Ivey Publishing

Concepts in Strategic Management and Business Policy

Wheelen, T., Hunger, J.D.,13/e (United States, Pearson, 2012)
Prepared By Majid Eghbali Zarch, PhD Candidate, Strategy and International Business
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Basic Concepts of Strategic Management

EMBRACE (A): OPPORTUNITY IDENTIFICATION
Mridula Anand, Anand Nandkumar, Charles Dhanaraj

Product Number: 9B13M004
Publication Date: 4/16/2013
Revision Date: 4/16/2013
Length: 7 pages

AWARD WINNING CASE - Indian Management Issues and Opportunities Award, 2013 European Foundation for Management Development (EFMD) Case Writing Competition.The Embrace case series provides an engaging context to understand social innovation, by taking students through a sequence of critical decisions from opportunity analysis and market feasibility study to formulating a competitive strategy and developing business models for growth. The focus of the case is on an innovative idea to solve the problem of a high number of fatalities in premature births in rural India, and the potential for an affordable product.



The case is structured as a four-part series:

  • Part A: Opportunity Identification. The setting is an MBA classroom where five teams have been given five ideas and the students are asked to match each idea to each team. The focus is on how to identify and evaluate an appropriate opportunity given a unique entrepreneurial team, its composition, and its prior experience. Often, entrepreneurs discount the critical role that team-task fit plays in subsequent success.

  • Part B: Market Feasibility Analysis (9B13M005). The social problem associated with neonatal care in rural India is presented and the economics of providing reasonable care for premature babies is discussed. Is it possible to find an affordable and profitable price point, and make the project sustainable?

  • Part C: Competitive Strategy (9B13M006). The students are taken through an external analysis of the potential competition. This calls for a close analysis of what the competitive advantage of the venture is and whether it is sustainable. It forces the students to consider other available neonatal care options in the market, as well as to think about the IP issues they could face.

  • Part D: Building the Business Model (9B13M007). The team must decide between manufacturing the product in-house or outsourcing to vendors. Also, issues of distribution and sales require consideration.


Teaching Note: 8B13M004 (16 pages)
Industry: Health Care Services
Issues: Emerging markets; affordable innovation; business plan; social entrepreneurship; India
Difficulty: 5 - MBA/Postgraduate



STARTECH.COM: GLOBALIZING HARD-TO-FIND MADE EASY
Eric Morse, Ken Mark

Product Number: 9B13M053
Publication Date: 4/19/2013
Revision Date: 4/19/2013
Length: 15 pages

The co-founder and CEO of StarTech.com is reviewing his firm’s strategic plan, including an aggressive target of $150 million in sales in three years. To achieve this goal, the company needs to leverage its knowledge to develop a meaningful presence in Europe. The challenge is to identify the best way to go to market, given country and regional differences in how people buy computer parts. The company can capitalize on several favourable trends: the economic weakness in Europe, which prompts consumers to extend the life of their electronic equipment; the lack of a European direct competitor; and the company’s ability to self-finance the venture.

Teaching Note: 8B13M053 (9 pages)
Industry: Manufacturing
Issues: Differentiation; expansion; business models; channel strategy; adaption; Canada
Difficulty: 4 - Undergraduate/MBA



WESTJET IN 2009: THE FLEET EXPANSION DECISION
Stewart Thornhill, Ken Mark

Product Number: 9B09M063
Publication Date: 9/24/2009
Revision Date: 8/26/2010
Length: 18 pages

Thirteen years after it began operations with three airplanes, WestJet is the second-largest airline in Canada. It has grown revenues at an annual rate of 37 per cent per year for the past 11 years, and is poised to become the country’s dominant airline in the future. As it has grown, WestJet seems to have made changes to its original strategy of low-cost, no-frills, point-to-point, single-class service. The case examines WestJet’s strategy over the years and focuses on the company’s latest decision point: whether to add smaller planes to its single-model Boeing fleet. The objective of the case is to examine changes in a company’s strategy over time, and to review the potential impact of these changes on a company’s future performance.

Teaching Note: 8B09M63 (10 pages)
Industry: Transportation and Warehousing
Issues: Strategic Planning; Strategy Development; Strategic Positioning; Change Management; Airline Industry
Difficulty: 4 - Undergraduate/MBA



STORMFISHER (A): POWER WITH PURPOSE
Oana Branzei, Stewart Thornhill, Adam Reeds

Product Number: 9B08M092
Publication Date: 12/9/2008
Length: 16 pages

The case illustrates the tensions, trade-offs and adaptation challenges involved in designing a clean technology venture in a changing regulatory, funding and competitive context (Ontario, Canada, 2006-2008). The multiple decision points in the case have the students critically and iteratively assess the prospects of clean technology ventures and the evolving interface between technology and strategy in Canada's emerging clean energy sector. Beyond understanding the specific challenges faced by the venturing team, students are asked to grapple with the controversies and priorities for Canada's environmental policies in the energy sector, discuss competitive tension or symbiotic relationships between incumbents and disruptors, and actively align new venture design and strategy with a rapidly morphing regulatory, technological and competitive environment. The case discussion also opens up a broader platform for exploring the role of incumbents and disruptive business models in informing provincial and national responses to climate change, and, more generally, the role of cleantech venturing and venture capital in fostering climate change readiness and greener energy solutions. The A case asks students to compare and contrast the clean technologies available, discuss their pros and cons, and articulate a compelling business proposition.

Industry: Utilities
Issues: Venture Capital; Technology; New Venture; Sustainable Development
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Corporate Governance

KROHNE'S ENTRY INTO THE CHINESE MARKET
Taohua Ouyang, Meiying Yang, Zhi Xu, Ling Ding, Tang Yao, Miao Cui

Product Number: 9B13M039
Publication Date: 5/8/2013
Revision Date: 4/22/2013
Length: 8 pages

Krohne Inc. of Germany separately established a joint venture, a wholly owned sales company and a manufacturer in China. Unfortunately, although the sales channels were different, the product lines of the joint venture and the wholly owned manufacturer overlapped. The two companies were therefore competing and unsure about which company rightfully represented the parent enterprise. In addition, the two investment parties were battling for control of the joint venture.

Teaching Note: 8B13M039 (15 pages)
Industry: Manufacturing
Issues: Market entry; emerging market; equity recovery; China
Difficulty: 5 - MBA/Postgraduate



GOVERNANCE CHALLENGES AT GOOD HANDS HEALTHCARE (A)
Amy J. Hillman, Marilyn Seymann

Product Number: 9B04M019
Publication Date: 6/24/2004
Revision Date: 10/13/2009
Length: 12 pages

Good Hands Healthcare is a large nursing home provider with more than 400 facilities across the United States. This case series looks at the governance issues facing the board of a firm with declining performance set within the eldercare industry. The (A) case revolves around whether to replace the chief executive officer, who founded and built the firm, due to poor performance. The supplements, Governance Challenges at Good Hands Healthcare (B), (C) and (D), products 9B04M020, 9B04M021 and 9B04M022, discuss the replacement decision, the selection decision and the change in strategy brought on by the new CEO.

Teaching Note: 8B04M19 (7 pages)
Industry: Health Care Services
Issues: Corporate Governance; Succession Planning; Compensation; Strategic Change
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Social Responsibility and Ethics in Strategic Management

BRITANNIA INDUSTRIES LTD.
Robert Klassen, Ramasastry Chandrasekhar

Product Number: 9B13M010
Publication Date: 1/28/2013
Revision Date: 2/27/2013
Length: 15 pages

The CEO of Britannia Industries Ltd, a manufacturer of bakery products, was at a crossroads. Two years earlier, the firm had started providing specially fortified biscuits to small groups of school-going children in selected locations in India. The product offered a step toward addressing the widespread national problem of malnutrition and, unlike corporate philanthropy, this initiative was an extension of what the company was fundamentally good at – making biscuits. After early signs of success, Britannia’s CEO faced two challenges. How should Britannia scale up the manufacture and distribution of social products? And, how should the firm develop the social products into a sustainable business?

Teaching Note: 8B13M010 (10 pages)
Industry: Manufacturing
Issues: Sustainable Development; Corporate Social Responsibility; Capacity Expansion; Stakeholder Management; Brand Management; Non-government Organization Partnerships; India
Difficulty: 4 - Undergraduate/MBA



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



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


Chapter 4:
Environmental Scanning and Industry Analysis

7-ELEVEN IN TAIWAN: ADAPTATION OF CONVENIENCE STORES TO NEW MARKET ENVIRONMENTS
Shih-Fen Chen, Aihwa Chang

Product Number: 9B12A011
Publication Date: 3/16/2012
Revision Date: 3/16/2012
Length: 24 pages

This case shows the expansion of 7-Eleven to Taiwan and the adaptation of the store format by its local franchisee to the new market environment. The core issue in this case is the balance between standardization and localization in business-format franchising across national borders. Despite keeping the store logo and convenience concept that was well established in the United States, the local franchisee of 7-Eleven in Taiwan re-formatted almost all aspects of the store chain, including its positioning, location, layout, and product offerings. In addition, 7-Eleven in Taiwan introduced a wide variety of new services for its customers, such as e-commerce (train or movie tickets), e-payment, mobile communications, pickup/delivery, and taxi services. The local franchisee, President Chain Store Corp. (PCSC), seemed to have struck the right balance between standardization and localization that allowed it to use service differentiation to gain competitive advantages over its rivals. In about three decades, it grew from zero to nearly 5,000 stores in Taiwan with over 50 per cent of the market, while expanding its reach to China and Thailand.

Teaching Note: 8B12A011 (7 pages)
Industry: Retail Trade
Issues: Service Standardization; Localization Across Borders; Service Differentiation; Service Marketing; International Franchising; Taiwan; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA



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



LOBLAW COMPANIES LIMITED
Charlene Zietsma, Ramasastry Chandrasekhar

Product Number: 9B04M082
Publication Date: 1/28/2005
Revision Date: 9/21/2011
Length: 20 pages

The president of Loblaw Companies Limited must decide what to do in response to the rumoured introduction of Wal-Mart's SuperCenters (combining grocery and non-food items) in Canada. The potential launch of SuperCenters in Canada was seen by observers as a threat to Loblaw, the market leader in Canadian grocery. Wal-Mart is a vigorous competitor, and the Every Day Low Prices strategy of Wal-Mart's SuperCenters could wean away traffic from Loblaw's various banners.

Teaching Note: 8B04M82 (8 pages)
Industry: Retail Trade
Issues: Food and Drug; Industry Analysis; Competition
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Internal Scanning: Organizational Analysis

VALUE CHAIN DEVELOPMENT: CARE KENYA’S CHALLENGE TO MAKE MARKETS WORK FOR THE POOR (A)
Kevin McKague

Product Number: 9B12M033
Publication Date: 4/17/2012
Revision Date: 4/17/2012
Length: 9 pages

This case examines how CARE, a non-profit international development organization, begins to pursue a market-based approach to meeting its poverty-reduction mission. Specifically, a CARE project manager explores how previous work with low-income livestock herders in drought-prone eastern Kenya might offer an opportunity to work with value chain actors to improve access to markets and increase farmers’ incomes.

With the Kenyan livestock project as the pilot for this new approach, Case (A)’s main decision point concerns a strategic choice on what role CARE should play in the value chain to support low-income pastoralists. Options include 1) becoming directly involved in value chain transactions, buying and selling livestock, and providing inputs to farmers or 2) acting as a value chain facilitator to provide the information and incentives to existing actors to make the value chain more efficient and inclusive for low-income producers. This strategic decision is part of a larger proposal that students are tasked to create for CARE’s market-based livestock project.


Teaching Note: 8B12M033 (13 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Value Chain; Social Entrepreneurship; Non-profit Organization; Agriculture; Market Analysis; Kenya; Africa
Difficulty: 4 - Undergraduate/MBA



NOKIA LIFE TOOLS: A STRATEGIC INNOVATION TO TAP INTO INDIA'S RURAL AND NEWLY URBAN POPULATION
Ariff Kachra, M.B. Sarkar, Kirti Madhok Sud

Product Number: 9B11M055
Publication Date: 5/24/2012
Revision Date: 10/19/2012
Length: 24 pages

The vice president and managing director of Nokia India needed to decide whether to undertake an all-India launch of Nokia’s newest service offering for emerging markets, called Nokia Lifetools (NLT). The NLT pilot was very successful, with consumer adoption and retention rates over 70 per cent. However, offering services and applications that came directly loaded onto a handset was new for Nokia, put it in direct competition with service providers, and required the company to develop a very different distribution strategy. It could not avoid the important stakeholders in the telecommunication value chain as they were also crucial partners whose cooperation was key to Nokia’s success. Successfully launching NLT in India could shift the telecommunications industry globally. The decision facing the vice president was likely one of the most important business decisions he would ever make.

Teaching Note: 8B11M055 (9 pages)
Industry: Information, Media & Telecommunications
Issues: Value Chain; Industry Analysis; Financial Projections; Core Competence; Action Planning and Implementation; Telecommunications; India
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



MCDONALD'S AND THE MCCAFE COFFEE INITIATIVE
Pratima Bansal, Lindsay Sgro

Product Number: 9B04M008
Publication Date: 1/15/2004
Revision Date: 10/9/2009
Length: 9 pages

While McDonald's breakfast and snack sales have been increasing, they have not kept pace with industry growth. The primary barrier to this sales growth in the Canadian market, according to a franchise owner, is the quality of the coffee. McDonald's in Canada has been attempting to build its coffee brand equity for many years. They had switched to the Higgins and Burke coffee but had little success changing customers' negative perceptions. To truly change customer perceptions, McDonald's needed to revolutionize their coffee program. McCafe was introduced in response to this coffee issue. McCafe was full service coffee bar, located in a McDonald's restaurant as an extension to the front counter or located as a stand-alone restaurant. Over 300 McCafes existed worldwide. While McDonald's would like to get a piece of the lucrative coffee market, McCafe's main objective was to eliminate coffee as a barrier to breakfast and snack sales. The question for one franchise owner is whether McCafe's strong initial sales can be sustained.

Teaching Note: 8B04M08 (9 pages)
Industry: Manufacturing
Issues: Diversification; Corporate Strategy; Strategy Development; Strategy and Resources
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Strategy Formulation: Situation Analysis and Business Strategy

CUMI INDIA'S GLOBAL STRATEGY: THE CHINA PUZZLE
Subramaniam Ramnarayan, Charles Dhanaraj, Krithiga Sankaran

Product Number: 9B13M023
Publication Date: 4/24/2013
Revision Date: 4/23/2013
Length: 16 pages

Carborundum Universal Murugappa International (CUMI) was a leading abrasives manufacturing company based in India with global operations in Russia, South Africa and China. In the global abrasives business, China held 50 per cent of the raw materials for the industry. China was also the largest market for abrasives worldwide and was expected to contribute to one third of the global demand for abrasives. CUMI had the vision to become a global leader in the abrasives industry within 10 years. It had successfully expanded operations in Russia and South Africa, where it was seen more as a partner than a conqueror in its acquisition strategy. In 2006, the company entered China through a joint venture with a Chinese state company but subsequently bought out the partner. However, the company was facing several problems with its stand-alone operation there, especially in terms of maintaining its workforce and hiring local managers. It was clear that winning market share in China was necessary, but the complexity of the Chinese market had proven to be a challenge. The managing director had to present a strategy for working successfully in China to the board.

Teaching Note: 8B13M023 (22 pages)
Industry: Manufacturing
Issues: Internationalization strategy; mode of entry; joint venture; Russia; South Africa; China; India
Difficulty: 5 - MBA/Postgraduate



GROWTH AFTER THE 2008 FINANCIAL CRISIS: HUDSON BAY BANK
Cara C. Maurer, Bryan Sinclair

Product Number: 9B12M108
Publication Date: 4/17/2013
Revision Date: 4/17/2013
Length: 18 pages

In early January 2009, the newly hired head of Business, Strategy & Development, Cash Equities at Hudson Bay Bank (HBB) was analyzing how his group could increase revenues after the market meltdown of 2008. His analysis specifically focused on a business segment known as high-frequency trading, in some ways a controversial revenue stream, whereby traders take advantage of split-second price differences to earn a profit. Although U.S. firms had been using this technology for years, the Canadian landscape had only just become hospitable to the concept. This business segment could represent an attractive new source of revenue, but the financial services industry had seen dramatic changes since 2007, calling into question many of its foundational policies and procedures. Will high-frequency trading provide the innovation that HBB was seeking to grow revenues?

Industry: Finance and Insurance
Issues: Financial Crisis; Growth Strategy; High Frequency Trading; Canada
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



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


Chapter 7:
Strategy Formulation: Corporate Strategy

GREEN-TECH: BIO-FUELS HIGH GROWTH STRATEGY
Federico M. Berruti, Heng-Yih (Gordon) Liu

Product Number: 9B11M123
Publication Date: 1/20/2012
Length: 12 pages

Green-Tech Inc., a Canadian company founded in 2006, was dedicated to developing, manufacturing, and marketing portable and stationary systems for the production of bio-oils and bio-char from biomass residues and wastes. Green-Tech was a recent spinoff from a large university research centre with a very good reputation for providing bio-energy solutions. Although focused and well positioned, Green-Tech had to manage relationships with large companies such as Shell that controlled vast and complete supply chains of oil-related businesses, as well as small firms and clients that were unable to manage their waste effectively. Large firms could provide plenty of business opportunities for Green-Tech, but could also jeopardize the company’s autonomy. Small customers on their own might not bring in enough cash flow, but could give Green-Tech sufficient freedom to pursue its own strategic goals. Both relationships seemed to lead to a promising future for this entrepreneurial start-up company, but also created serious risks. At the time of the case in 2011, Fernando Bruteque, vice president and one of the principal engineers of Green-Tech, was seeking the appropriate growth approach for Green-Tech. Being in charge of business operations, Bruteque also had to maintain a balance between research and development (R&D), investor and client concerns, and business opportunities. What would be the appropriate growth strategies and business operation strategies for a resource-constrained firm such as Green-Tech? How should it proceed?

Teaching Note: 8B11M123 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Bio-fuels; Renewable Energy; Research and Development; Canada
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



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



TATA MOTORS' ACQUISITION OF DAEWOO COMMERCIAL VEHICLE COMPANY
Meera Harish, Sanjay Singh, Kulwant Singh

Product Number: 9B08M094
Publication Date: 2/2/2009
Revision Date: 5/3/2017
Length: 15 pages

In January 2004, the chairman of the India-based Tata Group, announced that the Tata Group would focus its efforts on international expansion to become globally competitive. This largely domestic vehicle manufacturing firm subsequently acquired a leading established South Korean firm, Daewoo Commercial Vehicle Company (DCVC). This case focuses on the background of the firms and the acquisition, and the bidding and acquisition process. It provides information on the interests of the acquirer and target, and how both came to see the value in the acquisition. The Tata Group acquisition presents an uncommon situation of how an Indian firm acquired a firm in South Korea while overcoming a series of cultural and other barriers. An analysis of this case provides the basis for determining what criteria should be considered to guide a successful acquisition. A companion case is also available, Tata Motors' Integration of Daewoo Commercial Vehicle Company.

Teaching Note: 8B08M94 (10 pages)
Industry: Manufacturing
Issues: International Strategy; International Expansion; Management Decisions; Market Entry; Mergers & Acquisitions; Corporate Strategy; Business Policy
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Strategy Formulation: Functional Strategy and Strategic Choice

LOUIS VUITTON IN JAPAN
Justin Paul, Charlotte Feroul

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

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

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

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


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



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 9:
Strategy Implementation: Organization for Action

LENOVO: A CHINESE DRAGON IN A GLOBAL VILLAGE
Pascal Vidal, Pierre-Xavier Meschi

Product Number: 9B13M029
Publication Date: 3/27/2013
Revision Date: 3/27/2013
Length: 16 pages

The fast rise of Lenovo among its competitors in the computer industry raised a series of questions regarding the sustainability of its competitive position, as well as the choices it had made in its efforts toward globalization. First, how could Lenovo establish and sustain a leadership role in an industry where competitive positions were increasingly unstable? Next, how could the Chinese firm build a solid competitive position in an industry characterized by smaller and smaller margins? Finally, after the acquisition of IBM’s PC business and the subsequent accelerated international expansion, could Lenovo still be considered an entirely Chinese entity or was it a truly global enterprise of Chinese origin?

A video interview with Lenovo's strategy and corporate development vice-president, Lenovo: A Chinese Dragon in the Global Village - DVD, is also available.


Teaching Note: 8B13M029 (13 pages)
Industry: Information, Media & Telecommunications
Issues: International expansion; growth strategy; global; China
Difficulty: 4 - Undergraduate/MBA



WOLTERS BREWERY (A): NEGOTIATING RESTRUCTURING
Klaus Meyer

Product Number: 9B12M009
Publication Date: 3/19/2012
Revision Date: 3/19/2012
Length: 14 pages

Part (A) of this case series presents the situation of a multinational brewer, InBev, having acquired several breweries in Germany, and wishing to proceed with operational integration and the closure of smaller, less efficient plants. This move triggers resistance not only from the local workforce, but the local community. For InBev, this is a case of corporate restructuring and strategy implementation. Yet for a group of local entrepreneurs, this is an opportunity to plot a management buy-out (MBO) and to recreate a historical local brewery. The case is designed as a business negotiation setting that brings together Inbev, the local entrepreneurs, the city council, and a local bank (instructions for four teams involved in the negotiations are provided in the teaching note). The case can also be used as a conventional case on entrepreneurship or strategy implementation.

Teaching Note: 8B12M009 (14 pages)
Industry: Manufacturing
Issues: Management Buyout; Corporate Restructuring; Negotiation; Government and Business; Post-merger Integration; Beer Industry; Germany
Difficulty: 4 - Undergraduate/MBA



GILLETTE'S ENERGY DRAIN (B): ENERGIZER'S ACQUISITION OF SCHICK
Frank C. Schultz, Michael McCune

Product Number: 9B05M027
Publication Date: 1/31/2005
Revision Date: 10/1/2009
Length: 12 pages

This is a supplement to Gillett's Energy Drain (A): The Acquisition of Duracell, product 9B05M026. Highlighted is Energizer's acquisition of Schick. Gillette was just dabbling in batteries but its source of profits always been in razors and blades. Now, that business is under direct threat by Energizer, with its acquisition of Schick. This supplement provides an excellent example of multipoint competition, and raises the question, should Gillette have anticipated that the acquisition of a battery company would ultimately put razor profits at risk?

Teaching Note: 8B05M26 (13 pages)
Industry: Manufacturing
Issues: Strategy Implementation; Competition; Corporate Strategy; Mergers & Acquisitions
Difficulty: 4 - Undergraduate/MBA



GILLETTE'S ENERGY DRAIN (A): THE ACQUISITION OF DURACELL
Frank C. Schultz, Michael McCune

Product Number: 9B05M026
Publication Date: 1/31/2005
Revision Date: 10/1/2009
Length: 16 pages

In 1996, Gillette acquired Duracell batteries for $7.3 billion in stock. The purchase was met with optimism not only by Gillette's senior management and its highly visible director, Warren Buffet, but also Wall Street analysts. The case highlights the numerous challenges that Gillette has encountered since its acquisition of Duracell. Despite the initial enthusiasm, Duracell has proven to be a drain on Gillette's earning and has cost Michael Hawley, James Kilt's predecessor as CEO, his job after only 18 months in the position - in large part for his inability to turn around the financial hemorrhaging at the Duracell division. The key strategy questions revolve around what can be done to turn around the battery business to help it achieve the potential for Gillette that everyone had assumed it possessed. The supplement Gillette's Energy Drain (B): Energizer's Acquisition of Schick, product 9B05M027 highlights Energizer's October 2003 acquisition of Schick.

Teaching Note: 8B05M26 (13 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Corporate Strategy; Competition; Strategy Implementation
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Strategy Implementation: Staffing and Directing

COLLISION COURSE: SELLING EUROPEAN HIGH PERFORMANCE MOTORCYCLES IN JAPAN
Jeff Hicks, Derek Lehmberg

Product Number: 9B12M025
Publication Date: 4/3/2012
Revision Date: 4/3/2012
Length: 15 pages

In 2006, the Japanese subsidiary of Tommasi Motorcycles, an Italian manufacturer of high-end motorcycles, was implementing a new customer data application to help its motorcycle dealerships increase the effectiveness of their sales and marketing activities. Horizon LLP, a consulting firm, was Tommasi’s global implementation partner for the application. To identify any dealer concerns regarding the new system, Tommasi Japan had brought in additional consultants from Horizon to conduct interviews with the dealers. As the consultants soon discovered, the dealers’ concerns with Tomassi went far beyond the new application. An unannounced visit by an influential dealer set all the players on a collision course, and soon exposed their widely differing views and a number of fundamental problems in the relationship between Tommasi Motorcycles Japan and its dealer network.



The case begins with a series of separate dialogues involving the director of sales and marketing; the expatriate president of Tommasi Motorcycles Japan; an influential owner of multiple dealerships; and two non-Japanese consultants from Horizon. When they meet in the board room of Tommasi Motorcycles Japan, the ensuing conversation reveals a number of issues: opportunistic behaviour by the bilingual director of sales and marketing, who limits and shapes communications between the dealers and Tommasi’s Japanese National Office; a limited understanding of local market conditions by expatriate Tommasi management; frustration on the part of business-savvy dealers; and naiveté on the part of the consultants, who do not see the social hierarchies at work, nor realize that their cultural and language fluency, which has in past projects always been an asset, could also be a threat.


Teaching Note: 8B12M025 (13 pages)
Industry: Manufacturing
Issues: Cross-cultural Communications; Consulting; Expatriate Management; Motorcycles and Vehicles; Italy; Japan
Difficulty: 4 - Undergraduate/MBA



SUCCESSION PLANNING: SURVIVING THE NEXT GENERATION
Ilan Alon, Kimberley Howard

Product Number: 9B09C015
Publication Date: 7/16/2009
Length: 9 pages

In late May 2009, Albert Bohemier, CEO of Survival Systems Limited (SSL), located in Dartmouth, Nova Scotia, paced the deck of the training pool at Survival Training Simulation Theatre wondering how best to transition the company to new leadership. During the past five years, attempts at succession planning had been unsuccessful. As the leader of the company for over 25 years, Bohemier was ready to retire, but there were many aspects of succession planning to consider. Bohemier's personal criteria for incoming leadership were threefold: it had to be good for SSL's existing clients, a positive move for the company as a whole and good for the current team.

Teaching Note: 8B09C15 (6 pages)
Industry: Educational Services, Manufacturing
Issues: Succession Planning; Organizational Change; International Business
Difficulty: 4 - Undergraduate/MBA



TURNAROUND AT THE STRATFORD FESTIVAL: IT IS A LOT LIKE DIRECTING A PLAY
Gerard Seijts, Ken Mark

Product Number: 9B06M026
Publication Date: 2/5/2010
Revision Date: 9/9/2009
Length: 15 pages

The executive director of the Stratford Festival of Canada was contemplating the organization's future. The Stratford Festival had come a long way since the dark days in the early 1990's. The recovery began with the artistic director, who had built substantial audience momentum through his artistic choices. The executive director, a former Stratford Festival actor, had been in the role for less than a year. He needed to determine what course of action he should recommend to ensure the Stratford Festival's survival and return to greatness.

Teaching Note: 8B06M26 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Action Planning and Implementation; Change Management; Leadership
Difficulty: 5 - MBA/Postgraduate



FISHERY PRODUCTS INTERNATIONAL LTD.: A NEW CHALLENGE
W. Glenn Rowe, Tami Hynes

Product Number: 9B01M031
Publication Date: 8/9/2001
Revision Date: 12/21/2009
Length: 22 pages

Newfoundland-based Fishery Products International (FPI) is one of the largest seafood companies in North America. FPI has experienced its best performance in a decade and has recently survived a hostile takeover bid by three competitors who acted in concert. The chief executive officer (CEO) has just returned from New Zealand where he was visiting a major competitor to see if there was the possibility of a strategic alliance. The CEO knew he had to do something to prevent another hostile takeover and to continue to grow shareholder value while still maintaining the social conscience of FPI. Some of the issues facing FPI were: performance, strategic leadership and corporate governance, and implementing an integrated product differentiation/cost leadership strategy.

Teaching Note: 8B01M31 (12 pages)
Industry: Manufacturing
Issues: Government and Business; Strategy Implementation; Corporate Governance; Return on Investment
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Evaluation and Control

THE MERIT OF A POINTS-BASED MERIT SYSTEM AT THE EDWARDS SCHOOL OF BUSINESS
Dionne Pohler

Product Number: 9B11C042
Publication Date: 1/17/2012
Length: 16 pages

A new faculty member is engaged in a decision-making process surrounding the development of a points-based system designed to allocate merit pay at a business school. The process is forcing her to evaluate how she is structuring the allocation of her work, which is directly affecting her motivation toward coaching a student case competition team. Edwards has historically used a judgment-based approach to the allocation of merit. The case outlines the rationale used in the design of the new points-based system, discusses the potential advantages and disadvantages, and highlights the perspectives of different stakeholders throughout the process, including the union, the faculty, and senior administration. The union is opposed to merit, so has outlined fairly stringent criteria for the awarding of merit in the new collective agreement. Faculty opinion is mixed surrounding merit more generally, and the implementation of a points-based system versus a judgment-based system in particular. Senior university administration is committed to the continuation of the merit system at the university as a tool to reward outstanding performance and to retain star faculty. The individual departments at Edwards are in the midst of finalizing the standards and procedures for allocation of merit-based pay. The protagonist is uncertain about how her department will proceed in the design and allocation of points, and how it will result in her re-allocating her work tasks.

Teaching Note: 8B11C042 (13 pages)
Industry: Educational Services
Issues: Motivation; Compensation; Performance Measurement/metrics; University Administration; Unions; Saskatchewan, Canada
Difficulty: 4 - Undergraduate/MBA



ROLLINS COLLEGE NONPROFIT LEADERSHIP AND PHILANTHROPY CENTER: THE IMPORTANCE OF NETWORKING
Mary Conway Dato-on, Margaret Linnane

Product Number: 9B11C023
Publication Date: 7/7/2011
Length: 13 pages

Margaret Linnane had just arrived home from a funders’ meeting where she had been asked questions that nearly challenged the very purpose of her nonprofit organization, Rollins College Philanthropy and Nonprofit Leadership Center (PNLC). She had been unprepared for the tough questions the funders had asked and she knew that she would need to be much better prepared for the next meeting in one month. She needed answers to the funders’ questions in four short weeks, so Linnane and the PNLC staff put other efforts on hold while they worked intensely to prepare. They gathered all the documents on the PNLC’s mission, vision, and strategic plan. They needed to determine what information to compile to convince the funders that the PNLC’s services (such as networking among established chief executive officers and foundation directors, and introducing newcomers to the nonprofit community) contributed to the professionalization of nonprofit leaders and organizations while addressing critical community issues — even if such services had not yet generated any revenue. What outcome measures were appropriate for assessing the success of non-income-generating activities such as networking? To start to search for answers to such questions, Linnane decided to review PNLC’s performance from the last two years and build a strategy for 2011-2012. Time was of the essence because without the support of funders, PNLC would be hard-pressed to continue offering its well-established networking activities.

Teaching Note: 8B11C023 (10 pages)
Industry: Educational Services
Issues: Networking; Organizational Performance Evaluation; Measuring Program Effectiveness; Florida, United States
Difficulty: 4 - Undergraduate/MBA



WHERE HAVE YOU GONE, JOE DIMAGGIO? JUST WHAT IS REALLY GREAT BUSINESS PERFORMANCE.
Michael E. Raynor, Mumtaz Ahmed, Andrew D. Henderson

Product Number: 9B09TC02
Publication Date: 5/1/2009
Length: 12 pages

Are all the companies that supposedly go from good to great really that great after all? Or, are they merely one of a pack of pretty average performers? As these authors state, those really great companies may only be putatively great, successful, but only in a middling sort of way. The authors studied the popular literature on "great" performing companies and came to their own, original conclusions.

Issues: Performance Assessment; Performance Evaluation



Chapter 12:
Suggestions for Case Analysis

CASE ANALYSIS IN MANAGERIAL ACCOUNTING AND CONTROL
Richard H. Mimick

Product Number: 9A83B035
Publication Date: 1/1/1983
Revision Date: 9/19/2002
Length: 7 pages

Increasingly, professional bodies and university management accounting courses are integrating cases into their circulation. For students and users unfamiliar with the case method, this can initially be a frustrating experience. Development of a standard approach for case analysis in general, and cases in management accounting topic areas specifically, can lessen the frustration and develop a problem solving model in a managerial perspective. The information is valuable to teachers and students alike.

Difficulty: 4 - Undergraduate/MBA


Chapter WEB Chapter A:
Strategic Issues in Managing technology & Innovation

DIGITAL OPPORTUNITY TRUST'S BUSINESS MODEL FOR SOCIAL ENTERPRISE WORK
Dima Jamali, Bijan Azad

Product Number: 9B13M035
Publication Date: 5/2/2013
Revision Date: 4/22/2013
Length: 16 pages

A social enterprise organization, whose mission is to battle poverty and gender discrimination through providing access to technology, is faced with the prospect of losing some or all of its government funding in a time of global recession. Under the legal structure of a non-governmental organization, Digital Opportunity Trust has partnered with large corporations and other organizations and established a local presence in disadvantaged areas. It has worked in a partnership setting to mobilize the information technology knowledge of young people and train them to become leaders of change in their local communities, which in turn will give them the relevant skills and experience to support their own career paths. The organization’s striking success has been driven by its innovativeness and, more particularly, its noticeable efforts to reconcile the corporate and non-profit aspects of doing business, along with the challenges that come with it, without compromising the quality of the social enterprise brand that it is bringing forward.

Teaching Note: 8B13M035 (10 pages)
Industry: Educational Services
Issues: Social entrepreneurship; corporate social responsibility; business model design; internationalization; Canada; Jordan; Lebanon; Egypt
Difficulty: 4 - Undergraduate/MBA



MANAGEMENT INNOVATION FOR THE FUTURE OF INNOVATION
Henry Chesbrough

Product Number: 9B11TC03
Publication Date: 5/1/2011
Length: 5 pages

In a world of widely distributed knowledge, the emergence of Open Innovation means that firms cannot afford to rely only on their own research, but should buy or license processes from other firms. Further, they should allow unused internal inventions to be taken outside the company through licensing and spin-offs. This article, by the scholar who coined the term Open Innovation, chronicles the history of innovation from the 1960s to the new millennium, when Open Innovation arose. It offers predictions for the future of innovation, such as that innovation management will become more collaborative and that business model innovation will become as important as technological innovation.

Issues: Innovation; Business Models; Technology; Licensing




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



BELL CANADA: THE VOIP CHALLENGE
Rod E. White, Daniel Day

Product Number: 9B06M009
Publication Date: 2/16/2006
Revision Date: 3/19/2010
Length: 12 pages

Voice over Internet protocol (VoIP) is beginning to disrupt plain old telephone service (POTS). Ron Close has been offered the job of heading Bell Canada's nascent VoIP business. Bell is Canada's largest telco and supplier of POTS. The case provides a platform for discussing a disruptive innovation (VoIP) and its implications for an incumbent player. Ron Close explains how Bell addressed the technology challenge, and its managerial and organizational consequences in an available video, product 7B06M009.

Teaching Note: 8B06M09 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Technological Change; Strategy Development
Difficulty: 4 - Undergraduate/MBA


Chapter WEB Chapter B:
Strategic Issues in Entrepreneurial Ventures & Small Business

MID-STATE TRUCKING AND STORAGE
Edmund L. Clark, John H. Friar

Product Number: 9B13M036
Publication Date: 4/25/2013
Revision Date: 4/25/2013
Length: 5 pages

An accounting firm has just informed the president of a 55-year-old, third-generation family-owned and -operated company that the family business is beginning to struggle financially. This news pushes years of simmering tensions and conflict within the family business into open conflict. The president has accused his sister, a vice president, of not doing her job. The sister is frustrated and needs to decide what action to take.

Teaching Note: 8B13M036 (4 pages)
Industry: Transportation and Warehousing
Issues: Family-work Interaction; Succession Planning; Communications; Conflict Resolution; United States
Difficulty: 4 - Undergraduate/MBA



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

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

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

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

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


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



THE ASCENDANCE OF AIRASIA: BUILDING A SUCCESSFUL BUDGET AIRLINE IN ASIA
Thomas Lawton, Jonathan Doh

Product Number: 9B08M054
Publication Date: 10/31/2008
Revision Date: 7/21/2010
Length: 16 pages

In September 2001, Tony Fernandes left his job as vice president and head of Warner Music's Southeast Asian operations. He reportedly cashed in his stock options, took out a mortgage on his house, and lined up investors to take control of AirAsia, a struggling Malaysian airline. Three days later, terrorists destroyed the World Trade Center. Despite the negative aftermath of the 9-11 attacks, by 2003, AirAsia had demonstrated that the low-fare model epitomized by Southwest and JetBlue in the United States, and by Ryanair and easyJet in Europe, had great potential in the Asian marketplace. Now, Fernandes had to make plans to ensure that AirAsia maintained its momentum while considering the influx of new entrants into the low-fare segment of the airline industry in Asia.

Teaching Note: 8B08M54 (8 pages)
Industry: Transportation and Warehousing
Issues: International Business; Competitive Strategy; Strategic Positioning; Entrepreneurial Business Growth
Difficulty: 4 - Undergraduate/MBA



CORAL DIVERS RESORT
Paul W. Beamish, Kent E. Neupert, Andreas Schotter

Product Number: 9B08M041
Publication Date: 4/18/2008
Revision Date: 11/19/2014
Length: 19 pages

The owner of a small scuba diving operation in the Bahamas is reassessing his strategic direction in the light of declining revenues. Among the changes being considered are shark diving, family diving, exit, and shifting operations to another Caribbean location. These options are not easily combined, nor are they subtle. The case is intended to provide a work-out on the relationship between strategy, organization and performance, and how changes in strategy will dramatically affect the organization. The case also highlights the importance of understanding demographic changes as part of an environmental analysis. (A nine-minute video can be purchased with this case, video 7B08M041.)

Teaching Note: 8B08M41 (14 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategic Change; Services; Small Business; Industry Analysis; Tourism
Difficulty: 4 - Undergraduate/MBA


Chapter WEB Chapter C:
Strategic Issues in Not-For-Profit Organization

MASSCHALLENGE, INC.: LAUNCHING A NON-PROFIT BUSINESS ACCELERATOR (A)
Gordon K. Adomdza, David T.A. Wesley

Product Number: 9B13M013
Publication Date: 2/11/2013
Revision Date: 2/6/2013
Length: 13 pages

MassChallenge Inc. is a large non-profit startup accelerator that connects new ventures with other stakeholders within an established business ecosystem. For this new company to engage stakeholders in the numbers envisaged and create a crowd-sourced deal management system, the founders need to develop a model that brings in as many quality or attractive startups as possible. Instead of taking equity in participating ventures as traditional accelerators do, MassChallenge focuses on developing a marketplace for stakeholders to gain access to startups and for startups to access the resources provided by investors and other stakeholders, including government; angel investors, venture capitalists and lawyers; and businesses, foundations and universities. The founders also need to find ways to build MassChallenge through possible expansion and funding opportunities.

Teaching Note: 8B13M013 (6 pages)
Industry: Social Advocacy Organizations
Issues: New Venture; Venture Capital; Non-profit Organization; Government and Business; United States
Difficulty: 4 - Undergraduate/MBA



THE CANADIAN POLICE KNOWLEDGE NETWORK
Stewart Thornhill, Edward Gamble, Peter W. Moroz, Andrew MacVane

Product Number: 9B12M046
Publication Date: 4/30/2012
Revision Date: 4/30/2012
Length: 17 pages

In 2004, Holland College formed a not-for-profit organization with the Canadian policing community and National Research Council to create the Canadian Police Knowledge Network (CPKN). In 2011, CPKN is Canada's leading provider of e-learning solutions for Canadian law enforcement, with more than 60,500 registered learners - including customers such as the Regina-based Royal Canadian Mounted Police and INTERPOL. To date, these learners have successfully completed more than 161,000 course events. Despite CPKN's recent successes, its president believes there is significant potential for growing the organization and he is looking for ways to reach new customers and improve the financial performance of the organization.

Teaching Note: 8B12M046 (4 pages)
Industry: Educational Services
Issues: E-learning; Growth Strategy; Non-profit Organization; Education; Police Services; Canada; Hill
Difficulty: 4 - Undergraduate/MBA



YMCA OF LONDON, ONTARIO
W. Glenn Rowe, Pat MacDonald

Product Number: 9B06M056
Publication Date: 4/28/2006
Revision Date: 9/21/2009
Length: 16 pages

The chief executive officer (CEO) of a multi-site and multi-business YMCA must determine how to more than double participation levels in the next five years. The case describes how the London YMCA has grown in both participation and size. However, the corporate level strategy has become complicated and the board of directors, CEO and senior management team need to consider a new M-form structure. This has many implications for the CEO, the senior managers and the future growth of the YMCA London.

Teaching Note: 8B06M56 (12 pages)
Industry: Social Advocacy Organizations
Issues: Corporate Strategy; Benefits Policy; Growth; Non-Profit Organization
Difficulty: 4 - Undergraduate/MBA