partly due to poor experiences in Australia and South Korea, yet international franchisees had encouraged them to investigate promising areas of expansion into China and India. Complicating matters was the future development of the company’s chain of premium hamburger restaurants. While New York Fries was a well-received brand in Canada, it had not yet decided if and how to internationalize the brand. How could the president and executive vice president pursue new opportunities while maintaining their premium brands of French fries and hamburgers?

Teaching Note: 8B11M082 (10 pages)
Industry: Accommodation & Food Services
Issues: Location Selection; International Growth; Brand Management; Franchising; Fast Food; Canada
Difficulty: 4 - Undergraduate/MBA



JACQUES KEMP: TOWARDS PERFORMANCE EXCELLENCE
Rod E. White, Andreas Schotter

Product Number: 9B06M084
Publication Date: 1/9/2007
Revision Date: 9/21/2009
Length: 19 pages

Over the past two years, ING Insurance Asia/Pacific had successfully implemented a new organizational and operational framework called Towards Performance Excellence (TPE), which was developed with inputs from functional heads, senior management and staff at the business unit level. TPE detailed and organized everything ING Asia/Pacific needed to execute its strategy effectively. TPE divided ING's business processes into six core categories: portfolio, marketing, organizational, operational, reputation and financial. Each category included aspects of execution known as drivers, which required managers to identify specific objectives and key performance indicators (KPIs) for each driver or sub-driver. The case includes many original exhibits and is ideally taught as the follow up case of the ING Insurance Asia/Pacific, Ivey product #9B06M083 or as a standalone case, which illustrates a real example of regional versus local organizational management.

Teaching Note: 8B06M83 (12 pages)
Industry: Finance and Insurance
Issues: Organizational Design; Organizational Structure; International Management
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Strategy Formulation: Functional Strategy and Strategic Choice

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



ROGERS' CHOCOLATES (A)
Charlene Zietsma

Product Number: 9B07M012
Publication Date: 4/9/2008
Revision Date: 1/6/2009
Length: 22 pages

A new president has been hired to double or triple the size of Rogers' Chocolates, a high end chocolate producer and retailer in Victoria, British Columbia. The case allows a comprehensive analysis of marketing, manufacturing, human resource, financial and strategic positioning issues in a small company with manufacturing, retailing, wholesaling and Internet operations.

Teaching Note: 8B07M12 (10 pages)
Industry: Manufacturing
Issues: Growth Strategy; Strategic Positioning; Strategy Implementation; Strategic Change
Difficulty: 4 - Undergraduate/MBA



SAMSUNG ELECTRONICS (A): ENTERING INDIA
Sumit Chakraborty, Sushil K. Sharma, Sougata Ray

Product Number: 9B06M034
Publication Date: 3/11/2008
Revision Date: 9/21/2009
Length: 21 pages

Samsung Electronics (Samsung) managing director had presented the new management philosophy for achieving leadership in a global market. The three-part strategy would prioritize quality, globalization, and multifaceted integration, in that order. After a restructuring effort, Samsung had emerged as a leader in the global electronics industry. Now, considering the new management philosophy and several other factors, the managing director faced the decision of whether Samsung should enter the Indian market.

Teaching Note: 8B06M34 (7 pages)
Industry: Manufacturing
Issues: Foreign Entry Strategy; International Business Operations; Global Strategy
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
Strategy Implementation: Organizing for Action

TRIUMPH
Stewart Thornhill, Cooper Langford

Product Number: 9B11M052
Publication Date: 8/2/2011
Revision Date: 5/22/2012
Length: 13 pages

The case is set immediately following a catastrophic fire that destroyed the Triumph Motorcycle Company’s manufacturing facility in England. After having gone out of business in the 1980s, the company was resurrected by British entrepreneur John Bloor and, at the time of the fire, was in its tenth year of renewed operations. The decision facing Bloor and his team after the fire was to either rebuild and resume their strategy as before or consider whether another course of action might be worthwhile.

Students are challenged to identify and articulate Triumph’s strategy during its renaissance and evaluate whether other alternatives might be more appropriate. This mirrors the assignment given to McKinsey and Company when it was engaged to help Triumph during its post-fire recovery. The case provides information about Triumph’s history, as well as a current picture of the motorcycle industry.


Teaching Note: 8B11M052 (5 pages)
Issues: Crisis Leadership; Strategic Change; Brand Repositioning; Strategic Renewal; Britain; Motorcycles
Difficulty: 4 - Undergraduate/MBA



YOLA: MANAGING MULTIPLE CHALLENGES
Helena Barnard, Bryan Muir

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

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

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



VICTORIA HEAVY EQUIPMENT LIMITED
Tom A. Poynter, Paul W. Beamish

Product Number: 9B08M037
Publication Date: 4/15/2008
Revision Date: 5/18/2017
Length: 12 pages

Victoria Heavy Equipment (Victoria) was a family owned and managed firm which had been led by an ambitious, entrepreneurial chief executive officer who now wanted to take a less active role in the business. Victoria had been through two reorganizations in recent years, which contributed to organizational and strategic issues which would need to be addressed by a new president.

Teaching Note: 8B08M37 (7 pages)
Industry: Manufacturing
Issues: Growth Strategy; Organizational Structure; Leadership; Decentralization
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Strategy Implementation: Staffing and Leading

MAINTAINING THE “SINGLE SAMSUNG” SPIRIT: NEW CHALLENGES IN A CHANGING ENVIRONMENT
Shaista E. Khilji, Chang Hwan Oh, Nisha Manikoth

Product Number: 9B11C010
Publication Date: 8/2/2011
Length: 13 pages

This case examines how Samsung has grown to become one of the world’s leading companies. It presents a detailed description of Samsung’s “top priority to the people” philosophy and its strong cultural values, both of which have been instrumental in ensuring its continued success in recent decades. Since 1982, the Samsung Human Resource Development Center (SHRDC) has played a critical role in supporting Samsung’s corporate strategy of achieving global competitiveness through programs that focus on maintaining Samsung values and developing a cadre of effective next-generation leaders. New Employee Orientation (NEO), an intensive four-week in-house program for all Samsung employees, is one example of an SHRD program. NEO aligns employees across Samsung affiliates to its strategic direction, thereby fostering a stronger “Single Samsung” culture.



In recent years, however, NEO has been faced with new challenges. First, Samsung’s pool of new employees has become more diverse, with the recruitment of more experienced and foreign (non-Korean) employees in addition to the fresh college graduates whom Samsung has always relied upon. Second, Samsung has become aware of stark value differences between the older employees, who are obedient and easily follow rules, and the younger “digital native” employees, who are more individualistic and prefer egalitarian and open policies. Managers at SHRDC are concerned that the “Single Samsung” spirit, which forms the core of Samsung culture, is being threatened from within.



Students must address issues related to the need for maintaining a unified organizational culture among diverse groups of employees with conflicting values, and propose ways for Samsung to effectively employ and utilize all of its employees.


Teaching Note: 8B11C010 (15 pages)
Industry: Manufacturing
Issues: Corporate Culture; Generational Differences; Human Resource Development; Consumer Electronics; South Korea
Difficulty: 4 - Undergraduate/MBA



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



STRATEGIC LEADERSHIP AT COCA-COLA: THE REAL THING
W. Glenn Rowe, Suhaib Riaz

Product Number: 9B08M040
Publication Date: 11/4/2008
Length: 15 pages

Muhtar Kent had just been promoted to the CEO position in Coca-Cola. He was reflecting upon the past leadership of the company, in particular the success that Coca-Cola enjoyed during Robert Goizueta's leadership. The CEOs that had followed Goizueta were not able to have as positive an impact on the stock value. When his promotion was announced, Kent mentioned that he did not have immediate plans to change any management roles but that some fine-tuning might be necessary.

Teaching Note: 8B08M40 (8 pages)
Industry: Manufacturing
Issues: Performance Evaluation; Management Style; Leadership; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Evaluation and Control

BP AND THE GULF OF MEXICO OIL SPILL
Michael A. Roberto

Product Number: 9B11C035
Publication Date: 10/18/2011
Length: 19 pages

On the night of April 20, 2010, a series of explosions rocked the Deepwater Horizon oil rig in the Gulf of Mexico. Gas in the Macondo well had surged upward unexpectedly, causing a mix of drilling mud and seawater to spew uncontrollably into the air, much like a volcanic eruption. Eleven crew members died during the explosion. The nation mourned their loss, and people watched as BP struggled to contain the environmental damage. Millions of barrels of oil spilled into the Gulf of Mexico in the weeks that followed. The federal government relied on BP to manage the accident’s aftermath, in part because government officials lacked the expertise required to stop the spill. Meanwhile, BP downplayed its responsibility for the failure. As the firm failed repeatedly to stop the spill, the public became angry. This industrial disaster became the largest offshore oil spill in U.S. history.

The case provides a detailed description of the events leading up to this catastrophe. Readers examine the key decisions that BP and its partners made as they drilled this well. They discover the alternative choices that could have been made and learn about the disagreements that took place (as well as those that failed to surface). Moreover, the case provides an opportunity to examine how BP’s history and organizational culture shaped the way those decisions were made. The case describes how Tony Hayward and his predecessor, John Browne, led the firm and shaped the culture during the past two decades. In addition, the case explains how the regulatory environment and political forces shaped decision-making in the oil industry. The case concludes by examining the aftermath of the accident, particularly BP’s public relations miscues as it tried to manage the crisis.


Teaching Note: 8B11C035 (18 pages)
Industry: Manufacturing
Issues: Decision Making; Safety; Organizational Change; Risk Analysis; Ethics; Oil Industry; United States
Difficulty: 3 - Undergraduate



FINNING INTERNATIONAL INC.: MANAGEMENT SYSTEMS IN 2009
Murray J. Bryant, Ken Mark

Product Number: 9B10B001
Publication Date: 1/25/2010
Length: 15 pages

A stock analyst is reviewing information about Finning International Inc. He wonders how strategy at Finning's business unit-level is translated into financial and individual performance metrics at the line of business level. The case study describes Finning's internal management systems and shows how the metrics at the various levels are in alignment with the company's overall objectives.

Teaching Note: 8B10B01 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Accountability; Management Decisions; Management Systems; Control Systems
Difficulty: 4 - Undergraduate/MBA



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


Chapter 11:
Suggestion for Case Analysis

SOLUCIONES MEXICANAS S.A. DE C.V.
Elizabeth M.A. Grasby, Adrian Gomez

Product Number: 9B11B007
Publication Date: 4/8/2011
Length: 14 pages

The chief executive officer of a small chemical manufacturing operation in Mexico City is assessing his company’s performance. Students are required to: (1) perform an industry and corporate size-up, (2) do competitor and consumer analyses, (3) complete and interpret a statement of cash flows, (4) calculate and analyze ratios, (5) perform qualitative analyses of both the chemical department and the sales department, and (6) perform qualitative analysis and differential calculations for each of two business opportunities, analyze the financing options available to the business, and do both income statement and balance sheet projections and analyses.

Teaching Note: 8B11B007 (26 pages)
Industry: Manufacturing
Issues: Financing; Break-even Analysis; Relevant Costs; Profitability Analysis; Mexico
Difficulty: 1 - Introductory



BCE INC.: FACING THE FUTURE
Stephen R. Foerster, W. Glenn Rowe, Heather Tobin

Product Number: 9B09N015
Publication Date: 9/24/2009
Revision Date: 5/11/2010
Length: 25 pages

BCE Inc. (BCE), one of Canada's leading integrated communications companies, faced numerous challenges. In the key wireless communications market, BCE was trailing its competitors on growth and revenue. BCE's share price was underperforming and shareholders, including the powerful Ontario Teachers' Pension Plan, were becoming concerned. In addition there were regulatory changes on the horizon that could have a serious impact on BCE's wireless division. BCE's chief executive officer (CEO) was faced with the task of improving BCE's competitiveness and shareholder value in a dynamic industry. What options did the CEO and his leadership team have, which ones were better for BCE and how could the better ones be executed in order to satisfy BCE's shareholders? The case provides a good opportunity to assess financial performance and assist in understanding the interaction of strategy and finance.

Teaching Note: 8B09N15 (13 pages)
Industry: Information, Media & Telecommunications
Issues: Value Enhancement; Strategy Development; Strategy Implementation; Financial Analysis
Difficulty: 4 - Undergraduate/MBA



FOSTER'S BREWING GROUP LTD.
Murray J. Bryant, Michelle Theobalds

Product Number: 9A97B007
Publication Date: 9/11/1997
Revision Date: 2/2/2010
Length: 18 pages

Foster's Brewing Group Ltd. is an Australian company, who does business around the world and who shares trade on several international exchanges. The case focuses on the differences between Canadian and Australian General Accepted Accounting Principles (specifically the treatment of brands) and how these differences should be interpreted by an external investor. Teaching objectives include: (a) raising awareness of accounting differences in different jurisdictions; (b) understanding the impact that these differences may have on the financial statements; (c) examining brand accounting; and (d) making decisions on international companies as investments.

Teaching Note: 8A97B07 (7 pages)
Industry: Manufacturing
Issues: Accounting Methods; Financial Reports/Disclosure; Financial Analysis; Accounting Principles
Difficulty: 4 - Undergraduate/MBA