Ivey Publishing

Strategic Management in Action

Coulter, M.,6/e (United States, Pearson, 2013)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introducing the Concepts

Gevork Papiryan

Product Number: 9B14M070
Publication Date: 9/12/2014
Revision Date: 9/11/2014
Length: 11 pages

Multinational, multi-brand hotel corporations serve almost all segments of the market. They own hotels and work with other hotel owners through leases, management contracts and franchise agreements. In the hotel business it is widespread to receive contracts for management, but many well-known players use franchising agreements during their global expansion. In 2011, Hyatt Hotels Corporation has announced that its select-service brands are expanding internationally. Among other issues, the leadership of the corporation now needs to find answers for several questions: What modes of entry should be used in brand internationalization? How should new internationalization opportunities be pursued for the lower-category Hyatt Place while maintaining the company’s premium brand?

Teaching Note: 8B14M070 (7 pages)
Industry: Other Services
Issues: Hotel; franchising; globalization; United States
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

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

Ram Subramanian

Product Number: 9B13M049
Publication Date: 5/24/2013
Revision Date: 5/24/2013
Length: 12 pages

In July 2012, Marissa Mayer was appointed chief executive officer (CEO) of Yahoo! Inc. and was tasked by Yahoo’s board of directors with turning around the company’s performance. Mayer’s ascension to the top position came with a number of challenges. Yahoo had seen seven CEOs come and go in its 18-year existence, five of whom had left within the last five years. In addition, Yahoo faced a number of corporate governance challenges, including the disgraceful exit of its former CEO amid charges that he had falsified his resumé, and the demands of an activist investor who was seeking four board seats to influence the company’s strategic direction. Mayer also had to decide on how best to use the proceeds from the partial sale of the company’s investment in the Alibaba Group, a Chinese Internet company. Mayer had to confront these issues prior to presenting her strategic plan to the company’s board in mid-September.

Teaching Note: 8B13M049 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Internet business models; adjacencies; industry boundaries; corporate governance; United States
Difficulty: 5 - MBA/Postgraduate

Chapter 2:
The Context of Managing Strategically

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

Glenn Brophey, Evan Stubbert

Product Number: 9B15M061
Publication Date: 6/11/2015
Revision Date: 6/11/2015
Length: 11 pages

The managing partner of Proto3000, a 10-year-old 3D Printing services and supply firm, was both gratified by the recent explosion of popular media coverage of 3D Printing that was certain to bring his firm additional opportunities, and concerned as to how his company could maintain their broad leadership position as new competitors began to join the fray. As the managing partner began thinking about what to do next, he wondered whether he should stick with his biggest market segments or diversify into new markets that seemed to hold a lot of promise. In addition, he wondered which challenges associated with the disruptive technology that his industry revolved around he needed to consider as he plotted a course forward for Proto3000.

Teaching Note: 8B15M061 (8 pages)
Industry: Professional, Scientific, and Technical Services
Issues: 3D printing, disruptive technology, innovation, product/market choice
Difficulty: 4 - Undergraduate/MBA

Farzad H. Alvi

Product Number: 9B14M039
Publication Date: 3/17/2014
Revision Date: 11/17/2014
Length: 13 pages

Vice Media has gone from a startup in Canada to landing in New York City and assiduously building a global youth brand through unique and seemingly inimitable competitive advantages. While globalizing its operations, Vice Media appears to have developed expertise in standardizing certain aspects of its business, adapting others to local context and, increasingly, building a global chain. Given Vice Media’s explosive growth, how can its global value chain be structured to maintain the carefully cultivated emotional connection the company has created with its audience?

Teaching Note: 8B14M039 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Competitive advantage; growth; Canada; United States; Global
Difficulty: 5 - MBA/Postgraduate

Sandeep Puri

Product Number: 9B13A049
Publication Date: 1/31/2014
Revision Date: 1/29/2014
Length: 7 pages

The Indian packaging industry — represented by a mix of paperboard, plastics, metals and glass — had seen great change leading up to 2013. In 2012, Ajanta Packaging ranked among the top suppliers of glass bottles in India with an employee base of more than 50 and net revenues of US$100 million. The glass-bottle industry had a derived demand and depended on major industries using glass bottles in India, such as the liquor and beer, soft-drinks and pharmaceutical industries.

The case discusses the stiff competition faced by the glass-bottle industry from different packaging options and materials that had entered the industry in the last four to five years. It assesses the changing market dynamics that could have a big impact on the future of Ajanta Packaging, with many companies shifting to PET bottles, Tetra Pak, flexible packaging and other innovative packaging solutions, to reduce costs and improve the durability of products. Ajanta Packaging was highly dependent on glass-bottle sales, as 95 per cent of its revenue came from them. Should it carry on with the same product range, exploit the declining glass-bottle industry with more customers of glass bottles or enhance its product range with more varieties of PET bottles?

Teaching Note: 8B13A049 (8 pages)
Industry: Wholesale Trade
Issues: Business environment; CRM; India
Difficulty: 5 - MBA/Postgraduate

Chapter 3:
Assessing Opportunities and Threats: Doing an External Analysis

Ali Taleb, Jon Capus

Product Number: 9B15M082
Publication Date: 8/31/2015
Revision Date: 7/27/2017
Length: 11 pages

In 2012, Sanofi, a French pharmaceutical company, was considering forming a joint venture with the American soft drinks giant Coca-Cola to develop and commercialize a new line of beauty drinks, “Beautific,” which would provide health and beauty benefits to consumers. Rumours about the partnership in the press had been met with anger from Sanofi’s employees and skepticism from market analysts. It was unclear whether the initiative made sense from a strategic point of view for Sanofi. How different was the initiative from similar past projects that had been met with reluctance by consumers? What were the implications of internal dissent within Sanofi? Venturing into the beauty drinks business might signal a shift by Sanofi away from research and development-driven drugs. Would association with Coca-Cola, a company often decried for contributing to poor health, help or damage the reputation of a pharmaceutical company like Sanofi?

Teaching Note: 8B15M082 (7 pages)
Industry: Manufacturing
Issues: Value chain configuration; strategic positioning; strategic alliance; industry creation
Difficulty: 4 - Undergraduate/MBA

Sandeep Puri, Swati Kapoor, Tanmay Mathur, Arshdeep Kaur

Product Number: 9B15M072
Publication Date: 7/20/2015
Revision Date: 7/20/2015
Length: 12 pages

New medicine launches in India had come down by nearly 80 per cent during the last six years. The risks associated with new-drug development were high, and for that reason, companies were considering buying the potential molecules in the early stages of development at comparatively cheaper rates. Apart from cutting costs, out-licensing provided opportunities for domestic players to enter into collaborations with global players. Now, with out-licensing gaining popularity in the global pharmaceutical markets, one of the fastest growing pharmaceutical companies in India wondered whether out-licensing could be its next big Indian opportunity.

Teaching Note: 8B15M072 (14 pages)
Industry: Manufacturing
Issues: Strategic decision making; business development; business environment; pharmaceutical industry
Difficulty: 5 - MBA/Postgraduate

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

Homer H. Johnson

Product Number: 9B11M112
Publication Date: 1/6/2012
Length: 8 pages

From 2005-2006, Federated Department Stores converted some 15 regional department store chains into a single national brand, Macy’s, with 810 stores across the United States. In addition, the company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors. These maneuvers were undertaken to counter decreasing sales and profits in the traditional department store industry. Some retail analysts suggested that the consolidation of Macy’s, while interesting, was destined to fail because the traditional department store was an obsolete entity; however, other analysts suggested that Macy’s strategy might hold the key to success in a declining industry. In 2008, the U.S. economy entered a recession, and by 2011 it remained far from booming. Did Macy’s need to change parts of its strategy to remain competitive? What would need to change?

Teaching Note: 8B11M112 (7 pages)
Industry: Retail Trade
Issues: Strategic Repositioning; Strategy; Strategic Decision-making; Department Stores; United States
Difficulty: 3 - Undergraduate

Chapter 4:
Assessing Strengths and Weaknesses: Doing an Internal Analysis

Jeff Moretz, Chirag Surti

Product Number: 9B15M002
Publication Date: 6/24/2015
Revision Date: 6/24/2015
Length: 10 pages

By the end of 2013, PC Financial remained one of the few successful no-frills banking providers in Canada. Since its founding in 1998, the company had grown into a significant competitor in consumer financial services with nearly three million customers and $644 million in revenue. The financial crisis of 2008 and the competitive situation in Canadian retail financial services had led to the acquisition and in some cases closure of several of its competitors. While the changes in the market arguably seemed to be beneficial by reducing competition, they also raised questions about the company’s ability to continue as a separate operating entity.

Teaching Note: 8B15M002 (10 pages)
Industry: Finance and Insurance
Issues: Five forces, resource-based view, low cost competition, operations
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

Sandeep Goyal, Amit Kapoor

Product Number: 9B13M115
Publication Date: 1/10/2014
Revision Date: 1/8/2014
Length: 12 pages

Diversey, a leading global brand in the business-to-business cleaning industry, had entered the Indian market positioned as a total cleaning solution provider to institutional customers. It differentiated itself from the competition with its end-to-end solutions, superior products and service levels, research and development capabilities and value-based pricing. While it had some success in India, it felt that there was a huge untapped opportunity for growth. However, a developing country like India posed several challenges due to its social and cultural differences (e.g., local unorganized competition, customer price sensitivity, complex distribution channels, etc.) versus developed countries. The case provides an opportunity for students to apply a number of conceptual tools (i.e. Porter’s 5 forces analysis, 4C analysis, SWOT analysis, value- chain analysis and the stakeholder power/interest matrix) to analyze the current strategy and identify the best alternatives for Diversey to move forward with its growth objectives.

Teaching Note: 8B13M115 (13 pages)
Industry: Other Services
Issues: Business models; industry transformation; cleaning industry; market building strategy; India
Difficulty: 5 - MBA/Postgraduate

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

Chapter 5:
Functional and Competitive Strategies

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

Arpita Agnihotri, Saurabh Bhattacharya

Product Number: 9B13M033
Publication Date: 4/16/2013
Revision Date: 4/16/2013
Length: 18 pages

The case focuses on the profitability of the Indian aviation industry and explains how Indigo Airlines, a new entrant in the Indian aviation space, registered profits within three years of its inception while its competitors continued to struggle with losses. The case demonstrates how a firm incorporating innovative business practices can not only survive but also earn abnormal profits. The strategies adopted by Indigo Airlines to reduce its operational cost and enhance its revenue are discussed in the case. The case also explores whether the profits earned by Indigo are sustainable in the long run and focuses on the changes in the competitive positioning of Indigo Airlines as it switches from the position of a low cost player to a hybrid player in the aviation industry.

Teaching Note: 8B13M033 (8 pages)
Industry: Other Services
Issues: Innovative practices; competitive advantage; hub and spoke model; India
Difficulty: 5 - MBA/Postgraduate

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

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 6:
Corporate Strategies

Tripti Ghosh Sharma, Naval Shevade

Product Number: 9B15M056
Publication Date: 8/28/2015
Revision Date: 8/28/2015
Length: 15 pages

After a 26 year partnership in the Indian two-wheeler industry, Hero and Honda parted ways. Honda had now become one of Hero’s main competitors. The case covers the reasons for the split, the challenges faced by Hero and the strategic initiatives it had to use to overcome these challenges. After the split, rebranding and re-positioning itself as a stand-alone brand was of primary importance to Hero MotoCorp. To ensure that Hero MotoCorp continued its association with the Indian consumers, it underwent a series of transition phases. With ever rising competition, Hero was putting all of its efforts into ensuring that it overcame each roadblock and maintained its number one position in the Indian two-wheeler market, but were the strategies producing results?

Teaching Note: 8B15M056 (11 pages)
Industry: Manufacturing
Issues: Joint venture; transition; branding
Difficulty: 5 - MBA/Postgraduate

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

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

Chapter 7:
International Strategies

Christopher Williams, Umair Shafique, Adnan Kayssi, Wanyi Zhao, Agata Barczyk, Lukasz Gluszynski

Product Number: 9B15M074
Publication Date: 8/10/2015
Revision Date: 9/28/2017
Length: 10 pages

Elon Musk, the CEO of the U.S.-headquartered Tesla Motors (Tesla), was considering how the company should enter the Chinese market. Less than a year earlier, Tesla had exited Singapore after disappointing results only six months after entering that promising market. There were several questions that the company would have to answer in order to formulate an appropriate entry strategy for China. First, could the company learn from its experiences in the United States and Singapore and apply this learning to China? Second, was it the right time to enter the Chinese market? Finally, how could Tesla prevent a repeat of the Singapore experience in China? There were several questions that the company would have to answer in order to formulate an appropriate entry strategy for China.

Teaching Note: 8B15M074 (10 pages)
Industry: Manufacturing
Issues: Electric cars; market; entry strategy; uncertainty; bankruptcy; China
Difficulty: 4 - Undergraduate/MBA

Klaus Meyer, Jianhua Zhu

Product Number: 9B15M071
Publication Date: 7/15/2015
Revision Date: 10/19/2015
Length: 16 pages

In the autumn of 2013, the president and chief executive officer of Schenck Shanghai Machinery Corp. Ltd., a subsidiary of the Dürr Group situated in Shanghai, China, was reviewing his business operations. The Dürr Group was a multinational machine tool manufacturer based in Germany. In emerging economies, the mid-market had become the battleground between foreign and local firms. Traditionally, foreign investors earned healthy margins in the premium segment, but many realized that they were missing out on fast-growing market segments and were facing potential threats from local competitors who were moving up-market. To remain competitive and to ensure future growth and profitability, while not compromising the brand's reputation, the Chinese subsidiary had to ensure continued support from headquarters in Germany.

Teaching Note: 8B15M071 (11 pages)
Industry: Manufacturing
Issues: Competition, product innovation, headquarters & subsidiaries, HQ, MNC, adaptation, China, Germany
Difficulty: 5 - MBA/Postgraduate

Yong Li, Jing Li

Product Number: 9B14M122
Publication Date: 5/7/2015
Revision Date: 5/8/2015
Length: 15 pages

As the world’s largest online retailer, Amazon had a 12.3 per cent worldwide market share and had operations in 10 countries. However, its performance was markedly unbalanced across different countries. For example, it had a significant market share in Germany at 21.4 per cent, while it only owned 1.7 per cent of the Chinese online retailing market. In this way, Amazon faced critical challenges in developing future international strategies. Should it continue its global expansion into new markets? What should the company do with less successful markets, such as China?

Teaching Note: 8B14M122 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Online retailing; emerging markets; global
Difficulty: 4 - Undergraduate/MBA

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, 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