Ivey Publishing

International Business

Peng, M.; Meyer, K,3/e (United Kingdom, Cengage Learning EMEA, 2019)
Prepared By Klaus Meyer, Author/Professor
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Globalizing Business

WHERE HAVE YOU BEEN?: AN EXERCISE TO ASSESS YOUR EXPOSURE TO THE REST OF THE WORLD’S PEOPLES (2019)
Paul W. Beamish

Product Number: 9B19M094
Publication Date: 8/22/2019
Revision Date: 8/22/2019
Length: 11 pages

This annually updated exercise assesses one’s exposure to the rest of the world’s peoples. A series of worksheets require the respondents to check off the number and names of countries they have visited whether for business, family or tourism reasons, and the corresponding percentage of world population which each country represents. The summary of a group’s collective exposure to the world’s people will inevitably be the recognition that together they have seen much, even if individually some have seen little. The teaching note provides assignments and discussion questions which look at: why there is such a high variability in individual profiles; the implications of each profile for one’s business career; and, what it would take for the respondent to change his/her profile.

For marketers, it underscores the need to gather greater base knowledge about opportunities in 211 countries spread across 8 regions: Africa; North America and Caribbean; South America; Western Europe; Eastern Europe; Central Asia and Indian Subcontinent; Middle East; Asia Pacific.


Teaching Note: 8B19M094 (6 pages)
Issues: Career advancement;Intercultural relations;Team-building;Internationalization;Diversity;Hiring & employment
Difficulty: 4 - Undergraduate/MBA



GENICON: A SURGICAL STRIKE INTO EMERGING MARKETS
Allen H. Kupetz, Adam P. Tindall, Gary Haberland

Product Number: 9B10M041
Publication Date: 5/5/2010
Revision Date: 5/3/2017
Length: 13 pages

A critical question facing a company's ability to grow its business internationally is where it should go next. One company facing that decision was GENICON, a U.S.-based firm that manufactured and distributed medical instruments for laparoscopic surgeries. Although the minimally invasive surgical market in the United States had long been the largest in the world, international markets were anticipated to grow at a much faster rate than the U.S. market for the foreseeable future. GENICON was already in over 40 international markets and was looking in particular at the rapidly emerging markets - Brazil, Russia, India and China - as potential new opportunities for growth. This case is appropriate for use in an international business course to introduce market selection strategy. It can also be used in sessions on international marketing, entrepreneurship and business strategy.

Teaching Note: 8B10M41 (9 pages)
Industry: Manufacturing
Issues: China; International Expansion; Entrepreneurial Marketing; Emerging Markets; International Business
Difficulty: 4 - Undergraduate/MBA



CARLSBERG IN EMERGING MARKETS
Michael W. Hansen, Torben Pedersen, Marcus M. Larsen

Product Number: 9B11M009
Publication Date: 3/23/2011
Length: 12 pages

Risking becoming the target of a hostile takeover or being cornered as a small regional player in the global beer industry, the Danish brewery Carlsberg decided in the early 2000s to expand into rapidly growing emerging markets to pursue new arenas of growth. By 2008, this strategy had paid off, and Carlsberg was positioned among the five largest breweries in the world. In the Russian market — one of the fastest-growing markets in the world — Carlsberg had become the market leader. In China — the world’s largest beer market in terms of size and population — the company had achieved a 55 per cent market share in Western China, and operated 20 brewery plants with approximately 5,000 employees. The ambitious acquisition strategy applied in emerging markets had become essential to Carlsberg’s business in relation to future growth and profits. Accordingly, the case focuses on Carlsberg’s entry into China, which started as a commercial failure in the eastern part of the country, but subsequently developed successfully in the west.

Teaching Note: 8B11M009 (15 pages)
Industry: Manufacturing
Issues: Acquisition Strategy; Global Strategy; Emerging Markets; Marketing Management; Beer Industry; Denmark; China
Difficulty: 4 - Undergraduate/MBA



GARRARD JAPAN: GLOBAL OR LOCAL?
Paul W. Beamish, Ramasastry Chandrasekhar

Product Number: 9B19M031
Publication Date: 4/26/2019
Revision Date: 4/26/2019
Length: 9 pages

In late September 2017, the country manager of Garrard Japan was reviewing an interim strategy to deal with emerging, negative views on the ongoing globalization of industry and commerce. Garrard Japan was a wholly owned subsidiary of Garrard S.A., a leading packaged foods company. The European-based multinational enterprise had been a major contributor to globalizing trade and commerce, and the survey results had highlighted a Japanese view that global companies were concerned more with profits than with meeting the needs of local communities. The country manager wondered whether the strategy developed by his team to change these perceptions was adequate. He was also considering how to execute the strategy and who should pay for it: Garrard Japan or Garrard S.A.?

Teaching Note: 8B19M031 (10 pages)
Issues: Anti-globalization;Subsidiaries;Headquarters;Relationships;Localization;Globalization
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Formal Institutions: Economic, Political and Legal Systems

THE EDIFÍCIO ESPAÑA: A GLOBAL INVESTOR MEETS LOCAL POLITICS
Klaus Meyer, Alicia Wang, Tomaz Fittipaldi

Product Number: 9B17M108
Publication Date: 7/31/2017
Revision Date: 7/31/2017
Length: 12 pages

The Dalian Wanda Group Co. Ltd. (Wanda) was a fast-growing real estate imperium in China, built by Jianlin Wang, the wealthiest man in China. In 2010, Wang transformed Wanda into an entertainment conglomerate and initiated an ambitious international growth strategy. His ambitions knew few limits; however, one of his acquisitions—the Edificio España in Spain, an iconic historical building in the centre of Madrid—ran into difficulties due to conflicts with the local authorities. Wang’s refurbishment plans for Edificio España envisaged a comprehensive renovation and upgrade of the building’s commercial spaces, which required approvals from the Local Historical Heritage Commission. Initially, politicians expressed their support for Wang’s plan, but the application progressed slowly through the formal process and became entangled in local politics. A local election mid-process resulted in a new party gaining control of the city council—a governing party that was not supportive of Wang’s plans. Should Wang cut his losses and sell the building, or persist and reboot his project management?

Teaching Note: 8B17M108 (13 pages)
Industry: Real Estate and Rental and Leasing
Issues: non-market strategy , political risk , MNE to government relations, managing foreign subsidiaries, international entrepreneurship, urban development, stakeholders of the MNE, protection of cultural heritage
Difficulty: 4 - Undergraduate/MBA



CNOOC ENGAGES WITH CANADIAN STAKEHOLDERS
Klaus Meyer, Alexandra Han

Product Number: 9B17M005
Publication Date: 1/11/2017
Revision Date: 1/11/2017
Length: 14 pages

AWARD WINNING CASE - Emerging Chinese Global Competitors Award, 2016 European Foundation for Management Development (EFMD) Case Writing Competition. In 2012, the Chinese state-owned oil corporation China National Offshore Oil Corporation (CNOOC) acquired Nexen, a Canadian oil exploration company, in what was the largest-ever acquisition abroad by a Chinese company. The Chinese economy had become increasingly dependent on imported energy and the aim of this acquisition was to secure access to natural resources around the world. The deal received intense media attention and its merits for Canada were widely discussed in the media. Eventually, it was approved by the Canadian government after CNOOC made substantial commitments regarding Nexen’s future operations. However, after the acquisition, Nexen experienced considerable challenges regarding its financial performance and its health, safety, and environment processes. Financial performance was undermined by a sharp drop in the price of oil from 2014 onward. Moreover, Nexen’s operations were disrupted by a pipeline leak, a closure of pipelines by the regulator, and a plant explosion. Each event challenged the Chinese and Canadian leadership of Nexen to face the media and minimize reputational damage and safeguard its health and safety record. How could the company cut its losses and downscale its engagement in Canada? Did it need to refocus its Canadian operations to use its assets in a different way?

Teaching Note: 8B17M005 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Chinese multinationals, stakeholders, mergers and acquisitions, public relations, environmental standards, crisis management, media relations
Difficulty: 5 - MBA/Postgraduate



STARBUCKS, HOWARD SCHULTZ, AND THE TRUMP EFFECT
W. Glenn Rowe, Ken Mark

Product Number: 9B19M117
Publication Date: 9/18/2019
Revision Date: 9/18/2019
Length: 12 pages

After the former chief executive officer (CEO) of U.S.-based Starbucks started to voice his political opinions in September 2016, both Starbucks and the CEO faced backlash. As the CEO and former chairman of a large company, he may have felt entitled to voice his opinion as an individual voter. However, public backlash—from both sides of the U.S. political spectrum—suggested that commentators, looking to respond to him, were actually targeting Starbucks. In 2019, the challenge for Starbucks’ new CEO was to find a way to tactfully extricate Starbucks from political conversations.

Teaching Note: 8B19M117 (6 pages)
Industry: Accommodation & Food Services
Issues: Corporate governance;Management styles;Trump Effect
Difficulty: 4 - Undergraduate/MBA



MTN AND THE NIGERIAN FINE
Albert Wöcke, Paul W. Beamish

Product Number: 9B17M031
Publication Date: 2/14/2017
Revision Date: 2/14/2017
Length: 16 pages

In late 2015, South African telecommunications giant MTN was fined US$5.2 billion by the Nigerian authorities for a mass of improperly registered subscribers—the largest fine of its kind ever imposed in the industry anywhere in the world. MTN was an emerging-market multinational corporation with a track record of successfully operating in some of the toughest, riskiest emerging markets. Thus, it was surprising that MTN had been unable to avoid a fine of this magnitude. Three factors had preceded the fine and changed the business environment in Nigeria leading up to 2015: the first was the war against the Boko Haram movement in Nigeria, which led security forces to demand the registration of prepaid phone cards; the second was the economic crisis caused by the impact of falling oil prices; and the third factor was a change in government. In light of these political risks and government regulations, how could MTN recover and move forward from this difficult situation?

Teaching Note: 8B17M031 (12 pages)
Industry: Information, Media & Telecommunications
Issues: emerging markets, political risk, government relations, informal banking system, regulatory compliance, corporate responsibility, flexibility
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Informal Institutions: Culture, Religion and Languages

A FEW TIPS ABOUT CORRUPTION IN THE U.S.
Andrew Karl Delios

Product Number: 9B06M089
Publication Date: 11/6/2006
Length: 7 pages

This case presents the situation faced by three people in the United States as they exit a restaurant in California. They are discussing whether tipping is a form of private sector corruption, similar to public sector corruption that pervades many countries worldwide. Discussion ensues on what constitutes corruption, and whether private and public sector corruption are required and ethical business practices.

Teaching Note: 8B06M89 (9 pages)
Industry: Manufacturing
Issues: China; Ethical Issues; Political Environment; International Business; Internationalization
Difficulty: 4 - Undergraduate/MBA



DAIMLER CHINA: FACING A MEDIA FIRESTORM
Wolfgang Messner, Hyo Jin Yoon

Product Number: 9B18C012
Publication Date: 5/1/2018
Revision Date: 4/26/2019
Length: 6 pages

The chief executive officer of Daimler Trucks and Buses China Ltd. was on an expatriate assignment in China. In November 2016, he faced a discomforting situation that could bring an abrupt halt to his career; an unfortunate incident in which he lost his temper led to fierce outrage in local Chinese and worldwide media. The media reaction threatened China’s prominence as a major source of revenue for Daimler, and sent Daimler’s share price on a downhill spiral. How should Daimler react, and what could it do to restore the company brand image?

Teaching Note: 8B18C012 (13 pages)
Industry: Manufacturing
Issues: culture shock, expatriate, human resources, public relations management, Daimler
Difficulty: 4 - Undergraduate/MBA



THE RHINOCEROS HORN TRADE: CONSIDERING LEGALIZATION
Kent Walker, Kara Kristof

Product Number: 9B19M099
Publication Date: 9/5/2019
Revision Date: 9/4/2019
Length: 12 pages

The international demand for rhinoceros (rhino) horns was driving the species to near extinction. But an international ban on trading the horns made it lucrative to illegally kill rhinos for their horns, which were traded on the black market. One hotly debated idea to curb rhino poaching was to legalize the trade of farmed rhino horns, which could be sustainably obtained without killing the animal.

The founder and chief executive officer (CEO) of a non-governmental organization (NGO), Helping Rhinos, opposed legalizing the trade of rhino horns, as had other NGOs. He wondered, though, whether he and his organization should reconsider that position. Legalizing the sale of sustainable rhino horns could counter the black-market demand and protect the remaining, endangered rhinos. At the next board meeting, the founder and CEO needed to recommend whether the organization should continue to oppose legalization or change its approach and advocate for multi-nation legalization. But first he needed to consider the perspectives of the various stakeholders and which decision would be in the best interest of the rhinos. How should he and the NGO proceed?


Teaching Note: 8B19M099 (15 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Rhinoceros;Legalization;Extinction;nongovernmental organization;Stakeholders;South Africa
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Firm Resources: Competitiveness and Growth

LEGO GROUP: AN OUTSOURCING JOURNEY
Marcus M. Larsen, Torben Pedersen, Dmitrij Slepniov

Product Number: 9B10M094
Publication Date: 12/1/2010
Revision Date: 5/10/2017
Length: 16 pages

The last year's rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world - the LEGO Group - the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in its roughly 70 years of existence, the management had, among many initiatives, decided to offshore and outsource a major chunk of its production to Flextronics. In this pursuit of rapid cost-cutting sourcing advantages, the LEGO Group planned to license out as much as 80 per cent of its production besides closing down major parts of the production in high cost countries. Confident with the prospects of the new partnership, the company signed a long-term contract with Flextronics. This decision eventually proved itself to have been too hasty, however. Merely three years after the contracts were signed, LEGO management announced that it would phase out the entire sourcing collaboration with Flextronics. This sudden change in its sourcing strategy posed LEGO management with a number of caveats. Despite the bright forecasts, the collaboration did not fulfill the initial expectations, and the company needed to understand why this had happened. Secondly, what could LEGO management have done differently?

Teaching Note: 8B10M94 (13 pages)
Industry: Manufacturing
Issues: Outsourcing; Management Control; Global Strategy; Supply Chain Management
Difficulty: 4 - Undergraduate/MBA



COLOPLAST A/S - ORGANIZATIONAL CHALLENGES IN OFFSHORING
Torben Pedersen, Jacob Pyndt, Bo Bernhard Nielsen

Product Number: 9B08M031
Publication Date: 7/25/2008
Length: 16 pages

Coloplast's future global manufacturing strategy was based on relocation of volume production of mature product lines to low cost countries like Hungary and China, whereas most creative and innovative activities (pilot production, ramp-up and range care) were retained in Denmark. The large scale project of offshoring, first volume production and later perhaps other activities, to Tatabanya, Hungary constituted a major shift in the operational strategy for Coloplast, which resulted in a series of organizational and managerial challenges. An important feature of the case is the surprise to the management team of how challenging it was to globalize the operations despite Coloplast's international experience operating a network of subsidiaries in more than 26 countries. The management team learned how important it is to have the structure, the organization and the mindset in place when offshoring production. Sourcing internationally is very different from selling internationally as it involves the entire organization. The learning process of the management team and the challenges they faced is unfolded in this case.

Teaching Note: 8B08M31 (16 pages)
Industry: Manufacturing
Issues: Operations Management; Human Resources Management; Centralization; Management Science and Info. Systems; Management Information Systems; Organizational Behaviour; International Management; Change Management; Value Chain
Difficulty: 4 - Undergraduate/MBA



VOLKSWAGEN STRATEGY 2025: SHIFTING GEARS IN DISRUPTIVE TIMES
Andreas Schotter, Thomas Watson, Ramasastry Chandrasekhar

Product Number: 9B19M047
Publication Date: 6/5/2019
Revision Date: 6/5/2019
Length: 17 pages

In 2018, Volkswagen Group’s newly appointed chief executive officer renewed the company’s commitment to Strategy 2025, an ongoing plan intended to radically transform the German automaker. Volkswagen was being challenged by tectonic changes in the automotive industry, including the phasing out of the long-standing internal combustion engine, ongoing digitization, the entry of new competition from technology companies, the introduction of electric vehicles, and the launch of ride-sharing applications. Strategy 2025 was designed to reshuffle the company’s existing formal and informal structures and restructure the automaker into a nimble, agile, and innovative corporation ready to face the realities of mobility in the digital age. The new chief executive officer faced huge expectations concerning the effectiveness and sustainability of Strategy 2025. Was the automaker doing enough to transform into a competitive mobility company?

Teaching Note: 8B19M047 (11 pages)
Industry: Transportation and Warehousing
Issues: Disruption;Strategic moves;Incumbents
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Trading Internationally

CHINESE FIREWORKS INDUSTRY
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



SOMPACK: IF YOU CAN'T BEAT THEM, JOIN THEM?
Sema Dube, Manu Dube

Product Number: 9B10M071
Publication Date: 10/22/2010
Length: 10 pages

This case considers attempts by a Turkish manufacturer of cosmetics packaging to trade off quality for cost, in order to compete with the influx of low-cost products from China. It describes the challenges faced by SomPack management in their effort to survive in the face of low-cost Chinese competition as well as the credit crisis. The company had grown because of its focus on quality and customer relations, but had to slash costs first in response to foreign competition and then again due to the global credit crisis. The case discusses many facets of the company's strategy: company efforts at automation to reduce labour costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; use of cheaper raw material that required specialized equipment; use of cheaper costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; use of cheaper raw material that required specialized equipment; use of cheaper machines that were not acceptable to customers who required high-quality manufacturing; implementation issues with a lower-cost ERP system; and attempts at outsourcing certain components. Decisions to reduce the quality of either processes or products must be made with great care: even though they are meant to be short-term survival measures, they can create significant short-term disruptions apart from potential long-term problems, such as making the company less attractive as a supplier to customers who may still prefer quality and service over cost.

Teaching Note: 8B10M71 (9 pages)
Industry: Manufacturing
Issues: Strategic Change; Industry Globalization; Enterprise Resource Planning; Outsourcing; Quality; International Trade; Production Management/Control; Marketing Management; Information Systems; Cost Control; Automation; Competition
Difficulty: 4 - Undergraduate/MBA



TRUE FRUITS: A JUICED-UP INTERNATIONALIZATION STRATEGY
Marc Fetscherin, Patrick Sell

Product Number: 9B17A058
Publication Date: 11/13/2017
Revision Date: 3/22/2018
Length: 13 pages

In 2017, True Fruits, a German smoothie company, was operating in three European markets. The company had developed flash pasteurization, which was an efficient and gentle production process that made their product one of the highest quality smoothies in the world. The company successfully exported its product to premium Austrian and Swiss supermarkets, and was planning further expansion within Europe. True Fruits had strong brand loyalty, and a noteworthy, healthy lifestyle-oriented product. True Fruits' owners were convinced that entering other European markets would fuel the company’s growth.

Teaching Note: 8B17A058 (17 pages)
Industry: Accommodation & Food Services
Issues: industry analysis, market selection
Difficulty: 4 - Undergraduate/MBA



THE PEARL INDUSTRY: IS THERE A MARKET OPPORTUNITY?
Su Liu, Alex Beamish, Paul W. Beamish, Mila Bojic

Product Number: 9B18M165
Publication Date: 10/25/2018
Revision Date: 10/25/2018
Length: 10 pages

In May 2018, a China-born entrepreneur living in Canada was at a seaside market in Qingdao, China, inspecting inexpensive pearls. She wondered whether pearls presented a good market opportunity in the West. At markets in China, she consistently found cultured pearls that would cost far more in Canada. This experience led her to wonder whether or not it was feasible to sell pearls on a wholesale basis in Canada, or perhaps through one of many retail options. Or was there a reason why pearls—such a timeless product—did not present more of a dynamic market opportunity in the West?

Teaching Note: 8B18M165 (13 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: industry analysis, competitive strategy, marketing plan, retail; SME
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Investing Abroad Directly

LYONBIOPÔLE: THE CHALLENGE OF BECOMING A WORLD-CLASS BIOTECHNOLOGY CLUSTER
Anthony Goerzen, Ana Colovic

Product Number: 9B09M075
Publication Date: 11/20/2009
Length: 13 pages

In December 2007, the Economics & International Affairs director of the competitiveness cluster, Lyonbiopôle, was responsible for the international development of the cluster. Lyonbiopôle was one of seven biotechnology clusters in France. Although Lyonbiopôle performed very well at the national level, its visibility as an international cluster in the biotechnology field was uncertain. Yet, for its member firms to thrive in the globalized world of biotechnology clusters, establishing international connections for the cluster was crucial. That is why the management team of Lyonbiopôle developed an internationalization program through alliances with foreign clusters (i.e. interclusteral alliances). By improving its international visibility and reputation through alliances with world-class biotechnology clusters, Lyonbiopôle hoped to create new technological partnerships, increase investment, and create other kinds of opportunities for member firms. After having successfully established alliance partnerships in Europe, Lyonbiopôle was preparing for the second stage in its internationalization process. The case highlights the questions - in the context of industrial clusters - whether or not a smaller organization can approach an industry leader to create a mutually beneficial alliance, and how it might accomplish this.

Teaching Note: 8B09M75 (7 pages)
Industry: Manufacturing
Issues: Industry Globalization; Internationalization; Pharmaceuticals; Industry Clusters; Alliances
Difficulty: 4 - Undergraduate/MBA



IMAX EXPANSION IN BRIC ECONOMIES (REVISED)
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



ARÇELIK GROWS IN ADVANCED AND EMERGING ECONOMIES
Saul Estrin, Klaus Meyer

Product Number: 9B15M021
Publication Date: 6/15/2015
Revision Date: 6/15/2015
Length: 18 pages

Arçelik, a member of the Turkish Koç Group, had grown from a leading manufacturer of household appliances (also known as ‘white goods’) in Europe’s largest emerging economy to a substantive international player. Yet the company faced new challenges in strengthening its positions in advanced economies, exploiting its competitive advantages across a wider range of emerging economies and in raising the profitability of its international operations. In Western Europe, its Beko brand was often perceived as a low-tier brand, and in most of the region, brand recognition was low. In Eastern Europe, Arçelik’s low-cost strategies matched local demand, but the potential for demand growth was limited. In the Middle East, brand recognition was strong, but political risks remained high. In other emerging economies, Arçelik’s product offering fit local demand patterns well, yet trade barriers inhibited import market penetration. Thus, the firm needed to design and prioritize strategic initiatives for future growth.

Teaching Note: 8B15M021 (11 pages)
Industry: Manufacturing
Issues: Emerging economy; multinational enterprise; foreign entry; mergers; acquisitions
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Exchange Rates

ACPANA BUSINESS SYSTEMS INC.: EFFECT OF CURRENCY EXPOSURE ON REVENUE
Colette Southam, Robert Schenkel

Product Number: 9B11N010
Publication Date: 7/20/2011
Length: 6 pages

The vice president of operations for Acpana Business Systems Inc., a Canadian software development and backup-as-a-service provider located in Toronto, Canada, is concerned that the recent appreciation of the Canadian dollar is significantly affecting Acpana’s revenue and undermining the company’s organic growth. The case focuses on understanding and quantifying the risks associated with exchange rate fluctuation and its impact on a firm’s revenues and costs. The case introduces instruments available to hedge risk, including forward contracts and put and call options.

Teaching Note: 8B11N010 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Foreign Exchange; Risk Management; Put and Call Options; Forward Contracts
Difficulty: 3 - Undergraduate



AIR CANADA - RISK MANAGEMENT
David Wood, Craig Dunbar

Product Number: 9B10N037
Publication Date: 12/13/2010
Length: 11 pages

The chief executive officer (CEO) of Air Canada was reviewing the company's risk management program with the intent to suggest changes to the policy. Risk management was a topic all corporate boards were dedicating time to since the financial collapse of 2008, and boards had come to realize that hard questions needed to be asked about the source of risk, how it was disclosed, how it was to be accounted for and how it was managed. The CEO knew that he needed to consider the impact of his view of the economy, interest rates, exchange rates and the commodity markets on how aggressive Air Canada should be with its appropriate hedges. He decided to start by identifying the most relevant sources of external risk that could materially affect Air Canada's short and long-term financial performance. He then wanted to understand how these risks were managed today and how they compared to West Jet, their main competitor. Finally, he wanted to determine what changes should be made to either eliminate the source of risk or better manage any significant risks that remained.

Teaching Note: 8B10N037 (16 pages)
Industry: Transportation and Warehousing
Issues: Operations Management; Corporate Strategy; Risk Exposure; Hedging Risk; Risk Management; Defining Financial Risk
Difficulty: 4 - Undergraduate/MBA



MOLTO DELIZIOSO: PRICING AND PROFITS FOLLOWING BREXIT DEVALUATION
Farok Contractor

Product Number: 9B17M049
Publication Date: 3/30/2017
Revision Date: 3/30/2017
Length: 4 pages

When the June 2016 referendum on the United Kingdom’s withdrawal from the European Union, or Brexit, resulted in a vote to leave, the managing director of the U.K. subsidiary of Italian coffee-machine maker Molto Delizioso, SRL, faced a scenario that affected many international firms and their subsidiaries. The U.K. subsidiary imported and paid for coffee machines in euros, but when it sold these items in the United Kingdom, the revenue earned was in pounds. The devaluation of the pound after the Brexit vote affected both the company’s revenues and costs and, therefore, its profits.

Molto Delizioso’s managing director had to decide what to do about pricing after the devaluation of the pound caused an increase in the cost of importing his gourmet coffee machines. If he kept prices the same, profits would go down significantly. Should he raise the prices he charged to the customer? And if so, by how much?


Teaching Note: 8B17M049 (8 pages)
Industry: Manufacturing
Issues: currency risk, Brexit, pricing of imports, income statement, economic exposure, price elasticity of demand, devaluation, global strategy, finance, accounting, marketing and supply chain, European referendum 2016
Difficulty: 4 - Undergraduate/MBA



F. MAYER IMPORTS: HEDGING FOREIGN CURRENCY RISK
Wallace Fan

Product Number: 9B17N004
Publication Date: 2/27/2017
Revision Date: 2/27/2017
Length: 8 pages

In September 2014, F. Mayer Imports Pty. Ltd., an Australian gourmet food importer, had a narrow window of opportunity to potentially protect its budget exchange rate for the rest of that, and the following, financial year. With imports such as European butter, chocolate, and cheese, the company procured a significant portion of its product in euros. The Australian dollar to euro exchange (AUD/EUR) dropped from a high of 0.7027 in October 2013 to a low of 0.6369 in January 2014. With the AUD/EUR recently rebounding and edging back toward the company’s budget rate of 0.6900, the company’s chief financial officer needed to choose between four proposed hedging strategies.

Teaching Note: 8B17N004 (8 pages)
Industry: Wholesale Trade
Issues: options, risk management, forwards, exchange rates, foreign exchange
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
European Integration

BMW MINI: BIG DECISIONS UNDER THE BREXIT CLOUD
Klaus Meyer, Ken Mark

Product Number: 9B19M013
Publication Date: 2/22/2019
Revision Date: 2/22/2019
Length: 13 pages

In April 2017, BMW AG (BMW) faced a big decision regarding which plant should receive the mandate to produce the first electric version of BMW’s iconic Mini car. The leadership team of BMW’s UK operations was determined to keep the Mini at its historical home base in the United Kingdom. However, given the uncertainty arising from the United Kingdom’s decision to leave the European Union—a move commonly known as “Brexit” —how would the team be able to convince corporate headquarters?

Teaching Note: 8B19M013 (12 pages)
Industry: Manufacturing
Issues: Free trade;Trade agreements;Brexit;
Difficulty: 4 - Undergraduate/MBA



PROCTER & GAMBLE IN EASTERN EUROPE (A)
Jeffrey Gandz, David W. Conklin, Maurice Smith, Asad Wali

Product Number: 9A97H001
Publication Date: 3/20/1997
Revision Date: 2/4/2010
Length: 32 pages

Procter & Gamble must determine an entry strategy for Eastern Europe. The case examines the former Soviet Bloc countries, the opportunity they provide for a business endeavor like Procter & Gamble, and the product choices Procter & Gamble has available to them. Students must examine the political, economic, societal, and technological (PEST) environment and determine if the newly liberalized economies of Eastern Europe provide appropriate investment opportunities for Procter & Gamble. Students must also determine the scope of the necessary investment, the time profile and the difficulties it may face. A follow-up case (9A97H002) is available.

Teaching Note: 8A97H01 (13 pages)
Industry: Manufacturing
Issues: Globalization; Uncertainty; Business Policy
Difficulty: 4 - Undergraduate/MBA



PROCTER & GAMBLE IN EASTERN EUROPE (B)
Jeffrey Gandz, David W. Conklin, Maurice Smith, Asad Wali

Product Number: 9A97H002
Publication Date: 3/21/1997
Revision Date: 2/4/2010
Length: 23 pages

Procter & Gamble has been in Eastern Europe for 2 1/2 years. The case outlines the problems, missed opportunities and difficulties Procter & Gamble has had in transplanting their corporate culture onto the newly liberalized economies of Eastern Europe. The case requires students to generate alternatives for Procter & Gamble's future strategy in Eastern Europe given the political, economic, societal, and technological (PEST) environment.

Teaching Note: 8A97H01 (13 pages)
Industry: Manufacturing
Issues: Strategic Planning; Business Policy
Difficulty: 4 - Undergraduate/MBA



DEVONIAN COAST WINERIES: OVERCOMING PROVINCIAL BARRIERS
W. Glenn Rowe, Paul Boothe, Ken Mark

Product Number: 9B16M111
Publication Date: 6/27/2016
Revision Date: 6/27/2016
Length: 13 pages

By late 2015, the chief executive officer of Devonian Coast Wineries in the Canadian province of Nova Scotia had invested in the business and had broadened the distribution of the wines he produced. His chief concern was growing sales beyond Nova Scotia’s provincial borders. Selling wines in other provinces was difficult because it required approaching the various provincial liquor control boards. He had three options: continue to engage with each provincial liquor board’s buyers, lobby for greater retail access, or pursue the removal of provincial barriers to wine trade within the Atlantic provinces. If all interprovincial barriers were removed, he would need to compete with other provinces’ larger wine producers, and they would likely gain market share at the expense of local wineries. What was the best strategy to expand Devonian Coast Wineries’ distribution beyond Nova Scotia?

Teaching Note: 8B16M111 (5 pages)
Industry: Accommodation & Food Services
Issues: trade barriers, strategy, growth, policy and regulation, product-market focus, marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Global Integration

CHINA'S TRADE DISPUTES
David W. Conklin, Danielle Cadieux

Product Number: 9B09M018
Publication Date: 3/9/2009
Revision Date: 8/5/2009
Length: 17 pages

By 2009, China's exports had increased dramatically from $250 billion in 2000 to a projected $1,500 billion in 2009. This enormous growth of exports severely damaged competing businesses in the advanced nations, particularly the United States and Europe. China's entry into the World Trade Organization (WTO) in 2001 guaranteed China's right to export to these nations, but at the same time the WTO required China to adhere to certain rules that sought to support fair trade and create a level playing field. Several broad subjects each gave rise to a series of trade disputes: the protection of intellectual property, health and safety concerns about China's products, labour and environmental standards, China's manipulation of their currency, and costs and prices determined by the government rather than free markets. This case examines each set of trade disputes and China's attempts to resolve them. Many disputes were embedded in cultural practices and ideological positions and so they might not disappear quickly. Shortcomings in China's legal and judicial system hampered enforcement. In addition, many rested on the government's desire to protect the interests of Chinese businesses and their employees, and so China might alter its practices only if confronted with credible retalitory threats. China's central government experienced the principal-agent problem where its wishes and decisions could be ignored by local governments and firms. Meanwhile, changes in industry structure within the advanced nations were altering the negotiation positions of Western governments. The case examines the WTO dispute resolution procedures and enforcement mechanisms that have been directed at China's trade disputes.

Teaching Note: 8B09M18 (8 pages)
Issues: China; International Business; Government and Business; Globalization
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Corporate Social Responsibility

SUSTAINABILITY IN THE ARAB WORLD: THE ARAMEX WAY
Dima Jamali, Cedric Dawkins

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

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

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



MATTEL AND THE TOY RECALLS (A)
Hari Bapuji, Paul W. Beamish

Product Number: 9B08M010
Publication Date: 2/21/2008
Revision Date: 5/18/2017
Length: 14 pages

On July 30, 2007 the senior executive team of Mattel under the leadership of Bob Eckert, chief executive officer, received reports that the surface paint on the Sarge Cars, made in China, contained lead in excess of U.S. federal regulations. It was certainly not good news for Mattel, which was about to recall 967,000 other Chinese-made children's character toys because of excess lead in the paint. Not surprisingly, the decision ahead was not only about whether to recall the Sarge Cars and other toys that might be unsafe, but also how to deal with the recall situation. The (A) case details the events leading up to the recall and highlights the difficulties a multinational enterprise faces in managing global operations. Use with Ivey case 9B08M011, Mattel and the Toy Recalls (B).

Teaching Note: 8B08M10 (28 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Offshoring; Outsourcing; Product Quality; Product Recall; Multinational Enterprise Stakeholders; the United States and China
Difficulty: 4 - Undergraduate/MBA



MATTEL AND THE TOY RECALLS (B)
Hari Bapuji, Paul W. Beamish

Product Number: 9B08M011
Publication Date: 2/25/2008
Revision Date: 9/15/2014
Length: 9 pages

This case, which outlines the product recall, is a supplement to Mattel and the Toy Recalls (A).

Teaching Note: 8B08M11 (16 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Offshoring; Outsourcing; Product Quality; Product Recall; Multinational Enterprise Stakeholders; the United States and China
Difficulty: 4 - Undergraduate/MBA



SYNGENTA AND THOUGHT FOR FOOD: A FOOD-SECURITY INNOVATION PLATFORM
Lydia Price, Haitao Yu

Product Number: 9B18M197
Publication Date: 12/21/2018
Revision Date: 12/21/2018
Length: 13 pages

In 2015, the corporate affairs executive of the leading Swiss agribusiness company Syngenta Crop Protection AG (Syngenta) and founder of the next-generation innovation platform Thought for Food, faced a dilemma about whether to register Thought for Food as an independent non-governmental organization, or to keep it housed within Syngenta. The choice had implications for Thought for Food’s potential for future growth and for its impact on global food-security challenges. To grow within Syngenta, Thought for Food would have to close the gaps between its open innovation practices and Syngenta’s traditional operations. To grow independently, it would have to develop a business plan that assured financial security. In either case, Thought for Food had to continue growing in relevance to its non-financial stakeholders, like the student participants and expert judges in its annual innovation challenge and summit.

Teaching Note: 8B18M197 (14 pages)
Issues: disruptive innovation; incubator; accelerator; sustainability; agribusiness
Difficulty: 4 - Undergraduate/MBA



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



CARREFOUR CHINA, BUILDING A GREENER STORE
Andreas Schotter, Paul W. Beamish, Robert Klassen

Product Number: 9B08M048
Publication Date: 5/9/2008
Revision Date: 9/24/2018
Length: 19 pages

Carrefour, the second largest retailer in the world, had just announced that it would open its first Green Store in Beijing before the 2008 Olympic Games. David Monaco, asset and construction director of Carrefour China, had little experience with green building, and was struggling with how to translate that announcement into specifications for store design and operations. Monaco has to evaluate the situation carefully both from ecological and economic perspectives. In addition, he must take the regulatory and infrastructure situation in China into account, where no official green building standard exists and only few suppliers of energy saving equipment operate. He had already collected energy and cost data from several suppliers, and wondered how this could be used to decide among environmental technology options. Given that at least 150 additional company stores were scheduled for opening or renovation during the next three years in China, the project would have long term implications for Carrefour.

Teaching Note: 8B08M48 (13 pages)
Industry: Retail Trade
Issues: China; Strategy Implementation; Emerging Markets; Environmental Business Management; Operations Management
Difficulty: 4 - Undergraduate/MBA



ABB’S HYDROPOWER SUSTAINABILITY DILEMMA
Timo Busch, Vincent Dessain, Kathleen McCarthy

Product Number: 9B11M096
Publication Date: 11/30/2011
Length: 21 pages

This case is about the multinational company ABB’s development of a sustainability strategy, and its dilemmas in supplying hydropower dam projects. Adam Roscoe, head of sustainability at ABB Group, had to evaluate the content and business consequences of a letter written by the non-governmental organization (NGO) International Rivers. The letter discussed the alleged violations of sustainability criteria when building the Nam Theun 2 dam in Laos. Roscoe needed to assess what implications the letter had for ABB, which had a large stake in the outcomes of the project. Such a letter from a prominent NGO might affect ABB’s policies and practices in sustainability.

The World Bank and the Asian Development Bank had great interest in seeing the project’s success, as it would supply rural areas of Laos and Thailand with electricity, bring in a large source of revenue that would be used in poverty-reduction programs for Laos and, lastly, provide a non-carbon-based energy source. ABB also had to consider the position of its stakeholders including customers, investors, media, and NGOs. If ABB was associated with a dam project that did not comply with international regulations, this could lead to negative publicity and potential loss of business.

Roscoe thus faced two interweaved questions: Would International Rivers’ letter pose a reputation risk for ABB? What would this example mean for ABB’s sustainability criteria and objectives and would this need to be acknowledged and, if so, how?


Teaching Note: 8B11M096 (10 pages)
Industry: Manufacturing
Issues: Stakeholder Analysis; Sustainability; Risk Analysis; Green Energy; Hydro; Switzerland; Thailand; Laos
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Starting International Business

INNOGY CONSULTING GMBH: COMPETING AWAY FROM HOME
Jonathan Chen, Son Tran Tuan, Christopher Williams

Product Number: 9B18M159
Publication Date: 10/16/2018
Revision Date: 1/24/2019
Length: 13 pages

In 2016, the managing director of innogy Consulting GmbH (iCon), an international strategic consulting firm based in Germany, had many reasons to be delighted. The company had risen to second place in an annual ranking of internal consultancies after successfully expanding into four new countries. He now pondered new challenges and directions for iCon, after having led RWE Consulting—the predecessor to iCon—since 2007. As an internal consulting department within the RWE Group (RWE) in Germany, the consulting unit mainly conducted information technology implementation and project management within RWE. Although the managing director had led the consultancy unit into new geographic markets and toward new external clients, iCon faced many challenges, including tough competition in the external management-consultancy market. How could iCon take steps to compete away from home?

Teaching Note: 8B18M159 (8 pages)
Industry: Professional, Scientific, and Technical Services
Issues: consultancy, change, energy sector
Difficulty: 4 - Undergraduate/MBA



MYMUESLI: NEW MARKETS FOR CUSTOMIZED BREAKFAST CEREAL
Marc Fetscherin, Elena Kasper

Product Number: 9B17A055
Publication Date: 10/31/2017
Revision Date: 10/25/2017
Length: 11 pages

In 2017, the German company mymuesli GmbH (mymuesli) was operating in six European countries. Having begun to successfully distribute its customizable organic breakfast cereals online, mymuesli built on its growing popularity by opening stores in various cities across Germany, Austria, Switzerland, the Netherlands, and Sweden, where the most popular versions of the product were sold. The relatively young company differentiated itself with its customizable, premium organic products, and relied on its strengths to adapt to lifestyle and health trends. After a conversation in early 2017 with fellow hotel guests hailing from different European countries, the three founders of mymuesli were convinced that entering new countries might be a promising option for the company’s future growth. They began to analyze the maturing industry and its impacts on the company's growth plans.

Teaching Note: 8B17A055 (18 pages)
Industry: Accommodation & Food Services
Issues: market selection, industry analysis, SWOT, internationalization
Difficulty: 4 - Undergraduate/MBA



CAMERON AUTO PARTS: EARLY INTERNATIONALIZATION
Paul W. Beamish, Harold Crookell

Product Number: 9B16M043
Publication Date: 3/24/2016
Revision Date: 1/5/2017
Length: 9 pages

This case is about a small American auto parts producer trying to diversify its way out of dependence on the major automakers in 2013. A promising new product is developed and the company gets a chance to license it to a Scottish manufacturer. The issue of whether to license or go it alone in international markets is central to the case. A full class sequel to this case is available, titled Cameron Auto Parts: Joint Ventures, Licensing or Exporting, 9B16M044.

Teaching Note: 8B16M043 (7 pages)
Industry: Manufacturing
Issues: corporate strategy, exporting, licensing, joint venture; SME
Difficulty: 4 - Undergraduate/MBA



CAMERON AUTO PARTS: JOINT VENTURES, LICENSING OR EXPORTING
Paul W. Beamish, Harold Crookell

Product Number: 9B16M044
Publication Date: 3/24/2016
Revision Date: 2/24/2020
Length: 8 pages

In 2015, two years after signing a license agreement in the United Kingdom, Cameron Auto Parts (Cameron) now faces an opportunity to establish with another firm a joint venture in France for the European market. However, the prospect upsets the U.K. licensee who is clearly doing very well, and who even wants Cameron to consider joint venturing with him in Australia. The case ends with Cameron, run off its feet in North America, trying to decide whether to enter Europe via licensing, joint venture or direct investment. (This case is a sequel to Cameron Auto Parts: Early Internationalization, case (9B16M043).

Teaching Note: 8B16M044 (6 pages)
Industry: Manufacturing
Issues: corporate strategy, exporting, licensing, joint venture; SME
Difficulty: 4 - Undergraduate/MBA



JUNKKARI OY: GROWING THE WOOD-CHIPPER BUSINESS
Bonita Russell, Cory Isaacs

Product Number: 9B18M131
Publication Date: 9/14/2018
Revision Date: 9/10/2018
Length: 8 pages

The MSK Group Oy was a third-generation family-owned business located in Ylihärmä, Finland. One of its subsidiaries, Junkkari Oy (Junkkari), manufactured agricultural and forestry equipment, including a range of mid-sized disk wood chippers used in small-scale farming and forestry applications; most of these were exported to markets in Europe and South Africa. Junkkari was not the only Finnish firm manufacturing wood chippers, and there was little to differentiate Junkkari’s machines from those of its competitors. Like many small firms that exported to foreign markets, Junkkari used partner distributors to sell its equipment internationally. In early 2017, Junkkari’s export manager was reviewing the wood-chipper orders. He knew the firm could double its annual production, but without firm orders, growth was stalled. He wondered how to grow the company’s business with a very limited budget.

Teaching Note: 8B18M131 (8 pages)
Industry: Manufacturing
Issues: export, international growth, family business
Difficulty: 4 - Undergraduate/MBA



THE ESPRESSO LANE TO GLOBAL MARKETS
Ilan Alon, Meredith Lohwasser

Product Number: 9B12M058
Publication Date: 5/23/2012
Revision Date: 5/10/2017
Length: 16 pages

Founded in Trieste, Italy, Illy marketed a unique blend of coffee drinks in over 140 countries and in more than 50,000 of the world’s best restaurants and coffeehouses. The company wanted to expand the reach of its own franchised coffee bar, Espressamente, through international expansion. Potential markets included Brazil, China, Germany, Japan, India, the United Kingdom, and the United States. In 2012, the managing director of Espressamente knew that global expansion meant prioritizing markets, but where did the greatest potential lie? In addition to market selection, mode of entry was vital and included options such as exporting, franchising, and joint ventures. This case provides a practical example of the challenges faced in international business.

Teaching Note: 8B12M058 (7 pages)
Industry: Accommodation & Food Services
Issues: International Market Selection; Modes of Entry; Franchising; Retailing; International Business; Coffee; Italy
Difficulty: 4 - Undergraduate/MBA



NKT PHOTONICS A/S: DOING BUSINESS AT THE TECHNOLOGICAL FRONTIERS
Torben Pedersen, Githa Kurdahl

Product Number: 9B16M055
Publication Date: 5/11/2016
Revision Date: 5/11/2016
Length: 11 pages

To improve its profitability, NKT Photonics A/S (NKT), a small Danish company operating in the global photonics industry, was getting ready to undertake the commercialization process of its highly advanced optical fibre technology. NKT’s chief executive officer (CEO) was considering two options for accomplishing this goal: (1) establishing strategic partnerships with system integrators in order to gain access to commercial customers, or (2) repositioning NKT as a system integrator by embarking on an acquisition strategy. Turning the company into a more commercial entity would mean a complete change of culture. It might also result in the loss of some top engineering and scientific minds and perhaps even the company's reputation. The CEO wondered if there a way to effectively introduce a business mindset to the organization while still preserving its innovation-based DNA.

Teaching Note: 8B16M055 (9 pages)
Industry: Professional, Scientific, and Technical Services
Issues: change management, collaborative partnership, value chain partnership, disruptive innovation, organizational culture
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Foreign Entry Strategies

NORA-SAKARI: A PROPOSED JV IN MALAYSIA (REVISED)
Paul W. Beamish, R. Azimah Ainuddin

Product Number: 9B06M006
Publication Date: 11/30/2005
Revision Date: 5/23/2012
Length: 16 pages

This case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture with a Finnish firm, Sakari Oy. Negotiations have broken down between the firms, and students are asked to try to restructure a win-win deal. The case examines some of the most common issues involved in partner selection and design in international joint ventures.

Teaching Note: 8B06M06 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Intercultural Relations; Third World; Negotiation; Joint Ventures; Finland; Malaysia
Difficulty: 4 - Undergraduate/MBA



LIDL: A GERMAN GROCER IN THE UNITED STATES
Lubna Nafees, Neel Das, Mokhalles Mehdi

Product Number: 9B19A007
Publication Date: 3/6/2019
Revision Date: 3/6/2019
Length: 10 pages

In 2017, the German grocery chain Lidl Stiftung & Co. KG (Lidl) opened its first 20 U.S. stores in the southern states of Virginia, North Carolina, and South Carolina. Key target segments of Lidl were budget-conscious customers, middle-class families with children, and elderly customers on a fixed income. Lidl offered lower prices than its competitors and quickly gained a strong advantage in the marketplace. Despite high early consumer demand, however, Lidl struggled to hit the correct target market for each of its different locations in terms of tastes and demographics. With plans for 100 U.S.-based locations by the summer of 2018, Lidl had set its sights high. What could Lidl do to meet its U.S. market goals and expand into the future?

Teaching Note: 8B19A007 (7 pages)
Issues: International marketing;Marketing strategy
Difficulty: 4 - Undergraduate/MBA



ORPEA’S EUROPEAN-BASED NURSING FACILITIES: EXPANDING TO CHINA
Yan (Anthea) Zhang, Wenhong Zhang, Zhuo Chen

Product Number: 9B19M038
Publication Date: 5/17/2019
Revision Date: 5/17/2019
Length: 12 pages

Founded in 1989, Orpea Group (Orpea) was a French nursing care company that had successfully expanded into 10 European countries with a network of about 700 facilities. In early 2016, Orpea opened its first establishment in Asia in the Chinese city of Nanjing. Seeing an increased demand for elderly care in China, the Nanjing government encouraged the company. However, Orpea was facing several challenges, including cultural and legal differences between China and Europe, as well as competition with local companies. Orpea needed to determine how best to test the company’s Nanjing facility in the Chinese market and whether or not to pursue further expansion in China.

Teaching Note: 8B19M038 (8 pages)
Industry: Health Care Services
Issues: Entering foreign markets;Social services
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Competitive Dynamics

BOMBARDIER AEROSPACE: THE CSERIES DILEMMA
Louis Hébert, Ali Taleb

Product Number: 9B11M072
Publication Date: 9/19/2011
Revision Date: 3/29/2016
Length: 21 pages

In July 2004, Bombardier Aerospace announced its intention to develop a new family of aircraft called CSeries. In May 2007, three years after the initial announcement, the final decision on whether to proceed with the initiative was still pending. Moreover, during this period, the company released several confusing announcements that raised concerns among investors and industry analysts regarding the sustainability of the company’s long-term strategy. In the meantime, Brazilian Embraer had invested heavily in research and development and had taken the leadership position in the regional aircraft segment from Bombardier. Consequently, Bombardier was faced with a serious dilemma of whether or not to launch the CSeries project. The decision was expected to have a major impact on the future market positioning of Bombardier.

Students may be asked to act as advisors to Pierre Beaudoin, president and chief executive officer of Bombardier Aerospace, and recommend whether the company should proceed with the CSeries initiative. More specifically, students should do a full analysis of the company’s external environment, identify the alternatives available to Beaudoin, assess these options based on internal and external environments, and recommend a course of action. For Beaudoin, the recommendation was due before the annual meeting of shareholders, scheduled on May 29, 2007.


Teaching Note: 8B11M072 (16 pages)
Industry: Transportation and Warehousing
Issues: Industry Analysis; Corporate Strategy; Competitive Advantage; Strategic Positioning; Aerospace; Canada
Difficulty: 4 - Undergraduate/MBA



DÜRR AG: FROM PREMIUM TO MID-MARKET IN CHINA
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



GROUPE PSA: ACQUISITION OF OPEL/VAUXHALL—FROM TURNAROUND TO PROFITABLE GROWTH
Wiboon Kittilaksanawong, Yacine Lahma

Product Number: 9B18M151
Publication Date: 10/5/2018
Revision Date: 10/5/2018
Length: 15 pages

In 2017, the French automaker Groupe PSA (PSA) agreed to buy loss-making Opel/Vauxhall units from General Motors Company. PSA had just recovered one year earlier from losses it had sustained since the global financial crisis. With the recovery, PSA had launched a new strategic plan with aggressive goals for sustainable profitable growth. However, PSA’s sales were continuing to drop in the important Chinese market due to fierce competition, and the newly acquired units were still making losses. The use of electric cars was on the rise, and the European Commission had proposed a reduction in carbon dioxide emissions. PSA was planning to re-enter the United States, and in Britain, it was facing ambiguous Brexit negotiations, raising concerns about increased costs with importing and exporting parts and finished vehicles. In light of all of these challenges, how could PSA still reach its aggressive goals for sustainable growth?

Teaching Note: 8B18M151 (13 pages)
Industry: Manufacturing
Issues: merger and acquisition, turnaround, corporate restructuring, industry consolidation, Brexit, European Union, automotive industry
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Acquisitions and Alliances

DOW'S ACQUISITION PROGRAM
Koen H. Heimeriks, Stephen Gates

Product Number: 9B10M058
Publication Date: 9/30/2010
Revision Date: 6/26/2014
Length: 23 pages

This case illustrates how Dow Chemical acquired and integrated Wolff Walsrode, a German specialty chemicals firm that was part of the Bayer Group. This acquisition, combined with Dow's existing cellulosics unit, helped it create a new specialty business with a forecasted $1.1 billion in annual sales and strengthen its footprint in Central and Eastern Europe.

The main challenge in this case concerns the complexities of acquisition integration, which are demanding in spite of Dow's extensive experience and track record. Dow is confronted with various integration challenges and faces several decisions concerning the degree and speed of integration of Wolff Walsrode and one of its units, Probis. The decisions pit considerations of rapid cost synergy capture via leveraging global systems platforms against process technology transfer and accommodating different customers and their requirements. Along with providing a review of the importance of a multitude of codified implementation templates and tacit integration mechanisms, this case illustrates how Dow's M&A integration personnel prove their worth by ensuring Wolff's successful integration.


Teaching Note: 8B10M58 (20 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Integration; Cross-border Merger & Acquisition Integration; Target Acquisition Integration; United States; Germany
Difficulty: 4 - Undergraduate/MBA



SHANGGONG GROUP: CHINESE CHALLENGER ACQUIRES GERMAN PREMIUM BRANDS
Klaus Meyer, Daniel Han Ming Chng, Jianhua Zhu

Product Number: 9B15M095
Publication Date: 10/7/2015
Revision Date: 10/14/2015
Length: 14 pages

In 2013, ShangGong Group — a Chinese sewing machine manufacturer — had successfully acquired three German manufacturing companies that were more technologically advanced than it was. The aim of these acquisitions was to help ShangGong catch up to other multinational players in the international market. While the CEO had learned a few lessons from the first acquisition, the strategic and operational challenges were different this time. He needed to act decisively while dealing with the companies’ many stakeholders in Europe and China. One of his goals was to strengthen ShangGong’s market position in China using both its German and domestic brands. Beyond the recent acquisitions in Germany, how could he solidify ShangGong’s leadership in China and eventually challenge the Japanese companies who were leading the global market?

Teaching Note: 8B15M095 (12 pages)
Industry: Manufacturing
Issues: M&A, acquisitions, mergers, China, Germany, restructuring, integration
Difficulty: 5 - MBA/Postgraduate



BAYER-MONSANTO: THE CHALLENGES OF A MEGA MERGER
Wiboon Kittilaksanawong, Gabrielle Gaté

Product Number: 9B17M182
Publication Date: 12/15/2017
Revision Date: 12/15/2017
Length: 16 pages

In September 2016, German-based Bayer AG (Bayer) and U.S.-based Monsanto Company (Monsanto) agreed to merge entities to create a global leader in agriculture. The combined entity would benefit from Monsanto’s expertise in seeds and traits, and from Bayer’s wide range of crop protection products. Bayer would acquire Monsanto for $128 per share, a high 44 per cent premium in an all-cash transaction. There were issues with the deal, which included antitrust concerns, which could require subsequent divestments, and Monsanto’s brand image, owing to its involvement in controversial business operations. Given these issues, would Bayer’s diversification into agrochemicals by merging with Monsanto be able to create sufficient synergies and deliver economic benefits to shareholders, while meeting expectations from other stakeholders at different levels?

Teaching Note: 8B17M182 (11 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: mergers and acquisitions, industry consolidation, business ethics, stakeholder management, valuation
Difficulty: 4 - Undergraduate/MBA



YILDIZ HOLDING: GLOBAL EXPANSION STRATEGY
Saul Estrin, Christine Cote, Katherine Nunner

Product Number: 9B18M191
Publication Date: 12/21/2018
Revision Date: 12/21/2018
Length: 12 pages

In 2014, Yildiz Holding, a Turkish conglomerate, had just acquired the UK-based biscuit maker United Biscuits, the premium chocolate maker Godiva Chocolatier Inc., and the US-based company DeMet’s Candy Company. As Yildiz Holding moved forward in pursuit of its goal of dominating the global confectionery market for biscuits and snacks, senior management members were questioning whether the company's business model (which had brought it success for many years) would continue to be viable, and particularly, what the implications of its global expansion were for its diversified business model.

Teaching Note: 8B18M191 (13 pages)
Industry: Manufacturing
Issues: emerging markets; business groups
Difficulty: 4 - Undergraduate/MBA



TATA STEEL: THE ACQUISITION OF CORUS
Ronak Batra, Neera Jain

Product Number: 9B17M071
Publication Date: 5/19/2017
Revision Date: 5/19/2017
Length: 10 pages

In 2007, when Tata Steel (Tata) bought the Anglo-Dutch steel maker, Corus Group plc (Corus), it was a moment of great promise for India’s growing steel industry. At almost 10 times the size of Tata, Corus was a company of enormous scale. The importance of that scale was reflected in Tata’s need to raise the price of its original offer by a premium of 34 per cent. Tata’s aim was to become a formidable force in the world steel industry. It stood to gain global market exposure, research and development, and technology, while Corus stood to gain cheap raw materials and access to emerging economies. However, negative indicators and market concerns by analysts eventually proved true on March 30, 2016, when Tata announced its decision to sell some units of its U.K. operations. When Brexit occurred in June 2016, confusion grew and Tata’s plans for a future sale of U.K. assets seemed in jeopardy. The removal of the chairman of Tata further added to the woes of Tata Steel Europe. How would the new leadership, after a major failure, bring about changes toward a better future?

Teaching Note: 8B17M071 (16 pages)
Industry: Manufacturing
Issues: international acquisition, global expansion strategy, strategic integration
Difficulty: 5 - MBA/Postgraduate



HISENSE-HITACHI JOINT VENTURE: EXPANDING INTERNATIONALLY
Paul W. Beamish, Su Liu

Product Number: 9B16M169
Publication Date: 10/13/2016
Revision Date: 2/2/2017
Length: 11 pages

In June 2014, Hisense of China and Hitachi of Japan were considering whether their 11-year-old joint venture (JV) should once again assume responsibility for its international sales. After developing a solid central air-conditioner market share in China, in 2009, the JV began to sell in various overseas regions but struggled. In April 2012, the partners agreed to have a Hisense subsidiary (the HIMC) assume full responsibility for selling the JV’s products overseas. However, over the next two years, HIMC’s performance in selling the JV’s products overseas was unsatisfactory. In response, the partners began to discuss whether they should have the JV sell its own products again overseas. Of immediate interest was the Southeast Asian market. This case can be used with Hisense-Hitachi Joint Venture (B): Expanding in Southeast Asia, 9B16M220

Teaching Note: 8B16M169 (13 pages)
Industry: Manufacturing
Issues: partner relationships, joint venture, internationalization, governance; China
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Structuring and Organizing MNEs

VESTAS WIND SYSTEMS A/S - EXPLOITING GLOBAL R&D SYNERGIES
Torben Pedersen, Marcus M. Larsen

Product Number: 9B09M079
Publication Date: 12/23/2009
Length: 17 pages

With a change in management in 2005 came a radical reorganization and the announcement of several new strategic initiatives. Among the initiatives was the establishment of the Vestas Technology research and development (R&D) business unit with an aim of achieving global leadership in all core technology areas and, consequently, strengthening the core competence for the company. By 2008, Vestas had succeeded in setting up a global R&D network with R&D centres in Denmark, the United Kingdom, Singapore and India, and, in early 2009, a centre was opened in the United States. This transformed Vestas into a high-tech company and put a greater emphasis on its technological innovations.

Teaching Note: 8B09M79 (13 pages)
Industry: Manufacturing
Issues: Research and Development; Global Strategy; Value Chain; Technology Transfer
Difficulty: 4 - Undergraduate/MBA



BAYER MATERIALSCIENCE (A): OPPORTUNITIES IN GLOBAL VALUE CHAINS
Klaus Meyer

Product Number: 9B15M109
Publication Date: 12/21/2015
Revision Date: 12/17/2015
Length: 19 pages

Bayer MaterialScience, a unit of Bayer AG, was a leading provider of polycarbonate, a basic material for plastics. In response to the changes in its client industries, Bayer MaterialScience relocated the business unit headquarters for polycarbonate to Shanghai in order to be closer to customers and other business partners in the Asia-Pacific. Bayer MaterialScience (A) focuses on the laptop industry, where a large number of players influence the selection of material suppliers. Bayer MaterialScience has to re-evaluate its market intelligence and its business-to-business marketing in view of changing global competition. Bayer MaterialScience (B) provides insights into the consequences of relocating a division headquarters to China, and introduces the forthcoming initial public offering of Bayer MaterialScience. The company has to assess how to further develop its organizational structure, its partner relationships, and its industrial marketing strategy under a new brand name; Covestro.

Teaching Note: 8B15M109 (10 pages)
Industry: Manufacturing
Issues: Global value chains, materials, subsidy management, industrial marketing, chemical, OEM, emerging markets, China
Difficulty: 4 - Undergraduate/MBA



BAYER MATERIALSCIENCE (B): OPPORTUNITIES FOR INDEPENDENCE
Klaus Meyer

Product Number: 9B15M110
Publication Date: 12/21/2015
Revision Date: 12/21/2015
Length: 5 pages

Bayer MaterialScience (BMS), a unit of Bayer AG, is a leading provider of polycarbonate, a basic material for plastics facing rapid change in many of its downstream industries. In response to the changes in its client industries, BMS relocated the business unit headquarters for polycarbonate to Shanghai to be closer to customers and other business partners in Asia-Pacific. Case ‘A’ focuses on the laptop industry, where a large number of players influence the selection of material suppliers. BMS has to revaluate its market intelligence and its business-to-business marketing in view of changing global competition. Case ‘B’ provides insights into the consequences of relocating a division headquarters to China, and introduces the forthcoming initial public offering of BMS. BMS has to assess how to further develop its organizational structure, its partner relationships and its industrial marketing strategy under a new brand name.

Teaching Note: 8B15M109 (10 pages)
Industry: Manufacturing
Issues: global value chains, materials, subsidy management, industrial marketing, emerging markets, branding, China
Difficulty: 4 - Undergraduate/MBA



CAMBRIDGE COOLING SYSTEMS: EMPOWERING INTERNATIONAL OPERATIONS
Mary Weil, Ken Mark

Product Number: 9B18M082
Publication Date: 5/16/2018
Revision Date: 5/16/2018
Length: 8 pages

The chief operating officer at Cambridge Cooling Systems (CCS), based in Cambridge, Ontario, was helping his senior team prepare for two conference calls, with Italy and India, where CCS had foreign subsidiaries. At first glance, the chief issue with Italy seemed to be a lack of response from the managing director for Europe to detailed questions posed by project management for CCS. The issue with India seemed to be an inability to issue and stick to sales goals, and the Cambridge project manager wanted to speak about this with the managing director for Asia as soon as possible. However, further analysis revealed issues with how the headquarters in Cambridge had been managing its subsidiaries. Communications had broken down, and a conference call or two would not resolve the problem.

Teaching Note: 8B18M082 (5 pages)
Industry: Manufacturing
Issues: communications, cross-cultural, human resources
Difficulty: 4 - Undergraduate/MBA



DANFOSS — GLOBAL MANUFACTURING FOOTPRINT
Torben Pedersen, Jacob Pyndt

Product Number: 9B11M049
Publication Date: 6/22/2011
Length: 19 pages

AWARD WINNING CASE - Supply Chain Management Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. The case examines the supply chain, managerial, and organizational challenges facing a large European industrial company competing in a mature industry with strong price pressure. Established in the 1930s in Denmark, Danfoss initially produced automatic valves for refrigeration plants. The company has since grown into a major industrial group. Until the mid-1990s, Danfoss had the majority of its sales and production in Europe. This changed, however, with the arrival of a new CEO, who initiated a process to change the company into a global player within all of its main business areas.

Following this process of internationalization, the company was facing three main issues which top management was concerned about: Danfoss’s manufacturing network; its continued global growth; and its highly engineering-based culture. The first issue stemmed from the fact that Danfoss had followed a strategy of one product, one plant. This had created a situation with a lot of highly specialized product lines and very few common features between them. On the other hand, the internationalization strategy had so far been quite successful in Eastern Europe and China. In the United States, however, the company was still experiencing difficulties despite heavy investments in its manufacturing capacity in Mexico. In China, the company had experienced success and wanted to secure long-term growth in the market. The third issue was the very engineering-based culture of the company, which among other things was manifested in the fact that Danfoss previously developed products at the expense of consumer demand and preferences.


Teaching Note: 8B11M049 (12 pages)
Issues: Family Business; Supply Chain Management; Organizational Design; Manufacturing Strategy; Internationalization; Denmark; China
Difficulty: 4 - Undergraduate/MBA



QUALTRICS: RAPID INTERNATIONAL EXPANSION
Esther Tippmann, Sinéad Monaghan

Product Number: 9B18M022
Publication Date: 2/2/2018
Revision Date: 1/31/2018
Length: 11 pages

In May 2015, Qualtrics was a rapidly growing U.S.-based software-as-a-service firm, founded in 2002. After 10 years of operating with little capital, Qualtrics raised some venture capital funding, which enabled it to initiate a rapid international expansion. The management team intended to aggressively pursue global opportunities, but first needed to make some key decisions regarding how to develop the company’s Europe, Middle East, and Africa (EMEA) regional headquarters, and its European operations. Key concerns included the company’s market selection and prioritization, and its best approach for developing a subsidiary and EMEA regional operations that could achieve significant scale in a short time frame.

Teaching Note: 8B18M022 (10 pages)
Industry: Information, Media & Telecommunications
Issues: internationalization, entrepreneurship; market selection
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
People in the MNE

ELLEN MOORE (A): LIVING AND WORKING IN KOREA
Henry W. Lane, Chantell Nicholls, Gail Ellement

Product Number: 9A97G029
Publication Date: 6/3/1998
Revision Date: 2/23/2017
Length: 16 pages

Ellen Moore, a systems consultant, was sent to Korea to manage a project involving a team of North American and Korean consultants representing a joint venture between a major Korean conglomerate and a significant North American information technology company. The Americans were to be involved for the first seven months in order to transfer expertise and knowledge to the South Koreans, who had little experience in this area. Ellen's superior had played an integral part in securing the contract in Korea due to his depth of knowledge on the subject. He chose Ellen to be the key North American project manager because she had significant project management skills and impressive international experience. Upon Ellen's arrival, she discovered that the Korean consultants were far less skilled than she had expected. In addition, Ellen had understood that she and the Korean manager were to be co-managers, but immediately tensions arose regarding who was giving direction to the team, and the scope of the project. Tensions escalated until it was clear that the project was behind schedule and the Koreans were not taking direction from Ellen. The Koreans insisted that Ellen was the problem. Ellen’s superior disagreed; he and Ellen needed to decide how to proceed. The challenge was to balance strategic goals with individual action.

Teaching Note: 8A97G29 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Group Behaviour; Cross-cultural Relations; Women in Management; Team Building; United States; Korea
Difficulty: 4 - Undergraduate/MBA



THE LEO BURNETT COMPANY LTD.: VIRTUAL TEAM MANAGEMENT
Joerg Dietz, Fernando Olivera, Elizabeth O'Neil

Product Number: 9B03M052
Publication Date: 11/28/2003
Revision Date: 1/8/2019
Length: 16 pages

Leo Burnett Company Ltd. is a global advertising agency. The company is working with one of its largest clients to launch a new line of hair care products into the Canadian and Taiwanese test markets in preparation for a global rollout. Normally, once a brand has been launched, it is customary for the global brand centre to turn over the responsibility for the brand and future campaigns to the local market offices. In this case, however, the brand launch was not successful. Team communications and the team dynamics have broken down in recent months and the relationships are strained. Further complicating matters are a number of client and agency staffing changes that could jeopardize the stability of the team and the agency/client relationship. The global account director must decide whether she should proceed with the expected decision to modify the global team structure to give one of the teams more autonomy, or whether she should maintain greater centralized control over the team. She must recommend how to move forward with the brand and determine what changes in team structure or management are necessary.

Teaching Note: 8B03M52 (14 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Difficulty: 4 - Undergraduate/MBA



HELLA INDIA LIGHTING LIMITED: TRANSFORMING HUMAN RESOURCES
Akhil Pratap Singh, Raghav Garg

Product Number: 9B19C016
Publication Date: 5/22/2019
Revision Date: 5/22/2019
Length: 13 pages

Striving for Great Place to Work (GPTW) culture enabled Hella India Lighting Limited (HIL), a company that manufactured automotive lighting, to recover from huge losses and become profitable. Although the company’s German management had decided to stop further investment in India after the setback of the 2008 recession, in 2018 HIL became the number one Hella location worldwide. It was also recognized as one of the best places to work at the national level in the automotive industry and ranked 20th in the 2018 GPTW Great Mid-Size Workplaces category. To achieve these milestones, HIL focused on effectively implementing existing policies and periodically upgrading and focusing policies around employee welfare; thus making way for strategic human resources (HR) management. Valuing its employees as equal to its customers, HIL’s main focus was employee engagement. The transformation led to successful GPTW survey results, which encouraged HIL management to revise the HR team’s 2020 target: their new task was to secure a position among the top 10 companies of the GPTW survey by 2020.

Teaching Note: 8B19C016 (8 pages)
Industry: Manufacturing
Issues: Champions;Hiring & employment;Indian automotive industry;Work environments
Difficulty: 4 - Undergraduate/MBA



OLLY RACELA IN BANGKOK
Hemant Merchant

Product Number: 9B04C010
Publication Date: 8/18/2004
Revision Date: 10/6/2009
Length: 15 pages

A recent MBA graduate describes the joys and frustrations of an expatriate life - both at personal and professional levels - as experienced by a young, single woman. She has been living in Bangkok for three years and is slowly adjusting to the local way of life when she receives a job offer that will relocate her back to her home in Hawaii. Reaching a decision, however, is not easy given career-related uncertainties in both countries as well as the array of conflicting emotions that confront her. She must decide how to sort through these issues. Should she remain in Bangkok or return home? Her decision is complicated by the fact that she had not entertained the idea of returning to the United States.

Teaching Note: 8B04C10 (15 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Women in Management; Expatriate Management; Emerging Markets; Global Manager
Difficulty: 4 - Undergraduate/MBA


Chapter 17a:
Customers of the MNE

BESTSELLER — FACING A NEW COMPETITIVE LANDSCAPE IN CHINA
Michael W. Hansen, Marcus M. Larsen, Torben Pedersen

Product Number: 9B11M054
Publication Date: 8/29/2011
Length: 20 pages

In the fall of 1996, Bestseller became one of the first international fashion companies to enter the Chinese retail market. Earlier that year, Allan Warburg and Dan Friis had made contact with the CEO of Bestseller A/S, Troels Holch Povlsen, regarding the prospect of selling Bestseller brands in China, where they felt there were many business opportunities. Holch Povlsen found himself convinced by the two entrepreneurs’ enthusiasm for the Chinese market.

They quickly proved that they had been right about China. A decade after the first store opened, Bestseller China had almost 2,000 stores, and accounted for more than one-third of the total turnover of Bestseller A/S. The secret to Bestseller China’s extraordinary success was its ability to sell price-competitive European designs with a Chinese touch, which was achieved by locating all production in China and modifying Bestseller A/S’s designs to suit the size and tastes of Chinese middle-class consumers. With a 10-year headstart over potential competitors, Bestseller China had by the end of 2007 managed to establish a strong presence in China. However, high economic growth and the growing middle class were making the Chinese market highly attractive for other companies. Although global giants, such as Zara and H&M, were devoting big chunks of their budgets to entering China and capturing market share, these aggressive new entrants were not Bestseller China’s biggest concern. In fact, the competition from local companies was seen as the real threat.


Teaching Note: 8B11M054 (14 pages)
Industry: Manufacturing
Issues: Franchising; Marketing Management; Global Strategy; Fashion; Clothing; Denmark; China
Difficulty: 4 - Undergraduate/MBA



SWISS ARMY: DIVERSIFYING INTO THE FRAGRANCE BUSINESS
Ilan Alon, Marc Fetscherin, Claudia Carvajal

Product Number: 9B14A066
Publication Date: 11/19/2014
Revision Date: 3/4/2016
Length: 10 pages

In 2005, Victorinox, the original producer of the Swiss Army Knife, acquired Wenger, including the fragrance label “Swiss Army Fragrance.” The acquisition of Wenger allowed Victorinox to become the only producer of the famous Swiss Army Knife as well as the key player in Swiss Army watches. Victorinox’s head of marketing was asked to design a business strategy that would successfully allow the company to enter the fragrance industry. How should Victorinox diversify into the fragrance business? Should it aim to transfer its existing brand attributes to fragrance products? Or should it adopt a strategy that would include the use of another brand to market the perfumes? The head of marketing had to present a plan to the CEO of Victorinox on how best to brand and position the product, and how to compete in the fragrance industry.

Teaching Note: 8B14A066 (10 pages)
Industry: Retail Trade
Issues: Branding; new product development; Switzerland
Difficulty: 4 - Undergraduate/MBA



LOUIS VUITTON
Mary M. Crossan, Manu Mahbubani

Product Number: 9B13M022
Publication Date: 2/4/2013
Revision Date: 5/10/2017
Length: 19 pages

Louis Vuitton, the flagship group within Moët Hennessy Louis Vuitton (LVMH), had contributed to the stellar growth of the group in 2010 and 2011. But, there were clouds on the horizon. Was the recent growth sustainable? What steps should Louis Vuitton take to address upcoming challenges? This case takes the student through the challenges a global company faces as it tries to grow a business that is based on one of the most valued high-end brands in the world. The case reveals the fundamental strategic tension between what a firm needs to do, given the competitive environment, what it can do, given its resources and organization, and what leaders want to do, given their fundamental motivations and beliefs, which shape the way they see the issues.

Teaching Note: 8B13M022 (22 pages)
Industry: Retail Trade
Issues: Strategic Management; Managing Global Business, Luxury Industry; Dynamic Capabilities; Global
Difficulty: 4 - Undergraduate/MBA


Chapter 17b:
Suppliers of the MNE

MGT GROUP: RECONSTRUCTING THE SUPPLY CHAIN AFTER A CROSS-BORDER FACTORY RELOCATION
Zhiduan Xu, Shi Yun, Xu Yong

Product Number: 9B11D009
Publication Date: 9/19/2011
Length: 15 pages

Established in 1945, MGT Group was headquartered in France. Its LSD factory was a well-known global engineering provider specializing in the design and manufacture of high-precision valves. At the end of 2007, MGT decided to close the LSD factory in France and relocate it to Fuzhou, China. Two people were put in charge of this project: Kevin Lurton, vice chief operations officer of MGT Control Systems Division, and Jian Li, the general manager of MGT Fuzhou Company. Lurton and Li faced a series of challenges, ranging from the need for strategic planning to the need for an implementation policy for supply chain reconstruction during the cross-border factory relocation.

Teaching Note: 8B11D009 (14 pages)
Industry: Manufacturing
Issues: Cross-border Factory Relocation; Supply Chain Reconstruction; Supply Chain Strategy; France; China; Ivey/CMCC
Difficulty: 5 - MBA/Postgraduate



BOSSARD AG: ENABLING INDUSTRY 4.0 LOGISTICS, WORLDWIDE
Klaus Meyer, Alexandra Han

Product Number: 9B17M149
Publication Date: 9/29/2017
Revision Date: 9/29/2017
Length: 12 pages

In 2016, Bossard AG was a leading wholesaler and supply chain service provider for fasteners. Its business model aimed to improve the efficiency of clients’ manufacturing operations by applying Industry 4.0 technologies to integrate the delivery of the highest quality screws, nuts, and bolts with logistics solutions for supply chains, and technical solutions for product designs using fasteners. Bossard’s key selling point was its ability to enhance its clients’ consumable parts management, thus reducing their total costs of ownership. Bossard had been successful in Europe, but found the Chinese market difficult to penetrate. The company was looking for better ways to deliver value to Chinese industrial customers.

Teaching Note: 8B17M149 (13 pages)
Industry: Other Services
Issues: supply chain management, digital economy, internationalization, intra-logistics, big data analytics
Difficulty: 4 - Undergraduate/MBA



ECCO A/S - GLOBAL VALUE CHAIN MANAGEMENT
Bo Bernhard Nielsen, Torben Pedersen, Jacob Pyndt

Product Number: 9B08M014
Publication Date: 5/29/2008
Revision Date: 5/10/2017
Length: 21 pages

ECCO A/S (ECCO) had been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain from cow to shoe. As ECCO grew and faced increased international competition, various value chain activities, primarily production and tanning, were offshored to low-cost countries. The fully integrated value chain tied up significant capital and management attention in tanneries and production facilities, which could have been used to strengthen the branding and marketing of ECCO's shoes. Moreover, an increasingly complex and dispersed global value chain configuration posed organizational and managerial challenges regarding coordination, communication and logistics. This case examines the financial, organizational and managerial challenges of maintaining a highly integrated global value chain and asks students to determine the appropriateness of this set-up in the context of an increasingly market-oriented industry. It is suitable for use in both undergraduate and graduate courses in international corporate strategy, international management, international marketing, supply-chain management, cross-border strategic management and international business studies in general.

Teaching Note: 8B08M14 (15 pages)
Industry: Manufacturing
Issues: Marketing Management; Operations Management; Global Strategy; Vertical Integration; Value Chain; Competitor Analysis
Difficulty: 4 - Undergraduate/MBA