Ivey Publishing

Global Shift

Dicken, P.,7/e (United Kingdom, The Guilford Press, 2015)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
What in the World is Going On?

Veena Keshav Pailwar

Product Number: 9B15M064
Publication Date: 6/24/2015
Revision Date: 6/24/2015
Length: 9 pages

The 2013/14 exit announcement by Australian car manufacturers poses a threat to the survival of the country’s automotive industry, and the pull-out is expected to have a significant and adverse impact on the Australian economy as a whole. The case highlights the dilemma that government decision-makers often face: Should they provide protection to loss-making industries in order to support domestic employment and economic output, or should they let struggling industries die out to make room for more prosperous economic activities? The case also highlights the dilemma faced by firms within a supply chain when original equipment manufacturers (OEMs) exit: Should the firm follow the OEMs or adopt survival strategies?

Teaching Note: 8B15M064 (10 pages)
Industry: Manufacturing
Issues: Economic environment; protectionist policies; free trade agreements; liberalization
Difficulty: 5 - MBA/Postgraduate

Paul W. Beamish

Product Number: 9B14M171
Publication Date: 1/8/2015
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: 8B14M171 (6 pages)
Issues: Career Development; Intercultural Relations; Team Building; Internationalization
Difficulty: 4 - Undergraduate/MBA

Vasant Sivaraman

Product Number: 9B15M006
Publication Date: 3/3/2015
Revision Date: 3/3/2015
Length: 12 pages

In 2012, an Indian multinational, Bharat Forge Ltd. (BFL) achieved world-leader status in forgings by a series of acquisitions in Europe and the United States. The need to participate in growth markets and to be close to global auto majors led BFL to a joint venture with the China-based FAW Corporation. However, while moving towards growth and a strategy for international scope expansion, shifts in the environment took BFL on a path towards a more de-risked portfolio. Following the divestment of its holding in the United States, BFL needed to reexamine the continuance of its stake in the joint venture.

Teaching Note: 8B15M006 (10 pages)
Industry: Manufacturing
Issues: Growth strategies; firm scope; overseas operations; multinational; India
Difficulty: 5 - MBA/Postgraduate

Chapter 2:
The Centre of Gravity Shifts: Transforming the Geographies of the Global Economy

Dezhi Chen, Xiaohua Yang, William Wei, Tingting Guo, James A. Brownson, Walter Petruska

Product Number: 9B15M063
Publication Date: 6/22/2015
Revision Date: 6/17/2015
Length: 14 pages

In 2012, Pactera, a China-headquartered IT service firm, went public on the NASDAQ. In 2014, it was taken private by a consortium led by the U.S.-based global investment and advisory firm Blackstone. This accelerated the firm’s expansion in the U.S. market and its plans to move up the value chain. Pactera’s executive vice-president must formulate and implement the right strategy in order to continue its success in the U.S. market, gain access to cutting-edge technology and talent, and better compete against sophisticated American and Indian rivals. Failure to apply the correct strategy to its operations in the U.S. market could restrict its growth and negatively impact its performance in the global market.

Teaching Note: 8B15M063 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Globalization, IT outsourcing, competitive advantage
Difficulty: 4 - Undergraduate/MBA

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

Munir Mandviwalla, Jonathan Palmer

Product Number: 9B08M017
Publication Date: 5/6/2008
Length: 19 pages

During the last decade, Wyeth transformed itself from a holding company to a global company using information technology (IT) as an important enabler. The first half of the case details the importance of global integration and how globalization was initiated at Wyeth. The original role of IT is introduced along with the challenges and barriers of starting a globalization strategy. This is followed by a discussion of how the role of IT started changing at Wyeth. An ambitious IT globalization plan is outlined. The second half of the case details the implementation of the IT globalization plan. The implementation started slowly, faced many challenges, and took longer than expected. The original plan was modified several times to address funding and management challenges. The case ends by discussing how Wyeth was able to complete the IT globalization plan. The case is anchored in the United States but considers global issues. The case includes issues and concepts that make it suitable for teaching management information systems, international business and strategy.

Teaching Note: 8B08M17 (6 pages)
Industry: Manufacturing
Issues: Globalization; Process Design/Change; Information Technology; Strategy Implementation; Management Science and Info. Systems
Difficulty: 5 - MBA/Postgraduate

Chapter 3:
Tangled Webs: Unraveling Complexity in the Global Economy

Andrew Karl Delios, Srinivasa Addepalli

Product Number: 9B14M137
Publication Date: 12/1/2014
Revision Date: 11/26/2014
Length: 15 pages

In 2004, Tata Communications (TCL) was trying to act on its strategic intent to become a globally connected network provider. It had two alternatives: build or buy. The build option would provide TCL with a chance to develop its own network under its own terms. The possible acquisition of the Tyco Global Network (TGN), however, provided a unique opportunity for TCL to establish this global position quickly. As one of the largest global networks at the time of the case, the TGN was a limited asset. The acquisition of the TGN would catapult TCL into being a top player in global Internet connectivity. Even though the acquisition price was low, the associated liabilities and risks could make this a substantially expensive acquisition for TCL. Should TCL negotiate with Tyco? If yes, what would be an acceptable position to proceed with the deal? How should TCL plan for the mitigation of risks and uncertainties? If not, what would be the consequences of losing the TGN opportunity, particularly if a competitor acquired it?

See also supplement 9B14M138.

Teaching Note: 8B14M137 (15 pages)
Industry: Information, Media & Telecommunications
Issues: Acquisition; internationalization; strategy implementation; India
Difficulty: 4 - Undergraduate/MBA

Marcus M. 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

Marina Apaydin, Dina Zaki, Farah Zahran

Product Number: 9B11M023
Publication Date: 6/22/2011
Length: 9 pages

Orascom Telecom Holding S.A.E. (OTH) was established in 1998 in Egypt and grew to become a major player in the global telecommunications market. OTH was among the largest and most diversified network operators in the Middle East, Africa, and South Asia. Orascom Telecom Algeria (Djezzy) was launched in February 2002 and grew to become the market leader in Algeria in terms of both subscriber numbers and the quality of telecommunications services provided. Djezzy served more than 14.7 million subscribers on its network and had a 62.9 per cent market share.

Orascom wanted to further expand, and India was considered a great opportunity. In 2006, OTH agreed to acquire a 19.3 per cent stake in Hutchison to penetrate the Indian market. India was a promising market as there were strong complementary similarities between Orascom and Hutchinson Telecom. However, Orascom was not able to enter the market because it did not consider the expenses in an accurate way and ignored many factors. Now, in 2009, the treasury director of OTH was wondering what lessons in the risks of internationalization he could learn from the company’s failure in India and present difficulties in Algeria.

Teaching Note: 8B11M023 (20 pages)
Industry: Information, Media & Telecommunications
Issues: Business Sustainability; Internationalization; Tax Accounting; Telecommunications; Acquisitions; India; Algeria; Egypt
Difficulty: 3 - Undergraduate

Chapter 4:
Technological Change: ‘Gales of the Creative Destruction’

Yan Gong, Zhu Qiong

Product Number: 9B15M024
Publication Date: 2/27/2015
Revision Date: 2/27/2015
Length: 14 pages

As a newcomer in the automobile industry, Tesla Motors had distinguished itself by redefining automobiles and rewriting some of the rules of the automobile industry. Ten years after its founding, it had begun to make inroads into China — a totally different market from Europe and the United States — and commenced its globalization efforts. China had set “new energy” as its major strategy for sustainable development and national security. Which path should Tesla follow to make China its second-largest market? How can Tesla’s director for China overcome the company’s strategic challenges in innovating in the Chinese market?

Teaching Note: 8B15M024 (6 pages)
Industry: Manufacturing
Issues: Internet; innovation business model; new energy vehicle; China
Difficulty: 5 - MBA/Postgraduate

Derek Lehmberg

Product Number: 9B11M007
Publication Date: 3/23/2011
Revision Date: 7/6/2012
Length: 15 pages

Faced with major losses from operations, Sharp Corporation’s young and unconventional president questioned the company’s long-standing operating model. Sharp was a leader in the area of liquid crystal display (LCD) technology and manufacturing. It also held strong positions in several categories of consumer electronics in the Japanese market. Although Sharp had been increasing its involvement in overseas markets, it had yet to replicate its successes overseas. Sharp’s operating model placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. The company jealously guarded its LCD knowhow and had implemented strict security measures at its LCD panel plants. As Sharp’s international sales grew, limitations with its business model became more apparent. Operating primarily in Japan had drawbacks, such as exposure to currency risk, high infrastructure cost, and high taxes. Additionally, the logistics of shipping large items overseas, such as LCDs and solar panels, presented other dilemmas. Sharp needed to reconsider this model and develop an approach that was more suitable to the environment in which it now competed.

Teaching Note: 8B11M007 (10 pages)
Industry: Manufacturing
Issues: Strategy and Resources; International Strategy; Technology; Consumer Electronics; Japan
Difficulty: 4 - Undergraduate/MBA

Rod E. White, Paul W. Beamish, Daina Mazutis

Product Number: 9B08M046
Publication Date: 5/15/2008
Revision Date: 5/24/2017
Length: 19 pages

Research in Motion (RIM) is a high technology firm that is experiencing explosive sales growth. David Yach, chief technology officer for software at RIM, has received notice of an impending meeting with the co-chief executive officer regarding his research and development (R&D) expenditures. Although RIM, makers of the very popular BlackBerry, spent almost $360 million in R&D in 2007, this number was low compared to its largest competitors, both in absolute numbers and as a percentage of sales (e.g. Nokia spent $8.2 billion on R&D). This is problematic as it foreshadows the question of whether or not RIM is well positioned to continue to meet expectations, deliver award-winning products and services and maintain its lead in the smartphone market. Furthermore, in the very dynamic mobile telecommunications industry, investment analysts often look to a firm's commitment to R&D as a signal that product sales growth will be sustainable. Just to maintain the status quo, Yach will have to hire 1,400 software engineers in 2008 and is considering a number of alternative paths to managing the expansion. The options include: (1) doing what they are doing now, only more of it, (2) building on their existing and satellite R&D locations, (3) growing through acquisition or (4) going global.

Teaching Note: 8B08M46 (19 pages)
Industry: Manufacturing
Issues: Telecommunication Technology; Change Management; Globalization; Staffing; Growth Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 5:
Transnational Corporations: The Primary ‘Movers and Shapers’ of the Global Economy

Margaret Sutherland, Tashmia Ismail

Product Number: 9B14M026
Publication Date: 5/12/2014
Revision Date: 5/12/2014
Length: 11 pages

SABMiller, the world’s second largest brewer, has developed a business model in Mozambique that represents a radical departure from the firm’s traditional approach to beer production. Despite this multinational’s well-developed global supply chains and heavily centralized processes, it has disrupted both established processes and products and has, instead, innovated to produce a cassava-based beer in an effort to serve the low-income consumers who comprise the bulk of the African economic pyramid. In a marked departure from corporate best practices, the manufacturing process begins outside of the brewery and in the vicinity of the scattered and rural cassava farming plots.

Teaching Note: 8B14M026 (23 pages)
Industry: Manufacturing
Issues: Innovation; low income markets; bottom of pyramid; Mozambique
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

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

Chapter 6:
The State Really Does Matter

Stephen Grainger

Product Number: 9B14M170
Publication Date: 1/28/2015
Revision Date: 2/10/2015
Length: 10 pages

Three friends have followed their entrepreneurial dream to build a five-star hotel in Liepaja, a seaside city in Latvia. After a few early profitable years, the hotel is struggling, due to the massive downturn in the Latvian economy as a result of the European Union financial crisis and slow recovery. The hotel has declined from generating an annual profit to now making a loss or barely breaking even. On several occasions, the co-owners have considered selling up while they can still break even. With the European Union showing signs of recovery, business confidence is returning and the future is starting to look up. The co-owners must decide whether to put all their struggles behind them, retain the ownership of the hotel and look forward to the potential days of profit that lie ahead. Alternatively, they can move in an almost opposite direction, by selling up and moving on. What strategic direction will produce a successful outcome?

Teaching Note: 8B14M170 (10 pages)
Industry: Accommodation & Food Services
Issues: Operations; developing economy reform; motivating workforce; Latvia
Difficulty: 4 - Undergraduate/MBA

Dima Jamali

Product Number: 9B11M050
Publication Date: 6/21/2011
Revision Date: 11/21/2016
Length: 16 pages

The project manager of the Partnership for Lebanon (PFL) and Cisco Systems’s regional director of corporate affairs for the Middle East and Africa met in September 2009, three years after the PFL was first initiated. The meeting primarily revolved around the challenge of sustainability and what useful suggestions they could put forward to their partners to ensure that the projects initiated through the PFL were not dependent on the continuous investments of the partners.

The PFL, a major partnering initiative in a post-war context, was initiated in September 2006 after President George W. Bush called for the assistance of U.S. companies to help in the relief and reconstruction efforts in Lebanon after the 2006 war between Israel and Hezbollah. The five companies involved were Cisco Systems, Intel Corporation, Ghafari Inc., Occidental Petroleum, and Microsoft. They leveraged their core competence under five main work streams: emergency relief/response, job creation/private-sector revival, developing information and communication technology infrastructure, workforce training/education, and developing connected communities. Cisco took a leadership position within the PFL, establishing a management office in Beirut staffed by five senior full-time Cisco employees, and committed an investment of $10 million in the Lebanese private sector over a three-year period. The PFL’s corporate partners engaged closely with the Lebanese government as well as with various international and local NGOs to develop initiatives under the five work streams and yield a long-term sustainable impact.

Teaching Note: 8B11M050 (10 pages)
Industry: Information, Media & Telecommunications
Issues: Business and Society; Corporate Social Responsibility; Information and Communication Technology; Lebanon; Middle East and United States
Difficulty: 4 - Undergraduate/MBA

Shaozhuang Ma, Virginia Trigo

Product Number: 9B13C002
Publication Date: 3/7/2013
Revision Date: 3/4/2013
Length: 14 pages

The generation born in China in the 1980s has become an important force in the country’s labour market. Members of this generation were the first to grow up in a market economy with daily access to the Internet, and are considered to have different work values than past generations. Also, most were born and raised in single-child families and generally demonstrate more individualistic behaviours and less willingness to follow the norms of previous generations. This case describes the promotion story of Zhu Dandan, a member of the 1980s generation, and illustrates the different work values, behaviours and management style of her generation, as well as the challenges of managing it.

Teaching Note: 8B13C002 (7 pages)
Industry: Retail Trade
Issues: Career development; human resource management; 1980s generation; managing upward; China
Difficulty: 5 - MBA/Postgraduate

Myrna Comas, Julia Sagebien

Product Number: 9B10M024
Publication Date: 5/5/2010
Length: 14 pages

Sowing the Development of the Country (SDC) was a public-private partnership between Wal-Mart Puerto Rico (Wal-Mart PR), the island's Department of Agriculture as well as its Economic Development Bank (EDB), two NGOs Caborroje's Pro Salud y Ambiente (Caborroje's Pro Health and Environment) and ConectaRSE (a corporate social responsibility (CSR) promotion non-governmental organization(NGO)), and a group of local farmers. The objective of the project was to promote sustainable development on the island by encouraging farmers to become entrepreneurs by developing small agro-businesses. Wal-Mart acted as the primary buyer. The project faced many challenges, such as farmers' difficulties in meeting quality standards and delivery schedules, the lack of an existing vehicle through which to access funding from the EDB, and, most importantly, changes in the political party in power. Project partners had to develop a position from which to negotiate a new alliance with the incoming government administration. Since Wal-Mart was determined to guarantee the continuity and expansion of the SDC project, Wal-Mart had to step into the project champion role.

Teaching Note: 8B10M24 (9 pages)
Industry: Agriculture, Forestry, Fishing and Hunting, Retail Trade, Wholesale Trade
Issues: Government and Business; Corporate Social Responsibility; Developing Countries; Partnership; Public Administration
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
The Uneasy Relationship Between Transnational Corporations and States: Dynamics of Conflict and Collaboration

Walid Busaba, Nourhene Ben Youssef, Saqib A. Khan

Product Number: 9B14B011
Publication Date: 8/14/2014
Revision Date: 11/5/2020
Length: 8 pages

Transfer pricing used by multinational corporations to lower its tax burden, thereby increasing its consolidated income, can have far-reaching implications for the stakeholders, as a fund manager for Saskhedge fund found out the hard way. A stock investment the manager had made in Cameco Corporation has dropped its value by 20 per cent. In addition, Canada Revenue Agency has initiated a law suit against the firm for alleged tax avoidance in relation to the company's transfer pricing practices with its Swiss subsidiary. The suit could result in an additional tax liability of $800 million to $850 million. The manager needs to explain to the investment board the implications of the lawsuit on the stock price and advise the board on whether the projected $800 to $850 million is a fair estimate.

Teaching Note: 8B14B011 (4 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Transfer pricing; differential tax regimes; consolidated statements; financial reporting; Canada
Difficulty: 4 - Undergraduate/MBA

Andrew Karl Delios, Donna Jimenez, Clarissa Turner

Product Number: 9B12M042
Publication Date: 5/9/2012
Revision Date: 5/9/2012
Length: 16 pages

This case presents a means by which students can explore how government policy is influenced by the actions of stakeholders in an economy: firms, taxpayers, voters, unions, and other organizations. It highlights how policy-making can be a process endogenous to the interests and influence of the private sector, and not an exogenous one, even in domains that are the power reserve of public policy makers.

In 2010, the ruling party in Australia has devised a new tax, the Resource Super Profit Tax (RSPT). This tax has been devised to enable national and state governments to benefit from the boom in the mining industry by expropriating a greater portion of the industry’s earnings. The RSPT has been prepared without any input from major mining companies in Australia, and if implemented would represent a substantial increase in their tax payable. The case is presented from the perspective of the CEO of BHP Billiton, one of the largest mining companies in Australia. The situation considers what, if any, action can be taken to combat a tax that has already been devised by the government and is about to be implemented. Successful analysis of the case involves an evaluation of all stakeholders in the Australian economy that will be influenced by the imposition of the RSPT. After this is done, a strategy needs to be devised that will influence the government to withdraw a tax to which it has already demonstrated a firm commitment.

Teaching Note: 8B12M042 (11 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Non-market Strategy; Public Sector; Business Policy; Public Relations; Mining; Tax; Australia
Difficulty: 5 - MBA/Postgraduate

David W. Conklin, Danielle Cadieux

Product Number: 9B06M073
Publication Date: 8/22/2006
Revision Date: 8/4/2006
Length: 15 pages

This case presents a summary of U.S. trade and investment sanctions in effect as of 2006. The case examines in detail the U.S. sanctions against Cuba, and it discusses the challenges and opportunities that these sanctions have created for Cuba's largest foreign investor, Sherritt International. The discussion concerning Sherritt presents the wide array of forces that impact a business that is contemplating trade or investment with a country against which sanctions have been imposed. In spite of U.S. sanctions, Sherritt International, based in Canada, developed profitable businesses in Cuba, in mining, oil and gas, hotels and food processing. The U.S. policies, while imposing costs, also reduced the competition that Sherritt would otherwise have faced. The ability to work with the Communist government gave Sherritt a strong competitive advantage and a protected market. Sherritt had positioned itself with a first mover advantage if sanctions were lifted.

Teaching Note: 8B06M73 (5 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Globalization; International Business; Government and Business
Difficulty: 5 - MBA/Postgraduate

Chapter 8:
‘Capturing Value’ within Global Production Networks

Jette Steen Knudsen, Dana Brown

Product Number: 9B14M120
Publication Date: 10/24/2014
Revision Date: 10/24/2014
Length: 8 pages

A small Danish design company seeks to collaborate with its largest supplier in Thailand in order to improve health, safety and environmental conditions, as well as labour standards, as a core element of complying with the UN Global Compact principles. The company takes its corporate social responsibility (CSR) agenda seriously and has developed a new standard for CSR in its supplier factories that is implemented and audited by a non-governmental organization. New challenges emerge as attention shifts to the certification of production inputs such as wood. Although Western small- and medium-sized enterprises (SMEs) face pressures to audit their suppliers in developing countries, these SMEs often lack the financial and political resources to change behaviours in supplier factories. The firm’s quality manager must evaluate its sustainability approach. How much leverage can a small company expect to have with its suppliers? Furthermore, is the cost of auditing suppliers in a country such as Thailand too high?

Teaching Note: 8B14M120 (8 pages)
Industry: Manufacturing
Issues: Corporate social responsibility; global supply chain; small- and medium-sized enterprises; United Nations Global Compact; Denmark;Thailand
Difficulty: 4 - Undergraduate/MBA

Dhruv Dar, Sanjay Kumar, Vijay Aggarwal

Product Number: 9B12D011
Publication Date: 7/18/2012
Revision Date: 8/16/2012
Length: 16 pages

The case describes the evolution of a global multi-tiered supply chain involving one of the world’s largest automotive original equipment manufacturers (OEMs), its tier 1 supplier — Automek, a U.S.-based global corporation — and the tier 2, tier 3, and tier 4 suppliers based in India.

With Automek’s engineering support, India-based Agile Electric had successfully developed many parts for the OEM in the past. Based on this experience, Automek buyers placed an order with Agile for a new product — an actuator assembly. In developing this product with little support from Automek, Agile was concerned due to its lack of knowledge concerning the suppliers for the actuator assembly components and the critical requirements. To allay its concerns, Automek promised to locate suppliers and assess and validate the suppliers based in India. Agile then invested in the assembly line and developed the actuator assembly. When supplies started, the OEM reported many quality problems, traceable to the tiered suppliers.

Along with quality and parts supply issues, the issues of subsequent liability in the case of a recall by the OEM were faced by members of the supply chain. Agile felt that since Automek had selected or approved the suppliers, and since Agile had had no original product expertise, that Automek should take responsibility for resolving the quality problems.

Teaching Note: 8B12D011 (8 pages)
Industry: Manufacturing
Issues: Global Sourcing; Supply Chain Management; Quality Management; Cross-cultural Differences; Developing Countries; India
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

Chapter 9:
Destroying Value? Environmental Impacts of Global Production Networks

Devin McDaniels, Frances Bowen

Product Number: 9B10M105
Publication Date: 10/24/2011
Length: 14 pages

This case series outlines the strategic choices facing Jean-Michel Gires, Total E&P France’s (TEPF) vice president of sustainable development, in designing and implementing a community engagement strategy. Case (A) begins with the approval of a pilot carbon capture and storage (CCS) system at TEPF’s Lacq facility in France, and outlines the strategic context for the community engagement process. Case (B) is positioned three years later.

The case includes a range of issues impacting the decision-making context, including the role of CCS in mitigating climate change; an outline of CCS technology; TEPF’s climate change strategy; the history of TEPF’s operations in the Lacq gas field, and interactions with local communities; the E.U. climate change regulatory environment (including carbon pricing and CCS); and CCS regulatory uncertainty in France.

Teaching Note: 8B10M105 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Project Management; Stakeholder Analysis; Climate Change; Green Energy; Innovation; Risk Management; France
Difficulty: 4 - Undergraduate/MBA

Michael A. Roberto

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

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

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

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

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 10:
Winning and Losing: Where you Live Really Matters

Joo Yong Lowe, Fumiyuki Kosugi, Teng Hwee Ng, Andre Chun Mun Wai

Product Number: 9B13C004
Publication Date: 10/8/2014
Revision Date: 10/8/2014
Length: 16 pages

Yamato Transport Co., Ltd. innovatively used the field cast model of housewives as part-time employees to meet the increasing delivery demands of morning peak-load hours. The housewives provided Yamato with a cost-efficient source of human resources and the nimbleness to adjust its staff deployment to respond reliably and quickly to customers’ needs. A series of recruitment, training, and compensation and appraisal processes was designed for the field cast model.

The case outlines the challenges with the implementation of the field cast model and the decision facing Yamato’s managers of whether to expand it throughout the company’s Japanese operations. Yamato’s managers were largely satisfied with the progress of the field cast model; although field casts made up less than 2 per cent of the delivery manpower at Yamato, they played a crucial role in improving customer satisfaction levels and lowering parcel delivery costs. However, the implications of the expansion plan were multi-dimensional. At an operational level, the inconsistency in the field casts’ performance could be magnified as the number of field casts continued to increase over the coming months. As well, the sales drivers might struggle to cope with the additional responsibility to train and supervise field casts. More broadly, the sustainability of the field cast model was unknown because of Japan’s changing social structure. In addition, with the improvement of the global economy since 2010, the supply of part-time employees was threatened by competition from alternative employment opportunities.

Teaching Note: 8B13C004 (6 pages)
Industry: Transportation and Warehousing
Issues: Human resource management; change management; diversity in the workplace; women in management; Japan
Difficulty: 4 - Undergraduate/MBA

Craig Dunbar, John Peloza

Product Number: 9B14N025
Publication Date: 9/4/2014
Revision Date: 9/4/2014
Length: 14 pages

It is year-end 2013 and management at Gabriel Resources, a Canadian junior mining corporation, is attempting to handle investor relations and political tensions surrounding its Rosia Montana mine project in Romania. Recently, the Romanian Parliament voted overwhelmingly against granting the final permit for the gold and silver mine until a more thorough environmental and legal framework is established. Although the company promises that its project will bring significant financial benefits to the state and needed infrastructure improvements and employment in the region, both national and international civilian and non-governmental organizations have protested vociferously against a development that they see harming not only the fragile geographic ecosystem but also historical artifacts that have been a major tourist draw. The draft bill was set to allow the company to begin work on developing the potentially lucrative mine, which has been 15 years in the making and has not yet generated any revenues. Investors are worried and the company’s share price is sinking. How can the company calm shareholder panic and negative stock price movement? What can it do to persuade the Romanian government and people to support the mine? Spreadsheet for students is available, see 7B14N025.

Teaching Note: 8B14N025 (6 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Valuation; political risk; Romania
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Making the World a Better Place

Jin-Su Kang, Stephen Downing

Product Number: 9B15M020
Publication Date: 2/19/2015
Revision Date: 2/19/2015
Length: 10 pages

In August 2012, the chief executive officer of Cconma.con, an online shopping mall based in Chung-Ju, South Korea, is considering his company’s future. The company has grown substantially since it was founded in 2005 and is now preparing to further expand into Hong Kong, China or to a second location in the United States. The company’s vision, rooted in an ethic of corporate social responsibility, is to build a happy and healthy community, including employees, customers and sellers. By focusing on its customers’ basic necessities, products for a healthy life and the needs of its producers to minimize sales costs, the company has found its niche where no other online retailer has dared to venture. Its success demonstrates that it is possible to be good and profitable at the same time. Expanding to a new location will bring myriad challenges, some of which can be anticipated while others will need to be resolved on the fly. The management team needs to focus on defining the specifics of their go-to-market plan. When should they enter? With which local players should they collaborate? Will an increased marketing effort or local outreach be necessary?

Teaching Note: 8B15M020 (8 pages)
Industry: Information, Media & Telecommunications
Issues: E-commerce; CSR; business model; innovation; South Korea
Difficulty: 4 - Undergraduate/MBA

Dima Jamali, Cedric Dawkins

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

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

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

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

Rüdiger Hahn

Product Number: 9B10M042
Publication Date: 6/10/2010
Length: 17 pages

The case deals with issues of corporate social responsibility (CSR) and sustainability in the specific setting of a medium-sized enterprise (Host Europe) in the IT industry. Host Europe is the third largest webhosting company in German-speaking Europe. In recent years, the company has put substantial efforts into living up to its CSR and improving sustainability. The case presents the IT sector in Europe and Germany and highlights several industry-related issues such as green IT (especially in terms of greenhouse gas emissions and e-waste) and the digital divide. Host Europe has already implemented a couple of measures, such as building a new energy-efficient green data centre, switching to renewable energy, promoting virtualization, introducing several workplace measures, pursuing efforts to improve family friendliness, and publishing a sustainability report. However, there are still some challenges ahead and students are asked to think about further efforts of Host Europe to complete its path to becoming a responsible and sustainable medium-sized IT company.The case can either be used as an introductory case for CSR in medium-sized businesses and sustainability in the IT industry, or in advanced-level CSR and sustainability courses. As an introductory case it provides in-depth insights into a company that has already put substantial efforts into becoming a responsible and sustainable IT company. Students learn about various sustainability and CSR issues and measures in the specific context of a medium-sized enterprise. As an advanced case for CSR and sustainability, it can be used to build upon the existing knowledge of students and to ask them to come up with other ideas and a sophisticated strategy to pursue further CSR and sustainability. For example, since Host Europe is not certified according to environmental or social standards yet, students could come up with a detailed and customized plan on how to implement such a management system for the company.

Teaching Note: 8B10M42 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services, Information, Media & Telecommunications
Issues: Communications; Sustainable Development; Information Technology; Computer Industry; Corporate Social Responsibility; Green IT; Organizational Change
Difficulty: 4 - Undergraduate/MBA

Chapter 12:
‘Making Holes in the Ground’: The Extractive Industries

Mike Valente

Product Number: 9B15M008
Publication Date: 2/20/2015
Revision Date: 2/20/2015
Length: 11 pages

In the summer of 2013, the managing director of Tata Chemicals Magadi, Africa’s largest soda ash manufacturer and one of the oldest and largest export earners in Kenya, was wondering how he was going to respond to a growing number of challenges. As a producer of a commodity product, the company was vulnerable to escalating energy costs, oversupply and economic cycles. Global growth had been sluggish since the 2008 economic recession and competition was intense, especially since the emergence of Chinese producers. Magadi Township, where the company’s production facility was located, was one of the poorest in the country, subject to droughts and without many of the basic public services typically provided by government such as roads, health care, electricity, water and education. To address these needs, the company migrated from a top-down, paternal, ad hoc and resource-intensive approach to a bottom-up, collaborative, holistic and resource-sharing style that focused on community capacity building and self-governance. However, the issue now is how to best balance the strong need to reduce costs while remaining committed to the sustainability of the surrounding community.

Teaching Note: 8B15M008 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Mining; community; CSR; Kenya
Difficulty: 4 - Undergraduate/MBA

George Peng, Paul W. Beamish

Product Number: 9B13M124
Publication Date: 12/5/2013
Revision Date: 10/10/2014
Length: 16 pages

AWARD WINNING CASE: European Foundation for Management Development (EFMD) Case Writing Competition 2014 — Emerging Chinese Global Competitors category.

In 2011, a major coal producer in China — Yancoal — must make several decisions in terms of product and geographic diversification. One option is to retain its focus on the coal business. Here, it can acquire other coal assets in Australia to further increase its coal reserves. Another option is to acquire 19 potash-exploration permits in Saskatchewan, Canada. This represents an opportunity for both product diversification and further geographic diversification. Yancoal has to decide whether it should focus on the coal industry or pursue the potash opportunity as well.

Teaching Note: 8B13M124 (23 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Diversification; value creation; cartel; growth; alternatives; strategic choice; state-owned enterprise; China; Canada; Australia
Difficulty: 4 - Undergraduate/MBA

Stephanie Bertels, Connie Van der Byl, Frances Bowen

Product Number: 9B13M032
Publication Date: 5/24/2013
Revision Date: 5/24/2013
Length: 12 pages

In 2008, the incoming vice-president in situ of Suncor Energy is faced with problems of underperformance at a new facility that uses the innovative in situ technology. This technology accesses bitumen in reservoirs too deep for traditional mining practices to recover. Although it is deemed less harmful to the environment than surface mining, in situ technology does create more greenhouse gas and sulphur dioxide emissions, but these can be controlled with new equipment. Recently, the site has come under investigation for two environmental compliance charges related to a missing piece of pollution control equipment. The new vice-president needs to analyze the root causes of the facility’s operational challenges and develop a plan to deliver on the parent company’s operational excellence strategy.

Teaching Note: 8B13M032 (11 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Operational excellence; oil sands; sustainability; culture
Difficulty: 4 - Undergraduate/MBA

Chapter 13:
‘We Are What We Eat’: The Agro-food Industries

Dietmar Sternad

Product Number: 9B15M031
Publication Date: 2/27/2015
Revision Date: 2/27/2015
Length: 15 pages

The entrepreneur and founder of Sonnentor, an organic food production company, has grown his business by focusing on unusual strategic and operative choices. Sonnentor emphasizes socially and environmentally responsible behaviour in all its actions and has built its business on fair partnerships with employees, suppliers and other partners. The case highlights the role of “embedded sustainability” in the success of the business and presents the challenge of transferring the founder’s unique business philosophy, both to other domains and to a new managerial generation.

Teaching Note: 8B15M031 (12 pages)
Industry: Manufacturing
Issues: CSR; social responsibility; sustainability; corporate values; Austria
Difficulty: 5 - MBA/Postgraduate

Robert Klassen, Ramasastry Chandrasekhar

Product Number: 9B12M091
Publication Date: 9/6/2012
Revision Date: 9/25/2012
Length: 18 pages

The executive vice president of sustainability and corporate affairs at Monsanto was facing a difficult situation that could dramatically reshape the firm's business. A decade earlier, the firm had introduced into India, through a joint venture, the first in-the-seed cotton trait biotechnology. This trait protected cotton crops against potentially devastating pests, thereby reducing the need for pesticides and improving yields. Subsequently, three Indian state governments imposed a price ceiling on these biotech seeds. In addition, by 2010, the company was facing competition from over 40 Indian seed companies that offered similar or competing biotechnology cotton seeds. Also, a federal ministry had overruled the recent regulatory approval for a second, indigenously developed biotech crop, brinjal (eggplant). How should a technology innovator such as Monsanto deal with an unpredictable regulatory approval process in an increasingly competitive marketplace? Looking forward, two new in-the-seed trait technologies were being considered for introduction to Indian farmers. Should Monsanto proceed and, if so, how? More generally, what should the firm's long-term approach be in this promising market?

Teaching Note: 8B12M091 (11 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Sustainable Development; Regulations; Regulatory Policy; Business-Government Relations; Technology Marketing; India
Difficulty: 4 - Undergraduate/MBA

Ram Subramanian

Product Number: 9B12M062
Publication Date: 7/3/2012
Revision Date: 6/27/2012
Length: 10 pages

AWARD WINNING CASE - This case won the 2012 Oikos Sustainability Case Writing Competition. Cargill, Inc., the privately owned, U.S.-based agribusiness company, was one of the largest sellers of palm oil in the world. Starting in 2007, the company was targeted by the Rainforest Action Network (RAN), a non-governmental organization (NGO) that advocated environmentalism. RAN targeted Cargill because the production of palm oil in countries such as Indonesia and Malaysia destroyed rainforests. Pressure was put on Cargill’s customers, including Nestle, to demand palm oil produced by sustainable farming. Palm oil producers formed an industry-monitoring body called the Roundtable on Sustainable Palm Oil (RSPO). A September 2011 announcement of Indonesia’s withdrawal from the RSPO warranted a response from Cargill to combat the strident protest of RAN. Cargill’s CEO had to come up with a plan of action to respond to RAN’s demands.

Teaching Note: 8B12M062 (12 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Stakeholder Management; Sustainability; Environmentalism; Indonesia; United States
Difficulty: 4 - Undergraduate/MBA

Chapter 14:
‘Fabric-ating Fashion’: The Clothing Industries

Robert D. Austin, Dana Minbaeva, Simon Schafer

Product Number: 9B14M085
Publication Date: 7/17/2014
Revision Date: 7/17/2014
Length: 11 pages

Tokyo Jane is an accessible fashion jewelry company that makes and markets its products as “luxury for less” by designing, importing and selling fashion jewelry pieces that look luxurious but cost only a fraction of the high-priced items that inspired them. Finished products are air-shipped to company headquarters in Copenhagen, Denmark from factories in China, stocked in the head office and delivered to 400 retail partners —small fashion boutiques, big department stores and online shops — who then sell to consumers in Europe, Scandinavia, the United Kingdom and Canada. The two partners who founded the firm in 2005 are facing several problems: the brand definition is not well enough developed to support the next stage in the firm’s growth, certain challenges have outstripped available human resources — they have only three permanent employees and a revolving number of interns — and distribution operations and management need to be rethought as the firm rapidly increases the scale of its operations. Things come to a head in April 2013, when they are confronted by an important customer about quality issues with their products. How can they not only save their company but continue to grow?

Teaching Note: 8B14M085 (7 pages)
Industry: Retail Trade
Issues: Fashion; brand management; human resources; Denmark
Difficulty: 4 - Undergraduate/MBA

Oana Branzei, Kim Poldner

Product Number: 9B10M089
Publication Date: 11/26/2010
Length: 16 pages

AWARD WINNING CASE - Latin American Business Cases Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case illustrates the founding and growth of Veja, the first eco-sneaker company in the world, in the broader context of the evolution of the fashion industry and the emergence of the eco-fashion movement. By September 2010, the five-year old venture had become a reference in ethical fashion, and an inspiration for other eco-fashion start-ups. Its path, its successes and its aspirations made it a perfect acquisition target; like-minded companies like Timberland were already feeling out the two founders.

Sebastien Kopp and Francois-Ghislain Morillion were still fulfilling their dream. They had fun trying to craft ever more sustainable business approaches. They were still excited about the opportunity to develop solutions or workarounds for socially- and environmentally-problematic business practices. The case presents several solutions, focusing on the development of sustainable business practices in organic cotton, wild natural rubber and traditional veggie-tanned leather. The case also deals with the issue of how ventures integrate sustainable practices into a holistic and ever improving offering, which engages multiple supply chain participants (employees, consumers, suppliers, partners, even artists) in co-devising a value proposition that appeals not just to our sense of fashion, but also to our conscience. Essentially, the case is a story of fashioning identities by artfully bending consumers' appreciation towards the expression of unity with the earth and across cultures.

Teaching Note: 8B10M89 (15 pages)
Industry: Manufacturing, Social Advocacy Organizations
Issues: Corporate Responsibility; Ethical Issues; Strategy Implementation; Emerging Markets; Leadership; Strategy Development
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:
‘Wheels of Change’: The Automobile Industry

Ying Zhang, Sheng Yun Yang

Product Number: 9B14M142
Publication Date: 3/13/2015
Revision Date: 3/13/2015
Length: 12 pages

Chery Automobile Co., Ltd. is one of the few private automobile companies in China. Compared to state automobile companies, it lacks adequate resources and state support; compared to joint-venture brands, it cannot leverage popular and profitable international models. Despite these obstacles, Chery has developed dramatically over the last decade, becoming the top automobile exporter among all automobile companies in China. Strategic alliances served as the foundation of its amazing growth, accelerated technological catch-up and helped it thrive in overseas markets. Since 2012, however, Chery’s domestic sales have continuously decreased, similar to other automobile companies worldwide. Due to the Global Financial Crisis, intense competition in the automobile industry and fast technological change, Chery has been confronted with new challenges in the past two years, such as decreasing sales in the domestic market and more opportunities overseas. Despite its leading position in exports, Chery needs to figure out the next stage of strategic development in adapting to the current and future environment. What should Chery do next?

Teaching Note: 8B14M142 (17 pages)
Industry: Manufacturing
Issues: Automotive; internationalization; strategic alliance; China
Difficulty: 5 - MBA/Postgraduate

Francis Spital, David T.A. Wesley

Product Number: 9B10M040
Publication Date: 5/21/2010
Length: 20 pages

The case describes the challenges faced by Ford and other automobile manufacturers in an era of declining oil reserves and volatile fuel prices. The Ford diesel decision seems to reflect classic thinking constrained by mental models that were developed in a different world. Diesels constitute over 50 per cent of automobile sales in Europe, because fuel is extremely expensive there. If fuel gets extremely expensive in the United States, one would expect diesels to become more attractive. Yet Ford seems to be stuck in the old mental model that says Americans don't like diesels. Ford can't prove in a PowerPoint presentation that there is a big market for small diesels mostly because there are few small diesels available to U.S. consumers. But that traps them into a position where they will never lead the industry or innovate outside of current market and technology conditions.

Teaching Note: 8B10M40 (14 pages)
Industry: Manufacturing
Issues: Global Product; Product Strategy; New Products; Automotive; Northeastern
Difficulty: 4 - Undergraduate/MBA

Seungwha (Andy) Chung, Sunju Park

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

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

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

Chapter 16:
‘Making the World Go Round’” Advanced Business Services

Surinder Batra, Sandeep Puri

Product Number: 9B15M042
Publication Date: 7/3/2015
Revision Date: 7/3/2015
Length: 8 pages

In recent years, the critical function of expanding GCS Consulting’s information technology consulting business had lost priority as the managing director of the firm was increasingly preoccupied with World Bank engagements as an IT consultant. He was aware of the immense potential in new areas of consulting and changing business models. However, he was also conscious of the investment of time, effort and finances that would be required on his part to strengthen GCS’s marketing activities and build up a team of professionals well versed in newly emerging consulting areas such as social media, mobile, analytics and cloud computing. Should he promote GCS or move ahead as an individual IT consultant?

Teaching Note: 8B15M042 (9 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Business consulting; IT services; IT strategy; multilateral agencies
Difficulty: 5 - MBA/Postgraduate

Paul W. Beamish, Michael Sartor

Product Number: 9B10M091
Publication Date: 11/5/2010
Revision Date: 5/24/2012
Length: 15 pages

During his 10-year tenure, the president and CEO of CIBC Mellon had presided over the dramatic growth of the jointly owned, Toronto-based asset servicing business of CIBC and The Bank of New York Mellon Corporation (BNY Mellon). In mid-September 2008, the CEO was witnessing the onset of the worst financial crisis since the Great Depression. The impending collapse of several major firms threatened to impact all players in the financial services industry worldwide. Although joint ventures (JVs) were uncommon in the financial sector, the CEO believed that the CIBC Mellon JV was uniquely positioned to withstand the fallout associated with the financial crisis. Two pressing issues faced the JV’s executive management team. First, it needed to discuss how to best manage any risks confronting the JV as a consequence of the financial crisis. How could the policies and practices developed during the past decade be leveraged to sustain the JV through the broader financial crisis? Second, it needed to continue discussions regarding options for refining CIBC Mellon’s strategic focus, so that the JV could emerge from the financial meltdown on even stronger footing.

Teaching Note: 8B10M91 (15 pages)
Industry: Finance and Insurance
Issues: Financial Crisis; Joint Ventures; Leadership; Alliance Management; Managing Multiple Stakeholders; Canada; United States
Difficulty: 4 - Undergraduate/MBA

Stewart Thornhill, Ken Mark, Jordan Mitchell

Product Number: 9B06M087
Publication Date: 11/6/2006
Length: 6 pages

The co-founder of NEWAD, a media company, is considering expanding the company's scope of operations from traditional place-based postcard and board advertising to digital signage. Digital signage offers the opportunity to expand NEWAD's business. However, the co-founder wondered about the high fixed costs of entering this type of advertising business and how much the company would have to charge to turn a profit.

Teaching Note: 8B06M87 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategy and Resources; Small Business; Services; Entrepreneurial Business Growth; Competitive Advantage
Difficulty: 2 - Intro/Undergraduate

Chapter 17:
‘Making the Connections, Moving the Goods’: Logistics and Distribution Services

Edward Boon, Colin Campbell, Leyland Pitt

Product Number: 9B14M080
Publication Date: 8/13/2014
Revision Date: 8/13/2014
Length: 12 pages

At the beginning of 2012, Nespresso, a manufacturer and distributor of home-brewed, single-serve coffee machines and capsules, is considering how best to increase its share of the U.S. market. It had always relied on organic growth through its own retail stores and a few premium department store chains. However, between 2005 and 2011, the demand for capsule coffee boomed, and this attracted a number of new competitors, including Starbucks, while existing competitors increased their marketing expenditures. At the same time, Nespresso’s patents were expiring, and some supermarkets started selling generic capsules for Nespresso machines. How should Nespresso change its strategy to ensure future growth? Should it relinquish its tightly controlled distribution system in order to offer increased convenience to consumers? Should it alter its product to better match the U.S. taste for milk-based coffee? Or might an increase in advertising spur demand?

Teaching Note: 8B14M080 (8 pages)
Industry: Retail Trade
Issues: Strategic planning; distribution; industry management; United States
Difficulty: 4 - Undergraduate/MBA

Mohita Gangwar Sharma, K.N. Singh, Sachinder Mohan Sharma, Puneet Mehndiratta

Product Number: 9B14D001
Publication Date: 4/2/2014
Revision Date: 4/1/2014
Length: 11 pages

Adani Agri Logistics Limited (AALL) was established to execute a national project for the bulk handling of food grains through a public-private partnership with the Food Corporation of India. This project involved financing, planning, designing, constructing, operating and maintaining modern infrastructure for the bulk handling, storage and transportation of grains required for the public distribution system. Although a technology-driven supply chain solution was implemented, the benefits of this innovative supply system did not come into full fruition even after four years of operation. AALL soon realized that farmers were reluctant to accept the new storage system because it was a departure from the relationship-based transactions they were used to undertaking with traditional intermediaries. In this way, the company learned that there are cultural subtleties and traditions that must be appreciated and given consideration, along with the economic justifications. How could these traditions be respected and upheld while making way for improvement and progress?

Teaching Note: 8B14D001 (9 pages)
Industry: Transportation and Warehousing
Issues: Supply chain strategy; collaboration; national culture; trust; India
Difficulty: 5 - MBA/Postgraduate

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