Ivey Publishing

Doing Business in Emerging Markets: Entry and Negotiation Strategies

Cavusgil, S.T., Ghauri, P.N., Agarwal, M.R. (United States, Sage Publications, 2002)
Prepared By Paul W. Beamish, Professor
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Why Look at Emerging Economies?

Tieying Huang, Junping Liang, Paul W. Beamish

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

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

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

Paul W. Beamish, Jae C. Jung, Hun-Hee Kim

Product Number: 9B03M016
Publication Date: 4/2/2003
Revision Date: 10/22/2009
Length: 12 pages

A major U.S.-based fast food company with extensive operations around the world was contemplating whether or not they should enter the Korean market. The Korean fast food market was hit badly by the Asian economic crisis in the late 1990s, but the economy was turning around. Thus, fast food demand in Korea was expected to increase. For the industry analysis, this case provides information on various competitors, substitute foods, new entrants, consumers and suppliers. In addition, social issues are included as potential forces.

Teaching Note: 8B03M16 (15 pages)
Industry: Accommodation & Food Services
Issues: Industry Analysis; Market Entry; Fast Food; International Business
Difficulty: 4 - Undergraduate/MBA

Henry W. Lane, Iris Berdrow

Product Number: 9A93G007
Publication Date: 3/4/1995
Revision Date: 3/3/2010
Length: 21 pages

It has been four years since the president had first travelled to Russia to find a partner so that the Ben & Jerry's finest quality, socially conscious and economically feasible super-premium ice cream could be produced in Russia. Now, just a few months in operation, the joint venture was up and running and already profitable. The partners wanted to expand and opportunities were readily available but the president questioned the feasibility of such a move. This case presents a common dilemma faced by international companies - how to manage divergent partner goals and perspectives. May be used with Ben & Jerry's Homemade Inc.: Background Note and Iceverks (B): Summer of 1993.

Teaching Note: 8A93G06 (11 pages)
Industry: Retail Trade
Issues: Intercultural Relations; International Business; Corporate Responsibility
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
Emerging Market Potential

Zhi Yi He, Meng Sun, Paul W. Beamish

Product Number: 9B04M034
Publication Date: 6/24/2004
Revision Date: 10/14/2009
Length: 12 pages

Broad Air Conditioning is a Chinese company with a proactive environmental attitude, but suffering from deteriorating financial results. The company founder and chief executive officer must decide whether to start producing electricity powered air conditioners to improve its financial results easily or stick to its ideal and only manufacture machines powered by heat. The major theme of this case is to understand corporate social responsibility, by discussing how an enterprise can find a way to harmonize the relationship between benefitting the company and protecting the environment, especially in developing countries.

Teaching Note: 8B04M34 (8 pages)
Industry: Manufacturing
Issues: China; Corporate Responsibility; Sustainable Development; Environment; Energy; Peking University
Difficulty: 4 - Undergraduate/MBA

Pratima Bansal, Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M028
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 14 pages

The senior market associate of Trojan Technologies reflected on the water shortages anticipated in developing countries created by their explosive economic growth. Trojan sold water disinfecting equipment, and the senior market associate's job was to find new areas for growth. China was particularly intriguing because it had as much water as Canada, but 40 times the population, and its economic boom would further stress current water resources. Trojan had set growth hurdles of 30 per cent per year, and it needed new markets to reach that objective. The task in new market development was to determine if Trojan should enter China, and if so, when, where and how. The associate knew little of China: how decisions were made for water disinfecting equipment, whether Trojan's patents would be protected, and what level of resources would be required. The vice-president of new business development wanted to see recommendations within the month. AWARD WINNING CASE - This case was second place winner of the MDC of Hong Kong Case Writer of the Year Award in 2000.

Teaching Note: 8A99M28 (10 pages)
Industry: Utilities
Issues: China; Environment; Strategic Planning; International Business
Difficulty: 4 - Undergraduate/MBA

William J. Ritchie, Matthew S. Shell, Ravi Corea, Chandeep Corea

Product Number: 9B04M052
Publication Date: 11/23/2004
Revision Date: 10/15/2009
Length: 12 pages

The Sri Lanka Wildlife Conservation Society's management team knew that they had conceived a very unique project, Elephant Walk Thru. The success of this innovative ecotourism project would hinge on their ability to balance the needs of a diverse group of stakeholders as well as various economic and political-legal forces faced by the organization. Their primary task in the ensuing months would be to identify salient external opportunities and threats posed by stakeholder groups. Equally important would be to evaluate the continually changing political-legal and economic environments prior to constructing the facilities.

Teaching Note: 8B04M52 (8 pages)
Industry: Social Advocacy Organizations
Issues: Management in a Global Environment; Environmental Analysis; Strategy Development; Stakeholder Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Internationalization as a Business Strategy

Paul W. Beamish, Andrew Karl Delios

Product Number: 9A95G012
Publication Date: 9/1/1995
Revision Date: 2/18/2010
Length: 18 pages

Technophar, a small but profitable manufacturer of hard gelatin capsule machines, was confronted with a potential default in its technology transfer agreement with a Vietnamese pharmaceutical firm. At issue is whether the company should pursue or terminate the Vietnam contract, particularly in light of potentially greater opportunities in neighbouring China. More fundamentally, Technophar needs to develop an international expansion strategy in terms of which markets to enter and how to determine market opportunities. This case should be used in an international business course to illustrate issues central to internationalization and the problems of a Stage I company progressing to Stage II, while competing in world markets.

Teaching Note: 8A95G12 (13 pages)
Industry: Manufacturing
Issues: China; Growth Strategy; Technology; Market Analysis; International Business
Difficulty: 4 - Undergraduate/MBA

Andrew Karl Delios

Product Number: 9A99M014
Publication Date: 7/20/1999
Revision Date: 1/18/2010
Length: 16 pages

Tom Barnes, executive director of Asiasports Ltd., was evaluating several options for growth for the sports management company. Asiasports principal sports properties were the South China Ice Hockey League and the World Ice Hockey 5's tournament, both based in Hong Kong. Among the alternatives available: Barnes could develop hockey in other countries in Southeast Asia; he could acquire new sports properties; or he could expand into in-line hockey promotion in Hong Kong.

Teaching Note: 8A99M14 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategic Planning; Sports; International Business
Difficulty: 4 - Undergraduate/MBA

Kenneth G. Hardy, Elizabeth O'Neil

Product Number: 9B04A012
Publication Date: 8/10/2004
Revision Date: 10/7/2009
Length: 27 pages

Elixir Technology is a small software development company based in Singapore that develops data analysis and report generation software and provides technical training and consulting services. By May 2003, it had successfully sold this software to corporate clients in Singapore, China and Japan, following a very adaptive marketing strategy in each market. Now the managing director is contemplating entering the Middle East but must choose an entry strategy quickly to capitalize on the current window of opportunity. Available entry choices include direct entry, or several partnership options.

Teaching Note: 8B04A12 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Technology; Entrepreneurial Marketing; Cultural Customs; Market Entry; Nanyang
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Export Marketing and Sourcing in Emerging Economies

Michael Parent, Tom Sperry

Product Number: 9B04E027
Publication Date: 10/13/2004
Revision Date: 10/9/2009
Length: 11 pages

Jay Nielson has done charity work in India with Akka International for a number of years. After a recent trip, the president of Akka proposed that Nielson enter into a joint venture with Akka to provide information technology outsourcing services to American companies. Akka was willing to provide $100,000 in seed money to fund the venture. Nielson must decide if he wants to undertake this challenge and what it would take to make this work. This also poses an ethical dilemma for him. Should he risk losing the much-needed funds in the hope of bettering a number of lives, or request the seed money be used to provide direct services to the most needy?

Teaching Note: 8B04E27 (5 pages)
Industry: Social Advocacy Organizations
Issues: Non-Profit Organization; Outsourcing; New Venture; International Business
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Elizabeth M.A. Grasby, Krista Wylie

Product Number: 9B00M016
Publication Date: 7/26/2000
Revision Date: 1/11/2010
Length: 12 pages

A new marketing advisor at Panmai, a women's weaving co-operative located in Kaset Wisai, Thailand, is trying to formulate a strategic plan for Panmai's future. Specifically, he needs to decide which product/markets and which methods of distribution are appropriate for Panmai, whether Panmai should pursue more foreign sales and how to solve many operational problems existing at the company. Since he will only be at Panmai for two years, any changes he makes must be sustainable without his presence.

Teaching Note: 8B00M16 (9 pages)
Industry: Retail Trade
Issues: Distribution; Strategic Planning; Consumer Analysis
Difficulty: 2 - Intro/Undergraduate

Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M031
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 12 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 from 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: 8A99M31 (15 pages)
Industry: Manufacturing
Issues: Exports; Market Analysis; International Marketing; Industry Analysis
Difficulty: 4 - Undergraduate/MBA

J. Nick Fry, David Ager

Product Number: 9A95G013
Publication Date: 12/5/1995
Revision Date: 2/18/2010
Length: 24 pages

This case explores Labatt's purchase of a 22% interest in a Mexican brewing business and the associated agreements for cooperative activities throughout North America. An evaluation of the deal requires an assessment, in particular, of the prospects of the venture in the Mexican and U.S. beer markets, the potential for synergies in the cooperative activities, and ultimately the pricing and financing of an investment in a developing economy. This case is similar to Labatt-Femsa: Amigos for Growth, case 9A96G003, in that it varies primarily in the time perspective from which the issues are addressed. Only one of these cases is necessary in a course.

Industry: Manufacturing
Issues: Corporate Strategy; Developing Countries; Strategic Alliances; Market Analysis
Difficulty: 4 - Undergraduate/MBA

Mark B. Vandenbosch, Tom Gleave

Product Number: 9A99A017
Publication Date: 8/5/1999
Revision Date: 5/24/2017
Length: 12 pages

The manager of business development for Carvel Asia Limited is trying to determine how best to increase ice cream cake sales in Beijing. In doing so, he needs to develop a complete marketing program which includes decisions about product offerings, pricing, placement (distribution) and promotion - the 4 Ps. Carvel Asia was a 50-50 joint venture between Carvel (USA) and China's Ministry of Agriculture.

Teaching Note: 8A99A17 (14 pages)
Industry: Manufacturing
Issues: China; Pricing Strategy; Product Concept; Marketing Communication; Distribution
Difficulty: 5 - MBA/Postgraduate

Chapter 5:
Entry Strategies for Emerging Markets

Paul W. Beamish, Jing'an Tang

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

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

Teaching Note: 8B04M05 (7 pages)
Industry: Manufacturing
Issues: China; Expansion; Imports; Outsourcing; Plant Location
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Jae C. Jung, Joyce Miller

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

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

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

Paul W. Beamish

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

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

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

Chapter 6:
Developing and Managing Relationships in Emerging Markets

Cyril Bouquet, William Hawkins, John J. Wegener

Product Number: 9B05M061
Publication Date: 10/28/2005
Revision Date: 10/3/2009
Length: 8 pages

Lingo Media is a leading publisher of English language learning programs in China. But market share leadership hasn't come easily for the Canadian-based company, and doesn't equate with impressive sales or tangible profitability. Described is the company's learning journey in China and looks at the lessons learned on choosing the right alliance partner, tailoring products to unique local Chinese customers, and what unique resources are necessary to successfully do business in 21st century China.

Teaching Note: 8B05M61 (11 pages)
Industry: Manufacturing
Issues: China; Managing a Small Firm; Strategic Alliances; Strategic Planning; Internationalization
Difficulty: 4 - Undergraduate/MBA

Christina A. Cavanagh, Ken Mark

Product Number: 9B02C001
Publication Date: 6/21/2002
Revision Date: 10/29/2009
Length: 4 pages

Two engineers formed Teqswitch Inc. to design and produce faster networking equipment. Five years after they began, the company has 120 employees in Canada, England and Australia and sales in the tens of millions. The company decided to expand into Latin America and has worked out a $15 million joint venture with Unitas in Argentina to sell components. Teqswitch establishes an office in Buenos Aires and works with Unitas to develop sales personnel and business processes. As the company is about to launch its next generation of products, the vice-president international of Teqswitch receives information from the joint venture partner about terminating the agreement. He must determine what has gone wrong.

Teaching Note: 8B02C01 (9 pages)
Industry: Manufacturing
Issues: Communications; Cross Cultural Management; Relationship Management; Joint Ventures
Difficulty: 4 - Undergraduate/MBA

Terry H. Deutscher, Kaiser Islam

Product Number: 9B04A030
Publication Date: 10/13/2004
Revision Date: 10/7/2009
Length: 17 pages

Eastern Bank Limited has taken over the Bangladesh operations of the Bank of Credit and Commerce International after its collapse. The new chief executive officer of Eastern Bank must make decisions about which corporate banking clients to target, how to develop and position the Eastern Bank brand, what products to emphasize, in what price structure and whether to centralize or decentralize the bank's operations. The supplement Eastern Bank Limited (B), product 9B04A031 updates the situation. This case provides a good vehicle for discussing relationship management in a complex service analysis of market segments and the present and future profitability, so that the marketing strategy decisions are customer driven.

Industry: Finance and Insurance
Issues: Relationship Management; Market Strategy; Marketing Planning; Market Segmentation
Difficulty: 4 - Undergraduate/MBA

Terry H. Deutscher, Ying-Ru Chen

Product Number: 9B02A016
Publication Date: 8/28/2002
Revision Date: 10/28/2009
Length: 16 pages

A Taiwanese plastic manufacturer exports one of its products, bathtub covers, solely to Japanese distributors. The company's president has been approached to form a partnership in a new production facility in China with its second largest customer, a Japanese distributor that also produces bathtub covers. The president must assess the company's options: turn down the proposal and expand on its own in Taiwan, form a partnership and produce bathtub covers exclusively for the other company in China or turn down the proposal and invest in its own factory in China. The president considers the company's long-term strategies, the political future of a Taiwanese company in China, status of its intellectual property under a partnership and the potential loss of its second largest customer. He also needs to address plans for the company's other products and decide whether the company should be more actively pursuing a sales strategy to expand its market share.

Teaching Note: 8B02A16 (10 pages)
Industry: Manufacturing
Issues: Relationship Management; Strategic Planning; Marketing Channels; Partnership
Difficulty: 5 - MBA/Postgraduate

Chapter 7:
Negotiation Process and Strategies for Emerging Markets

Paul W. Beamish, R. Azimah Ainuddin

Product Number: 9B06M006
Publication Date: 11/30/2005
Revision Date: 5/23/2012
Length: 16 pages

This case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture with a Finnish firm, Sakari Oy. Negotiations have broken down between the firms, and students are asked to try to restructure a win-win deal. The case examines some of the most common issues involved in partner selection and design in international joint ventures.

Teaching Note: 8B06M06 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Intercultural Relations; Third World; Negotiation; Joint Ventures; Finland; Malaysia
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Jane W. Lu

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

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

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

Kathleen E. Slaughter, Jiping Zhang, Donna Everatt

Product Number: 9A99C014
Publication Date: 6/4/1999
Revision Date: 1/14/2010
Length: 14 pages

Alpha Gearing Systems Shanghai Co., Ltd. (Alpha Shanghai), a joint-venture between Alpha Gearing Systems of Illinois, USA (a large producer of gearing products), and Kai Li Machine Systems (one of China's largest manufacturers of gearing systems for mopeds and motorcycles), had invested several millions of dollars in tooling in the hope of winning a major contract. The general manager of Alpha Shanghai had made the decision that the next round of negotiations would either significantly advance, or sever, the relationship between Alpha Shanghai and San Yu Mopeds, a large Chinese moped producer, and a customer which Alpha Shanghai had hoped would become one of its largest. The case decision revolves around Alpha Shanghai's senior management perspectives, strategy and assumptions which affected the negotiating process, and specifically how their communication patterns were affected by their experience and culture.

Teaching Note: 8A99C14 (10 pages)
Industry: Manufacturing
Issues: China; International Business; Communications; Negotiation; Interpersonal Relations
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Jean-Louis Schaan

Product Number: 9A98M022
Publication Date: 11/5/1998
Revision Date: 2/1/2010
Length: 8 pages

The case deals with a scam that has been run out of Nigeria since 1990. In it, foreign companies are approached for their assistance in facilitating an international transfer of funds in order to receive a very large but unearned commission. In the case, a Hong Kong-based manager who is travelling to Nigeria is unaware that he is walking into a situation where his company is about to be cheated. The objective of the case is to raise the issue of ethics in the conduct of international business. A follow-up case (9A98M023) is available.

Teaching Note: 8A98M22 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Negotiation; Human Behaviour; Ethical Issues; Personal Values
Difficulty: 4 - Undergraduate/MBA

Chapter 8:
Emerging Markets of Asia

Paul W. Beamish, Ken Mark, Jordan Mitchell

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

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

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

Robert Klassen, Paul W. Beamish, Jim Barker

Product Number: 9A97D010
Publication Date: 8/28/1997
Revision Date: 2/3/2010
Length: 16 pages

International Decorative Glass (IDG) is a small manufacturer of glass panels which are inserted into exterior steel doors. While their primary market is in the U.S., most of IDG's manufacturing is done in China through a joint venture arrangement. In response to rapidly growing customer demand, the vice president of operations, is considering the expansion of either their Chinese or Canadian manufacturing operations. Alternatively, he has been approached by a supplier to form a new joint venture manufacturing operation in Vietnam. Financial, political and infrastructural considerations must be weighed, in addition to any signal that would be sent to their current Chinese partners.

Teaching Note: 8A97D10 (14 pages)
Industry: Retail Trade
Issues: China; International Business; Manufacturing Strategy; Manufacturing Capacity; Joint Ventures
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Bruce Moore

Product Number: 9A98G004
Publication Date: 3/4/1998
Revision Date: 1/29/2010
Length: 18 pages

The Singapore-based managing director of Origination and Structuring for CIBC CEF pondered how expansion opportunities in Asia fit with the firm's Asia-Pacific strategy and what his recommendation would be at the monthly senior management meeting regarding the Canadian investment bank's expansion into Malaysia. The firm has existing Asian operations in Australia, China, Hong Kong, Japan, Singapore and Taiwan. From the perspective of the managing director, a decision is required regarding whether the company should locate at all in Malaysia, and if so, which city and how to staff it.

Teaching Note: 8A98G04 (6 pages)
Industry: Finance and Insurance
Issues: International Business; International Finance; Staffing; Location Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
Emerging Markets of Eastern Europe

Paul W. Beamish, Jonathan Royce

Product Number: 9B05M029
Publication Date: 3/22/2005
Revision Date: 10/1/2009
Length: 9 pages

A recent MBA graduate is working as vice-president equity sales for an investment bank in the Ukraine. The firm's managing director has requested a recommendation regarding whether they should start investing in Ukrainian equities on their own account, or retain their practice of acting purely as an agent - buying and selling shares for clients without taking any ownership position.

Teaching Note: 8B05M29 (13 pages)
Industry: Finance and Insurance
Issues: Emerging Markets; Investment Dealers; Tradeoff Analysis; Stock Issues
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Ian Sullivan

Product Number: 9A92G002
Publication Date: 7/9/1992
Revision Date: 3/22/2010
Length: 18 pages

The two major partners in Russki Adventures contemplated their next move. They had spent the last year and a half exploring the possibility of starting a helicopter skiing operation in Russia. Their plan was to bring clients from Europe, North America and Japan to the Caucasus Mountains to ski the vast areas of secluded mountain terrain made accessible by the use of helicopter and the recent business opportunities offered by 'glasnost'. Three options for proceeding were being considered. The first was to proceed with the venture on their own, in the Caucasus Mountains area that had been made available to them by a Soviet government agency. The second was to accept the offer of partnership with Extreme Dreams, a French tour operator that had recently begun operations in the Caucasus region. The final option was to wait, save their money and not proceed with the venture at this time. This is a good case to emphasize small-scale international ventures and the complexities of operating in a rapidly changing and politically unstable environment.

Teaching Note: 8A92G02 (8 pages)
Industry: Accommodation & Food Services
Issues: Political environment; joint ventures; risk analysis; luxury services
Difficulty: 4 - Undergraduate/MBA

Mikhail Grachev, Peggy C. Smith, Mariya A. Bobina

Product Number: 9B03C008
Publication Date: 2/27/2003
Revision Date: 10/17/2009
Length: 14 pages

GTI is Global Traffic Inc., a U.S.-based sign manufacturer. The vice-president of the company is asked to recommend a human resources strategy for possible entry in the Russian market. He must develop a plan for expatriate assignment, the selection and compensation of personnel and the training needs, as well as outline the organizational culture.

Teaching Note: 8B03C08 (6 pages)
Industry: Manufacturing
Issues: Expatriate Management; Compensation; Management Training; Cross Cultural Management
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Emerging Markets of Latin America, South America, and Turkey

Paul W. Beamish, Isaiah A. Litvak, Harry Cheung

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

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

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

Ramiro Montealegre, Alberto Ballvé

Product Number: 9B01E012
Publication Date: 5/17/2001
Revision Date: 12/18/2009
Length: 26 pages

Founded in 1998, Patagon.com is a pioneer in Latin American Internet-based financial services. The substantial changes in and growth of its business and operations had placed significant demands on the company's administrative, operational, technological and staffing resources. The rapid growth has strained its ability to adequately integrate the companies it is acquiring. The challenge for the management team is to integrate the confederation of country-specific organizations while maintaining the agility and responsiveness of a small firm - and at the same time, develop management systems and enterprise design that would handle the growing complexity.

Teaching Note: 8B01E12 (17 pages)
Industry: Finance and Insurance
Issues: E-Commerce; Strategy Development; Organizational Change
Difficulty: 4 - Undergraduate/MBA

Susan Greenfeld, Susan Rawson-Zacur

Product Number: 9B04M075
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 11 pages

Goldas is a Turkish-based manufacturer and exporter-importer of gold jewelry. The company is looking at expanding the number of retail stores and increasing revenues through export and its overseas stores. The international relations director must decide what to do first: increase the number of retail stores or increase revenues, and must factor the financing and production issues for each.

Teaching Note: 8B04M75 (6 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Globalization; International Business; Expansion
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Conclusions: Some Guidelines for Doing Business in Emerging Markets

Paul W. Beamish, Kent E. Neupert

Product Number: 9A96M001
Publication Date: 2/6/1996
Revision Date: 2/10/2010
Length: 18 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 7A96M001.)

Teaching Note: 8A96M01 (15 pages)
Industry: Other Services
Issues: Strategic Change; Small Business; Services; Industry Analysis
Difficulty: 4 - Undergraduate/MBA

Don Wood, Paul W. Beamish

Product Number: 9B04M067
Publication Date: 1/10/2005
Revision Date: 9/21/2011
Length: 17 pages

At the end of 2001, the Canadian Imperial Bank of Commerce (CIBC) and Barclays Bank PLC were in advanced negotiations regarding the potential merger of their respective retail, corporate and offshore banking operations in the Caribbean. Some members of each board wondered whether this was the best direction to take. Would the combined company be able to deliver superior returns? Would it be possible to integrate, within budget, companies that had competed with each other in the region for decades? Would either firm be better off divesting regional operations instead? Should the two firms just continue to go-it-alone with emphasis on continual improvement? A decision needed to be made within the coming week. This case may be taught on a stand alone basis or in combination with any of the six additional Cross-Enterprise cases that deal with the various functional issues associated with the actual merger: Accounting and Finance - CIBC-Barclays: Accounting for Their Merger, product 9B04B022, Information Systems - Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032, Marketing and Branding - FirstCaribbean International Bank: The Marketing and Branding Challenges of a Start-up, product 9B05A012, Human Resources - Harmonization of Compensation and Benefits for FirstCaribbean International Bank, product 9B04C053, Finance - FirstCaribbean Merger: The Proposed Merger, product 9B06N004, and technical note - Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04M67 (8 pages)
Industry: Finance and Insurance
Issues: Corporate Strategy; Emerging Markets; Mergers & Acquisitions; Integration; University of West Indies
Difficulty: 4 - Undergraduate/MBA

Murray J. Bryant, Michelle Theobalds

Product Number: 9A98B002
Publication Date: 3/19/1998
Revision Date: 9/9/2009
Length: 5 pages

An entrepreneur is hoping to open Caribbean Internet Cafe in Kingston, Jamaica. He has gathered data on all the relevant costs: equipment, rent, labor, etc. He has also found a partner in the local telephone company, Jamaica Telecommunications Limited (JTL). JTL has provided equity and a long-term loan at favourable interest rates. He is now faced with the task of analyzing fixed, variable and start-up costs, contribution margin, and the concept of break-even to guide his decision.

Teaching Note: 8A98B02 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Costs; Contribution Analysis; Break-Even Analysis
Difficulty: 4 - Undergraduate/MBA