Chapter and Title |
Chapter Matches: Case Information |
Chapter 1:
What Is Strategy and Why Is It Important?
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DEEP ROOTS DISTILLERYPaul W. BeamishProduct Number: 9B16M032Publication Date: 3/9/2016Revision Date: 8/29/2019Length: 11 pagesBy September 2015, Deep Roots Distillery (DRD) had been operating for 22 months. While starting up had taken a little longer than originally estimated, material progress was now evident. By November 2015, the company expected to have six of its products (either spirits or liqueurs) available in the Prince Edward Island liquor store outlets. However, numerous questions remained for DRD’s owner and his small, family-run business. Given capital and resource constraints, how could DRD grow into a competitive business? How should time be allocated between research and development, production, marketing, and administration? Would the start-up’s current product/market strategy allow it to achieve its goals? If not, which expansion route should DRD take?Teaching Note: 8B16M032 (10 pages)Industry: Accommodation & Food ServicesIssues: dfifferentiation strategy, industry analysis, SWOT, market segmentation, family business, organic, 80-20 rule, breakeven analysis; SMEDifficulty: 4 - Undergraduate/MBA TIM HORTONS INC.Karin Schnarr, W. Glenn RoweProduct Number: 9B14M114Publication Date: 11/10/2014Revision Date: 4/22/2019Length: 15 pagesIn 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 ServicesIssues: Industry analysis; competitive strategy; merger and acquisition; strategic choice; Canada; United StatesDifficulty: 4 - Undergraduate/MBA
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Chapter 2:
The Strategic Management Process
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MADHYAMAM NEWSPAPER: WHICH WAY FORWARD?M.K. Nandakumar, Debi Prasanna Pati, Chandra Shekhar Satpathy, Biswarup Saha, Kriti Saxena, Arun NarayananProduct Number: 9B14M002Publication Date: 11/4/2014Revision Date: 11/3/2014Length: 12 pagesMadhymam was a Malayalam-language newspaper headquartered in Kerala, India. Launched by a conservative Islamic trust, much of the newspaper’s coverage and content were dictated by the trust’s conservative values. Though the high quality of Madhymam’s content was widely appreciated, this did not translate into the anticipated sales revenues. At least part of this shortfall was because of Madhymam’s public image as a pro-Muslim newspaper — an image that the newspaper’s management team had been making efforts to shed. Driven by its vision of becoming the largest newspaper in India, the management of Madhymam had been exploring various options to stimulate readership and sales. The task was made more difficult by the trust’s exclusionary policies on advertising, stiff competition from major local players, the entry of national players and the proliferation of regional news channels. In light of such challenges, how should Madhymam move forward?Teaching Note: 8B14M002 (7 pages)Industry: Information, Media & TelecommunicationsIssues: Controlling trust; changing perception; IndiaDifficulty: 5 - MBA/Postgraduate CCONMA.COM IN SOUTH KOREA: AN INNOVATIVE E-COMMERCE PLATFORMJin-Su Kang, Stephen Downing Product Number: 9B15M020Publication Date: 2/19/2015Revision Date: 2/19/2015Length: 10 pagesIn August 2012, the chief executive officer of Cconma.con, an online shopping mall based in Chung-Ju, South Korea, is considering his company’s future. The company has grown substantially since it was founded in 2005 and is now preparing to further expand into Hong Kong, China or to a second location in the United States. The company’s vision, rooted in an ethic of corporate social responsibility, is to build a happy and healthy community, including employees, customers and sellers. By focusing on its customers’ basic necessities, products for a healthy life and the needs of its producers to minimize sales costs, the company has found its niche where no other online retailer has dared to venture. Its success demonstrates that it is possible to be good and profitable at the same time. Expanding to a new location will bring myriad challenges, some of which can be anticipated while others will need to be resolved on the fly. The management team needs to focus on defining the specifics of their go-to-market plan. When should they enter? With which local players should they collaborate? Will an increased marketing effort or local outreach be necessary?Teaching Note: 8B15M020 (8 pages)Industry: Information, Media & TelecommunicationsIssues: E-commerce; CSR; business model; innovation; South KoreaDifficulty: 4 - Undergraduate/MBA
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Chapter 3:
External Analysis: Industry Structure, Competitive Forces, and Strategic Groups
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VARICUT'S STRATEGIC CHOICEDezhi Chen, Youping Chen, Paul W. BeamishProduct Number: 9B15M116Publication Date: 11/13/2015Revision Date: 3/6/2018Length: 10 pagesIn March 2015, the managing director of VariCut Electronics Component Company in Shanghai, China, was contemplating whether the company should shift its business focus from label printing to label printers. Because of fierce competition and a slowdown in the company’s 12-year-old label manufacturing business, the company was finding its competitive advantage hard to sustain. In contrast, the company’s emerging business of producing label printers had been doing well, with 30 per cent annual growth. Although the label manufacturing business had begun to struggle, it was still the main source of company revenue (80 per cent). It was uncertain whether the company’s survival and growth could be sustained if it decided to give up the label manufacturing business in order to focus on label printers. Should the company give up the label manufacturing business to make way for the label printer business? Or should it consolidate the two businesses and transition to the label printer business gradually?Teaching Note: 8B15M116 (18 pages)Industry: Other ServicesIssues: industry analysis, vertical integration, related product diversification, business transformation, China; SMEDifficulty: 4 - Undergraduate/MBA HUNGRY HOGS: THE HOT DOGS FROM INDIASonia Mehrotra, V RamLakhan Annavarpu, Mansi Soni, Surbhi BafnaProduct Number: 9B15M086Publication Date: 9/22/2015Revision Date: 11/4/2015Length: 12 pagesIn 2009, a former engineering student set out with some like-minded friends to create a unique fast food service in Bangalore. Hungry Hogs Private Limited adapted a classic western favourite — hot dogs — to the local palate. The company went on to experience substantial success with revenues in excess of INR 7 million in 2013. The founding partner who set the business in motion must decide between expanding his successful business through franchising options or through the continued establishment of company-owned stores. He is concerned about maintaining the integrity of his products, keeping control over his business and maintaining the brand's favourable image.Teaching Note: 8B15M086 (13 pages)Industry: Accommodation & Food ServicesIssues: Start-up, startup, QSR, India, expansion, strategy, emerging economy, Porter's five forces, McKinsey's 7SDifficulty: 4 - Undergraduate/MBA PRESIDENT'S CHOICE FINANCIALJeff Moretz, Chirag SurtiProduct Number: 9B15M002Publication Date: 6/24/2015Revision Date: 6/24/2015Length: 10 pagesBy 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 InsuranceIssues: Five forces, resource-based view, low cost competition, operationsDifficulty: 4 - Undergraduate/MBA CONVENE: GETTING READY FOR GROWTHSusan Fleming, Matthew LeggeProduct Number: 9B16M014Publication Date: 2/2/2016Revision Date: 2/2/2016Length: 12 pagesIn 2009, two young entrepreneurs created Convene, a New York based company with an innovative business model that catered to an underserved segment of the local meetings industry. They were in the unique position of having no real direct competitors and a tight grip on a niche market within a US$15 billion industry. However, to achieve their growth ambitions for the company, the duo had to deftly navigate the changing competitive landscape, identifying which players could become real competitors and which could be co-opted into becoming partners and clients. They also needed to adapt their business model to capture these opportunities. Over time, their expensive expansion standards and operating costs began to present a nagging concern: With only so much capital available each year, just how quickly could Convene really grow? Would the capital intensiveness of their current model stymie the rapid growth that they so desperately wanted (and needed) to achieve in order to establish a nationally recognized brand?Teaching Note: 8B16M014 (11 pages)Industry: Real Estate and Rental and LeasingIssues: New York, urban, hospitality, business model, ManhattanDifficulty: 4 - Undergraduate/MBA
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Chapter 4:
Internal Analysis: Resources, Capabilities, and Activities
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VALUE CHAIN DEVELOPMENT: CARE KENYA’S CHALLENGE TO MAKE MARKETS WORK FOR THE POOR (A)Kevin McKagueProduct Number: 9B12M033Publication Date: 4/17/2012Revision Date: 4/17/2012Length: 9 pagesThis case examines how CARE, a non-profit international development organization, begins to pursue a market-based approach to meeting its poverty-reduction mission. Specifically, a CARE project manager explores how previous work with low-income livestock herders in drought-prone eastern Kenya might offer an opportunity to work with value chain actors to improve access to markets and increase farmers’ incomes.
With the Kenyan livestock project as the pilot for this new approach, Case (A)’s main decision point concerns a strategic choice on what role CARE should play in the value chain to support low-income pastoralists. Options include 1) becoming directly involved in value chain transactions, buying and selling livestock, and providing inputs to farmers or 2) acting as a value chain facilitator to provide the information and incentives to existing actors to make the value chain more efficient and inclusive for low-income producers. This strategic decision is part of a larger proposal that students are tasked to create for CARE’s market-based livestock project.Teaching Note: 8B12M033 (13 pages)Industry: Agriculture, Forestry, Fishing and HuntingIssues: Value Chain; Social Entrepreneurship; Non-profit Organization; Agriculture; Market Analysis; Kenya; AfricaDifficulty: 4 - Undergraduate/MBA CLOVER FOOD LAB: SUSTAINABILITY AS COMPETITIVE ADVANTAGEMichael Crooke, Mark Chun, Amanda KastelicProduct Number: 9B16M046Publication Date: 3/28/2016Revision Date: 3/24/2016Length: 15 pagesBy July 2012, the founder of Clover Food Lab (Clover) had created a profitable business that served locally sourced, organic, vegetarian fast food. Over the course of four years, Clover had grown from one food truck parked on the Massachusetts Institute of Technology (MIT) campus in Cambridge to five food trucks and two brick-and-mortar restaurants in the metropolitan Boston area. With loyal customers advocating for the brand, the CEO knew that his company was well positioned for continued growth. He dreamed of turning Clover into a global fast-food provider, capturing enough market share to compete directly with international fast-food chains like McDonald’s. In 2014, he considered expanding his company into a new market and wondered whether Clover’s vision and operations could be duplicated.Teaching Note: 8B16M046 (11 pages)Industry: Accommodation & Food ServicesIssues: Environmental engagement, social engagement, CSR, corporate social responsibility, SEER Lens, Porter's five forces, competitive advantage, brand, value chain, buyer life cycleDifficulty: 4 - Undergraduate/MBA CONNECTED HEALTH TECHNOLOGY: PRIVATE PHARMACIES COMPETING INNOVATIVELY IN IRELANDNicole Gross, Niall Connolly, Peter McNamaraProduct Number: 9B15M113Publication Date: 11/18/2015Revision Date: 11/18/2015Length: 16 pagesAfter the Irish pharmacy industry’s deregulation, large competitors entered the market, upsetting small private players like single shop outlets and independent chains. While some of the new competitors implemented sophisticated technologies, others announced price cuts of up to 31 per cent on drugs. Not only did market shares for small players shrink, but the recession, changes in payment structures, government spending cuts and decreased consumer loyalty further reduced pharmacies’ profit margins. Many private pharmacists had observed that other pharmacies in Ireland and in the United States had successfully adopted connected health technologies (CHTs) to improve their performance. In order to compete against powerful multinational retail pharmacies, private pharmacists needed to analyze their business models and make any necessary alterations as soon as possible. Should they reinforce their current business models or try to innovate? Did they have the capabilities to develop CHTs and would these investments prove worthwhile?Teaching Note: 8B15M113 (11 pages)Industry: Health Care ServicesIssues: Business model innovation, industry analysis, pharmacy, celtic tiger, deregulationDifficulty: 4 - Undergraduate/MBA
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Chapter 5:
Competitive Advantage and Firm Performance
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NETFLIX INC.: STREAMING AWAY FROM DVDSLuis Alfonso Dau, David T.A. WesleyProduct Number: 9B12M040Publication Date: 4/5/2012Revision Date: 4/5/2012Length: 10 pagesThis case examines two of the leading video rental services in the United States, Blockbuster and Netflix, and how each adapted to changing technology and market forces. At the end of the case, Blockbuster has declared bankruptcy and Netflix has seen its first decline in subscribers since its founding in 1997. Netflix also faces a number of new threats, including illegal file sharing, rental kiosks, and new low-cost video-on-demand (VOD) services. Netflix responds to these threats by announcing that it will split the company in two — Netflix will focus exclusively on streaming content, while a new subsidiary called Qwikster will be restricted to providing DVDs by mail. Customers overwhelmingly react negatively to the announcement, and Netflix’s stock price plunges by more than 50 per cent.Teaching Note: 8B12M040 (7 pages)Industry: Arts, Entertainment, Sports and RecreationIssues: Competitive Advantage; Innovation; Technological Change; Technological Disruption; Movie Rental Industry; United StatesDifficulty: 2 - Intro/Undergraduate VICE MEDIA: COMPETITIVE ADVANTAGE AND GLOBAL EXPANSIONFarzad H. AlviProduct Number: 9B14M039Publication Date: 3/17/2014Revision Date: 11/17/2014Length: 13 pagesVice 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 & TelecommunicationsIssues: Competitive advantage; growth; Canada; United States; GlobalDifficulty: 5 - MBA/Postgraduate
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Chapter 6:
Business Strategy: Differentiation, Cost Leadership, and Integration
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CHARLES CHOCOLATES (A)Charlene ZietsmaProduct Number: 9B13M094Publication Date: 8/27/2013Revision Date: 4/23/2019Length: 15 pagesA new president has been hired to double or triple the size of Charles Chocolates, a high end chocolate producer and retailer in Portland, Maine. The case allows a comprehensive analysis of marketing, manufacturing, human resource, financial and strategic positioning issues in a small company with manufacturing, retailing, wholesaling and Internet operations.Teaching Note: 8B13M094 (10 pages)Industry: ManufacturingIssues: Growth Strategy; Strategic Positioning; Strategy Implementation; Strategic Change; United StatesDifficulty: 4 - Undergraduate/MBA FASHION2GO: JUST ANOTHER FASHION E-TAILER?Aditya Kumar Banerjee, Rajesh PillaniaProduct Number: 9B15M127Publication Date: 2/26/2016Revision Date: 2/26/2016Length: 11 pagesIn 2014, as large investments poured into the e-commerce space in India, there was a general expectation that the online retail (e-tail) industry was heading toward a consolidation that would squeeze out smaller players. While e-tailers in India focused on following a marketplace model and developing a brand for their online market platforms, fashion2go created a product brand that targeted a very specific segment of young customers. Fashion2go was therefore faced with the challenge of demonstrating to its investors that its strategy was capable of ensuring long-term business viability and sustainability. Without further investments, fashion2go could not expect to continue building its brand and its operations, both of which were critical for the company’s planned aggressive growth.Teaching Note: 8B15M127 (11 pages)Industry: Retail TradeIssues: Focused differentiation, e-commerce, brand equityDifficulty: 4 - Undergraduate/MBA
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Chapter 7:
Business Strategy: Innovation and Strategic Entrepreneurship
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UBER: LEADING THE SHARING ECONOMYSayan Chatterjee, Kayleigh FitchProduct Number: 9B16M024Publication Date: 2/26/2016Revision Date: 3/22/2016Length: 9 pagesUber was a technology company that relied on its mobile app and word-of-mouth advertising to reach customers interested in its transportation services. It prided itself on being an on-time, stylish, unique, and modern transportation option. However, in 2014, Uber faced many challenges and questions as an industry incumbent. Could its business model succeed despite being heavily reliant on buyers’ willingness to pay a substantial premium in some situations? Could the model be sustained and expanded into cities worldwide? How could the regulations protecting the taxi industry be overcome in so many diverse markets? Finally, how could Uber position its business model in a way that would create entry barriers to keep rivals out of the market?Teaching Note: 8B16M024 (15 pages)Industry: Transportation and WarehousingIssues: Sharing economy, network model, rapid expansion, regulation, taxi, cab, hackney carriage, competition, rideshare, apps, UberCab, regulatory issues, metered, surge pricing, point-to-point transportation, lightweight infrastructure, value proposition, global strategy, service diversityDifficulty: 4 - Undergraduate/MBA BOEHRINGER INGELHEIM: LEADING INNOVATIONJ. Robert Mitchell, Ramasastry ChandrasekharProduct Number: 9B14M168Publication Date: 1/20/2015Revision Date: 2/2/2015Length: 11 pagesThe newly appointed director of Innovation Management & Strategy at Boehringer Ingelheim, a German-based multinational pharmaceutical company, is finding his way forward in his firm’s new, first-of-its-kind role, which is central to the company’s growth rejuvenation strategy. His job has a threefold mandate: to build internal networks, to establish internal structures and to leverage internal ideas. His biggest challenge, however, may be transforming the organization’s DNA. The blockbuster business model that has characterized the company for decades is no longer appropriate. Instead, the firm needs to develop healthcare products available to end users over the counter. This shift in strategy requires innovative changes in distribution, delivery and customer focus. To accomplish this goal, he needs to institutionalize innovation so that it becomes sustainable. But in doing so, he must also identify the metrics for assessing progress. The case provides an opportunity for students to step into the shoes of an innovation leader, to develop an innovation roadmap for the organization in the face of uncertainty and to understand how to engage in innovation leadership at various levels of a global enterprise.Teaching Note: 8B14M168 (12 pages)Industry: Health Care ServicesIssues: Building internal collaborations; establishing systems and structures; organizational transformation; leveraging idea; creating intrapreneurs; Germany; United StatesDifficulty: 4 - Undergraduate/MBA
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Chapter 8:
Corporate Strategy: Vertical Integration and Diversification
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CRISIS AT THE BALLY WEDDING DRESS COMPANYJiqing (Harvey) Zhu, Paul W. Beamish, Lu YunProduct Number: 9B15M117Publication Date: 11/26/2015Revision Date: 11/27/2015Length: 7 pagesCapitalizing 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 ServicesIssues: environmental change, vertical integration, labour costs, copyright, China; SMEDifficulty: 4 - Undergraduate/MBA HUAYI BROTHERS: STRATEGIC TRANSFORMATIONJie Li, Jean-Louis SchaanProduct Number: 9B15M126Publication Date: 12/17/2015Revision Date: 3/6/2018Length: 14 pagesIn March 2015, Huayi Brothers Media Corporation is China’s most influential entertainment company, accounting for one-fifth of the country’s total yearly box office revenues. In recent years, in an effort to leverage its movie content and copyrights, the company has expanded into developing and distributing games on the Internet as well as building entertainment theme parks in Asia. Now, the chairman and co-founder is considering a partnership with Hollywood’s STX Entertainment to jointly invest in and co-produce 18 films and distribute them worldwide within two years. Should the company enter into this partnership or not? What is the best strategy to move forward and grow internationally outside of China? Or should the company concentrate on bettering its competition by concentrating on its core business portfolio in visual (both movies and television), live (musical performances and theme parks) and Internet gaming in China and Asia?Teaching Note: 8B15M126 (8 pages)Industry: Arts, Entertainment, Sports and RecreationIssues: Internationalization, global strategy, diversification, ChinaDifficulty: 5 - MBA/Postgraduate UNITED DAILY NEWS GROUP (A): BUILDING HYBRID BUSINESS MODELSRueylin Hsiao, Jean-Louis SchaanProduct Number: 9B15M075Publication Date: 7/30/2015Revision Date: 7/30/2015Length: 13 pagesThe United Daily News Group, a leader in Taiwan’s media, faces the imminent death of the country’s newspaper industry. The founder’s grandson took over as the company’s chair just four years earlier, during a time when an increasing number of readers were turning to the Internet for their news. Looking ahead, he needs to sustain the company’s future development while recognizing that the business of running traditional newspapers may no longer be profitable. He needs to assess the company’s strengths, integrate the group’s resources, improve news content, introduce digital media and, in doing so, create a new business model. He wonders how to best initiate the integration of resources and which media innovations he should introduce. See supplement cases 9B15M076 and 9B15M077.Teaching Note: 8B15M075 (12 pages)Industry: Information, Media & TelecommunicationsIssues: Strategic renewal; diversification; TaiwanDifficulty: 4 - Undergraduate/MBA
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Chapter 9:
Corporate Strategy: Acquisitions, Alliances, and Networks
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NORA-SAKARI: A PROPOSED JV IN MALAYSIA (REVISED)Paul W. Beamish, R. Azimah AinuddinProduct Number: 9B15M085Publication Date: 9/9/2015Revision Date: 4/10/2019Length: 13 pagesThis 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: 8B15M085 (12 pages)Industry: Information, Media & TelecommunicationsIssues: Intercultural Relations; Third World; Negotiation; Joint Ventures; Finland; MalaysiaDifficulty: 4 - Undergraduate/MBA FACEBOOK AND WHATSAPP: ACQUIRE OR ALLY?Meeta DasguptaProduct Number: 9B14M107Publication Date: 9/2/2014Revision Date: 9/2/2014Length: 18 pagesEstablished in 2004, Facebook had shown stupendous growth. However, faced with the evolving mobile communication industry and increasing competition, the company was on the lookout to increase its user base by acquiring WhatsApp. Was it the right decision for Facebook to acquire WhatsApp — and at the steep price of $19 billion? From WhatsApp’s perspective, the company’s founder wanted to continue with his vision of connecting people, irrespective of the decision involving Facebook. Should WhatsApp sell its assets to Facebook or should it insist on an equity alliance instead?Teaching Note: 8B14M107 (11 pages)Industry: Information, Media & TelecommunicationsIssues: Acquisitions; industry dynamics; post-merger integration; financial evaluation; United StatesDifficulty: 5 - MBA/Postgraduate RENAULT-NISSAN ALLIANCE: WILL FURTHER INTEGRATION CREATE MORE SYNERGIES?Wiboon Kittilaksanawong, Caroline PaleckiProduct Number: 9B15M087Publication Date: 10/19/2015Revision Date: 10/19/2015Length: 12 pagesIn 2015, Renault-Nissan Alliance (RNA) launched four convergence projects in four key functions (research and development, manufacturing and logistics, purchasing, and human resources). The projects required the two independent entities, Renault and Nissan, to increase collaboration and integration to strengthen economies of scale, and thus reduce costs in order to better compete globally in both developed and emerging markets. However, as the alliance increased the level of integration and opened possibilities for inviting new partners, it also increased the time and resources needed to reach joint strategic decisions between the two companies. RNA had many difficult decisions to make with respect to moving forward — not least of which involved finding an eventual replacement for the alliance’s 61-year-old chief executive officer.Teaching Note: 8B15M087 (12 pages)Industry: ManufacturingIssues: Strategic alliance; supplier relationship; keiretsuDifficulty: 4 - Undergraduate/MBA NESTLÉ AND TOTOLE: A FOREIGN-INVESTED ENTERPRISE IN CHINALibo Fan, Yingchao Zhou, Oded ShenkarProduct Number: 9B15M100Publication Date: 1/8/2016Revision Date: 1/7/2016Length: 9 pagesAfter acquiring a majority stake in the Shanghai Totole Food Company, a leader in the Chinese chicken powder industry, Nestlé faced dilemmas regarding maintaining control over this foreign-invested enterprise (FIE). Despite its 80 per cent stake, and in a departure from past practice, the Swiss company let its minority Chinese partner remain firmly in control. The circumstances surrounding the integration of Totole posed questions about the strategic decisions surrounding investment in a Chinese enterprise by a multinational firm and the challenges of integrating local and global operations. In 2012, Nestlé began talks with the general manager of Totole about acquiring the remaining 20 per cent of the company. Should Totole sell the remaining 20 per cent of shares and, if so, how and when should it do it?Teaching Note: 8B15M100 (7 pages)Industry: Accommodation & Food ServicesIssues: Mergers; acquisitions; post-acquisition; foreign-invested enterprise; ChinaDifficulty: 5 - MBA/Postgraduate
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Chapter 10:
Global Strategy: Competing Around the World
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IMAX EXPANSION IN BRIC ECONOMIES (REVISED)Dwarkaprasad Chakravarty, Paul W. BeamishProduct Number: 9B15M028Publication Date: 3/16/2015Revision Date: 8/26/2016Length: 14 pagesIn 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 & TelecommunicationsIssues: Expansion; emerging markets; FDI; CanadaDifficulty: 4 - Undergraduate/MBA KASSATLY CHTAURA: TIME TO EXPAND ABROAD?Jean-Louis Schaan, Ramzi FathallahProduct Number: 9B15M104Publication Date: 10/29/2015Revision Date: 12/1/2015Length: 13 pagesIn April 2013, Kassatly Chtaura, a family-owned producer of both alcoholic and non-alcoholic beverages headquartered in Chtaura, Lebanon, faces a dilemma. It is doing very well in terms of revenues and market share and has succeeded in building a strong cash flow. However, the past year’s figures show little growth, and the family is concerned that sales of its syrups, juices, ready-to-drink beverages and wines have reached a plateau. Should the company expand its distribution network or build a new factory and move some operations to Saudi Arabia or Angola? These are promising markets, but they are in distant locations with different cultures. Or should it stay put and expand its operations by introducing a new product, beer? Adding to its successful portfolio will complement its business strengths in Lebanon, especially when bolstered by one of its highly successful advertising campaigns, and accomplish a family dream. Given the uncertain political situation in Lebanon, is it time to invest in international markets?Teaching Note: 8B15M104 (16 pages)Industry: ManufacturingIssues: Expansion, growth, exports, family businessDifficulty: 4 - Undergraduate/MBA EIKON DEVICE INC.: CREATING AN INTERNATIONAL STRATEGYAnthony GoerzenProduct Number: 9B13M089Publication Date: 2/14/2014Revision Date: 2/13/2014Length: 15 pagesEikon Device Ltd, a tattoo equipment and supplies firm, has to choose between several alternatives. Their core business is the production of tattoo needles and the power supply that makes tattoo machines operate, selling primarily into the United States and Canada. With increasing international demand however, should they consider establishing a distribution facility abroad? Alternatively, since much of their success is derived from catering to the specific needs of tattoo artists, should Eikon expand its product line for the North American market? At the same time, competition from China has emerged to push Eikon out of its core markets. Eikon management has to prioritize their initiatives.Teaching Note: 8B13M089 (6 pages)Industry: ManufacturingIssues: Foreign competition; tattoo industry; CanadaDifficulty: 4 - Undergraduate/MBA
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Chapter 11:
Organizational Design: Structure, Culture, and Control
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VICTORIA HEAVY EQUIPMENT LIMITEDTom A. Poynter, Paul W. BeamishProduct Number: 9B08M037Publication Date: 4/15/2008Revision Date: 5/18/2017Length: 12 pagesVictoria 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: ManufacturingIssues: Growth Strategy; Organizational Structure; Leadership; DecentralizationDifficulty: 4 - Undergraduate/MBA JOYUS - BUILDING AN ORGANIZATIONAL STRUCTURE FOR SCALEMatthew Wong, Darren MeisterProduct Number: 9B16M003Publication Date: 1/13/2016Revision Date: 1/28/2016Length: 6 pagesJoyus is a growing online video shopping marketplace specializing in women’s health, beauty and fashion products. After three years of operations and having recently secured substantial funding, the company is poised for future growth. The co-founder and chief executive officer faces the difficult challenge of building the right management team and the appropriate organizational structure to support the company’s desired growth. She needs to structure the organization from a human resources perspective, by evaluating the organizational needs and determining the right mix of skills, abilities and personalities required for success.Teaching Note: 8B16M003 (14 pages)Industry: Information, Media & TelecommunicationsIssues: Growth, leadership, organizational cultureDifficulty: 4 - Undergraduate/MBA
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Chapter 12:
Corporate Governance, Business Wthics, and Strategic Leadership
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APPLE AND ITS SUPPLIERS: CORPORATE SOCIAL RESPONSIBILITYSun Hye Lee, Michael J. Mol, Kamel MellahiProduct Number: 9B16M040Publication Date: 3/22/2016Revision Date: 3/4/2016Length: 10 pagesAWARD 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: ManufacturingIssues: Customer service, relations, supply chain, offshoring, CSR, worker safety, ethical business operations, regulations, public image, worker rights, Foxconn, original design manufacturer, ODM, fair labour, responsibilityDifficulty: 4 - Undergraduate/MBA BLC BANK AND THE QUEST FOR WOMEN'S EMPOWERMENT IN MENAFarah Matar, Dima JamaliProduct Number: 9B15M106Publication Date: 11/3/2015Revision Date: 11/21/2016Length: 13 pagesIn 2010, the assistant general manager and head of strategic development at Lebanon’s BLC Bank attended the annual summit of the Global Banking Alliance for Women, a leading organization of financial institutions that drove the creation of women’s wealth worldwide. On her return to Beirut, she encouraged her bank to capitalize on the inclusion of women as a relevant differentiator from both a business and societal perspective. The result of research into the economic, demographic and social needs of the country was the launch in 2012 of the "We Initiative", a unique and comprehensive program dedicated to the economic empowerment of women in the Middle East and North Africa region. By 2015, the program’s success not only served the bank’s economic bottom line but also benefited the Lebanese economy and community as a whole and exemplified the bank’s sense of responsibility to its society.Teaching Note: 8B15M106 (7 pages)Industry: Finance and InsuranceIssues: Strategic corporate social responsibility, creating shared value, women in business, banking sectorDifficulty: 4 - Undergraduate/MBA CLOVER FOOD LAB: SUSTAINABILITY AS COMPETITIVE ADVANTAGEMichael Crooke, Mark Chun, Amanda KastelicProduct Number: 9B16M046Publication Date: 3/28/2016Revision Date: 3/24/2016Length: 15 pagesBy July 2012, the founder of Clover Food Lab (Clover) had created a profitable business that served locally sourced, organic, vegetarian fast food. Over the course of four years, Clover had grown from one food truck parked on the Massachusetts Institute of Technology (MIT) campus in Cambridge to five food trucks and two brick-and-mortar restaurants in the metropolitan Boston area. With loyal customers advocating for the brand, the CEO knew that his company was well positioned for continued growth. He dreamed of turning Clover into a global fast-food provider, capturing enough market share to compete directly with international fast-food chains like McDonald’s. In 2014, he considered expanding his company into a new market and wondered whether Clover’s vision and operations could be duplicated.Teaching Note: 8B16M046 (11 pages)Industry: Accommodation & Food ServicesIssues: Environmental engagement, social engagement, CSR, corporate social responsibility, SEER Lens, Porter's five forces, competitive advantage, brand, value chain, buyer life cycleDifficulty: 4 - Undergraduate/MBA
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