Ivey Publishing

Multinational Management: A Strategic Approach

Cullen, J.B.; Parboteeah, K.P.,6/e (United States, Cengage Learning, 2014)
Prepared By Ramzi Fathallah, PhD Student
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Multinational Management in a Changing World

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

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

Jean-Louis Schaan, Ramasastry Chandrasekhar

Product Number: 9B11M106
Publication Date: 12/1/2011
Revision Date: 3/15/2012
Length: 17 pages

Mahindra & Mahindra Ltd. (M&M) is a manufacturing leader in the utility vehicles (UVs) segment in the Indian automotive industry. Since 2004, M&M has been exporting UVs to South Africa, the only country in the African continent with a significant middle-class population. M&M has set up a fully owned subsidiary in South Africa, which enjoyed the growth wave in the South African automotive industry up to 2007, then fell into a three-year slump, largely as a result of a recession in the global automotive industry. Now on the verge of industry renewal in 2011, the subsidiary needs to plan its next steps. The case is positioned in May 2011, when M&M’s subsidiary must choose from four alternatives. M&M can continue with its prevailing business model of importing completely built units (CBUs) from its Indian operations to meet local demand while using South Africa as a re-export hub for the burgeoning markets in sub-Saharan Africa. It can also choose to collaborate with a local vendor to assemble vehicles locally from completely knocked down (CKD) components imported from India. Alternatively, M&M may choose to set up its own manufacturing facility in South Africa, like many of its competitors. Lastly, M&M can choose to wait and watch until it notes definitive signs of revived demand. The case provides an opportunity for students to examine each alternative and make a decision on M&M’s way forward in South Africa.

Teaching Note: 8B11M106 (13 pages)
Industry: Manufacturing
Issues: Globalization; Market Expansion; Contract Assembly; Re-export Hub; Customer Segmentation; Automotive; India; South Africa
Difficulty: 5 - MBA/Postgraduate

Chapter 2:
Cultural and Multinational Management

Karen Robson, Stefanie Beninger, Sudheer Gupta

Product Number: 9B13M111
Publication Date: 11/19/2013
Revision Date: 11/19/2013
Length: 10 pages

Walmart has decided to expand into Africa through the acquisition of the South African consumer goods retailer Massmart. In doing so, the world’s largest retailer faces significant backlash from South Africa’s largest union. The company must also contend with price-sensitive consumers and a lack of supplier relationships on the African continent. Will Walmart appeal to South African consumers and achieve the volume of sales needed to make its first African presence a success.

Teaching Note: 8B13M111 (9 pages)
Industry: Retail Trade
Issues: Globalization; cross-cultural management; emerging markets; South Africa
Difficulty: 4 - Undergraduate/MBA

Abhishek Aggarwal, Rohit Kadam, Lawrence Loh

Product Number: 9B12M121
Publication Date: 5/9/2013
Revision Date: 5/6/2013
Length: 18 pages

Yamato Transport, Japan’s leading parcel delivery company, experienced internationalization and geographical diversification issues. When it launched its operations in Singapore in 2010 with a view to further branching out into Southeast Asia, the company faced challenges owing to different cultural and social landscapes, difficulties penetrating a small and saturated market, and problems hiring manpower aligned with the company’s business model. The key success factors for Yamato Transport in Japan and their applicability in Singapore are analyzed. What will it take for Yamato Transport to succeed in Singapore when pitted against the mighty SingPost?

Teaching Note: 8B12M121 (8 pages)
Industry: Other Services
Issues: Foreign market entry; delivery industry; global; cross-cultural; Japan; Singapore
Difficulty: 4 - Undergraduate/MBA

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

Chapter 3:
The Institutional Context

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

William Wei, Ali Taleb, Vicky Nie

Product Number: 9B13M061
Publication Date: 6/14/2013
Revision Date: 7/26/2017
Length: 10 pages

Joysun was established as a state-owned enterprise in the Shanghai Waigaoqiao Free Trade Zone in China in 1995. Thanks to the effective leadership of its general manager and to the monopolistic nature of the Chinese import and export industry in the mid-1990s, the company had grown rapidly from a shop with five employees in its early days to a major player in the logistics industry by the end of 2012. However, Joysun’s journey had been rocky due to the profound and rapid transformation of the Chinese economy over the 17 years of the company’s existence. By the end of 2012, the company had several projects underway to consolidate its market position. Nevertheless, the management team felt that it should undertake more initiatives in order to sustain Joysun’s leadership over time. More specifically, the general manager wondered whether Joysun should enter the cold chain segment of the logistics industry. Considering the country- and industry-level context, what was the strategic relevance and operational feasibility of Joysun entering this new segment?

Teaching Note: 8B13M061 (9 pages)
Industry: Transportation and Warehousing
Issues: Emerging markets; coevolution; logistics; China
Difficulty: 4 - Undergraduate/MBA

Assem Safieddine, Ken Mark

Product Number: 9B11N019
Publication Date: 10/24/2011
Revision Date: 3/8/2012
Length: 15 pages

On December 22, 2010, the chief executive officer of Al Hilal Bank in the United Arab Emirates was preparing to address a group of international banking executives who were interested in understanding what decisions had contributed to Al Hilal’s success thus far, and what challenges the bank would face in 2011 and beyond. In two and a half years, Al Hilal had developed a respected and fast-growing Islamic bank. The Al Hilal team had combined a foundation of strong corporate governance practices, a strong risk management framework, and an innovative customer service culture. As proof of its success, it had become profitable in the third quarter of 2009, and profits were rising rapidly.

Teaching Note: 8B11N019 (5 pages)
Industry: Finance and Insurance
Issues: Islamic Banking; Middle East
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Managing Ethical and Social Responsibility Challenges in MNCs

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

Lili Dong, Paul W. Beamish

Product Number: 9B12M103
Publication Date: 11/19/2012
Revision Date: 11/15/2012
Length: 11 pages

This case presents the perspective of a Chinese company, Zhejiang Tianlong Capsule Co. Ltd. (Tianlong), and its experiences with the negative impact of an industry scandal. On April 15, 2012, China Central Television disclosed that several capsule producers in Ru’ao had illegally used industrial-grade gelatin to produce medical capsules. The capsules were found to contain excessive chromium, a heavy metal harmful to human health.

Tianlong was not on the list of guilty companies, but the scandal threatened to ruin the reputation of all capsule firms located in Ru’ao. Most pharmacy companies immediately avoided Ru’ao after such a nationwide scandal. The director of Tianlong must decide how to address customers’ concerns and keep Tianlong’s good reputation from being damaged as a result of the current scandal. The director was also annoyed by the local government’s requirement to suspend production. Some gelatin material had already been melted; suspending production would result in a direct financial loss. How should he respond to the supervision agency’s order?

Teaching Note: 8B12M103 (11 pages)
Industry: Manufacturing
Issues: Crisis Management; Strategy Implementation; Emerging Markets; Ethical Issues; China
Difficulty: 4 - Undergraduate/MBA

Charles Dhanaraj, Oana Branzei, Satyajeet Subramanian

Product Number: 9B10M061
Publication Date: 1/27/2011
Length: 19 pages

AWARD WINNING CASE - Indian Management Issues and Opportunities Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case explores value-driven strategy formulation and implementation by bringing to the fore issues of ethics, responsible leadership, social intiatives in emerging markets, and the global-local tensions in corporate social responsibility. It examines how Bayer CropScience addressed the issue of child labor in its cotton seed supply chain in rural India between 2002 and 2008. Bayer had been operating in India for more than a century. In December 2002, the Bayer Group completed the acquisition of India-based Aventis CropScience. Bayer CropScience first learned about the occurrence and prevalence of child labor in its newly acquired India-based cotton seed operations a few months post-acquisition, in April 2003. The Aventis acquisition had brought onboard a well-known Indian company, Proagro, which already had operations in the cotton seed production and marketing - a new segment of the supply chain for Bayer. Child labor was widespread in cotton seed production — a traditional practice taken for granted not only by Indian farmers but also by several hundred Indian companies then accounting for approximately 90 per cent of the market share. The (A) case focuses on Bayer’s decision whether, when, and how to launch a self-run program that would take direct responsibility for tracking and eradicating child labor in rural India.

Teaching Note: 8B10M061 (11 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Emerging Markets; Strategy Implementation; Ethical Issues; Crisis Management; Corporate Responsibility; India
Difficulty: 4 - Undergraduate/MBA

James McMaster, Jan Nowak

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

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

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

Chapter 5:
Strategic Management in the MNC: Content and Formulation

Sandeep Puri, Adeshwar Raja Balaji Prasad, Natarajan ANC, Anand 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

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

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

Christopher Williams, Nicole Duncan, Gregoire Thomas, Christopher Held, Ami Lebendiker

Product Number: 9B12M082
Publication Date: 8/17/2012
Revision Date: 11/19/2012
Length: 19 pages

Two years after the death of Sony’s visionary founder, Akio Morita, chief executive officer Noboyuki Idei faced a major crisis. Sony had just posted its worst performance in years and had to figure out if its current strategy needed to change. In pursuit of Morita’s vision to bring entertainment to the masses through innovation and applied technology, Sony had grown from a small Japanese company to a US$50-billion-per-year global corporation. As it entered the new millennium without its founder, Idei realized that the success Sony had enjoyed in the 1990s was being challenged in the global marketplace. With increasing global competition and in the midst of a recession, the company’s net income was far below expectations. The situation would probably worsen if Sony failed to make immediate strategic changes, including changes to its international strategy. Idei had experienced firsthand the success Sony enjoyed in the 1990s as it expanded its product lines and international presence. By April 2001, after reviewing the previous year’s financial performance, Idei knew Sony was fighting an uphill battle. All that Morita had worked towards, particularly in the 1990s, was suddenly being threatened. Idei faced a critical decision going forward. Sony was a company that still strove to embody its founders’ vision, but could he dare go against his predecessor’s approach and pursue a new international strategy?

Teaching Note: 8B12M082 (8 pages)
Industry: Manufacturing
Issues: Financial Performance; Company's Vision; International Strategy; Japan
Difficulty: 4 - Undergraduate/MBA

Marcus M. 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

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

Chapter 6:
MNC and Entry Mode Strategies: Content and Formulation

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

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

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

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

Paul W. Beamish

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

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

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

Chapter 7:
Small Business and International Entrepreneurship: Overcoming Barriers and Finding Opportunities

Sanjay Goyal, Harsh W. Mishra

Product Number: 9B13M088
Publication Date: 10/8/2013
Revision Date: 10/31/2013
Length: 10 pages

The chairman of Stag International faced a number of challenges. As the number one table tennis brand in India and one of the top five companies globally, Stag could go after market share, diversify into domestic distribution, do both or just sit tight. The chairman also needed to set the business up for the fourth generation to step in and drive the family-owned business forward. The dilemmas he faced were defining the strategic intent, strategic choices and resourcing for the business as it entered its 90th year of existence as a leading manufacturer and exporter of sports goods in India.

Teaching Note: 8B13M088 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategic decision making; strategic planning; family-owned business; India
Difficulty: 5 - MBA/Postgraduate

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

Paul W. Beamish, Megan (Min) Zhang

Product Number: 9B12M003
Publication Date: 2/13/2012
Revision Date: 11/17/2014
Length: 11 pages

In early 2011, the senior executives of the venerable Canadian hockey stick manufacturer Sher-Wood Hockey were considering whether to move the remainder of the company’s high-end composite hockey and goalie stick production to its suppliers in China. Sher-Wood had been losing market share as retail prices continued to fall. Would outsourcing the production of the iconic, Canadian-made hockey sticks to China help Sher-Wood to boost demand significantly? Was there any other choice?

Teaching Note: 8B12M003 (15 pages)
Industry: Manufacturing
Issues: Offshoring; Outsourcing; Insourcing; Nearshoring; R&D Interface; Labour Costs; Canada; SME
Difficulty: 4 - Undergraduate/MBA

Iris Berdrow

Product Number: 9B11M121
Publication Date: 3/1/2012
Revision Date: 9/9/2015
Length: 15 pages

AWARD WINNING CASE - This case won the Euro-Mediterranean Managerial Practices and Issues, 2013 European Foundation for Management Development (EFMD) Case Writing Competition. The case describes an innovative business model offering wine and a French cultural experience to North Americans. Students are given an opportunity to learn about the challenges of reviving a 1,000-year-old chateau, farmhouse, and vineyard while building a viable wine export and travel experience business. The case refers to a 15-minute online video that includes an interview with the entrepreneur, pictures of the Montlaur estate, and excerpts about Guédelon Castle, a medieval construction project.

Teaching Note: 8B11M121 (13 pages)
Industry: Accommodation & Food Services
Issues: Innovation Strategy; International Management; Entrepreneurship; Wine; Tourism; France
Difficulty: 4 - Undergraduate/MBA

Chapter 8:
Organizational Designs for MNCs

Paul W. Beamish

Product Number: 9B12M024
Publication Date: 2/28/2012
Revision Date: 11/19/2014
Length: 12 pages

Two facilities owned by a large U.S.-based multinational enterprise (one in Canada, one in the United States) are competing for a regional manufacturing and distribution mandate. The head of Firstwell’s global operating committee must decide whether the proposal from Firstwell Canada is best not only for the Kingston, Ontario, plant but also for Firstwell Corporation worldwide. The decision could signal a major shift in parent–subsidiary relations.

Teaching Note: 8B12M024 (11 pages)
Industry: Manufacturing
Issues: Subsidiaries; MNE Reporting Structures; Production; Organizational Politics; International Expansion; Canada; United States
Difficulty: 4 - Undergraduate/MBA

Marcus M. Larsen, Torben Pedersen

Product Number: 9B11M114
Publication Date: 1/13/2012
Revision Date: 10/3/2012
Length: 15 pages

This case describes the organizational and strategic challenges of outsourcing research and development (R&D) activities from Denmark to China. Nokia Denmark was founded in 1996 as a subsidiary of the Nokia Corporation and contained the largest Nokia R&D unit, concentrating on the development of mobile phones, outside Finland. In 2007, Nokia Denmark received instructions from corporate headquarters to drastically increase the number of mobile phones developed. Motivated by the need to alleviate pressure on its in-house capacity, Nokia Denmark outsourced certain product development projects to the Taiwanese company Foxconn in a joint R&D (JRD) setup. Foxconn, one of the world’s largest electronic component manufacturers, which was also developing products for many of Nokia’s competitors, was given the responsibility of developing and testing selected standardized and less complex mobile phones. However, by 2010 Foxconn had become a central figure in Nokia Denmark’s product development process with responsibility for increasingly complex projects.

Given the growing importance of Foxconn for Nokia Denmark, the rising pressure from the corporate headquarters, and the competitive market environment, Nokia Demark thus faced the question of how to proceed with the JRD. Three alternatives were outlined for the future of Nokia Denmark’s JRD with Foxconn: the management could decide on scaling up, phasing out, or continuing the status quo.

Teaching Note: 8B11M114 (15 pages)
Issues: Outsourcing; Organizational Design; Joint Research and Development; Corporate Strategy; Denmark; China
Difficulty: 4 - Undergraduate/MBA

Rod E. White, Paul W. Beamish, Andreas Schotter

Product Number: 9B06M083
Publication Date: 1/9/2007
Length: 15 pages

The new chief executive officer (CEO) of ING Insurance Asia/Pacific wants to improve the regional operation of the company. ING Group was a global financial services company of Dutch origin with more than 150 years of experience. As part of ING International, ING Insurance Asia/Pacific was responsible for life insurance and asset/wealth management activities throughout the region. The company was doing well, but the new CEO believed that there were still important strategic and operational improvements possible. This case can be used to discuss the local versus regional or global management issue and will yield best results if the class has already been introduced to different strategic and organizational alternatives in the international business context.

Teaching Note: 8B06M83 (12 pages)
Industry: Finance and Insurance
Issues: Subsidiaries; Organization; Leadership; International Management
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
International Strategic Alliances: Design and Management

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

W. Glenn Rowe, Pouya Seifzadeh

Product Number: 9B13M043
Publication Date: 4/1/2013
Revision Date: 2/14/2018
Length: 10 pages

The founder and CEO of a management company needs to address the future of its joint venture in Iran with a U.S. developer of enterprise resource planning (ERP) systems. The joint venture partners need to decide whether to pursue a potential client’s request for a custom version of the ERP system that the joint venture sells. The two partners disagree regarding the strategic direction forward, but must make a decision.

Teaching Note: 8B13M043 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Joint Venture; Corporate Strategy; Consulting; Iran
Difficulty: 4 - Undergraduate/MBA

Derek Lehmberg

Product Number: 9B12M048
Publication Date: 5/3/2012
Revision Date: 5/2/2012
Length: 12 pages

In 1998, Boots PLC was in the midst of planning to enter the Japanese retail drugstore market. Boots, a household name in the United Kingdom and a fixture in traditional English shopping areas known as High Street, had an impressive lineup of Boots-branded health and beauty products. Boots developed, manufactured, marketed, and sold these products through its chain of Boots The Chemists stores. Management was convinced that the markets for health and beauty products were becoming increasingly global. Although Boots made few international sales at this time, it was in the midst of expanding overseas and had identified Japan as a particularly attractive market to enter.

International retailing efforts can prove difficult, as many failed international ventures show. Japan presented a number of unique challenges and required careful planning and attention. Boots had dispatched a manager to Japan to work on market entry and had been discussing a joint venture to develop several pilot stores together with Mitsubishi Corporation, one of Japan’s large trading companies. Mitsubishi had a great deal of clout in Japan, something Boots lacked, and was interested in the retailing venture. The case centres around the question of whether Boots should go ahead with the joint venture with Mitsubishi, and also facilitates a broader consideration of the market attractiveness and market entry in general.

Teaching Note: 8B12M048 (14 pages)
Industry: Retail Trade
Issues: Consumer Goods; Private Brands; International Joint Venture; Market Entry; Drug Stores; Cosmetics; United Kingdom; Japan
Difficulty: 4 - Undergraduate/MBA

Shih-Fen Chen, Ramasastry Chandrasekhar

Product Number: 9B10M107
Publication Date: 2/1/2011
Length: 20 pages

In November 2008, NTT DoCoMo, the largest mobile telecom company in Japan, entered into a joint venture with Tata Tele Services Ltd (TTSL), the fifth-largest mobile telecom company in India. The two partners had come together because both had recognized that they could put complementary capabilities into play. NTT DoCoMo could build on TTSL’s knowledge of the local market and ownership of a telecom licence (given by the federal government only to domestic firms). TTSL could gain access to NTT DoCoMo’s core competence in 3G technology, which was soon being rolled out in India through a spectrum auction. As part of signing the deal, the two partners had to face issues other than business synergies — like the percentage of equity holding of each partner in the joint venture, the price at which NTT DoCoMo would buy its stake to be offloaded by TTSL, and the provision for veto rights that could make up for a minority holding. The case helps students understand the dynamics of the formation of an international joint venture. It also highlights the unique advantages of a joint venture over other forms of international collaboration, such as technology licensing and agency distribution.

Teaching Note: 8B10M107 (14 pages)
Industry: Information, Media & Telecommunications
Issues: International Collaboration; Globalization; Joint Ventures; Strategic Management; Telecommunications; Japan; India
Difficulty: 4 - Undergraduate/MBA

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

Chapter 10:
Multinational E-Commerce: Strategies and Structures

Sarah Bickert, Volker Diestegge, Thorsten Knauer, Katja Möslang, Andrea Schroer, Friedrich Sommer

Product Number: 9B13M083
Publication Date: 9/25/2013
Revision Date: 9/24/2013
Length: 15 pages

The publisher Random House, a fully owned subsidiary of the German family company Bertelsmann SE & Co. KgaA, faces significant changes in its markets and internal structure. While printed books have been the company’s core competence from its earliest years, with the advent of the Internet, customers, especially in the West, are beginning to prefer electronic books. Will printed books be completely replaced by digital ones, or will e-books remain a niche market? How will this development affect production, distribution and marketing? Will Random House be able to compete for authors and sales with such online e-book giants as Amazon? The imminent merger with the U.K. publishing house Penguin also provides an opportunity and incentive to expand Random House’s operations into China as part of the internationalization strategy of the parent company. A post-merger integration plan must be established since the two publishers’ regional presences and product offerings are in part complementary. How can the new Penguin Random House strengthen its position as the world’s biggest and most successful publisher?

Teaching Note: 8B13M083 (10 pages)
Industry: Information, Media & Telecommunications
Issues: Publishing; e-books; internationalization; strategic positioning; Germany; United States
Difficulty: 4 - Undergraduate/MBA

Christopher Williams, Judith vanHerwaarden

Product Number: 9B11M085
Publication Date: 9/23/2011
Revision Date: 5/25/2017
Length: 11 pages

In April 2011, the management team at Expatica Communications B.V. was reviewing the progress of the company and the opportunities for future growth. The management team had to take stock: the external environment was rapidly changing, and threats from competitors were on the rise. Expatica had been founded 11 years earlier to provide English-language information and news to the expatriate community in Europe, delivering its services primarily over the Internet. One of the central issues Expatica faced was how to make its core business model effective across multiple markets. Recent launches of the online platform in new countries were not as successful as hoped and the performance of traditional “bricks and mortar” offerings was also mixed. The company had made tremendous progress over the years but needed to re-evaluate its position and decide which new opportunities for growth, if any, should be pursued.

Teaching Note: 8B11M085 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Company Expansion; Product Development; E-Business; Expatriate Community; the Netherlands
Difficulty: 4 - Undergraduate/MBA

Reema Gupta, Deepa Mani, Aditya Shah, Sujata Ramachandran, Vivek Vikram Singh

Product Number: 9B11E026
Publication Date: 7/19/2011
Length: 18 pages

The case is set in mid-2009, about six months before the scheduled worldwide launch of Microsoft Azure. The group director of cloud computing for Microsoft India was considering the pros and cons of launching Azure simultaneously in India with the rest of the world. Cloud computing was a paradigm shift in the information technology (IT) industry that fundamentally changed how software and services were delivered to an end-user’s desktop. Cloud computing enabled shared resources — software, hardware, and information — to be provided to consumers on demand, charging them based on usage. Azure was Microsoft’s offering in this space, providing software and infrastructure as a service, and was also a platform to develop new applications on a pay-per-use model. Microsoft had always made its products available to users in the traditional license model, and Azure would be a paradigm shift not only in terms of technology but also in terms of the business model.

The director had to decide whether the nascent Indian market was ready to adopt this new technology and business model, and which segments to target. There were many reasons why the Indian market looked very lucrative, including presence of a strong IT development community, increasing IT adoption across Indian industries, and presence of a very big potential customer base in terms of small and medium enterprises. Conversely, there were concerns such as poor current IT adoption, rampant piracy, low availability of infrastructure in India (such as electricity and broadband penetration), and the “do-it-for-me” attitude of Indian businesspeople, which meant significant initial costs in terms of time and effort required to increase awareness.

Teaching Note: 8B11E026 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Target Market; Licensing; Business Model; Cloud Computing; India; Ivey/ISB
Difficulty: 5 - MBA/Postgraduate

Chapter 11:
International HRM

Joo Yong Lowe

Product Number: 9B13C001
Publication Date: 2/22/2013
Revision Date: 2/25/2013
Length: 14 pages

The managing director of a multinational company turns a loss-making business into a profit-making venture by using his unique brand of leadership to change the organizational culture and develop a responsible proactive attitude in his employees. Throughout this process, many difficult personnel decisions must be made, including the decision to remove some senior employees who resist the necessary changes.

Once under the new leadership team, recruitment and talent development become essential to the future growth of the company. The managing director wonders how to manage this challenge.

Teaching Note: 8B13C001 (6 pages)
Industry: Health Care Services
Issues: Leadership; change management; cross-cultural communication; pharmaceutics; China
Difficulty: 4 - Undergraduate/MBA

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

Shaista E. Khilji, Chang Hwan Oh, Nisha Manikoth

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

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

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

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

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

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 12:
HRM in the Local Context: Knowing When and How to Adapt

Derek Lehmberg

Product Number: 9B13C023
Publication Date: 8/15/2013
Revision Date: 8/9/2013
Length: 16 pages

Human resource (HR) management practices in Japan are significantly different from those in Europe and North America. A knowledge of the traditional Japanese HR system, including practices relating to recruiting and compensation, unions and the labour market, is crucial for foreign companies operating in Japan as well as those seeking to do business with Japanese firms. While Japan’s distinct HR system was once considered a source of competitive advantage, changing economies and labour markets have called its current effectiveness into question. The traditional system primarily provided stable long-term employment for full-time employees; however, for a variety of reasons, non-regular forms of employment, including part-time and short-term positions, are on the rise. HR managers in Japan must consider relevant societal and economic changes and develop more effective HR systems in response.

Issues: Human resource management; labour markets; Japan
Difficulty: 4 - Undergraduate/MBA

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

Stephen Grainger

Product Number: 9B12C055
Publication Date: 12/17/2012
Revision Date: 12/17/2012
Length: 6 pages

The Roaring Dragon Hotel (RDH), a Chinese state-owned enterprise (SOE), was under pressure to become a profit generating 5-star hotel due to the continued development of the Chinese market economy. As for many SOEs, the RDH was overstaffed, filled with archaic work practices, internal cliques, unsystematic production systems and a dysfunctional motivation system unrelated to performance. During modernization, a number of human resource management problems became increasingly evident; solving these problems had become a priority. In 2000, the RDH’s provincial government and stakeholders made their first attempt at modernizing the hotel by hiring a globally renowned company to undertake the upgrade. The disastrous outcome caused the provincial government and stakeholders to lose heart, momentum and motivation until six years later. A new joint venture owner and the RDH board recovered enough confidence to attempt modernization for a second time. They contracted Premium Hotel Services (PHS) to undertake the second attempt at improving operations. The PHS found the quality of older employees, increasing turnover of new staff and policies emerging from the continuing evolution of the Chinese economy were now presenting problems never confronted before at the RDH. How could the stakeholders solve these problems and have the RDH emerge as an internationally recognized five star, commercially viable hotel?

Teaching Note: 8B12C055 (7 pages)
Industry: Accommodation & Food Services
Issues: Human resource management; SOE; market focus; guanxi mianzi; Western business; China
Difficulty: 4 - Undergraduate/MBA

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

Chapter 13:
International Negotiation and Cross-Cultural Communication

Zsuzsanna Kispal-Vitai

Product Number: 9B11C049
Publication Date: 3/7/2012
Length: 7 pages

A young entry-level employee starts work in the hotel industry in Eastern Europe. The case describes her experiences and shows the HRM practices in the particular hotel in which she works. The issue for analysis is less whether or not the employee should stay or leave this hotel, which has minimal pay and poor working conditions, and more the overall nature of human resources (HR) operations at this service organization, with regard to ethics and sustainability.

Teaching Note: 8B11C049 (12 pages)
Industry: Other Services
Issues: Hotel Management; Human Resource Management; Job Satisfaction; Ethics; Motivation; Eastern Europe
Difficulty: 5 - MBA/Postgraduate

Lu Jiang, Michael Frechette, Dongmei Tu, Xia Wang, Marie Cheng

Product Number: 9B09M009
Publication Date: 6/10/2009
Revision Date: 6/15/2009
Length: 13 pages

NFC was a state-owned company listed on the China stock exchange. It had operations in Zambia, Iran and Kazakhstan before entering into Mongolia. Most of the prior projects were turn-key operations. Mongolia was the first country in which it had an international joint venture (IJV). The joint venture (JV) agreement was signed in 1998. Due to many delays, it was not until 2005 that it finally started operating. In mid-2007, the Mongolian parliament notified the JV that its 5-year 0 per cent and 5-year 50 per cent of income tax term (starting from 2005) had been cancelled. Not only would it need to pay full tax starting from 2007, it had to pay the exempted tax amount from 2005 and 2006. Inside the JV, the union desired another pay raise despite the fact that salaries had been increased 10 per cent just six months ago. Outside the JV, local shipping companies threatened to block the factory gate if the JV did not sign a shipping contract with them on their terms.

Teaching Note: 8B09M09 (6 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: China; Human Resources Management; Cross Cultural Management; International Business; Tsinghua/Ivey
Difficulty: 4 - Undergraduate/MBA

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

Chapter 14:
Motivation in MNCs

Cara C. Maurer, Ken Mark

Product Number: 9B10C026
Publication Date: 11/1/2010
Revision Date: 11/7/2011
Length: 14 pages

L’Oreal S.A. is in the process of implementing a global diversity strategy. The firm's Europe diversity director is working with various country units to roll out the strategy. The director faces obstacles such as cultural differences between countries and, generally, low awareness of the benefits a diversity strategy can bring.

Teaching Note: 8B10C026 (12 pages)
Industry: Manufacturing
Issues: Human Behaviour; Communications; Cosmetics; France
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Michael Roberts

Product Number: 9B10M012
Publication Date: 2/11/2010
Revision Date: 2/12/2010
Length: 16 pages

In 2005, the vice-president of Lundbeck, a Danish based pharmaceutical firm, needed to decide what to do with one of his most promising subsidiaries, Lundbeck Korea. Over its short lifetime, under the leadership of the country manager and the Asia regional manager, the subsidiary had grown well beyond the original goals set for it. The vice-president wanted to create a reporting structure and management mix that would balance the local demands that Lundbeck Korea required for growth with Lundbeck's overall strategy of specialization, speed, integration and results. The case also traces Lundbeck's internationalization efforts in Asia over the past 20 years. The company had grown from pure licensing arrangements to establishing its own country level subsidiaries. This case introduces the dynamic tensions between taking advantage of local management expertise and executing a corporate strategy developed for an entire global group. In addition, it illustrates the importance, but difficulties, of being sensitive to local management goals, while promoting a global corporate culture.

Teaching Note: 8B10M12 (19 pages)
Industry: Manufacturing
Issues: MNE Reporting Structures; International Strategy; Emerging Markets
Difficulty: 4 - Undergraduate/MBA

Tieying Huang, Junping Liang, Paul W. Beamish

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

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

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

Chapter 15:
Leadership and Management Behavior in MNCs

Caren Scheepers, Schalk Marais

Product Number: 9B12C015
Publication Date: 4/24/2012
Revision Date: 4/27/2012
Length: 19 pages

Medupi was the first baseload project in South Africa in 20 years. It would be the largest dry-cooled, coal-fired power station in the world and was being developed by Eskom, which generated 90 per cent of Southern Africa’s power, at an estimated cost of R125 billion. In spite of the worldwide concern about greener energy, coal remained the most popular power station fuel for South Africa, due to the country’s vast resources of 224 million tonnes annually. The new capacity that Medupi would offer was sorely needed.

It had been challenging to follow a project schedule that involved various suppliers providing different packages at different dates and that required accommodating several interfaces during both design and implementation. Due to the massive scale and complexity of the project, three companies had joined forces to tackle the job, namely Murray & Roberts, Aveng, and Concor. Murray & Roberts had appointed Coenie Vermaak as project director at Medupi and, at 34, he was the youngest project director in the group. The managers of the joint venture had realized quickly that this would be “a project like no other.” The three companies’ different ways of working necessitated much more integrated coordination. For instance, employees from the different parent organizations had different job descriptions, remuneration, benefits, structures, processes, and cultures. Medupi’s uniqueness provided an opportunity to be pioneers in the construction industry and to “reconstruct construction.” A culture of employee engagement and alignment was required.

Teaching Note: 8B12C015 (18 pages)
Industry: Construction
Issues: Change Management; Transformational Leadership; Performance Management; Organizational Culture; Coal Power; South Africa
Difficulty: 5 - MBA/Postgraduate

Cherlyn Granrose, Alison Konrad

Product Number: 9B12C033
Publication Date: 6/26/2012
Revision Date: 10/25/2012
Length: 11 pages

The purpose of this exercise is to assess students’ group leadership and followership skills. Participants prepare for the exercise individually by reading six mini-cases that describe people-management challenges and then selecting a solution for these challenges from the options provided at the end of each case. During the exercise, participants are randomly assigned to discussion groups of five to six members, where each person serves as a leader for one case and as a participant for the remaining five case discussions. The discussions give participants the opportunity to exhibit effective leader and follower group behaviours and to demonstrate their oral communication, judgment, and decision-making skills. Self-assessment and group observation forms are provided.

Teaching Note: 8B12C033 (10 pages)
Industry: Other Services
Issues: Assessment Centre; Group Leadership; Management Skills
Difficulty: 4 - Undergraduate/MBA

Charles Dhanaraj, Monidipa Mukherjee, Hima Bindu

Product Number: 9B10M064
Publication Date: 2/16/2011
Length: 11 pages

This case addresses the theme of crisis leadership in a multinational enterprise in order to help students internalize the critical challenges of a multinational company in an emerging market. In August 2007, a routine product feedback and defect analysis process identified a defective batch of batteries supplied by a Japanese vendor. India happened to be the recipient of the largest proportion of the defective batch. Nokia’s corporate communications team, based in Finland, in cooperation with the Indian team, responded with a customary global product advisory. Instructions were made available on the Internet for customers to diagnose a defective battery and get a free replacement. Nokia was shocked to see the antagonistic response from the Indian press to the product advisory and the ensuing mayhem that spread quickly through the country. The head of Nokia India and his team had to act swiftly to preserve the company’s hard-earned reputation and market share. Case (A) is set as a midnight strategy session at Nokia’s Indian headquarters to chart out the way forward. A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) is a short version of what actually happened: how Nokia and the team responded to the crisis and and used the situation to create new organizational capabilities.

Teaching Note: 8B10M64 (15 pages)
Industry: Information, Media & Telecommunications
Issues: Multinational; Global Strategy; Crisis Leadership; Communications; Telecommunications; Finland; India; Ivey/ISB
Difficulty: 5 - MBA/Postgraduate