Ivey Publishing

Business and Its Environment

Baron, D.P.,7/e (United States, Pearson, 2013)
Prepared By Kartik Rao,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Market and Nonmarket Environments

KNAUF GIPS IRAN AND THE GREEN REVOLUTION (A)
David T.A. Wesley

Product Number: 9B14M091
Publication Date: 7/31/2014
Revision Date: 7/30/2014
Length: 6 pages

Knauf Gips is a global leader in gypsum and related products. In 2009, the country manager for Iran was arrested for participating in anti-government protests during the “Green Revolution.” At the time, news media were reporting an increasing number of cases of imprisonment, torture and death of anti-government activists at the hands of Iranian security forces. Shortly afterward, Knauf’s regional director received a communique from Iranian officials demanding that Knauf direct all its employees to refrain from anti-government activities. In exchange, the country manager would be released. Also available is case supplement 9B14M092.

Teaching Note: 8B14M091 (3 pages)
Industry: Retail Trade
Issues: Risk management; global; political environment; ethical issues; Iran; Germany
Difficulty: 5 - MBA/Postgraduate


Chapter 2:
Integrated Strategy

ENOVE: BUSINESS STRATEGY IN A TRANSITIONING ECONOMY
Maciek Nowak, Alexander Stoll

Product Number: 9B16M013
Publication Date: 2/3/2016
Revision Date: 2/2/2016
Length: 9 pages

In August 2014, La Société Energies Nouvelles & Environnement (ENOVE), a subdivision of Groupe Bismuth, was developing an expansion strategy in the unstable political and economic environment of Tunisia, the company’s home country. Tunisia was the birthplace of the Arab Spring, a series of political revolutions that started in 2010 and swept the Mediterranean region for five years. Tunisia was also quickly moving toward a democratically elected government, but the transition was not an easy one; the country experienced a setback of about 10 to 15 years, in regards to economic development. Years of functional corruption under the long-time president, Ben Ali, were followed by sustained economic growth in manufacturing, tourism, and education. This led the economy into a governmental vacuum. For the first time, workers began exercising their rights to demand better conditions. There was little governmental oversight on customs, labour, or taxation. The threat of terrorism, whether real or perceived, was always present. Under these conditions, ENOVE's president had to make a decision: Should ENOVE expand within Tunisia, or move their manufacturing operations to a more stable country, perhaps nearby Morocco?

Teaching Note: 8B16M013 (10 pages)
Industry: Manufacturing
Issues: Strategy formulation, emerging economies, third world, political environment, labour force, extremism, decision-making, Arab Spring, Jasmine Revolution, Scramble for Africa, Africa, Tunisia
Difficulty: 5 - MBA/Postgraduate



APPLE AND ITS SUPPLIERS: CORPORATE SOCIAL RESPONSIBILITY
Sun Hye Lee, Michael J. Mol, Kamel Mellahi

Product Number: 9B16M040
Publication Date: 3/22/2016
Revision Date: 3/4/2016
Length: 10 pages

AWARD WINNING CASE - STRATEGY AND GENERAL MANAGEMENT CATEGORY - THE CASE CENTRE AWARDS AND COMPETITIONS 2019. In a 2014 documentary, the multinational technology company Apple Inc. was implicated in alleged human rights violations at Pegatron, a large Chinese supplier that assembled Apple's iPhones. The allegations followed similar, well-publicized violations in 2009 at another China-based Apple supplier. Although Apple had promised to improve its practices, doing so had clearly proven to be a difficult task. How should Apple respond to these new allegations? Should it evade the accusations and instead point to its existing efforts? Could it do more to protect workers? Should it rethink its offshoring and outsourcing strategy? Is it fair to blame Apple for the activities of its suppliers? Where does the blame fall?

Teaching Note: 8B16M040 (12 pages)
Industry: Manufacturing
Issues: Customer service, relations, supply chain, offshoring, CSR, worker safety, ethical business operations, regulations, public image, worker rights, Foxconn, original design manufacturer, ODM, fair labour, responsibility
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
The News Media and Nonmarket Issues

PAUL FRANK AND NATIVE AMERICAN STEREOTYPES: A CASE OF MISAPPROPRIATION
Stefanie Beninger, June N.P. Francis

Product Number: 9B14A063
Publication Date: 4/27/2015
Revision Date: 5/12/2015
Length: 8 pages

Paul Frank Industries (PFI), a privately held company based in the United States, finds itself in hot water after social media criticizes a Hollywood marketing event hosted by PFI in which Native American stereotypes were prominently featured. When photos of the event are released on Facebook, two bloggers bring attention to the event through their social media channels, and the reaction quickly spreads throughout the Native American community and beyond. In the wake of this public relations nightmare, students are asked to reflect on the actions taken by Paul Frank Industries prior to, during and after the marketing event.

Teaching Note: 8B14A063 (12 pages)
Industry: Retail Trade
Issues: Ethics; public relations; social media; United States, Indigenous Peoples
Difficulty: 4 - Undergraduate/MBA



SOCIAL ENTERPRISE FOR SUSTAINABLE COMMUNITIES: ONTARIO, CANADA
Oana Branzei, Marlene J. Le Ber, Patrick Shulist

Product Number: 9B14M046
Publication Date: 5/7/2014
Revision Date: 5/7/2014
Length: 9 pages

In the aftermath of the 2008 financial crisis, the not-for-profit sector in Ontario was forced to shift from a provider of social needs to a creator of social opportunities for communities doubly hit by rising unemployment and falling social supports. The Ontario Trillium Foundation moved to fund innovative, collaborative programs involving not-for-profit organizations, businesses and governments in creating viable social enterprises. Ottawa, London and Sarnia were three communities faced with different, but still difficult economic times, and each had responded to the crisis by proposing alternative models of social transition. In 2013, representatives from the not-for-profit sector in these cities joined with the Richard Ivey School of Business to present a proposal that promised they would work collaboratively, learn from each other, document the entire process and develop tools to prepare and guide many others. Would the Trillium Foundation support such a creative and ambitious project? See supplemental cases 9B14M046B.

Industry: Social Advocacy Organizations
Issues: Financial crisis; poverty; social innovation; collaboration; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Private Politics and Social Pressure

SOCIAL ENTERPRISE FOR SUSTAINABLE COMMUNITIES: ONTARIO, CANADA
Oana Branzei, Marlene J. Le Ber, Patrick Shulist

Product Number: 9B14M046
Publication Date: 5/7/2014
Revision Date: 5/7/2014
Length: 9 pages

In the aftermath of the 2008 financial crisis, the not-for-profit sector in Ontario was forced to shift from a provider of social needs to a creator of social opportunities for communities doubly hit by rising unemployment and falling social supports. The Ontario Trillium Foundation moved to fund innovative, collaborative programs involving not-for-profit organizations, businesses and governments in creating viable social enterprises. Ottawa, London and Sarnia were three communities faced with different, but still difficult economic times, and each had responded to the crisis by proposing alternative models of social transition. In 2013, representatives from the not-for-profit sector in these cities joined with the Richard Ivey School of Business to present a proposal that promised they would work collaboratively, learn from each other, document the entire process and develop tools to prepare and guide many others. Would the Trillium Foundation support such a creative and ambitious project? See supplemental cases 9B14M046B.

Industry: Social Advocacy Organizations
Issues: Financial crisis; poverty; social innovation; collaboration; Canada
Difficulty: 4 - Undergraduate/MBA



GREENPEACE'S UNFRIEND COAL CAMPAIGN AND FACEBOOK
Michael Sider, Paul Bigus

Product Number: 9B12M011
Publication Date: 2/10/2012
Revision Date: 10/28/2013
Length: 10 pages

Facebook’s director of policy communications was faced with a situation caused by a YouTube video posted by the non-governmental organization (NGO) Greenpeace. This video publicly critiqued the environmental sustainability of Facebook’s decision to build a new data centre, its main objection being that the new facility would be connected to a local utility provider that supplied electricity mainly from the burning of coal, one of the largest sources of global warming. This video was only the latest of a series of actions, commenced by Greenpeace eight months earlier, immediately following Facebook’s decision to build the new facility. Greenpeace had dubbed these actions the “Unfriend Coal Campaign,” which now had 500,000 followers and had generated numerous media stories. Greenpeace’s goal was to pressure Facebook into adopting cleaner energy policies by leveraging Facebook’s own social media against the company. As Facebook had no plans to stop building the facility, its director needed to figure out the best course of action to take in response to the mounting pressure from Greenpeace, in order to alleviate the increasingly negative attention from media and consumers.

Teaching Note: 8B12M011 (7 pages)
Industry: Information, Media & Telecommunications
Issues: Ethical Issues; Social Media; Facilities Planning; Non-governmental Organizations; Communications; Corporate Responsibility; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Crisis Management

ONTARIO POWER GENERATION
Paul Boothe

Product Number: 9B14M012
Publication Date: 7/11/2014
Revision Date: 7/11/2014
Length: 4 pages

In late December 2003, the new acting CEO of Ontario Power Generation, the provincial Crown corporation responsible for the bulk of the province’s electrical power generation, was deeply worried. Three major events had led to a decline in the company’s revenues in 2003: a massive power failure that affected large portions of Ontario and the U.S. eastern seaboard in August, the maintenance-related planned outage at the Darlington Nuclear Station and the new provincial Liberal government’s mandated future phasing out of air polluting coal-fired electricity stations. In addition, in reaction to a damning report on cost overruns at the Pickering Nuclear Station, the Liberal government had dismissed the board and CEO and ordered a comprehensive audit. The acting CEO knew that he needed to respond quickly to the crisis of confidence facing the firm.

Teaching Note: 8B14M012 (3 pages)
Industry: Utilities
Issues: Stakeholder analysis; crown corporation; strategic alliances; political environment; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Nonmarket Analysis for Business

GLOBALIVE: CHANGE IN THE CANADIAN WIRELESS TELECOM INDUSTRY
Adam Fremeth, Tony S. Frost, Guy L.F. Holburn, Kevin Chan, Peter Walker

Product Number: 9B11M003
Publication Date: 2/3/2011
Length: 11 pages

This case describes the situation for Globalive in 2009 shortly after its bid to enter the Canadian wireless telecommunications sector had been denied by the regulatory agency on the grounds that it breached foreign ownership restrictions. The case covers the background to Globalive and the events leading to the regulator’s decision. Andrea Wood, the chief legal officer of WIND Mobile, the wireless brand owned by Globalive, must decide what recommendations to make to Globalive’s chief executive officer.

Industry: Information, Media & Telecommunications
Issues: Non-market Strategy; Market Entry; Lobbying; Regulatory Agency; Wireless Telecommunications; Egypt; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Nonmarket Strategies for Government Arenas

BALANCING STAKEHOLDER INTERESTS AT THE INDONESIAN RAILWAYS
Marleen Dieleman

Product Number: 9B13M041
Publication Date: 4/19/2013
Revision Date: 4/18/2013
Length: 8 pages

The chief executive responsible for the Indonesian railways, a state-owned enterprise, is under pressure to show profits, but he also needs to balance widely diverging stakeholder expectations that include inexpensive transportation and excellent customer service. The government subsidizes the railway’s passenger travel segment and has capped its fare prices, which has turned the railway’s mainstay into a loss-making business. The chief executive wonders how to best trade off the different stakeholder expectations. He needs to develop a plan to present to the minister for State-Owned Enterprises.

Teaching Note: 8B13M041 (8 pages)
Industry: Transportation and Warehousing
Issues: State-owned enterprises; non-market strategy; political environment; Indonesia
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Implementing Nonmarket Strategies in Government Arenas

FEDDEV ONTARIO
Paul Boothe, Richard Dicerni, Connor Lyons

Product Number: 9B14M010
Publication Date: 7/17/2014
Revision Date: 7/17/2014
Length: 4 pages

In August 2009, the newly appointed president of the Federal Development Agency for Southern Ontario, FedDev Ontario, is contemplating the task in front of him. The region’s manufacturing sector, especially the auto industry, had been hit hard by the global recession of 2008; for the first time in its history, Ontario was now a “have not” province, and the federal government was hoping that enthusiasm for this new regional development agency would not only result in the creation of more jobs but would lead to support for the Conservatives in the upcoming election. The new president knew he would need to gain the confidence of his minister and political staff while developing a three-month short-term plan to get up and running as well as a one-year longer term plan to grow the agency and develop its programs. Expectations of both program and political success were high; the new voyage on which he was embarking would be the riskiest of his career.

Teaching Note: 8B14M010 (3 pages)
Industry: Public Administration
Issues: Public sector; strategic management; decision-making; political environment; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Antitrust: Economics, Law and Politics

BHARTI AIRTEL'S AIRTEL ZERO: VIOLATION OF NET NEUTRALITY?
Susmi Routray, Boishampayan Chatterjee, Gunjan Malhotra

Product Number: 9B15M091
Publication Date: 1/6/2016
Revision Date: 12/23/2015
Length: 11 pages

In April 2015, Bharti Airtel — India’s largest telecom provider and a leading global telecommunications company — launched Airtel Zero, an open marketing platform that would allow Airtel customers to access mobile applications with zero data charges. Application developers would pay Airtel to join the platform, but would in turn attract more users to their products. Immediately after its launch, Airtel Zero was subjected to severe criticism on the grounds that it violated the net neutrality principle, which advocated that content should be available to customers without any form of prioritization. Subsequently, in support of net neutrality, Flipkart — a prominent Indian e-commerce company — pulled out of the platform. Was Airtel Zero a potential threat to net neutrality? With the pending decision of the government of India on the regulatory framework for over-the-top (OTT) applications and services, would Airtel Zero stand out as a viable platform?

Teaching Note: 8B15M091 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Net neutrality, e-commerce, telecom operators, mobile applications
Difficulty: 4 - Undergraduate/MBA



SEARCH ENGINES IN SEARCH OF FAIR PLAY
Veena Keshav Pailwar

Product Number: 9B14M112
Publication Date: 9/29/2014
Revision Date: 9/30/2014
Length: 9 pages

Google’s plan to gear up its flight search service in India by allowing users to compare fares and book tickets made other domestic travel portals in India nervous. There were fears that this development might turn out to be discriminative as Google had the dominant share in Internet search service. Fearing a substantial reduction in their share of the search market, these domestic portals had the option of lodging a complaint against Google with the Competition Commission of India.

Google’s business practices had been challenged and/or come under the scanner of anti-competitive law in many other countries as well. The public in India wondered why Google was involved in such controversies. Why did competing companies fear Google’s business practices? What would be the Competition Commission of India’s stand and how would it help consumers and society in general?


Teaching Note: 8B14M112 (13 pages)
Industry: Information, Media & Telecommunications
Issues: Anti-competitive practice; monopoly; economies of scale; competition law; India
Difficulty: 5 - MBA/Postgraduate


Chapter 10:
Regulation: Law, Economics, and Politics

TELESAT CANADA
Paul Boothe, Connor Lyons

Product Number: 9B14M164
Publication Date: 6/10/2015
Revision Date: 6/3/2015
Length: 5 pages

In June 2007, the chief executive officer of Telesat Canada, headquartered in Ottawa, Ontario, was considering his strategy following a decision by Industry Canada to reject four out of six of its applications for satellite slots. His largest concern was the decision to award the two most important licences for the Extended Ku-band network — which the company’s largest clients, Bell Canada Inc. and Shaw Communications, were both seeking — to a subsidiary of a non-Canadian company, Ciel Satellite Limited Partnership, which was owned by SES S.A., a global corporation based in Luxembourg. The regulator’s decision had the potential to severely limit Telesat’s future revenues as well as destabilize its valuation in the midst of a sale process. The company needed a plan of action to propose a reconsideration of the allocation of licences while also maintaining its working relationship with Industry Canada.

Teaching Note: 8B14M164 (4 pages)
Industry: Information, Media & Telecommunications
Issues: Telecommunications; Industry Canada; regulation
Difficulty: 4 - Undergraduate/MBA



DISRUPTING WALL STREET: HIGH FREQUENCY TRADING
Derrick Neufeld, Brad Evans

Product Number: 9B14E021
Publication Date: 10/30/2014
Revision Date: 10/29/2014
Length: 11 pages

Michael Lewis’s book Flash Boys, published in 2014, revealed to the public numerous controversial Wall Street trading practices made possible by advances in technology as well as regulatory changes that were (ironically) intended to improve pricing fairness in the financial markets. Lewis’s story focused on the man who blew the whistle: Brad Katsuyama, a Canadian banker who ran the New York trading desk for the Royal Bank of Canada. In 2010, he had noticed some odd system responses to his trading requests and began to ask questions. The answers he discovered, and publicized, about high frequency trading set off a firestorm regarding the moral integrity of the financial markets. Very few people understood what was happening, and fewer still comprehended the central role played by information technology.

Questions remain: How does information technology influence our concept of wealth? Why do “flash crashes” occur? Are the markets rigged? Will the next disruption to the financial markets involve technology?


Teaching Note: 8B14E021 (10 pages)
Industry: Finance and Insurance
Issues: Information technology; stock exchange; ethical issues; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Financial Markets and Their Regulation

NASDAQ OMX: THE FACEBOOK DEBACLE
Deborah Compeau, Craig Dunbar, Michael R. King, Ken Mark

Product Number: 9B13E006
Publication Date: 3/5/2013
Revision Date: 3/5/2013
Length: 12 pages

Senior management of a large stock exchange is reviewing a recent software problem that resulted in a botched opening for the initial public offering of a popular social media company. They are drawing up a list of recommendations on how to prevent this type of failure in the future, taking into account the needs of their various stakeholders, including customers, market makers, listed firms, regulators and shareholders. Overviews of the stock market, NASDAQ in particular, and the use of technology to trade stocks securely and quickly are followed by examining the aftermath of a delay in the correct trading of Facebook shares on its opening.

Teaching Note: 8B13E006 (8 pages)
Industry: Finance and Insurance
Issues: Program Trading; Stakeholder Management; Crisis Management; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Environmental Management and Sustainability

ENVIRONMENT CANADA
Paul Boothe

Product Number: 9B14M011
Publication Date: 7/14/2014
Revision Date: 4/4/2018
Length: 7 pages

In late January 2011, the assistant deputy minister of Environment Canada is contemplating the final report of the joint review panel conducting the environmental assessment of Total E&P Canada’s $10 billion oil sands project, the Joslyn Mine near Fort McMurray, Alberta. Although the report advised that the project would be in the public interest only if — and it was a big if — adverse effects on species at risk were fully mitigated, she was aware that both the company and provincial officials did not agree with the need for further wildlife protection measures. Further, behind the scenes, the industry lobby group, the Canadian Association of Petroleum Producers, opposed any offsite protection of habitat that might be seen as a precedent for future projects. The federal government’s priority was jobs, and the assistant deputy minister would soon be under pressure to advise the minister on whether to authorize the project to proceed. Without a mechanism to ensure that threatened wildlife would be protected, she could not recommend approval. She needed to find a solution that would work both for the environment and the project.

Teaching Note: 8B14M011 (4 pages)
Industry: Public Administration
Issues: stakeholder analysis; strategic balance; government and business; political environment; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
The Investor's Perspective: Renewable Energy

ENBRIDGE: LOOKING TOWARD THE FUTURE
Fernanda Lorenzetti Alves, HangXing Ma, Irene Herremans, Cameron Welsh

Product Number: 9B16M025
Publication Date: 2/25/2016
Revision Date: 2/22/2016
Length: 15 pages

In 2009, Enbridge announced the Neutral Footprint program to enhance its social licence to operate, increase its corporate responsibility, and in turn improve its corporate reputation through good performance. The program also gave Enbridge an opportunity to provide information about its financial and non-financial performance. By the end of 2012, Enbridge had suffered from unfavourable publicity due to oil spills. It also encountered a great deal of opposition against its proposed Northern Gateway pipeline project. The company’s situation was further complicated by the retirement of its chief executive officer who had started the Neutral Footprint program. Enbridge’s new chief executive officer and president needed to be convinced of the benefits of the Neutral Footprint program, most of which were difficult to quantify. Would the project be cancelled, continue as is it was, or become even more engrained in Enbridge’s culture?

Teaching Note: 8B16M025 (8 pages)
Industry: Utilities
Issues: Sustainability plan, Reduction of GHG emission, land disturbance, renewable energies, CO2 emissions, carbon footprint, power, risk management
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Law and Markets

THE CABLE AND SATELLITE BROADCASTING ASSOCIATION OF ASIA: PROTECTING INTELLECTUAL PROPERTY
Hugh Stephens, Charles Krusekopf

Product Number: 9B15M030
Publication Date: 4/8/2015
Revision Date: 4/8/2015
Length: 15 pages

The vice-president of policy for the Cable and Satellite Broadcasting Association of Asia (CASBAA) was asked to deal with the growing problem of signal piracy in the Philippines. CASBAA was an organization of 125 companies involving all elements of the pay television industry in Asia, including major multinational content and broadcasting companies, as well as leading Philippine cable distributors. These were multinational content producers and broadcasters concerned about the growing issue of cable television signal piracy in the Philippines — a key bellwether market for many CASBAA members. Among CASBAA’s key objectives was the protection of the intellectual property of its members. CASBAA had already pursued legal options to curtail piracy in the Philippines with limited success and the vice-president was tasked with developing a strategy that did not involve expensive litigation. To do so, he needed to present a plan, with milestones, to his constituents to demonstrate that CASBAA was capable of dealing with its members’ concerns.

Teaching Note: 8B15M030 (18 pages)
Industry: Information, Media & Telecommunications
Issues: Intellectual property rights; Hong Kong; Philippines
Difficulty: 4 - Undergraduate/MBA



APPLE V. SAMSUNG: INTELLECTUAL PROPERTY AND THE SMARTPHONE PATENT WARS
Gloria Barczak, Susan Montgomery, David T.A. Wesley

Product Number: 9B13A009
Publication Date: 4/23/2013
Revision Date: 4/30/2013
Length: 20 pages

In 2012, Apple, Inc. won the largest patent infringement case in history against Samsung Electronics for Samsung’s willful copying of Apple’s iPhone and iPad. Samsung, which recently overtook Apple as the leading smartphone maker, must now devise a strategy to address the court verdict and its potential impact on new product development.

Teaching Note: 8B13A009 (9 pages)
Industry: Manufacturing
Issues: Intellectual Property; Legal System; Innovation; Patents; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
The Political Economy of the European Union

LONG-TERM ORIENTATION IN THE BENEDICTINE MONASTERY OF ADMONT
Dietmar Sternad

Product Number: 9B16M045
Publication Date: 3/22/2016
Revision Date: 3/21/2016
Length: 12 pages

At the Benedictine monastery of Admont in Austria, which had been economically active for over 940 years, the monks tended to think in centuries rather than quarters. However, the monastery’s business director needed to make a decision in a much shorter timeframe. The monastery employed approximately 600 people in its forestry, wine-growing, energy, real estate, services, and industrial businesses. Its largest subsidiary, an industrial manufacturer of wooden floorboards, was faced with severe challenges in 2015, including highly fluctuating demand and a growing pressure on margins due to low-cost competition from Asia. The business director had to decide how to proceed with the loss-making company, bearing in mind his responsibility towards the monastery and its higher purposes (such as providing pastoral care and fostering regional development through the creation of jobs).

Teaching Note: 8B16M045 (13 pages)
Industry: Manufacturing
Issues: long-term orientation, sustainability, responsible leadership, managerial responsibility, corporate social responsibility, CSR
Difficulty: 5 - MBA/Postgraduate


Chapter 16:
China: History, Culture, and Political Economy

CRISIS AT THE BALLY WEDDING DRESS COMPANY
Jiqing (Harvey) Zhu, Paul W. Beamish, Lu Yun

Product Number: 9B15M117
Publication Date: 11/26/2015
Revision Date: 11/27/2015
Length: 7 pages

Capitalizing on low-cost manufacturing in China, Bally Wedding Dress Company (Bally) had grown quickly by exporting inexpensive wedding dresses to customers in Western countries. However, due to a rise in labour costs, currency appreciation, and increased prices of raw materials, the low-cost advantage in the manufacturing industry had by 2014 been seriously eroded. Competition had intensified together with a shortage in qualified labour. As both the sales volume and turnover decreased, Bally had to consider how to survive. The crisis that it faced represented a common issue for many Chinese manufacturing enterprises.

Teaching Note: 8B15M117 (8 pages)
Industry: Other Services
Issues: environmental change, vertical integration, labour costs, copyright, China; SME
Difficulty: 4 - Undergraduate/MBA



ALIBABA GROUP'S CORPORATE VALUES
Jean Lee, Rebecca Yuen Man Chung, An Jing

Product Number: 9B15C010
Publication Date: 8/13/2015
Revision Date: 8/13/2015
Length: 12 pages

A merchant fraud scandal threatened Chinese e-commerce group, Alibaba Group, endangering its positioning, corporate values, reputation, brand strength, share price value and performance. It compromised Alibaba’s leaders’ credibility and the public’s perception of the trustworthiness of Internet-based trading. In the fallout of the scandal, two talented executives were accused of negligence. The board of directors had to decide how to respond to this crisis and to prevent future fraud on Alibaba’s diversified web-based trading platform. Was dismissing the executives the most effective way to achieve these goals?

Teaching Note: 8B15C010 (15 pages)
Industry: Other Services
Issues: Responsible leadership; business ethics; China
Difficulty: 5 - MBA/Postgraduate


Chapter 17:
Emerging Markets

WALMART'S AFRICAN EXPANSION
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



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

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

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

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


Chapter 18:
The Political Economy of India

NESTLÉ INDIA LIMITED: MAGGI NOODLES AT WAR WITH THE REGULATORS
Harvinder Singh, Rashmi Kumar Aggarwal, Rajinder Kaur, Rita Ghial

Product Number: 9B16M034
Publication Date: 3/21/2016
Revision Date: 3/21/2016
Length: 9 pages

On May 21, 2015, food inspectors in the North Indian state of Uttar Pradesh tested Maggi instant noodles that had been manufactured by Nestlé India Limited. Their results led them to declare that the samples contained higher-than-permissible levels of monosodium glutamate and lead — substances that could, at those levels, potentially cause harm to consumers. The well-known brand accounted for 26 per cent of Nestlé India Limited’s annual revenue, and the subsequent recall was a source of controversy. The recall was one of the biggest business stories of the year in India and was estimated to have cost Nestlé India Limited US$50 million. The company’s response to the problem ranged from inaction and denial to attempts at rectification and redemption. The overall actions of the company were characterized by confusion regarding product safety and contradictory statements about the accusations that had been made against it. Given the material losses and the damage to both the Maggi and Nestlé India brands, the company wanted to know how the situation could be corrected — and avoided — in the future. Was the Food Safety and Standards Authority of India correct to recall Maggi noodles? Once the crisis was in motion, how could Nestlé India Limited have handled the situation to appease customers, regulators, and stakeholders?

Teaching Note: 8B16M034 (9 pages)
Industry: Accommodation & Food Services
Issues: Crisis management, regulatory framework, brand dilution, sanitary measures, Indian Penal Code, Food Safety and Standards Act 2006, public image, crisis response, media management, lost revenue, damages, press relations
Difficulty: 5 - MBA/Postgraduate



TELENOR'S DILEMMA: THE 2G SPECTRUM SCAM IN INDIA
Sanjeev Prashar, Adeshwar Raja Balaji Prasad, Parasaran VS, Vijay Kumar Venna

Product Number: 9B12M088
Publication Date: 9/21/2012
Revision Date: 9/12/2012
Length: 10 pages

In 2008 the Supreme Court of India revoked the 2G spectrum licences issued to many local and international companies because of major violations in the granting procedure by the Telecom Ministry. One of the worst affected companies was Norway’s Telenor communications company, which was involved with a local company in a joint venture, Uninor, which had all of its licences cancelled. The case provides students an opportunity to assess and understand the implications of the political as well as legal risks involved in entering uncertain markets, such as India’s, and to devise appropriate coping strategies to establish and successfully operate in such markets. The case drives home the significance of political and legal business environmental factors that have an impact on the successful conduct of business. Multinational companies tend to be vulnerable to political risks, and the case suggests to students how to handle such situations.

Teaching Note: 8B12M088 (6 pages)
Industry: Information, Media & Telecommunications
Issues: 2G scam; Telecom regulations; India
Difficulty: 5 - MBA/Postgraduate


Chapter 19:
The Political Economy of International Trade Policy

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

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

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

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


Chapter 20:
Corporate Social Responsibility

MARTIN BAUER GROUP: CORPORATE SOCIAL RESPONSIBILITY WITH EINDOLLARBRILLE
Carsten C. Guderian, Peter M. Bican

Product Number: 9B16M027
Publication Date: 2/25/2016
Revision Date: 2/22/2016
Length: 12 pages

AWARD WINNING CASE - Corporate Social Responsibility Award, 2016 European Foundation for Management Development (EFMD) Case Writing Competition. In the fall of 2013, the family-owned Martin Bauer Group, a German-based company and world leader in the business-to-business market for tea and herbal extracts, became interested in the idea of collaborating with the frugal innovation company EinDollarBrille (OneDollarGlasses). The Martin Bauer Group was engaged in multifaceted corporate social responsibility activities, both domestically and abroad. Specifically, it fostered the development and diffusion of frugal innovations, which were affordable products or services developed under strict financial constraints to cater to low-income individuals in emerging markets. These companies usually worked in collaboration with partners. One such frugal innovation company, OneDollarGlasses, created durable, yet affordable, eyeglasses for people in the African country of Sudan, a prime sourcing market for the Martin Bauer Group. The work of OneDollarGlasses illustrated the reasons, motivations, and challenges that innovators often faced within developed and emerging markets when engaging in corporate social responsibility activities. Should The Martin Bauer Group work with OneDollarGlasses? Could the company be helpful and make a meaningful difference to the people in emerging markets by collaborating with frugal innovators like OneDollarGlasses? What benefits would there be for the Martin Bauer Group if they do?

Teaching Note: 8B16M027 (14 pages)
Industry: Health Care Services
Issues: CSR, family firms, emerging markets, der Mittelstand, eye care, clinical services, glasses, innovation, roleplay, dialogue, non-profit, NGO, public relations
Difficulty: 5 - MBA/Postgraduate



ARCELORMITTAL IN INDIA: SUSTAINABLE PARTNERSHIP MODEL
Asha Kaul, Vidhi Chaudhri

Product Number: 9B14M117
Publication Date: 11/6/2014
Revision Date: 11/5/2014
Length: 11 pages

The case explores a public-private partnership initiative on environment education in India, highlighting the strategic, institutional, and reputational implications for corporate social responsibility in an emerging country context. Launched in 2010 with a target to reach 200,000 schools, “Paryavaran Mitra” (Friends of the Environment) was a multi-layered collaboration with three primary and more than 160 secondary partners. The case is positioned in 2013, when the senior manager of corporate responsibility for the firm that serves as the corporate sponsor of the project must make a decision about the future of the initiative.

Teaching Note: 8B14M117 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Corporate responsibility; partnerships; government; India
Difficulty: 5 - MBA/Postgraduate


Chapter 21:
Ethics Systems: Utilitarianism

LENHAGE AG: ETHICAL DILEMMA
Daniel Galindau, Won-Yong Oh

Product Number: 9B14M037
Publication Date: 5/2/2014
Revision Date: 4/23/2014
Length: 8 pages

In 2012, the general manager at the Seoul location of a European manufacturing company faces an ethical dilemma involving bribery and “facilitation” payments. A key decision maker in a local construction company’s purchasing department has asked for a “facilitation” payment as a necessary condition for securing an order. If the expatriate manager decides to pay the money, he will secure an order that will lift his company to a new level of success for years to come. If he decides not to pay, the order and all the company has worked for over the last year will be lost. The expatriate manager must decide whether or not the payment would violate laws internationally, locally and in his home country. What are the real risks? Who can help him answer the many questions he has regarding this local practice?

Teaching Note: 8B14M037 (8 pages)
Industry: Manufacturing
Issues: Ethics; decision making; bribery; facilitation payment; South Korea
Difficulty: 4 - Undergraduate/MBA



SOMEBODY STOP THE RADIO STAR: JIAN GHOMESHI AT THE CBC
Karen MacMillan, Meredith Woodwark

Product Number: 9B16C008
Publication Date: 3/29/2016
Revision Date: 3/28/2016
Length: 5 pages

In 2012, the executive producer of the hit radio show Q and the director of Network Radio at the Canadian Broadcasting Corporation (CBC) faced employees’ complaints against the show’s star host, Jian Ghomeshi. The employees alleged that Ghomeshi’s treatment of employees was problematic and contrary to the corporation’s values and policies. A few years earlier, a female employee had also alleged mistreatment by Ghomeshi but no disciplinary action had been taken. The two managers faced a difficult decision. Ghomeshi had strong support among CBC executives, including from their boss, and his popular radio program had achieved high ratings among the younger audience that the organization needed to appeal to.

Teaching Note: 8B16C008 (17 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: employee voice, abusive supervision, power, organizational justice
Difficulty: 4 - Undergraduate/MBA


Chapter 22:
Ethics Systems: Rights and Justice

INVICTUS: INTRODUCING LEADERSHIP COMPETENCIES, CHARACTER AND COMMITMENT
Gerard Seijts, Jeffrey Gandz, Mary M. Crossan

Product Number: 9B14C016
Publication Date: 3/18/2014
Revision Date: 4/4/2018
Length: 5 pages

Business schools have done an admirable job of teaching competencies, and many business organizations have defined the framework of competencies that are required to be successful in the institution. However, much less attention has been spent on leadership character and the importance of commitment to the leadership role. There is no consistent understanding among executives about what character means, despite a concurrence that it is important. The movie Invictus portrays Nelson Mandela in his first year as the first black president of the newly desegregated South Africa as he persuades not only both black and white populations to support the national rugby team in its effort to win the World Cup but also the players themselves. It provides a truly brilliant illustration of not only the competencies required to lead but also the leadership character and commitment that are needed to lead during trying times.

Teaching Note: 8B14C016 (17 pages)
Industry: Public Administration
Issues: leadership development; character; competencies; commitment; South Africa
Difficulty: 4 - Undergraduate/MBA


Chapter 23:
Behavioral Ethics, Individuals and Management

7-ELEVEN INDONESIA INNOVATING IN EMERGING MARKETS
Marleen Dieleman, Ishtiaq P Mahmood, Peter Darmawan

Product Number: 9B15M081
Publication Date: 9/15/2015
Revision Date: 11/11/2015
Length: 13 pages

AWARD-WINNING CASE - 2015 AESE Case Writing Competition. The global convenience store brand 7-Eleven entered Indonesia in 2009, with local player PT Modern International as the master franchisor. To differentiate the stores from other convenience stores and to cater to emerging market customers in Indonesia, the CEO combined the idea of a restaurant and a convenience store in his new 7-Eleven outlets. The 7-Eleven stores provided an affordable and convenient location for youth to hang out and have a quick bite to eat. They also offered wireless Internet and a range of services and products like fresh food and beverages. The case requires students to outline the innovative elements that explain 7-Eleven’s success in Indonesia, reflect on its scalability and sustainability, and also to advise the CEO on further strategies to strengthen 7-Eleven in Indonesia.

Teaching Note: 8B15M081 (14 pages)
Industry: Retail Trade
Issues: Corporate strategy, emerging markets, canvas, franchising
Difficulty: 4 - Undergraduate/MBA


Chapter 24:
Ethics in International Business

JOE FRESH: ETHICAL SOURCING
Jaana Woiceshyn, Norm Althouse, Nigel Goodwin

Product Number: 9B16M023
Publication Date: 2/16/2016
Revision Date: 2/3/2016
Length: 11 pages

After more than 1,100 people lost their lives in the 2013 collapse of the Rana Plaza garment factory building in Bangladesh, executives of Joe Fresh, a Canadian fashion and lifestyle brand, had to respond. Along with numerous other Western retailers, Joe Fresh had sourced much of its merchandise from the Rana Plaza factory. The disaster evoked an emotional public reaction, ranging from sympathy to outrage. The clothing industry had become a critical part of Bangladesh’s economy, and this was not an isolated incident. How would the Rana Plaza incident affect the public perception of Joe Fresh, and what could the company do to improve that perception? More fundamentally, how could Joe Fresh balance its competitive position, obligations to shareholders, and customer demands with ethical sourcing?

Teaching Note: 8B16M023 (12 pages)
Industry: Retail Trade
Issues: Textiles, garment manufacturing, sweatshops, outsourcing, worker safety, worker health, public relations, brand perception, human rights, Loblaws, labour laws, health and safety
Difficulty: 4 - Undergraduate/MBA



FIFA: THE BEAUTIFUL GAME AND GLOBAL SCANDAL
Charles McMillan, Jeffrey Gandz

Product Number: 9B15C029
Publication Date: 9/11/2015
Revision Date: 9/11/2015
Length: 13 pages

At dawn on May 29, 2015, Swiss authorities acting on behalf of the U.S. Federal Bureau of Investigation entered a plush hotel in Zurich, Switzerland to arrest nine senior executives of FIFA (Fédération Internationale de Football Association), soccer’s global governing body, as delegates from across the world convened to elect a president to lead them for the next four years. The incumbent president, who had been in office since 1998, at first refused to step down, but pressure from the media, sponsors and fans as the investigation escalated forced him to resign a few days later. The organization’s signature event, the World Cup, had grown into a quadrennial cash cow through the shrewd sale of broadcast and marketing rights. Now, charges of corruption were forcing its governance and practices into the limelight. How could the executive forge a path ahead and what steps were needed to repair the organization’s reputation and survival?

Teaching Note: 8B15C029 (15 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Globalization, governance, ethics, multiple stakeholders; structure
Difficulty: 5 - MBA/Postgraduate