Ivey Publishing

International Business: The Challenges of Globalization

Wild, J.H.; Wild, K.L.,7/e (United States, Prentice Hall, 2014)
Prepared By Christian Perry, PhD Student
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Globalization

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

Product Number: 9B13M102
Publication Date: 9/18/2013
Revision Date: 3/26/2014
Length: 11 pages

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

For marketers, it underscores the need to gather greater base knowledge about opportunities abroad.


Teaching Note: 8B13M102 (6 pages)
Issues: Career Development; Intercultural Relations; Team Building; Internationalization
Difficulty: 4 - Undergraduate/MBA



HOME PLUS: RIDING THE KOREAN RETAILING ROLLERCOASTER
Youngwoo Lee, Martin Hemmert

Product Number: 9B13M050
Publication Date: 4/19/2013
Revision Date: 4/23/2013
Length: 12 pages

In the late 1990s, multinational retailing giant Tesco selected joint venture with the Samsung Group as its market entry strategy into South Korea and created a new brand, Homeplus. Subsequently, the management of Homeplus implemented various policies aimed at localizing the business while also introducing business practices from Tesco’s british headquarters. It invested in growth and diversification through large discount stores offering an “all in one spot” shopping experience, small-sized super-supermarkets, private brands and online shopping. At the same time, the Korean retailing industry had become much more dynamic as competition intensified between various types of market players, including strong competitors affiliated with local business groups. Homeplus needs to rethink its position in a highly challenging market environment.

Teaching Note: 8B13M050 (7 pages)
Industry: Retail Trade
Issues: international entry mode; competitive strategy; localization; Republic of Korea
Difficulty: 4 - Undergraduate/MBA



COCA-COLA: BACK IN BURMA
Tatiana Vashchilko, Christopher Williams, Carolyn Burns

Product Number: 9B13M079
Publication Date: 7/29/2013
Revision Date: 9/4/2013
Length: 18 pages

Coca-Cola has announced the opening of its first bottling plant in Burma in almost 60 years. Since 1962, Burma has been a closed and isolated country and under military rule. As a result of the military’s steady relinquishing of control over the government, Burma has begun opening its doors to international trade and investment. However, political instability is still very high and economic development is far from secure. Furthermore, although a framework agreement between the U.S. and Burmese governments has been signed, a bilateral investment treaty to provide protection for Coca-Cola’s direct investment is not yet in place. How should Coca-Cola pursue its strategy in Burma?

Teaching Note: 8B13M079 (17 pages)
Industry: Manufacturing
Issues: Entry Strategy; Non-commercial Risks; Legal Institutions; Burma
Difficulty: 4 - Undergraduate/MBA



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



GLOBAL BRANDING OF STELLA ARTOIS
Paul W. Beamish, Anthony Goerzen

Product Number: 9B00A019
Publication Date: 10/19/2000
Revision Date: 5/23/2017
Length: 19 pages

Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. Recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. The early stages of Interbrew's global branding strategy and tactics are examined, enabling students to consider these concepts in the context of a fragmented but consolidating industry. It is suitable for use in courses in consumer marketing, international marketing and international business.

Teaching Note: 8B00A19 (10 pages)
Industry: Manufacturing
Issues: Global Product; International Business; International Marketing; Brands
Difficulty: 4 - Undergraduate/MBA



SWATCH AND THE GLOBAL WATCH INDUSTRY
Allen Morrison, Cyril Bouquet

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

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

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


Chapter 2:
Cross-Cultural Business

KEN PRIVATE LIMITED: DIGITIZATION PROJECT
Rupali Pardasani, Asha Bhandarker

Product Number: 9B13C025
Publication Date: 8/19/2013
Revision Date: 8/9/2013
Length: 10 pages

The COO of a global knowledge-outsourcing and technology-services firm has been selected by his company’s board of directors to step in and rescue a large-scale digitization project that is in danger of missing its rapidly approaching deadline. The project requires the firm to create digital archives of a daily American newspaper, spanning a coverage time of 150 years. With teams from two different countries paired to work on this significant venture, things quickly go awry on several levels as a result of misunderstandings about client expectations, lack of employee training (both from a standpoint of cultural awareness and with respect to the use of new technology) and poor project management. The COO must quickly develop an action plan to address these issues and ensure the success of the project in the face of an ultimatum from the client: deliver the project on time or lose it completely.

In the role of the COO, students must create an action plan to overcome the issues that threaten to derail the project.


Teaching Note: 8B13C025 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Planned change; cross-cultural communication; globally distributed team; project failure; India; Philippines
Difficulty: 5 - MBA/Postgraduate



TAKING ANDRÉ RIEU PRODUCTIONS TO BRAZIL?
Mark F. Peterson, Aycan Kara

Product Number: 9B12M118
Publication Date: 3/18/2013
Revision Date: 3/13/2013
Length: 12 pages

An entrepreneurial entertainment business is considering its possible entry into a new foreign market. The case does not, however, focus on the sales potential and financial considerations of entering Brazil. The company assesses these considerations by using fairly straightforward guidelines — its intuitive indications of interest based on DVD sales and attendance at performances elsewhere in the world and the availability of enough large venues to seat a certain total combined audience size.

In assessing whether to enter Brazil, the case considers the management demands likely to be encountered in that new context and the management capabilities of the organization and the staff members to effectively deal with these demands. This analysis requires the company to consider many of the same issues that are typically discussed in international management courses: the nature of Brazil’s national environment and whether Brazil’s social infrastructure includes such elements as a dependable legal system, a pool of experienced local managers and a societal culture that will support dependable and trusting relationships with venue managers and local work crews.


Teaching Note: 8B12M118 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Entry; Brazil
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



HONG KONG DISNEYLAND
Michael N. Young, Dong Liu

Product Number: 9B07M013
Publication Date: 10/4/2007
Revision Date: 5/23/2017
Length: 16 pages

Disney began internationalizing its theme park operations with the opening of Tokyo Disneyland in 1983, which is regarded as one of the most successful amusement parks in the world. Disney attempted to replicate this success in France, which is the largest consumer of Disney products outside of the United States. In 1992, they opened Disneyland Resort Paris, which is largely regarded to be much less successful than the park in Japan. This case explores Disney's efforts to open its third park outside the United States; Hong Kong Disneyland. It begins by discussing the experience of Tokyo and Paris Disneylands, and then discusses the opening of Hong Kong Disneyland, including the structure of the deal, and how the operations, human resources management and marketing were tailored to fit the Chinese cultural environment. The case also discusses the tourism industry in Hong Kong and the particular problems that were encountered during the first year of operations. The stage is set for students to discuss whether Disney's strategic assets have a good semantic fit with Chinese culture.

Teaching Note: 8B07M13 (5 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Industry Positioning; Cross Cultural Management; International Expansion; Competitive Dynamics
Difficulty: 4 - Undergraduate/MBA



ELLEN MOORE (A): LIVING AND WORKING IN KOREA
Henry W. Lane, Chantell Nicholls, Gail Ellement

Product Number: 9A97G029
Publication Date: 6/3/1998
Revision Date: 2/23/2017
Length: 16 pages

Ellen Moore, a systems consultant, was sent to Korea to manage a project involving a team of North American and Korean consultants representing a joint venture between a major Korean conglomerate and a significant North American information technology company. The Americans were to be involved for the first seven months in order to transfer expertise and knowledge to the South Koreans, who had little experience in this area. Ellen's superior had played an integral part in securing the contract in Korea due to his depth of knowledge on the subject. He chose Ellen to be the key North American project manager because she had significant project management skills and impressive international experience. Upon Ellen's arrival, she discovered that the Korean consultants were far less skilled than she had expected. In addition, Ellen had understood that she and the Korean manager were to be co-managers, but immediately tensions arose regarding who was giving direction to the team, and the scope of the project. Tensions escalated until it was clear that the project was behind schedule and the Koreans were not taking direction from Ellen. The Koreans insisted that Ellen was the problem. Ellen’s superior disagreed; he and Ellen needed to decide how to proceed. The challenge was to balance strategic goals with individual action.

Teaching Note: 8A97G29 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Group Behaviour; Cross-cultural Relations; Women in Management; Team Building; United States; Korea
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Politics, Law, and Business Ethics

TAJ HOTELS: BUILDING SUSTAINABLE LIVELIHOODS
Garima Sharma, David G. Hyatt

Product Number: 9B13C032
Publication Date: 10/18/2013
Revision Date: 10/18/2013
Length: 12 pages

This case explores issues faced by the corporate sustainability manager at the corporate headquarters of a large hotel group in a developing nation as she implements her company’s corporate sustainability strategy through supplier partnerships with bottom-of-the-pyramid (BoP) social organizations. Under the rubric of responsible purchasing, the hotelier’s “Creating Sustainable Livelihoods” initiative engaged cause-based nongovernmental organizations (NGOs) by exploring opportunities where the products or services of such organizations could substitute for similar products or services sourced from for-profit suppliers. The case illustrates the challenges inherent in a BoP responsible purchasing strategy, including the delicate balance between meeting business objectives while supporting social causes.

Teaching Note: 8B13C032 (9 pages)
Industry: Accommodation & Food Services
Issues: Cross-sector partnership; corporate social responsibility; bottom-of-pyramid supply chain; social and economic value
Difficulty: 4 - Undergraduate/MBA



FOOD FOR THOUGHT: THE 2008 CHINA MILK SCANDAL
Vivien K. G. Lim, Rashimah Rajah, Smrithi Prasad

Product Number: 9B12C047
Publication Date: 2/8/2013
Revision Date: 11/14/2012
Length: 8 pages

In 2008, a scandal in China involving milk products tainted with melamine (a chemical used in plastic production) brought regional and global attention to the country. More than 290,000 infants were affected and several died. At a time when international trade was important for China’s economic development, the tainted milk scandal raised concerns about the safety of products and food made in China. The case illustrates how the pressure of rapid economic development resulted in measures to cut costs at the expense of consumer safety and health, bringing into question the ethics underlying business practices in the country. The lack of quality control and corporate governance processes on the part of the company and government facilitated the ease with which the milk was tampered. The case also documents remedial efforts that followed the scandal, including recall of the tainted milk products, putting new government policies and regulations in place, arrest of top executives and the companies’ public apology in the unique form of a New Year text message.

Teaching Note: 8B12C047 (7 pages)
Industry: Manufacturing
Issues: Ethics; management in Asia; China
Difficulty: 4 - Undergraduate/MBA



FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY - GREEN MAKEOVER OR GREENWASHING?
James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA



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:
Economics and Emerging Markets

GAZ GROUP RUSSIA: THE GAZELLE LIGHT COMMERCIAL TRUCK
Andreas Schotter, Dmitry Alenushkin, Mary B. Teagarden

Product Number: 9B13M104
Publication Date: 11/6/2013
Revision Date: 10/15/2013
Length: 16 pages

In January 2013, the CEO of the Russian automotive company Gorky Automobile Plant (GAZ) was pleased with the results of the recently implemented changes to the company’s product-market strategy and the related organizational processes. He believed that this series of radical changes could help GAZ further cement its domestic market leadership position and at the same time allow it to complete a dramatic turnaround that had resulted in the company's most profitable year ever. He was now planning the launch of the third generation all-new Gazelle Next light transport truck, which he believed would take the company to a new level of competitiveness and revenue growth in Russia, and even more importantly, in other emerging markets.

Teaching Note: 8B13M104 (14 pages)
Industry: Manufacturing
Issues: Emerging markets; restructuring; transition economy; Russia
Difficulty: 4 - Undergraduate/MBA



HARLEY-DAVIDSON INDIA
Sanjeev Prashar, Jagadeesh Kumar V, Lokesh Haridoss

Product Number: 9B12A052
Publication Date: 11/20/2012
Revision Date: 11/15/2012
Length: 12 pages

The case examines Harley-Davidson’s decision to enter the Indian market. Due to India’s rapidly growing economy and its swelling base of high-net-worth consumers, numerous luxury product companies lined up to enter India. The case enumerates the factors that such firms should take into account when selecting new markets to enter. Also discussed are the various post-marketing issues Harley-Davidson faced in India after its entry and the resolutions the company could implement to resolve those issues.

The case provides an opportunity for students to understand the dynamics involved in selecting new markets for the firm to maximize its gain while expanding its business.


Teaching Note: 8B12A052 (11 pages)
Industry: Retail Trade
Issues: Emerging markets; market selection; luxury brands; India
Difficulty: 5 - MBA/Postgraduate



GENICON: A SURGICAL STRIKE INTO EMERGING MARKETS
Allen H. Kupetz, Adam P. Tindall, Gary Haberland

Product Number: 9B10M041
Publication Date: 5/5/2010
Revision Date: 5/3/2017
Length: 13 pages

A critical question facing a company's ability to grow its business internationally is where it should go next. One company facing that decision was GENICON, a U.S.-based firm that manufactured and distributed medical instruments for laparoscopic surgeries. Although the minimally invasive surgical market in the United States had long been the largest in the world, international markets were anticipated to grow at a much faster rate than the U.S. market for the foreseeable future. GENICON was already in over 40 international markets and was looking in particular at the rapidly emerging markets - Brazil, Russia, India and China - as potential new opportunities for growth. This case is appropriate for use in an international business course to introduce market selection strategy. It can also be used in sessions on international marketing, entrepreneurship and business strategy.

Teaching Note: 8B10M41 (9 pages)
Industry: Manufacturing
Issues: China; International Expansion; Entrepreneurial Marketing; Emerging Markets; International Business
Difficulty: 4 - Undergraduate/MBA



CIPUTRA GROUP: SHAPING THE CITY IN ASIA
Marleen Dieleman

Product Number: 9B09M084
Publication Date: 12/8/2009
Length: 15 pages

The Ciputra Group was set up by Mr. Ciputra in the 1980s, after a long entrepreneurial career with a vision to provide a business for his children. The case describes the development of this group, which evolved into a prominent and innovative player in the Indonesian property sector. Under Ciputra's guidance, the company became known for its satellite cities, in which the group combined technical, construction and urban planning qualities, along with the ability to understand and manoeuvre in the difficult Indonesian environment. The Ciputra Group moved into areas where the government was weak (public facilities, roads, sewerage, city management, security, etc) and as such became an institutional entrepreneur that shaped Indonesia's cities. This model was later exported to other emerging markets. The case ends with the company facing two sets of interlinked problems. One set is strategic, as the company's business model has proven to be vulnerable, and it is undergoing various changes. The question is what strategic option the company should choose. The second set of issues concerns the leadership and corporate structure of the group. Since Ciputra is in his late 70s, a generational change in leadership is imminent, and students are asked to reflect on the most appropriate path towards further development of the business from one led by a charismatic entrepreneur towards a professional family business. The two sets of issues are interlinked with each other and pose opportunities and constraints.

Teaching Note: 8B09M84 (9 pages)
Industry: Real Estate and Rental and Leasing
Issues: Entrepreneurial Business Growth; Family Business; Emerging Markets; Change Management
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
International Trade

JABWOOD INTERNATIONAL: THE RISKY BUSINESS OF EXPANDING EAST
Marina Apaydin, Rami Jabado, Hiba Obeid, Balsam Danhash

Product Number: 9B12M099
Publication Date: 11/21/2012
Revision Date: 11/21/2016
Length: 17 pages

Jabwood, a wood trading company with four branches in Lebanon owned by the Jabado family, is contemplating international expansion into new markets — specifically, Saudi Arabia and China — to compensate for a decline in revenues. This case examines the macroeconomic environment of Lebanon, China and Saudi Arabia as well as the wood industry in those countries. The characteristics of a successful international expansion are considered. In addition to identifying the criteria of attractiveness for each country, the case requires a decision on a market entry strategy that would ensure a successful expansion for the company. Given the risks and tradeoffs in each country, Jabwood has to decide whether it should expand in either market or both and on the mode of entry it should adopt to increase its chances of success.

Teaching Note: 8B12M099 (25 pages)
Industry: Wholesale Trade
Issues: International trade; exports; business development; family succession; Lebanon
Difficulty: 4 - Undergraduate/MBA



FERRO INDUSTRIES — EXPORTING CHALLENGE IN A SMALL FIRM
Justin Paul, Parul Gupta, Shruti Gupta

Product Number: 9B11M115
Publication Date: 1/25/2012
Revision Date: 6/12/2013
Length: 18 pages

This case deals with an exporting challenge faced by Ferro Industries, a small enterprise within the steel industry in India. The company’s manufacturing facility was located in the National Capital Region of Delhi. Ferro’s main products were roll-forming machines, cut-to-length lines, and slitting lines; the company was one of only three firms in the Indian sub-continent catering to the market for such products. This case raises two basic questions in relation to Ferro’s role as an exporter. Firstly, at what stage should an importer have to pay an exporter? Secondly, should the exporter release consignment to the importer before receiving payment? The case illustrates the challenges of exporting and international entrepreneurship for a small firm, taking into account payment risk, product pricing, deal-making strategies, promotional strategy, and client-management strategies. It also addresses the complexities involved in the decision-making process while exporting, as well as outlining various conflict-resolution techniques for closing a deal effectively while considering the appropriateness of taking risks.

Teaching Note: 8B11M115 (8 pages)
Industry: Manufacturing
Issues: Exports; Trade Finance; International Trade Logistics; Global Supply Chain Management; Saudi Arabia; India
Difficulty: 5 - MBA/Postgraduate



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

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

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

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


Chapter 6:
Business-Government Trade Relations

SUBSIDIES: RATIONALES AND TRADE AND INVESTMENT DISTORTIONS
David W. Conklin, Danielle Cadieux

Product Number: 9B11M061
Publication Date: 6/30/2011
Length: 17 pages

Governments throughout the world have offered subsidies for a wide variety of reasons, including increasing investments and jobs (particularly those that are high-tech), stimulating economically depressed regions, supporting domestic agriculture, and preventing bankruptcies through “bail-outs.” Subsidies now play a key role in business location decisions, and impact international competitiveness. Recipients of subsidies can offer their goods and services for sale at lower prices than would exist in the absence of subsidies. Foreign-based corporations may regard these lower prices as unfair competition in international trade. Consequently, international trade negotiations have come to focus on many of these subsidy programs as trade distortions that should be limited by formal international agreements. Some countries, especially the United States, impose special countervail duties if their corporations are being hurt by foreign subsidies. With current and projected reductions in trade barriers, subsidies will become relatively more important as a trade-determining process. Nevertheless, subsidies are implemented to pursue certain social objectives, and so an intergovernmental pact that limits subsidies may diminish, rather than improve, the well being of signatories.

Teaching Note: 8B11M061 (7 pages)
Issues: Globalization; International Business; Subsidies; Bailouts; Tax Concessions
Difficulty: 4 - Undergraduate/MBA



GOOGLE IN CHINA
Deborah Compeau, Prahar Shah

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

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

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



SPECIAL ECONOMIC ZONES (SEZS) AND TAX HAVENS
David W. Conklin, Danielle Cadieux

Product Number: 9B06M076
Publication Date: 8/22/2006
Revision Date: 9/21/2009
Length: 13 pages

Many nations have created geographically distinct areas with special features designed to attract foreign investment. In deciding where to locate various operations, businesses today must investigate the benefits and incentives offered by a plethora of special economic zones (SEZs) throughout the world. The business location decision involves a comparison of many alternative sites, each with its own set of incentives. Many small nations have put in place minimal corporate tax rates as a way of gaining some revenue by attracting head office functions, particularly those tasks related to finance. This government revenue may be only a very small percentage of a corporation's international profit; nevertheless, it may form a significant portion of the tax haven's income. Many businesses make their international location decisions so as to accumulate their taxable profits in tax havens. Apart from these zero-tax regimes, countries impose a wide range of corporate profit tax rates. A business can often find a country with a tax rate lower than both the country where it was incorporated and the country where it wishes to invest. By funneling profits to a zero-tax or even a lower tax jurisdiction, a business is able to minimize its aggregate tax payments. Although recent international agreements have sought to limit these practices, opportunities are still available for tax minimization. Tax havens, as well as SEZs, can play an important role in business location decisions.

Teaching Note: 8B06M76 (5 pages)
Issues: Globalization; Location Strategy; International Business
Difficulty: 5 - MBA/Postgraduate



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

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

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

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


Chapter 7:
Foreign Direct Investment

HUAWEI ENTERS THE UNITED STATES
Tim Simpson, Ilan Alon

Product Number: 9B13N013
Publication Date: 7/24/2013
Revision Date: 10/28/2015
Length: 9 pages

Huawei has attempted to enter and acquire assets in the United States, but there are issues involved in understanding foreign market risk and the political challenges of internationalization. The Committee on Foreign Investment in the United States (CFIUS) twice denied Huawei’s acquisition of a U.S. computer company. Huawei had to transform its company image and reputation, changing from a Chinese company with Chinese characteristics into a global corporation equivalent to Cisco Systems or Ericsson. This case encourages students to address the issues of internationalization in an incompletely open global market, the government intervention in markets and the broader issues that arise with the geo-political and geo-economic shifts of 21st century.

Teaching Note: 8B13N013 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Political risk; international expansion; foreign direct investment; business strategy; United States
Difficulty: 4 - Undergraduate/MBA



CHABROS INTERNATIONAL GROUP: A WORLD OF WOOD
Paul W. Beamish, Bassam Farah

Product Number: 9B10M100
Publication Date: 11/30/2010
Revision Date: 4/17/2014
Length: 16 pages

AWARD WINNING CASE - MENA Business Cases Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. The Chabros International Group case examines how a Lebanese multinational wood company confronts a drastic drop in its largest subsidiary's sales after 2008's global economic crisis. Antoine Chami, Chabros's owner and president, was reviewing his company's 2009 end-of-year financial statements and, in particular, a 30 per cent drop in sales in Dubai. In 2007, a year before the global economic crisis, Chami had invested more than $11 million to acquire and expand a sawmill in Serbia to meet Chabros's growing lumber sales demand. With a much higher capacity to produce lumber and a much lower probability to sell it, Chami had to decide what to do to overcome this challenge. Should he close parts of his Serbian sawmill? Should he try to boost his company's sales to use all of his sawmill's available capacity? If so, should Chabros try to increase sales within the countries where it already operated (UAE, Saudi Arabia, Qatar, Oman, Egypt) or should it expand into a new country (Algeria, Bahrain, Iran, Iraq, Jordan, Kuwait, Libya, Syria, Tunisia)? Would Morocco, among other countries, be the best country to expand into? Was it the right time to embark on such an expansion?

Teaching Note: 8B10M100 (15 pages)
Industry: Manufacturing
Issues: International Expansion; Market Entry; Growth Strategy; Exports
Difficulty: 4 - Undergraduate/MBA



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

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

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

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


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


Chapter 8:
Regional Economic Integration

CANADIAN AUTO TARIFF DEBATE
James H. Tiessen

Product Number: 9B01M034
Publication Date: 8/9/2001
Revision Date: 12/21/2009
Length: 13 pages

In 1998 it appeared that Japanese auto companies could be forced to pay duty on their non-NAFTA imports into Canada. The U.S. Big Three auto makers (GM, Ford and Chrysler), in contrast did not have to pay such a tariff on their offshore imports such as those made by Ford-owned Jaguar (United Kingdom) and GM's Saab (Sweden). The Japanese and U.S. firms were treated differently because of the 1966 Auto Pact that made all Big Three imports duty-free. However, in the early 1980's, in order to encourage auto investment, the Canadian government granted virtual Auto-Pact status to Japanese firms (Toyota and Honda) that located in Ontario. This eliminated tariffs on the Japan-made models they sold in Canada. Public debate arose during the Free Trade Agreement (1989) and North American Free Trade Agreement (1994) trade negotiations. The U.S., under the Big Three influence, pushed Canada to withdraw the Pact-like benefits it used to attract the Japanese factories. Canada eventually complied with the U.S. demands, while leaving the Pact in place for U.S. automakers. This led the Japanese government to challenge the fairness of the proposed tariff at the World Trade Organization (WTO). While waiting for the WTO process to unfold, the Japanese and U.S. automakers were considering how to respond to the forthcoming judgement.

Teaching Note: 8B01M34 (9 pages)
Industry: Wholesale Trade
Issues: Negotiation; Tariffs; International Trade; Government and Business
Difficulty: 4 - Undergraduate/MBA



NOTE ON CANADIAN SMALL AND MEDIUM-SIZED ENTERPRISES: ADJUSTMENTS TO FREE TRADE
David W. Conklin

Product Number: 9A98G012
Publication Date: 6/9/1998
Revision Date: 1/29/2010
Length: 21 pages

The Free Trade Agreement and North American Free Trade Agreement represents both a response and a challenge to the changing nature of international business. Flows of capital and knowledge are at least as important as the flow of goods in international exchange. This note examines the lessons that other APEC countries may learn from the experiences of Canadian small/medium-sized enterprises in their process of adjusting to free trade. The note covers issues related to revising business strategies, adopting the product cycle, following customers, pursuing competitive advantage, enhancing employee empowerment, developing product differentiation and economies of expertise, focusing on entrepreneurship, finding strength in clusters, developing new linkages with large enterprises, issuing shares and expanding business loans. The note also discusses government policies that assist in these adjustments. Common problems include anti-dumping issues, dispute settlement, subsidies to specific sectors and businesses, cross-border movement of people, and product standards.

Issues: Business Policy; International Trade; International Business; Government and Business
Difficulty: 4 - Undergraduate/MBA



MEKONG CORPORATION AND THE VIET NAM MOTOR VEHICLE INDUSTRY
David W. Conklin, Huan Ngo

Product Number: 9A96H002
Publication Date: 9/3/1996
Revision Date: 2/10/2010
Length: 29 pages

Mekong, a joint venture among Japanese, Korean and Vietnamese auto assemblers, is facing significant changes in the business environment in Vietnam. As the government of Vietnam has implemented its economic and administrative reform program, foreign and domestic companies in Vietnam have had to deal with changes in regulations and competitive forces. In addition, Vietnam's membership in ASEAN (Association of South-East Asian Nations) has further complicated the business decisions that foreign companies have to make in this newly-opened economy. Students will be challenged to devise a strategy for Mekong as a multi-national company operating in the Far East.

Teaching Note: 8A96H02 (5 pages)
Industry: Manufacturing
Issues: Government Regulation; Economic Conditions; Management in a Global Environment; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
International Financial Markets

CONTRASTING CHINA'S YUNAN MODEL WITH BANGLADESH'S YUNUS MODEL FOR MICROFINANCE
Yuping Du, Randall O. Chang, Meng Wu, Chun Li

Product Number: 9B13N012
Publication Date: 7/5/2013
Revision Date: 6/21/2013
Length: 9 pages

In 2008, about the time when the Yunus Model of microfinancing was under attack in its home country of Bangladesh, the Yunan Model was begun in rural China. The original model suffered from inefficiencies, high interest rates and allegations of improprieties against the founder, Nobel Prize winner Muhammad Yunus. By contrast, the Yunan Model relied on social capital and mechanism design theory to enlist the rural population, financial institutions and government in a cooperative effort to increase the financial stability and entrepreneurship level of one of the poorest areas of the country. Could “microfinance with Chinese characteristics” offer a plan to reduce poverty across China?

Teaching Note: 8B13N012 (8 pages)
Industry: Finance and Insurance
Issues: Credit reporting systems; microfinance; China
Difficulty: 4 - Undergraduate/MBA



PREMIER FOODS PLC: INTEREST RATE SWAPS
Jumana Zahalka, Anand Srinivasan

Product Number: 9B13N015
Publication Date: 10/31/2013
Revision Date: 10/29/2013
Length: 10 pages

A vice-president of a hedge fund must determine whether his fund will take a 5 per cent equity stake in Premier Foods Plc (Premier). At the time of the case, Premier, a publicly listed U.K. food and beverage company, was heavily indebted following a period of aggressive acquisition growth. Moreover, Premier had issued interest rate swaps on the majority of its debt. As the financial crisis unraveled, interest rates dramatically declined, and Premier’s interest rate swaps appeared to be further draining the firm. Against this backdrop, the case sets its ultimate objective, which is to simulate the vice-president’s analysis of the firm’s debt, interest rate swaps, caps and floors before deciding whether to invest in Premier.

Teaching Note: 8B13N015 (11 pages)
Industry: Accommodation & Food Services
Issues: Interest rate swaps; interest rate cap/floor; options; risk management; United Kingdom; United States
Difficulty: 4 - Undergraduate/MBA



ACPANA BUSINESS SYSTEMS INC.: EFFECT OF CURRENCY EXPOSURE ON REVENUE
Colette Southam, Robert Schenkel

Product Number: 9B11N010
Publication Date: 7/20/2011
Length: 6 pages

The vice president of operations for Acpana Business Systems Inc., a Canadian software development and backup-as-a-service provider located in Toronto, Canada, is concerned that the recent appreciation of the Canadian dollar is significantly affecting Acpana’s revenue and undermining the company’s organic growth. The case focuses on understanding and quantifying the risks associated with exchange rate fluctuation and its impact on a firm’s revenues and costs. The case introduces instruments available to hedge risk, including forward contracts and put and call options.

Teaching Note: 8B11N010 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Foreign Exchange; Risk Management; Put and Call Options; Forward Contracts
Difficulty: 3 - Undergraduate



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

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

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

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



LEVERAGED BUYOUT (LBO) OF BCE INC.: HEDGING CURRENCY RISK
Colette Southam, Ahsen Amir-Ali, Samir Meghji

Product Number: 9B08N023
Publication Date: 1/20/2009
Length: 7 pages

In 2007, an analyst in the derivatives group of investment bank Grenfeld & Co. was asked to devise a hedging strategy for Providence Equity Partners (Providence) in Bell Canada Enterprises (BCE Inc.). Providence was based in the United States and any strategy would involve significant foreign exchange rate risk due to the conversion of returns into U.S. dollars. The analyst needed to consider several long-term hedging strategies that Grenfeld & Co. could recommend to Providence. Her vice-president had asked that she create a hedging strategy by initially assuming a 25 per cent IRR for the investment and its performance, based on two outcomes at the end of the investment (investment horizon = five years): a zero per cent IRR and a 25 per cent IRR.

Teaching Note: 8B08N23 (5 pages)
Industry: Information, Media & Telecommunications
Issues: Options; Hedging; Derivatives
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
International Monetary System

CRISIS IN CYPRUS: WAS IT DIFFERENT THIS TIME?
Nandita Yadav, Pratap Chandra Biswal

Product Number: 9B13N016
Publication Date: 9/10/2013
Revision Date: 9/13/2013
Length: 11 pages

Cyprus is a small island member of the European Union, constituting 0.2 per cent of the eurozone gross domestic product. During its growth phase, the Cypriot banking system developed vulnerabilities after suffering heavy losses during the Greek sovereign debt crisis. The European Central Bank, the International Monetary Fund and the European Union offered a bailout of US$16.9 billion if the Cypriot government could raise US$7.54 billion from within. The government had a few options on the table — a “one-off” stability levy on all bank deposits (a solution loathed by both native and foreign depositors), a bank restructuring plan, seeking help from Russia (which expected access to the island’s oil and gas reserves) and a complete banking system bailout (which would come with oversight and control from those offering the bailout). The economy was fast approaching a standstill and Cyprus had only two days to strike a deal to avoid the collapse of its banking system.

Teaching Note: 8B13N016 (14 pages)
Industry: Finance and Insurance
Issues: Financial crisis; eurozone; bailout; Cyprus
Difficulty: 5 - MBA/Postgraduate



THAILAND, 1997
David M. Currie

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

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

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



HOKKAIDO BANK
David M. Currie

Product Number: 9B01M026
Publication Date: 9/27/2001
Revision Date: 3/25/2008
Length: 3 pages

The manager of a Japanese bank is concerned about extending loans to Thai customers because of Thailand's currency instability. This is a role play supplement to Thailand, 1997, product 9B01M024.

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



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

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

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

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


Chapter 11:
International Strategy and Organization

THE BEER CASES (D): THAI BEV
Andrew Karl Delios, Donna Jimenez

Product Number: 9B13M065
Publication Date: 8/16/2013
Revision Date: 10/31/2018
Length: 16 pages

The beer industry comprises elements of sub-national, national and global competition. To expand, the industry players use various strategic approaches as illustrated by five major beer companies: Anheuser-Busch InBev (9B11M124), Groupo Modelo (9B11M125), Tsingtao Brewery (9B11M126), San Miguel (9B09M074) and Thai Bev. Observations about the beer industry — a fairly easy product and industry to understand — can be extrapolated to other industries. Lessons can be drawn regarding the influence of industry pressures on the four key components of an international expansion strategy: product choice for expansion, market choice for geographic expansion, timing of entry and mode of entry.

Teaching Note: 8B11M124 (16 pages)
Industry: Accommodation & Food Services
Issues: Industry analysis; strategic acquisitions; global strategy; industry globalization; strategic alliances; beer industry
Difficulty: 4 - Undergraduate/MBA



BEIERSDORF AG: EXPANDING NIVEA'S GLOBAL REACH
Paul W. Beamish, Vanessa Hasse

Product Number: 9B13M016
Publication Date: 2/11/2013
Revision Date: 12/4/2017
Length: 15 pages

In 2012, two years after a major restructuring project had begun at German skin care producer Beiersdorf, the process was still ongoing. The new chief executive officer (CEO) inherited several challenges from his predecessor, including the difficult implementation of the new transnational strategy, opposition from employees and the work council, and ineffective market-entry strategies (especially in China). Strong competitors and a slow rate of economic recovery in Beiersdorf’s main markets provided additional complexity. Questions remained about how the new CEO should address the ongoing challenges facing the company.

Teaching Note: 8B13M016 (12 pages)
Industry: Manufacturing
Issues: Reorganization; Transnational; Restructuring; Multinational; Germany
Difficulty: 4 - Undergraduate/MBA



LEGO GROUP: BUILDING STRATEGY
Darren Meister, Paul Bigus

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

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

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



RESUMING INTERNATIONALIZATION AT STARBUCKS
Mario Koster, Rob Alkema, Christopher Williams

Product Number: 9B10M073
Publication Date: 9/23/2010
Revision Date: 5/4/2017
Length: 17 pages

Starbucks enjoyed tremendous growth over the previous two decades. In 2007, it had a global reach of over 17,000 stores in 56 countries. Between 2007 and 2009, however, Starbucks' relentless march was slowed by three forces: increasingly intense competition, rising coffee bean prices and a global economic recession. In order to remain profitable, the company started to scale back its overseas operations. In 2010, Starbucks was faced with a critical strategic decision: Should the company resume its international expansion and once again intensify its commitments in overseas markets? If so, what approach should the company take? Had the pace of Starbucks' internationalization (i.e. the rate of opening new stores abroad), the rhythm of its internationalization (i.e. the regularity by which stores were opened abroad) and geographical scope of its internationalization (i.e. number of new countries entered) had an impact on the company's performance in previous years? Could Starbucks learn from its prior internationalization within the coffee industry in order to guide its future international strategy?

Teaching Note: 8B10M73 (10 pages)
Issues: Decision Making; International Strategy; Market Entry; Internationalization
Difficulty: 4 - Undergraduate/MBA



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 12:
Analyzing International Opportunities

METALFRIO: ACHIEVING GLOBAL LEADERSHIP IN THE PLUG-IN COMMERCIAL REFRIGERATION INDUSTRY
Alvaro Cuervo-Cazurra, Flavia De Magalhaes Alvim

Product Number: 9B13M012
Publication Date: 3/5/2013
Revision Date: 3/6/2013
Length: 21 pages

The chief executive officer and chair of the board of directors of a company that designs, builds and sells consumer and commercial refrigeration products are trying to decide if the firm should expand in Asia and, if so, which method it should use. In recent years, Metalfrio has become a global leader in its industry by establishing manufacturing operations in Mexico, Turkey and Russia, as well as expanding within its home territory of Brazil, with sales in over 80 countries. Asia is offering promising opportunities for growth, and key customers are suggesting the company establish manufacturing operations there to better serve its global needs. The case addresses how Metalfrio transfers its competitive advantages across its international operations, and it further discusses how the company coordinates its operations to serve countries in which it does not have a production facility via exports. The case analyzes the competitive advantage of the firm and its transferability to other countries.

The supplement, A Note on the Commercial Refrigeration Industry 9B13M024, provides an overview of the commercial refrigeration sector.


Teaching Note: 8B13M012 (8 pages)
Industry: Manufacturing
Issues: Competitive Advantage; Emerging Markets; Internationalization; Brazil; Turkey; Russia; Mexico; Denmark
Difficulty: 4 - Undergraduate/MBA



ROYAL BHUTAN AIRLINES — DRUKAIR
Ron Mulholland

Product Number: 9B12A030
Publication Date: 8/10/2012
Revision Date: 8/8/2012
Length: 14 pages

The chief executive officer of Royal Bhutan Airlines (Drukair) is concerned about growth and the seasonality of demand for Bhutan’s national airline. The Kingdom of Bhutan, with a population of approximately 700,000, is located east of Nepal between India and China (Tibet). It has recently embarked on a program of modernization, including a move to democracy and promotion of tourism.



The tourism initiative is described as “high value, low volume,” meaning that tourists must contract with a local tourist operator and pay minimum daily tariffs. Drukair has witnessed a steady growth in passengers, which is correlated closely with tourist visits, mostly from the West and Japan. Tourist tickets are booked by in-country tour operators; there are no Internet bookings at the time of the case.

The CEO is wondering what can be done to improve overall business. He is considering interlining, the practice of joining with other airlines, in order to give passengers the opportunity to book tickets from their home countries. Marketing for growth is also a concern, and as Drukair is the only carrier in Bhutan, the CEO wonders if he should be promoting tourism in the country as part of his marketing plan.


Teaching Note: 8B12A030 (7 pages)
Industry: Transportation and Warehousing
Issues: International Marketing; International Business; Tourism; Segmentation; Bhutan
Difficulty: 4 - Undergraduate/MBA



THE ESPRESSO LANE TO GLOBAL MARKETS
Ilan Alon, Meredith Lohwasser

Product Number: 9B12M058
Publication Date: 5/23/2012
Revision Date: 5/10/2017
Length: 16 pages

Founded in Trieste, Italy, Illy marketed a unique blend of coffee drinks in over 140 countries and in more than 50,000 of the world’s best restaurants and coffeehouses. The company wanted to expand the reach of its own franchised coffee bar, Espressamente, through international expansion. Potential markets included Brazil, China, Germany, Japan, India, the United Kingdom, and the United States. In 2012, the managing director of Espressamente knew that global expansion meant prioritizing markets, but where did the greatest potential lie? In addition to market selection, mode of entry was vital and included options such as exporting, franchising, and joint ventures. This case provides a practical example of the challenges faced in international business.

Teaching Note: 8B12M058 (7 pages)
Industry: Accommodation & Food Services
Issues: International Market Selection; Modes of Entry; Franchising; Retailing; International Business; Coffee; Italy
Difficulty: 4 - Undergraduate/MBA



MARKS AND SPENCER ENTERS CHINA
Jane Menzies, Ilan Alon, Jennifer Dugosh

Product Number: 9B12A036
Publication Date: 2/26/2013
Revision Date: 2/20/2013
Length: 18 pages

Marks and Spencer (M&S) had first ventured into international markets 70 years ago. By 2012, M&S had 337 stores in 41 countries. Although M&S saw itself as a U.K. retailer that exported its products, the company had been attempting to reduce its dependency on the U.K. economic cycle. Its goal was to increase international sales from £800 million to £1.0 billion by 2013/14. By 2020, M&S wanted to be an international, multi-channel retailer.

When the company entered the Chinese market in 2008, it faced many difficulties. It had failed to conduct proper market research to understand the Chinese consumer, which had led to many issues. The company had neglected to address the cultural gaps between the United Kingdom and China. It had also taken an approach of standardizing its products, instead of adapting products to the new market. Students must consider the marketing mix policies of product, price, placement and promotion to recommend changes to M&S’s entry into China.


Teaching Note: 8B12A036 (13 pages)
Industry: Retail Trade
Issues: China market entry; culture; emerging markets; China
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



RUTH'S CHRIS: THE HIGH STAKES OF INTERNATIONAL EXPANSION
Ilan Alon, Allen H. Kupetz

Product Number: 9B06A034
Publication Date: 1/9/2007
Revision Date: 5/18/2017
Length: 8 pages

In 2006, Ruth's Chris Steak House was fresh off of a sizzling initial public offering and was now interested in growing their business internationally. With restaurants in just four countries outside the United States, a model to identify and rank new international markets was needed. This case provides a practical example for students to take quantitative and non-quantitative variables to create a short list of potential new markets.

Teaching Note: 8B06A34 (6 pages)
Industry: Accommodation & Food Services
Issues: Market Strategy; International Business; International Strategy; Market Entry
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Selecting and Managing Entry Modes

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



HELLO HEALTHCARE: TAKING A COOPERATIVE BUSINESS INTO AFRICA
Albert Wöcke

Product Number: 9B13M076
Publication Date: 8/7/2013
Revision Date: 8/6/2013
Length: 13 pages

A retired Swiss banker has decided to bring primary healthcare to Africa by using a cooperative business model that brings together complementary firms. The model has proven successful in the United Arab Emirates, Zambia and Ghana. He now faces the decision of whether to expand into new African countries, and if so, which countries to enter, how to select partners and how to recruit country managers. The case also illustrates the challenges and misconceptions of doing business in Africa.

Teaching Note: 8B13M076 (9 pages)
Industry: Health Care Services
Issues: Start-up; cooperative; Africa
Difficulty: 5 - MBA/Postgraduate



MABE: LEARNING TO BE A MULTINATIONAL (A)
José Luis Rivas, Luis Arciniega

Product Number: 9B13M042
Publication Date: 4/5/2013
Revision Date: 3/3/2016
Length: 16 pages

AWARD WINNING CASE - Latin American Business Cases Award, 2013 European Foundation for Management Development (EFMD) Case Writing Competition. A Mexican appliance manufacturer, MABE, has evolved quickly after selling nearly half its stake to a large multinational company in the early 1990s. The manufacturer was then able to dominate the Mexican appliances market and venture into other Latin American countries. Just before the 2008 financial crisis, the manufacturer formed a joint venture with a Spanish company and entered the Russian market, but it was not successful. The manufacturer faced a dilemma: Should it leave the Russian joint venture with its Spanish partner and refocus on other emerging markets? Should it acquire a local manufacturer? Should it remain as it was?



This case can be taught on its own, or in combination with Mabe: Learning to Be a Multinational (B) 9B15M121.


Teaching Note: 8B13M042 (6 pages)
Industry: Manufacturing
Issues: Joint ventures; Internationalization; Latin America; Russia
Difficulty: 4 - Undergraduate/MBA



KAYTEK: MANUFACTURING HOUSING AND LIVELIHOODS IN HAITI
David Wood, Taylor Sekhon

Product Number: 9B13M040
Publication Date: 3/26/2013
Revision Date: 9/4/2013
Length: 11 pages

After a massive earthquake destroyed many buildings in Haiti in 2011, reconstruction has become a source of opportunity and competition for non-governmental organizations, international business and local companies. The Haitian chairman and CEO of a very successful, multi-million dollar information technology company wants to provide affordable quality housing, especially for the disadvantaged poor, using steel frame technology from his start-up, KayTek. What he has not yet determined is how to get his product to market. He has three options: to keep sales and construction in-house, to outsource, or to franchise in order to create opportunities for young Haitian engineers to become entrepreneurs. Each option has costs, in terms not only of finances and time but also of control of brand quality and accessibility.

Teaching Note: 8B13M040 (12 pages)
Industry: Construction
Issues: Strategic Positioning; New Venture; Competitive Advantage; Sustainable Development; Franchising; Haiti
Difficulty: 4 - Undergraduate/MBA



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

Product Number: 9B08M010
Publication Date: 2/21/2008
Revision Date: 5/18/2017
Length: 14 pages

On July 30, 2007 the senior executive team of Mattel under the leadership of Bob Eckert, chief executive officer, received reports that the surface paint on the Sarge Cars, made in China, contained lead in excess of U.S. federal regulations. It was certainly not good news for Mattel, which was about to recall 967,000 other Chinese-made children's character toys because of excess lead in the paint. Not surprisingly, the decision ahead was not only about whether to recall the Sarge Cars and other toys that might be unsafe, but also how to deal with the recall situation. The (A) case details the events leading up to the recall and highlights the difficulties a multinational enterprise faces in managing global operations. Use with Ivey case 9B08M011, Mattel and the Toy Recalls (B).

Teaching Note: 8B08M10 (28 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Offshoring; Outsourcing; Product Quality; Product Recall; Multinational Enterprise Stakeholders; the United States and China
Difficulty: 4 - Undergraduate/MBA



NORA-SAKARI: A PROPOSED JV IN MALAYSIA (REVISED)
Paul W. Beamish, R. Azimah Ainuddin

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

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

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



ELI LILLY IN INDIA: RETHINKING THE JOINT VENTURE STRATEGY
Charles Dhanaraj, Paul W. Beamish, Nikhil Celly

Product Number: 9B04M016
Publication Date: 5/14/2004
Revision Date: 3/13/2017
Length: 18 pages

Eli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations is re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture has run smoothly for a number of years despite their differences in focus, but recently Ranbaxy was experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives.

Teaching Note: 8B04M16 (18 pages)
Industry: Manufacturing
Issues: Joint Ventures; Emerging Markets; International Management; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



BEN & JERRY'S - JAPAN
James M. Hagen

Product Number: 9A99A037
Publication Date: 4/13/2000
Revision Date: 5/23/2017
Length: 17 pages

The CEO of Ben & Jerry's Homemade, Inc. needed to give sales and profits a serious boost; despite the company's excellent brand equity, it was losing market share and struggling to make a profit. The company's product was on store shelves in all U.S. states, but efforts to enter foreign markets had only been haphazard with non-U.S. sales accounting for just three per cent of total sales. The CEO needed to focus serious attention on entering the world's second largest ice cream market, Japan. An objective of Ben & Jerry's was to use the excess manufacturing capacity it had in the U.S., and it found that exporting ice cream from Vermont to Japan was feasible from a logistics and cost perspective. The company identified two leading partnering options. One was to give a Japanese convenience store chain exclusive rights to the product for a limited time. The other was to give long-term rights for all sales of the product in Japan to a Japanese-American who would build the brand. For the company to enter Japan in time for the upcoming summer season, it would have to be through one of these two partnering arrangements.

Teaching Note: 8A99A37 (6 pages)
Industry: Manufacturing
Issues: Strategic Alliances; Market Entry; International Marketing; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Developing and Marketing Products

CLEARWATER SEAFOODS - B2C IN CHINA
June Cotte, Ramasastry Chandrasekhar

Product Number: 9B13A025
Publication Date: 8/29/2013
Revision Date: 8/29/2013
Length: 12 pages

Clearwater Seafoods, a Canadian shellfish enterprise, has four decades of experience in business-to-business (B2B) marketing. It harvests seafood, processes it and markets it in bulk to large restaurant chains worldwide. The company wants to pursue growth by marketing seafood directly to individual consumers (B2C) in China. The transition from B2B to B2C raises three fundamental questions. How can the company develop and deploy a go-to-market business model with Chinese grocery retailers? How can it balance its focus on margins with the Chinese retailers’ focus on revenues? How can Clearwater establish differentiation as a source of competitive advantage in seafood retailing in China?

Teaching Note: 8B13A025 (4 pages)
Industry: Retail Trade
Issues: Retailing; consumer marketing; operations; strategy; go-to-market planning; China
Difficulty: 5 - MBA/Postgraduate



NURTURING GREEN: THE GROWTH DILEMMA (C)
Deepak Pandit, Arunaditya Sahay

Product Number: 9B13M081
Publication Date: 9/12/2013
Revision Date: 9/10/2013
Length: 13 pages

Nurturing Green is a three-year-old private company that is trying to change the gift-giving culture of India by offering attractively packaged potted plants in place of the traditional candy or cut flower bouquets presented on special occasions to friends, family and business associates. The founder of the start-up is a young, passionate entrepreneur who is risking much in order to grow his company. To realize the idea of “green gifting” to help the environment, he has accepted funding from a venture capitalist firm in exchange for giving up 25 per cent equity in his business. Now, it is time to revisit that agreement and, although the company has been very successful, the owner is concerned that the investors will demand more control and a faster growth focus than he is willing or able to meet. He is also worried about the sales forecast, return on investment for the short and the long term, monthly cash flows and employee motivation and performance reviews. Should he respond to the many requests to franchise the business or should he concentrate on developing the brand in new markets? How can he expand business-to-business sales while also opening more stores in malls in all parts of the country to sell directly to customers? Will the new website develop more online sales? As he prepares for a meeting with the auditors and investors, the owner looks for a solution to continue growing while retaining control over his company.

Teaching Note: 8B13M081 (16 pages)
Industry: Retail Trade
Issues: Growth; funding; venture capitalist; India
Difficulty: 4 - Undergraduate/MBA



WHIRLPOOL AND THE BUILT-IN APPLIANCE INDUSTRY IN INDIA
Sandeep Puri, Adeshwar Raja Balaji Prasad, Natarajan ANC, Parasaran VS, Sashikanth Yenika, Vijay Kumar Venna

Product Number: 9B13M082
Publication Date: 9/24/2013
Revision Date: 9/24/2013
Length: 8 pages

India’s real estate boom led to the built-in appliances industry’s biggest opportunity. In 2010 and 2011, a total of 533,954 residential units were launched in seven top cities: Mumbai, National Capital Region, Pune, Kolkata, Bengaluru, Chennai and Hyderabad. As the market evolved and demand increased, investments and improvements in infrastructure, software, education, work force, installation, after-sales service, logistics were guaranteed to occur. This was expected to initiate a cycle of profitable growth. Whirlpool was already an established player in the home appliances segment. Given the improving industry described above, should Whirlpool tap this emerging market? If so, what might be its strategic objectives and positioning strategies for dealing with the competition and appealing to its prospective customers?

Teaching Note: 8B13M082 (9 pages)
Industry: Manufacturing
Issues: New product management; business development; business environment; India
Difficulty: 5 - MBA/Postgraduate


Chapter 15:
Managing International Operations

COLOPLAST: TEN YEARS OF GLOBAL OPERATIONS
Marcus Moller Larsen, Torben Pedersen

Product Number: 9B12M070
Publication Date: 8/2/2012
Revision Date: 7/23/2012
Length: 16 pages

In just a decade, the Danish health care product manufacturer Coloplast underwent a major transformation from a local Danish manufacturing company to a truly multinational corporation. In 2001, Coloplast conducted all its production in-house in three production facilities in Denmark. Ten years later, the company had relocated almost 90 per cent of the production to four different countries, with the majority in Hungary and China. However, a transformation of this caliber rarely comes without challenges. Coloplast’s relocation of production had largely been carried out through a trial-and-error process without an overarching corporate strategy. In this process, the company had experienced many difficulties. Although Coloplast had by 2011 successfully identified and changed the critical issues created by the offshoring initiatives, the executive management now faced a substantial challenge in understanding what Coloplast had learned over the last 10 years and how it could excel based on this history.

Teaching Note: 8B12M070 (15 pages)
Industry: Health Care Services
Issues: Operations Strategy; Strategic Change; Global Production Network; Offshoring; Denmark; Hungary; China
Difficulty: 5 - MBA/Postgraduate



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



LOCATION PLANNING AT A.B. CORP.
Jitendra R. Sharma

Product Number: 9B12D008
Publication Date: 4/30/2012
Revision Date: 4/12/2012
Length: 3 pages

In March 2010, the management of A.B. Corp. announced its plan to select a definite location for its central warehouse. The company, a major producer of agriculture and farm equipment, had gone through three consecutive years of financial loss as a result of increasing production costs. Management had to select a central warehouse between four candidates, based on the location of five distribution centres, the loads to be transferred, and other factors such as land costs and tax.

Teaching Note: 8B12D008 (8 pages)
Issues: Location Analysis; Centre of Gravity; Load Distance Factors; Factor Rating Method; Decision Making; Agriculture; India
Difficulty: 4 - Undergraduate/MBA



LEGO GROUP: AN OUTSOURCING JOURNEY
Marcus Moller Larsen, Torben Pedersen, Dmitrij Slepniov

Product Number: 9B10M094
Publication Date: 12/1/2010
Revision Date: 5/10/2017
Length: 16 pages

The last year's rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world - the LEGO Group - the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in its roughly 70 years of existence, the management had, among many initiatives, decided to offshore and outsource a major chunk of its production to Flextronics. In this pursuit of rapid cost-cutting sourcing advantages, the LEGO Group planned to license out as much as 80 per cent of its production besides closing down major parts of the production in high cost countries. Confident with the prospects of the new partnership, the company signed a long-term contract with Flextronics. This decision eventually proved itself to have been too hasty, however. Merely three years after the contracts were signed, LEGO management announced that it would phase out the entire sourcing collaboration with Flextronics. This sudden change in its sourcing strategy posed LEGO management with a number of caveats. Despite the bright forecasts, the collaboration did not fulfill the initial expectations, and the company needed to understand why this had happened. Secondly, what could LEGO management have done differently?

Teaching Note: 8B10M94 (13 pages)
Industry: Manufacturing
Issues: Outsourcing; Management Control; Global Strategy; Supply Chain Management
Difficulty: 4 - Undergraduate/MBA



SCOTTS MIRACLE-GRO: THE SPREADER SOURCING DECISION
John Gray, Michael Leiblein, Shyam Karunakaran

Product Number: 9B08M078
Publication Date: 11/14/2008
Revision Date: 6/22/2009
Length: 11 pages

The Scotts Miracle-Gro company is the world's largest marketer of branded consumer lawn and garden products, with a full range of products for professional horticulture as well. Headquartered in Marysville, Ohio, the company is a market leader in a number of consumer lawn and garden and professional horticultural products. The case describes a series of decisions regarding the ownership and organization of the assets used to manufacture fertilizer spreaders. This case is intended to illustrate the application of and tradeoffs between financial, strategic and operations perspectives in a relatively straightforward manufacturing make-buy decision. The case involves a well-known, easily-described product that most students would assume is made overseas. Sufficient information is provided to roughly estimate the direct financial cost associated with internal (domestic) production, offshore (non-domestic) production and outsourced production. In addition, information is included that may be used to estimate potential transaction costs as well as costs associated with foreign exchange risk.

Teaching Note: 8B08M78 (13 pages)
Industry: Manufacturing
Issues: China; Human Resources Management; Outsourcing; Globalization; Operations Management; Supply Chain Management; Operations Strategy
Difficulty: 5 - MBA/Postgraduate


Chapter 16:
Hiring and Managing Employees

RECRUITING FOR A MULTINATIONAL ENTERPRISE IN CHINA
Sarah Perchey, Diana E. Krause

Product Number: 9B12C026
Publication Date: 5/29/2012
Revision Date: 5/22/2012
Length: 12 pages

The CEO of a multinational company wanted the new human resource team of their subsidiary in Guangzhou, China, to recruit and select 85 individuals for different positions throughout the company. These positions included finance managers, production managers, factory workers, secretaries, and interns. The members of the human resource team were highly diverse in terms of educational backgrounds (marketing, law, human resources, public relations, general business administration) and countries of origin (Canada, China, Germany). The team had to deal with a series of challenges to ensure the project’s success. These included a decision about task-specific job requirements, methods to assess job requirements, strategies for recruitment, methods for personnel selection, and final decision-making. The team also had to deal with diversity within the team, cross-cultural issues, and the leadership behaviour of its CEO.

Teaching Note: 8B12C026 (10 pages)
Industry: Wholesale Trade
Issues: Recruitment; Personnel Selection; Leadership; Diversity; International Teams; China
Difficulty: 4 - Undergraduate/MBA



HR AS TRANSFORMATION PARTNER IN MARUTI SUZUKI INDIA LTD.
Anita Ollapally, Asha Bhandarker

Product Number: 9B11C022
Publication Date: 7/27/2011
Length: 20 pages

The Indian business landscape is marked by uncertainty, turbulence, hyper-competition, and non-linear growth, as exemplified by the automobile sector. Increasing competition from foreign automobile organizations and homegrown ones such as Tata Motors are posing a threat to the market leader, Maruti Suzuki India Ltd. A fierce battle for market share is ensuing among these automobile giants. However, Maruti Suzuki has succeeded in maintaining its leadership position. Yet with more companies venturing into the territory of Maruti Suzuki — the small car segment — the threat to Maruti Suzuki’s market share is looming larger than before.

This case illustrates Maruti Suzuki’s journey and depicts the changes in its organizational strategy, HR strategy, and work culture in response to new challenges. Maruti Suzuki had to change from a government-owned organization and a monopoly, to a firm capable of competing with world-class automobile companies. This case describes the various challenges faced by the organization and how HR has assisted in bringing about much-needed transformation. The challenges include having to create a performing workforce, changing the mindset of the employees, coping with cross-cultural issues and, most significantly, engaging in breakthrough innovation. HR needs to create an organizational culture that not only supports breakthrough innovation but also helps retain employees.


Teaching Note: 8B11C022 (16 pages)
Industry: Manufacturing
Issues: Human Resource Management; Organizational Culture; Talent Management; Cultural Differences; Automobile Industry; India; Ivey/ISB
Difficulty: 5 - MBA/Postgraduate



AN ENGLISH TEACHER IN SOUTH KOREA
Stacey R. Fitzsimmons, Paul Shantz

Product Number: 9B10C027
Publication Date: 1/21/2011
Length: 5 pages

Bert took a position to teach English in South Korea after graduating with his business degree from a Canadian university. It was his second time teaching English in South Korea, and because he had a fantastic experience the first time, he took a second position without doing a lot of due diligence before arrival. Soon, however, he realized that a city tax was being deducted from his pay, and he had suspicions that his boss was making up the city tax, in order to deduct money from the English teachers’ pay. Since Bert’s visa to stay in the country was tied to his employer, he could not look for a new employer, nor could he effectively find legal recourse against his employer, because foreign teachers had few rights in South Korea.

Teaching Note: 8B10C027 (12 pages)
Industry: Educational Services
Issues: Organizational Culture; International Management; Ethical Issues; Teachers; Expatriates; South Korea
Difficulty: 2 - Intro/Undergraduate



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

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

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

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