Ivey Publishing

Mastering Strategic Management

Ketchen, D., Short, J.,1/e (United States, Flat World Knowledge, 2011)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Mastering Strategy: Art and Science

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

Anthony Goerzen

Product Number: 9B15M009
Publication Date: 4/2/2015
Revision Date: 7/15/2016
Length: 10 pages

The founder of Toronto-based Able Translations has grown the company since 1990 from a single-man operation that did on-site interpreting to a firm of 100 staff in 2014. The firm provides a range of interpreting and translation services on three continents by more than 3,500 qualified language professionals in more than 100 languages. Although an industry leader, the company faces both strong global competitors and a myriad of microbusinesses and freelancers. Moreover, the language service providers industry is experiencing rapid technological change. The founder wonders whether to pursue international growth of his established translation and interpreting businesses (on-site and telephone) or to focus on its emerging capabilities in software development in the North American market — a strategic choice that will have a profound effect on the future of the firm.

Teaching Note: 8B15M009 (5 pages)
Industry: Information, Media & Telecommunications
Issues: Competitive strategy; growth; competitive advantage; Canada
Difficulty: 4 - Undergraduate/MBA

Darren Meister, Paul Bigus

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

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

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

Justin Paul, Charlotte Feroul

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

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

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

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

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

Chapter 2:
Leading Strategically

Sonia Mehrotra, Oana Branzei

Product Number: 9B14C018
Publication Date: 9/3/2014
Revision Date: 1/26/2017
Length: 16 pages

AWARD WINNING CASE - Responsible Leadership category, 2014 European Foundation for Management Development (EFMD) Case Writing Competition.

In February 2014, a McKinsey Global Institute report proposed tracking an empowerment line that could enable India’s citizens to get out of poverty by providing the resources they needed to build better lives. This prompted Ela Bhatt, founder of the India-based Self-Employed Women’s Association, to take stock of her initiative to empower women working in India's informal sector. Since 1972, her organization has been widely acclaimed as a global first mover and active champion of grassroots development. Quickly approaching two million members in India and six neighbouring countries, and inspiring similar efforts in South Africa, Ghana, Mali and Burkina Faso, it exemplifies a unique form of positively deviant organizing by speaking to the centrality of human beings at work. Given resources, support and encouragement, its many members have used their own human agency even in the direst of circumstances to better their lives in ways most meaningful to them, for instance, by creating childcare, health care, banking, farming and education cooperatives. However, as she reaches retirement and contemplates the future, Bhatt wonders if the new generation of Indian leaders will take up the Gandhian socially minded path or follow the commercial careers opening up in the country’s multinational sector. Also see B case 9B14C019.

Teaching Note: 8B14C018 (15 pages)
Industry: Social Advocacy Organizations
Issues: Leadership; character; empowerment; social movements; India
Difficulty: 4 - Undergraduate/MBA

Cara C. Maurer, Graeme Kreindler

Product Number: 9B14M047
Publication Date: 8/6/2014
Revision Date: 8/6/2014
Length: 9 pages

Under the guidance and vision of founder Peter Munk, Barrick Gold Corporation had risen to become an industry leader and the world’s largest gold producer. The company had grown, mostly through mergers and acquisitions, from one single mine in Northern Ontario to 26 operating mines on five continents, with more than 20,000 employees worldwide. By 2013, however, weak gold prices, asset value writedowns and operational cost overruns have negatively affected the company’s stock price. Many attribute the company’s problems to Munk’s personality and his control over the board of directors. Munk has announced that he will retire in 2014 and will be replaced as chairman by his current co-chairman, John L. Thornton. How can Thornton effectively chair Barrick’s board in the wake of Munk’s legacy? Will his vision for the company conflict with Munk’s dream of turning it into an international diversified mining company? How much of a role will Munk play in the future given his level of informal power? Finally, what can Barrick do to lift itself out of an industry mired in volatility and financial uncertainty?

Teaching Note: 8B14M047 (5 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Strategic change; CEO transition; performance; Canada; global
Difficulty: 4 - Undergraduate/MBA

Simon Parker, Matthias A. Tietz

Product Number: 9B11M043
Publication Date: 6/21/2011
Revision Date: 11/1/2011
Length: 6 pages

The founder of the Lakkard Leather Company was proud of his business, and attributed much of its success to his own leadership style, which did not allow for anyone else’s participation in important decisions. When he was badly injured in a car accident, his son stepped in and kept the business going. Without any intention to take over, the son altered the leadership and operations of the company in the space of a few months, so that by the time the founder returned, the company had changed and his role was significantly reduced. The son, in the meantime, grew to like his interim position and believed he did a better job than his father. Both men became locked in a power struggle; yet the company faced several key decisions that had to be taken in terms of expansion, product offering, and sale opportunities.

Teaching Note: 8B11M043 (6 pages)
Industry: Manufacturing
Issues: Family Succession; Leadership Conflict; Leather; Family Business; Germany
Difficulty: 4 - Undergraduate/MBA

W. Glenn Rowe, Suhaib Riaz

Product Number: 9B08M040
Publication Date: 11/4/2008
Length: 15 pages

Muhtar Kent had just been promoted to the CEO position in Coca-Cola. He was reflecting upon the past leadership of the company, in particular the success that Coca-Cola enjoyed during Robert Goizueta's leadership. The CEOs that had followed Goizueta were not able to have as positive an impact on the stock value. When his promotion was announced, Kent mentioned that he did not have immediate plans to change any management roles but that some fine-tuning might be necessary.

Teaching Note: 8B08M40 (8 pages)
Industry: Manufacturing
Issues: Performance Evaluation; Management Style; Leadership; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Evaluating the External Environment

Sandeep Puri, Ajay Srinivas Raghavan, Kartikeyun Arumuganainar Muruganandan

Product Number: 9B14M136
Publication Date: 1/6/2015
Revision Date: 12/19/2014
Length: 12 pages

Global consumption of petroleum products stood at just more than 90 million barrels per day by the end of 2013, and was expected to increase to 91 million or more by the end of 2014. Petroleum companies were constantly exploring the planet for new oil reserves to meet this voracious demand for fossil fuels. Because three-quarters of the earth was water, it was evident that these oil reserves were largely underwater; however, until the end of 2013, very few players had explored this opportunity. Although reaching deep-water drilling sites posed various challenges — environmental, political, technological, etc. — offshore exploration was the future of the oil and gas industry.

Because of its very successful campaigns, Cairn India was ideally positioned for offshore exploration. Capturing and capitalizing on the opportunity of offshore exploration would give it an edge, but the question remained: Would it be better to gain the prime mover advantage or wait for other players to start the process so that it could learn from others’ mistakes and reap benefits later?

Teaching Note: 8B14M136 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Strategic decision-making; business development; business environment; India
Difficulty: 5 - MBA/Postgraduate

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

Bruce C. Anderson, Michael J. Rouse

Product Number: 9B11M110
Publication Date: 11/9/2011
Revision Date: 3/28/2016
Length: 11 pages

The president and CEO of a provincial auto club is assessing opportunities to grow his organization at the same time as industry consolidation and changes in the allocation of national operating costs. The auto club has diversified from automobile towing and travel services into insurance, package travel, automobile sales, and service. However, the president's vision for the upcoming board of directors' meeting calls for a 300 per cent increase in operating revenues over the next 10 years. Without more members, the auto club cannot support its allocated costs of branded national and international products. The CEO's challenge is to find growth opportunities.

Teaching Note: 8B11M110 (11 pages)
Industry: Other Services
Issues: Horizontal Integration; Growth Strategy; Industry Analysis; Strategic Change; Automobile Club; Canada; Hill
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Managing Firm Resources

Heike C. Wörner

Product Number: 9B15M027
Publication Date: 6/18/2015
Revision Date: 6/29/2015
Length: 17 pages

Tremendous changes in the global competitive landscape threaten Deutsche Lufthansa AG, the largest airline group in the world. Three large Gulf carriers, Emirates, Etihad Airways and Qatar Airways, as well as Turkish Airlines, now stand to compete with Lufthansa on the traditionally profitable long-haul segment. Chairman of the executive board and chief executive officer has to act quickly if Lufthansa is to keep its top spot. Having ignored the threat from low-cost airlines in the past, Lufthansa must now be better prepared to respond. It is crucial that Lufthansa finds adequate strategic options for sustaining and further expanding its market-leading position.

Teaching Note: 8B15M027 (11 pages)
Industry: Transportation and Warehousing
Issues: Airlines; competitive threats; decision-making; profitability; aviation industry; strategic management; strategic analysis; competitive advantage; competitive strategy
Difficulty: 4 - Undergraduate/MBA

Cara C. Maurer, Valentina Bardorf

Product Number: 9B14M130
Publication Date: 5/6/2015
Revision Date: 6/5/2015
Length: 18 pages

In December 2012, the senior management team of Whole Foods Market Inc. was contemplating the company’s options for international expansion, including further expansion in Canada. The company, headquartered in Austin, Texas, was a natural and organic foods supermarket that had become known and trademarked as “America’s Healthiest Grocery Store.” It had seen steep growth since its inception in 1977 and had an appetite for more. Ten years ago, its first Canadian store was opened in Toronto, followed by three more stores in Ontario and four in British Columbia. Was it time to expand deeper now and, if yes, into which provinces? It would be interesting to expand into Quebec with a store location in Montreal, but that province had a strong union presence, which was inconsistent with the company’s culture. Also unclear was which management team should be running an extensive Canadian operation. Should the current U.S. team facilitate the expansion, or should a Canadian management team be developed? A systematic approach to assessing the options was needed.

Teaching Note: 8B14M130 (13 pages)
Industry: Accommodation & Food Services
Issues: Organic and natural foods; growth; resources; capabilities; cross-culture; Canada; United States
Difficulty: 4 - Undergraduate/MBA

John Gray, Michael Leiblein, Shyam Karunakaran

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

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

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

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

Chapter 5:
Selecting Business-Level Strategies

Fengli Mu, Chen Xi, Michael Sartor

Product Number: 9B13M069
Publication Date: 7/11/2013
Revision Date: 6/17/2013
Length: 14 pages

The president JH Men's Apparel, a men’s apparel company in China, is considering the options available to his firm in light of the price war initiated by his competitors who are copying his company’s sweater patterns and selling the sweaters at a lower price point. Several of his biggest customers have demanded a price reduction to match the prices being offered by these competitors. In the face of such fierce competition, the president realizes that the multiple options available to his company boil down to a fundamental strategic choice between competing on the basis of cost leadership or of a differentiated, branded product line. He needs to make a decision and start implementing the strategy promptly.

Teaching Note: 8B13M069 (18 pages)
Industry: Manufacturing
Issues: Competitive Strategy; Branding; Marketing; Industry Analysis; China
Difficulty: 5 - MBA/Postgraduate

Chi Hung Ng, Barbara Li, Xiande Zhao, Xuejun Xu, Lei Yang

Product Number: 9B10D005
Publication Date: 8/20/2010
Revision Date: 5/4/2017
Length: 17 pages

Starting from a humble beginning of being a manufacturer of down feather products owned by Shunde Township, Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. This case describes the competitive and operational strategies that Galanz used to achieve such a meteoric growth. The company started out with a clear competitive strategy based on cost leadership. It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.

Teaching Note: 8B10D05 (14 pages)
Industry: Manufacturing
Issues: China; Competitive Strategy; Operations Strategy
Difficulty: 4 - Undergraduate/MBA

Frank C. Schultz, Tina Doede, Elizabeth Nicknam

Product Number: 9B09M061
Publication Date: 8/10/2010
Length: 12 pages

The case focuses on the housewares subgroup within the overall retail sector. During the period considered by the case (1970s to 2006), housewares in North America saw the emergence of two big-box retailers - Linens 'n Things (LNT) and Bed Bath & Beyond (BBBY). LNT and BBBY were founded within four years of each other and their corporate headquarters were just 16 miles apart. Despite this remarkable similarity in starting conditions, their performance outcomes diverged sharply. On the surface, both companies were pursuing a similar business-level strategy of cost leadership, but key strategic decisions led them down quite different evolutionary paths. Both companies focused on providing consumers with high-quality houseware goods in a no-frills, value-priced environment, but LNT's decison to build centralized warehouses - seemingly consistent with a cost leadership strategy - ended up bringing it into direct competition with Target and Walmart. In contrast, BBBY allowed for greater decentralization in decision making, thereby allowing more store-level decision making and greater customization to local consumers' tastes. As a result, BBBY was able to better differentiate itself from Walmart and Target. The case allows instructors to introduce basic strategy concepts, such as industry and environmental analysis, business-level strategies, core competencies and administrative heritage. At the time of the case (February 2006), BBBY's market capitalization was approximately $10.7 billion, while LNT had just been acquired for $1.3 billion by a private equity firm. The case begins right after the acquisition and takes the perspective of the new CEO of LNT, who is tasked with devising a turnaround plan.

This is an excellent pre-assigned first-day-of-class case for instructors who are looking to get students thinking about core strategy concepts. It provides a unique opportunity to examine the importance of management's strategic choices on the ultimate success of a business within a dynamic industry.

Teaching Note: 8B09M61 (15 pages)
Industry: Retail Trade
Issues: Competitive Strategy; Private Equity; Core Competence; Organizational Change
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Karin Schnarr, W. Glenn Rowe

Product Number: 9B14M114
Publication Date: 11/10/2014
Revision Date: 4/22/2019
Length: 15 pages

In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete with Starbucks, McDonald’s and Dunkin’ Donuts, the world’s largest and best known providers of fast food such as coffee, donuts and sandwiches. However, while the brand is almost synonymous with Canada, it is far less known beyond that country’s borders. In mid-August, the company announced its potential acquisition by 3G Capital, the Brazilian parent of Burger King, but this still has to be approved by its shareholders and likely by Canadian and U.S. regulators. The potential merger might help the company move forward, but will it be enough to create a competitive advantage on a global scale?

Teaching Note: 8B14M114 (11 pages)
Industry: Accommodation & Food Services
Issues: Industry analysis; competitive strategy; merger and acquisition; strategic choice; Canada; United States
Difficulty: 4 - Undergraduate/MBA

W. Glenn Rowe, Mehdi Hossein Nejad

Product Number: 9B14M075
Publication Date: 6/18/2014
Revision Date: 6/18/2014
Length: 15 pages

In 2013, after years of success, Samsung, a manufacturing conglomerate based in Korea but with offices, research and development divisions and factories worldwide, is established as a global powerhouse in the smartphone industry. But success has revealed opportunities and challenges that need to be addressed as the company navigates the competitive landscape. Samsung has sold more phones than rivals such as Nokia and Apple and is also a major player in the increasingly popular tablet computer market. Given the volatility of the industry and the market, in addition to the dynamic relationships between suppliers, manufacturers, technology providers, application developers and operating systems, Samsung needs to think carefully about its next competitive steps. Specifically, it has to think about one very important issue: should it continue to rely on Google’s Android operating system, or should it seriously consider an in-house software ecosystem?

Teaching Note: 8B14M075 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Industry analysis; competitive strategy; smartphone; strategy formulation; global
Difficulty: 4 - Undergraduate/MBA

Sayan Chatterjee, Timothy Yee

Product Number: 9B11M116
Publication Date: 1/31/2012
Length: 11 pages

GameStop has effectively utilized a business model based on retailing new and used electronic games. The case allows the instructor to illustrate the strategies that GameStop used to consolidate its game retail business in the United States. It also provides the instructor with the opportunity to explore the peculiar target market segments in the electronic gaming industry. Finally, the instructor can explore competition and future expansion into different markets with dissimilar environments. Management responses to the following questions regarding company growth are explored: 1) Can you continue your aggressive store growth? 2) What about digital downloading? 3) Will the used business continue to grow?

Teaching Note: 8B11M116 (18 pages)
Industry: Retail Trade
Issues: Strategic Management; Competitive Advantage; Supply Chain Strategy; Value Chain; Games; United States
Difficulty: 5 - MBA/Postgraduate

Paul W. Beamish

Product Number: 9B11M006
Publication Date: 1/11/2011
Revision Date: 5/4/2017
Length: 13 pages

The Chinese fireworks industry thrived after China adopted the open-door policy in the late 1970s, and grew to make up 90 per cent of the world’s fireworks export sales. However, starting in the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. Students are asked to undertake an industry analysis, estimate the industry attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor’s point of view. Jerry Yu is an American-born Chinese in New York who has been invited to buy a fireworks factory in Liuyang, Hunan.

Teaching Note: 8B11M006 (16 pages)
Industry: Manufacturing
Issues: Market Analysis; Industry Analysis; International Marketing; Exports; China
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Competing in International Markets

Dwarkaprasad Chakravarty, Paul W. Beamish

Product Number: 9B15M028
Publication Date: 3/16/2015
Revision Date: 8/26/2016
Length: 14 pages

In 2014, IMAX is a Canadian-based company synonymous with large-format, high-quality cinematic experiences. Following four decades of innovation, the bulk of its revenue now comes from providing technology to mainstream movie studios and multiplex exhibitors. IMAX has more than 900 cinema screens in 58 countries, with nearly half of them located in North America. Its chief executive officer believes that the route to becoming a billion-dollar company involves adding 1,100 screens in growth markets outside of North America. If about 400 of the new worldwide screens are designated for Brazil, Russia, China and India—the BRIC economies—how should IMAX allocate these new screens by country and by city?

Teaching Note: 8B15M028 (16 pages)
Industry: Information, Media & Telecommunications
Issues: Expansion; emerging markets; FDI; Canada
Difficulty: 4 - Undergraduate/MBA

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

Paul W. Beamish, Bassam Farah

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

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

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

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

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 8:
Selecting Corporate-Level Strategies

Koen H. Heimeriks, Ruud Geenen

Product Number: 9B14M018
Publication Date: 4/16/2014
Revision Date: 7/14/2015
Length: 18 pages

Philips’ new venture integration (NVI) department is aware of the fact that many acquisitions turn into “deals from hell” instead of “deals from heaven.” Its post-merger integration specialists have learned that cost synergies are far easier to realize than sales (or growth) synergies. Stimulated by the urge to grow, the NVI department has developed a new methodology called the “sales integration approach” to realize sales (or growth) synergies. It tries to implement this approach during the acquisition integration of Indal, a Spanish lighting company.

The main challenge is presented by the shift in acquisition-integration capability following Philips’ evolved corporate strategy. While historically Philips had a substantive acquisition program, Philip’s new CEO has stressed the need for organic growth and set the stage for a series of medium and small acquisitions. Philips needs to become more customer-centric to increase corporate growth. This has required a focus not just on cost synergies (e.g., economies of scale and increased efficiency), but also on capturing sales (or growth) synergies. Philips-Indal must choose to defend regions in which it has a strong position or target regions where it has a weaker position. Furthermore, Philips’ post-merger integration leader must choose an organizational structure for Philips-Indal and convince Indal’s executive team to adopt the NVI department’s sales integration approach. This case can be used with Lighting Up Philips' Asian Entertainment Activities (B) 9B14M019.

Teaching Note: 8B14M018 (16 pages)
Industry: Manufacturing
Issues: Post-acquisition growth; post-merger integration; growth synergy; new venture integration; Europe; The Netherlands; Spain
Difficulty: 5 - MBA/Postgraduate

Malcolm Munro, Sharaz Khan

Product Number: 9B13E020
Publication Date: 7/25/2013
Revision Date: 3/6/2017
Length: 13 pages

WestJet Airlines grew from a startup regional carrier in 1996 serving five Western Canadian cities to an international airline with more than 80 destinations and 9,000 employees by 2011. In a strategic move to implement code sharing and several other strategic IT applications to enhance WestJet's competitiveness, the CEO and his executive team hired an experienced and highly successful CIO to bring WestJet up to par with other airlines. The new CIO was asked by WestJet to assess its IT competence as part of a corporate drive to gain competitive advantage by delivering innovative guest services. The executive saw IT as the key to WestJet achieving its ambitions and corporate growth so formulated an ambitious plan to restructure the IT organization. But certain senior IT staff members, some of whom had been with the company since the beginning and had played a major role in developing the existing systems, believed the plan was ill advised and unworkable. The executive had to convince both senior management and the IT group that implementing the new IT governance model was essential if WestJet hoped to achieve its strategic goals.

Teaching Note: 8B13E020 (11 pages)
Industry: Transportation and Warehousing
Issues: Information technology governance; corporate strategy; Canada
Difficulty: 4 - Undergraduate/MBA

Daniel Shapiro, Carolyn Egri, Michael Parent, Adam J. Mills

Product Number: 9B13M066
Publication Date: 6/14/2013
Revision Date: 3/28/2016
Length: 17 pages

Methanex, the world’s largest producer of methanol, was a $2.5 billion global company based in Canada. Top management at Methanex undertook a quarterly risk review that included a systematic review of corporate strategy and the competitive landscape in the methanol industry. The review’s primary objective was to identify organizational risks and opportunities and to develop appropriate strategic responses for both short-term profits and long-term growth. Methanex’s CEO needed to prepare strategic recommendations and an action plan to present to the board of directors at the next quarterly risk review meeting.

Teaching Note: 8B13M066 (15 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Corporate strategy; commodity products; risk management; Canada
Difficulty: 5 - MBA/Postgraduate

Meera Harish, Sanjay Singh, Kulwant Singh

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

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

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

Chapter 9:
Executing Strategy through Organizational Design

Marina Apaydin, Hend Mostafa, Mariam Mohamed Sherin, Mariam Ali Mobarak, Amal Mohsen Fahmy, Dina Sameh Labib

Product Number: 9B13M098
Publication Date: 3/31/2014
Revision Date: 3/27/2014
Length: 7 pages

This is the second case in the Azza Fahmy series. This case and the three others in this series (9B13M097, 9B13M099 and 9B14M023) can be used together or on a standalone basis.

This case series features a female Egyptian entrepreneur who faces the challenge of developing her self-titled jewellery brand. In this case, the entrepreneur realizes the importance of having a clear organizational structure with different departments and a clear chain of authority. As a result, she hires her daughter as the managing director to take on the responsibility of developing a mission, vision and explicit organizational structure. This restructuring allows the company to grow further, which leads the entrepreneur to consider her opportunities in the international market.

Teaching Note: 8B13M098 (10 pages)
Industry: Other Services
Issues: Internationalization; institutionalization; alliances; Egypt
Difficulty: 4 - Undergraduate/MBA

Jean-Louis Schaan, Ramasastry Chandrasekhar

Product Number: 9B13M112
Publication Date: 10/30/2013
Revision Date: 10/30/2013
Length: 17 pages

In early 2013, the head of business development and commercial operations of Arla Foods, a dairy enterprise focused on Northern European markets, is examining, in the light of a new five-year strategy, alternatives to the existing organization structure. His dilemma is to determine the best structure that can deliver the strategy, which is focused on renewed international expansion. The new structure must support the company's strategy in relation to both the existing core markets in Northern Europe and also the growth markets of the future in countries of Asia and Africa. It must ensure that Arla Foods has the right competitive stance in individual markets, which vary widely in terms of customer buying habits and retail formats. It must also ensure regular innovation of dairy categories developed from local resources and marketable globally.

Teaching Note: 8B13M112 (9 pages)
Industry: Retail Trade
Issues: Strategy implementation; organization structure; innovation; globalization; key success factors; customer focus; United States.
Difficulty: 5 - MBA/Postgraduate

Tom A. Poynter, Paul W. Beamish

Product Number: 9B08M037
Publication Date: 4/15/2008
Revision Date: 5/18/2017
Length: 12 pages

Victoria Heavy Equipment (Victoria) was a family owned and managed firm which had been led by an ambitious, entrepreneurial chief executive officer who now wanted to take a less active role in the business. Victoria had been through two reorganizations in recent years, which contributed to organizational and strategic issues which would need to be addressed by a new president.

Teaching Note: 8B08M37 (7 pages)
Industry: Manufacturing
Issues: Growth Strategy; Organizational Structure; Leadership; Decentralization
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Leading an Ethical Organization: Corporate Governance, Corporate Ethics and Social Responsibility

Peter W. Moroz, Simon Parker, Edward Gamble

Product Number: 9B15M050
Publication Date: 6/3/2015
Revision Date: 5/24/2017
Length: 10 pages

The director of corporate responsibility at Cameco Corporation, a global uranium mining company, is debating whether to engage in formal negotiations leading to a partnership with a remote First Nations community in northern Saskatchewan, and if so, how. The director knows that a partnership may be costly upfront but it might also lead to future opportunities. Keenly aware of the need to manage rapidly growing expectations within the First Nations community, while also managing the expectations of long-term partners, the director needs to decide on a way forward that will deliver the best results for all concerned.

Teaching Note: 8B15M050 (11 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Challenges; Aboriginal communities; reputation; social responsibility; sustainable value creation; Indigenous Peoples; Aboriginal Peoples
Difficulty: 4 - Undergraduate/MBA

Oana Branzei, Haiying Lin, Dwarkaprasad Chakravarty

Product Number: 9B14M014
Publication Date: 8/1/2014
Revision Date: 8/1/2014
Length: 16 pages

AWARD WINNING CASE: European Foundation for Management Development (EFMD) Case Writing Competition 2014 — Corporate Social Responsibility category.

Leading up to the completion of a successful partnership between Hewlett-Packard Canada and World Wildlife Fund Canada, the two individuals who championed the program contemplate their separate and joint next steps: should their organizations renew or exit the partnership? Together, they had designed and delivered a world-first program, Living Planet @ Work, which had enrolled more than 500 companies, large and small, whose employees had already raised more than $1 million in charitable donations through workplace giving. The program was helping corporate Canada harness the collective desire and power of their employees for the good of business and the future of the planet. The two champions had a short window to go global and scale up the positive impact of the program.

Teaching Note: 8B14M014 (18 pages)
Industry: Social Advocacy Organizations
Issues: Social intrapreneurship; innovation; sustainability; collaboration; Canada
Difficulty: 4 - Undergraduate/MBA

Tulsi Jayakumar

Product Number: 9B13M129
Publication Date: 12/19/2013
Revision Date: 12/19/2013
Length: 13 pages

Hindustan Unilever Ltd. can trace its current-day profitable business operations in its Doom Dooma factory in the conflict-ridden northeastern state of Assam (India) to its proactive corporate responsibility initiatives since the start of its operations. A spurt in sales in the personal care segment has led the company to consider capacity expansion. The company needs to decide whether to continue to invest in Assam despite three challenges: operational risks posed by the area’s continuing insurgency, the possibility of labour disruptions and the imminent discontinuance of fiscal incentives.

Teaching Note: 8B13M129 (10 pages)
Industry: Manufacturing
Issues: Multinational CSR; emerging market economies; conflict/risky zones; India
Difficulty: 5 - MBA/Postgraduate

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