Ivey Publishing

International Business

Czinkota, M.R., Ronkainen, I.A., Moffet, M.H. (United States, Cengage Learning, 2005)
Prepared By Andreas Schotter, Ph.D. Candidate (General Management)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The International Business Imperative

GENERAL MOTORS: ACTING STRATEGICALLY?
David W. Conklin, Danielle Cadieux

Product Number: 9B05M059
Publication Date: 10/21/2005
Revision Date: 10/3/2009
Length: 18 pages

General Motors (GM) had a history of bold strategies in a wide variety of areas, including the creation of Saturn, the development of global operations and the formation of strategic alliances with Fiat, SAIC and Daewoo. Non-market strategies included pursuing government financial assistance, coping with new environmental regulations, and agreeing to very expensive health care and pension schemes. Meanwhile, GM had failed to create strategies to compete effectively with foreign automakers. By 2005, many of GM's strategic decisions seemed to have been inappropriate. Some that were undertaken for short-term gain had disastrous long-term consequences, and GM performed poorly compared with other global automakers. Many strategies had seemed disconnected, lacking an overall vision or purpose. While students may discuss each strategic decision and understand why GM acted as it did, nevertheless, students can see that the compendium of strategic decisions had moved GM into a serious crisis. In 2005-2006, GM introduced several new strategies. Whether these strategies could achieve sustainable profitability,or whether they would also bring undesirable consequences, was a subject of importance to employees, shareholders, and governments throughout the world.

Teaching Note: 8B05M59 (5 pages)
Industry: Manufacturing
Issues: Globalization; International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA



DELL COMPUTER CORPORATION: INVESTMENT IN MALAYSIA AS A GLOBAL STRATEGIC TOOL
Justin Tan, Michael N. Young

Product Number: 9B03M019
Publication Date: 5/28/2003
Revision Date: 10/22/2009
Length: 13 pages

Dell Computer Corporation is one of the largest computer manufacturers. The company's international business strategy has supported its global position and performance facing the Asian economic crisis. Its investment in Malaysia has reduced its foreign exchange exposure, and supported its low cost advantage. Now Dell needs to decide if it wants to expand its commitment in Malaysia and or other locations such as China.

Teaching Note: 8B03M19 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Risk Management; Strategic Positioning; Emerging Markets; Globalization
Difficulty: 4 - Undergraduate/MBA



THE MYTHS OF GLOBALIZATION
Alan Rugman, Karl Moore

Product Number: 9B01TE12
Publication Date: 9/1/2001
Length: 5 pages

Much of the discussion about globalization has missed a very important point, these co-authors claim, and seeing this point and understanding it are critical if executives are to really grasp what globalization is all about. The co-authors write that far from a single, global market, most trade takes place within regional blocks or clusters. Trade activity effectively occurs in the triad of North America, the European Union and Japan, and an approach based on national or regional realities, not global ones, will make the most sense for companies. The authors have ample evidence to substantiate their argument and they suggest what executives can do to counter and manage despite the widely propagated myth of globalization.

Issues: Globalization; International Trade



Chapter 2:
Culture

KATE ARCHER IN HAITI (A)
Joerg Dietz, Kate Archer

Product Number: 9B01C035
Publication Date: 4/25/2002
Revision Date: 12/17/2009
Length: 10 pages

Helped the Aged Canada, a non-profit organization, has hired Kate Archer to manage their prosthetic clinic in Haiti. After her arrival in Haiti she learns that its key employee does not meet her performance expectations. Communicating with the employee, a deaf-mute, however, was very difficult and required the use of another employee as translator. She must communicate her performance expectations to the employee. The supplement to this case, Kate Archer In Haiti (B), product number 9B01C036 describes how Kate develops a contract and finalizes the agreement with the employee.

Teaching Note: 8B01C35 (11 pages)
Industry: Health Care Services
Issues: Non-Profit Organization; Communications; International Management; Cross Cultural Management
Difficulty: 4 - Undergraduate/MBA



NES CHINA: BUSINESS ETHICS (A)
Joerg Dietz, Xin Zhang

Product Number: 9B01C029
Publication Date: 10/18/2001
Revision Date: 12/16/2009
Length: 9 pages

NES is one of Germany's largest industrial manufacturing groups. The company wants to set up a holding company to facilitate its manufacturing activities in China. They have authorized representatives in their Beijing office to draw up the holding company application and to negotiate with the Chinese government for terms of this agreement. In order to maximize their chances of having their application accepted, the NES team in Beijing hires a government affairs coordinator who is a native Chinese and whose professional background has familiarized her with Chinese ways of doing business. NES's government affairs coordinator finds herself in a difficult position when she proposes that gifts should be given to government officials in order to establish a working relationship that will better NES's chance of having its application approved. This method of doing business is quite common in China. The other members of the NES team are shocked at what would be considered bribery and a criminal offence in their country. The coordinator must find a practical way to bridge the gap between working within accepted business practices in China and respecting her employers' code of business ethics. The complementary (B) case (9B01C030) gives a brief summary of the eventual solution to this problem.

Teaching Note: 8B01C29 (9 pages)
Industry: Manufacturing
Issues: China; Ethical Issues; Cross Cultural Management; Management Behaviour; International Business
Difficulty: 4 - Undergraduate/MBA



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


Chapter 3:
Trade and Investment Policies

THAI TELECOMS IN THE NEW ECONOMY: PRIVATIZATION & LIBERALIZATION - ABRIDGED
David W. Conklin, Brock Judiesch

Product Number: 9B02M008
Publication Date: 5/23/2002
Revision Date: 12/1/2009
Length: 15 pages

The economic crisis that had ravaged Thailand in 1997 was an impetus that started the country down the difficult road of privatization and liberalization. The major issues involved in the transformation of the telecom industry from a state-run duopoly to a free market-based sector were daunting: the process for corporatization and the subsequent privatization of the state-owned telecom operators; the conversion of revenue-sharing agreements between private operators and the two state-run telecom agencies; the process of establishing a regulatory body to oversee privately-owned corporations; and finally the full liberalization of the sector by 2006, with the reduction - perhaps even elimination - of foreign ownership restrictions, under an agreement with the World Trade Organization. The stakes involved in the liberalization of the industry were high. Thailand's entry into e-commerce and the new economy would depend upon the new technologies and enhanced efficiencies that privatization and liberalization of the telecom sector might bring.

Teaching Note: 8B01M64 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Business Policy; Globalization; E-Commerce; International Business
Difficulty: 4 - Undergraduate/MBA



SCIENCE PARKS IN TAIWAN
Terence Tsai, Tony S. Frost, Borshiuan Cheng, Changhui Zhou

Product Number: 9A98M016
Publication Date: 2/9/2000
Revision Date: 1/22/2010
Length: 14 pages

The emphasis of this case is on the deliberate governmental policy to foster industrial structure transformation, by examining the transition of the Taiwanese economy from a manufacturing-based economy to that of a successful high-tech-oriented economy. The case affords discussion on political and societal issues pertaining to the conflicts between China and Taiwan and risk confronting businesses in this peculiar environment. It also serves as a platform to debate portability of science park concepts among different geographic regions and the necessary conditions for the continued survival of an established science park.

Teaching Note: 8A98M16 (4 pages)
Industry: Public Administration
Issues: Political Environment; Government Regulation; Technology; Government and Business
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Politics and Law

NOTE ON COUNTRY RISK AND COMPETITIVE ADVANTAGE IN LATIN AMERICA
David W. Conklin

Product Number: 9A98G011
Publication Date: 6/9/1998
Revision Date: 1/29/2010
Length: 4 pages

For many decades, a high degree of political risk discouraged foreign investment in Latin America. Recent years have witnessed major changes in the nature and extent of Latin American country risks, with a dramatic reduction of political risks, and a new focus on economic risks. At the same time, there has been a vast opening up of investment opportunities where Canadian corporations can transfer modern technology and business practices that exceed the capabilities of domestic corporations, creating country- and industry-specific competitive advantages. However, Latin American countries still rank very poorly in the factors underlying international competitiveness, with the result that labor-intensive export facilities are more likely to be located elsewhere, in spite of Latin America's low wage levels.

Issues: Economic Conditions; Growth; Competitiveness; Political Environment
Difficulty: 4 - Undergraduate/MBA



AIG AND CHINA'S ACCESSION TO THE WTO
Jean-Philippe Bonardi, Tony S. Frost

Product Number: 9B02M021
Publication Date: 10/29/2002
Revision Date: 12/3/2009
Length: 5 pages

AIG is an American insurance company. A trade dispute between the United States and the European Union threatens to block the accession of China to the World Trade Organization, and AIG plays a role - it is the only foreign firm to own fully-controlled subsidiaries in China. The disagreement concerns what will happen to these existing subsidiaries, as well as potential new ones that AIG might seek to establish in China in the future. What are the issues from the perspective of each of the stakeholders and what options are available that will resolve this dispute?

Teaching Note: 8B02M21 (12 pages)
Industry: Finance and Insurance
Issues: China; International Management; Trade Agreements; Political Environment
Difficulty: 4 - Undergraduate/MBA



CHAUVCO RESOURCES LTD.: THE ARGENTINA DECISIONS (A) (ABRIDGED)
David W. Conklin, John Knowles

Product Number: 9B01M014
Publication Date: 9/27/2001
Revision Date: 12/21/2009
Length: 15 pages

Chauvco quickly became one of the top 30 oil companies in Canada. Rising costs and diminishing oil and gas reserves led Chauvco to consider investing in other countries. In 1992, Chauvco purchased an interest in an Argentine oil and gas block that was being privatized. Chauvco's success in Argentina depended on the country's future political stability and the continuance of government policies. Prior to the 1989 election of Carlos Menem, Argentina experienced decades of political and economic instability, the government nationalized many businesses and imposed detailed regulations throughout the economy - a set of policies that led to low growth, budget and trade deficits, hyperinflation, and currency devaluation. Whether Menem's reforms could achieve long-term success remained to be seen. Chauvco encountered a number of difficulties, as well as some positive aspects of the environment of business. The company initially entered a joint venture partnership and then developed an independent set of operations. By 1995, Chauvco had to decide in what proportions it should divide its future investments between Canada, Argentina and other countries, and what criteria it should use in evaluating investment opportunities. This is an abridged version of 9A95H003.

Teaching Note: 8A95H03 (5 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Investments; International Business; Government and Business; Economic Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
The Theory of Trade and Investment

HUXLEY MAQUILADORA
Paul W. Beamish, Jaechul Jung, Joyce Miller

Product Number: 9B02M033
Publication Date: 11/29/2002
Revision Date: 6/28/2011
Length: 14 pages

A senior manager in a U.S. manufacturing firm must make a recommendation about whether 57 labour intensive jobs should be moved from the existing California plant to a new facility in a Mexican maquiladora. If the Mexican opportunity is pursued, decisions are also required regarding the entry mode (subcontracting, shelter operator or wholly-owned subsidiary) and location (border or interior).

Teaching Note: 8B02M33 (7 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Plant Location; Third World; Subsidiaries
Difficulty: 4 - Undergraduate/MBA



CAMERON AUTO PARTS (A) - REVISED
Harold Crookell, Paul W. Beamish

Product Number: 9B06M015
Publication Date: 1/11/2006
Revision Date: 9/17/2009
Length: 10 pages

This case is about a small American auto parts producer trying to diversify his way out of dependence on the major automakers. 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 sequel to this case is available titled Cameron Auto Parts (B) - Revised, case 9B06M016.)

Teaching Note: 8B06M15 (8 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Exports; Licensing; International Business
Difficulty: 4 - Undergraduate/MBA



VINCOR AND THE NEW WORLD OF WINE
Paul W. Beamish, Nikhil Celly

Product Number: 9B04M001
Publication Date: 1/14/2004
Revision Date: 11/18/2014
Length: 17 pages

Vincor International Inc. was Canada's largest wine company and North America's fourth largest in 2002. The company had decided to internationalize and as the first step had entered the United States through two acquisitions.The company's chief executive officer felt that to be among the top 10 wineries in the world, Vincor needed to look beyond the region. To the end, he was considering the acquisition of an Australian company, Goundrey Wines. He must analyze thestrategic rationale for the acquisition of Goundrey as well as to probe questions of strategic fit and value.

Teaching Note: 8B04M01 (14 pages)
Industry: Manufacturing
Issues: Internationalization; Market Entry; Acquisitions; Growth Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
The Balance of Payment

HUTCHISON WHAMPOA LIMITED: THE CAPITAL STRUCTURE DECISION
G. Andrew Karolyi, Larry Wynant, Geoff Crum, Peter Yuan

Product Number: 9A99N021
Publication Date: 9/30/1999
Revision Date: 1/21/2010
Length: 24 pages

Hutchison Whampoa was considering strategies for its long-term capital structure. The HK$35 billion Hong Kong-based conglomerate had ambitious growth plans in multiple business sectors in different geographies. Traditionally, like many of its domestic peers, Hutchison had relied entirely on short to medium-term bank loans. Its demand for long-term financing, attractive rates in other capital markets (especially the U.S.) and concern about a more diversified investor base had led Hutchison to explore other financing options. In particular, the company was debating the benefits of a Yankee Bond Offering. At the time, Hutchison had already approached Moody's and Standard & Poor's for a bond rating.

Teaching Note: 8A99N21 (12 pages)
Industry: Finance and Insurance
Issues: International Finance; Financial Strategy; Capital Budgeting
Difficulty: 4 - Undergraduate/MBA



MANULIFE FINANCIAL: ADJUSTING INTERNATIONAL STRATEGIES IN RESPONSE TO THE ASIAN CRISIS
David W. Conklin, Terence Tsai, Donna Everatt, Trevor Hunter

Product Number: 9A98G013
Publication Date: 4/1/1999
Revision Date: 1/29/2010
Length: 28 pages

Over the course of many decades, Manulife had created a thriving business in Hong Kong, and it had established a series of small operations in six other Asian countries. In the fall of 1998, the Asian financial crisis was creating new expansion opportunities. Many companies that had never been for sale suddenly confronted substantial losses and were seeking investors. Asian governments, facing balance-of-payments problems, were relaxing foreign ownership restrictions and offering new licenses for companies wishing to set up insurance businesses. Meanwhile, Manulife's proposed demutualization would transfer policyholders into shareholders, and would give Manulife a new financial capacity to fund major acquisitions. Faced with these realities, management had to develop a strategy for Asia. This case provides the opportunity for students to develop multiple action plans which take into account regional differences and diversity in the implementation of a multinational growth strategy. For each of the countries into which Manulife wants to expand, the manager must assess the differences in the business environment and adjust her/his plans accordingly, while still operating within the vision of the parent company.

Teaching Note: 8A98G13 (10 pages)
Industry: Finance and Insurance
Issues: Strategic Planning; Growth Strategy; Developing Countries; Management in a Global Environment
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Financial Markets

LUFTHANSA: TO HEDGE OR NOT TO HEDGE . . .
Stephen Sapp

Product Number: 9B00N022
Publication Date: 2/2/2001
Revision Date: 1/12/2010
Length: 3 pages

Lufthansa, the flagship German airline, was undertaking an aggressive expansion program. The chairman of the board had negotiated a deal with Boeing for the purchase of 20 new aircraft at a cost of US$500 million. The U.S. dollar was at historic highs and he had to decide how much, if any, of the US$500 million purchase price to hedge and best method to use. Since Lufthansa's revenues were mainly in deutsche marks and this amount was payable in one year, he needed to determine how to deal with the resulting foreign exchange risk by examining principle foreign exchange hedging strategies. Covenants restricting Lufthansa to take on new debt made it critical that he be sure of the financing and risk exposure before finalizing the deal.

Teaching Note: 8B00N22 (6 pages)
Industry: Transportation and Warehousing
Issues: Exchange Rates; Risk Management; International Finance; Hedging
Difficulty: 4 - Undergraduate/MBA



LAWSON MARDON GROUP LIMITED
Robert W. White, Ed Giacomelli

Product Number: 9A90B045
Publication Date: 1/1/1990
Revision Date: 3/20/2002
Length: 17 pages

The focus of the case is on the financial strategy of Lawson Mardon Group following an leveraged buyout. The immediate decision involves exploring the Euro-Commercial Paper Market and the Sterling Commercial Paper Market as possible alternatives to its current banking facility, a multi-option facility. The case is an ideal vehicle for initiating a discussion of interest rates, the term structure of interest rates, bond ratings and money market instruments. Three follow-up cases of the same name outlined subsequent events.

Teaching Note: 8A90B45 (21 pages)
Industry: Manufacturing
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Economic Integration

BOMBARDIER TRANSPORTATION AND THE ADTRANZ ACQUISITION
Allen Morrison, David Barrett

Product Number: 9B04M023
Publication Date: 5/14/2004
Revision Date: 9/21/2011
Length: 18 pages

Bombardier Transportation, one of the world's largest manufacturers of passenger rail cars, has successfully negotiated the purchase of Adtranz, a large European manufacturer of rail equipment. The newly appointed chief executive officer has been brought in to manage the acquisition. The new CEO faces many challenges including decisions about the pace of integration, location of headquarters, organization structure, personnel retention and personal management style. Students may use this case to discuss post-acquisition strategy and how fast companies should move to integrate acquisitions.

Teaching Note: 8B04M23 (13 pages)
Industry: Transportation and Warehousing
Issues: Management Decisions; Management in a Global Environment; Mergers & Acquisitions; Change Management
Difficulty: 4 - Undergraduate/MBA



CANADIAN AUTO TARIFF DEBATE
James H. Tiessen

Product Number: 9B01M034
Publication Date: 8/9/2001
Revision Date: 12/21/2009
Length: 13 pages

In 1998 it appeared that Japanese auto companies could be forced to pay duty on their non-NAFTA imports into Canada. The U.S. Big Three auto makers (GM, Ford and Chrysler), in contrast did not have to pay such a tariff on their offshore imports such as those made by Ford-owned Jaguar (United Kingdom) and GM's Saab (Sweden). The Japanese and U.S. firms were treated differently because of the 1966 Auto Pact that made all Big Three imports duty-free. However, in the early 1980's, in order to encourage auto investment, the Canadian government granted virtual Auto-Pact status to Japanese firms (Toyota and Honda) that located in Ontario. This eliminated tariffs on the Japan-made models they sold in Canada. Public debate arose during the Free Trade Agreement (1989) and North American Free Trade Agreement (1994) trade negotiations. The U.S., under the Big Three influence, pushed Canada to withdraw the Pact-like benefits it used to attract the Japanese factories. Canada eventually complied with the U.S. demands, while leaving the Pact in place for U.S. automakers. This led the Japanese government to challenge the fairness of the proposed tariff at the World Trade Organization (WTO). While waiting for the WTO process to unfold, the Japanese and U.S. automakers were considering how to respond to the forthcoming judgement.

Teaching Note: 8B01M34 (9 pages)
Industry: Wholesale Trade
Issues: Negotiation; Tariffs; International Trade; Government and Business
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Emerging Markets

ELI LILLY IN INDIA: RETHINKING THE JOINT VENTURE STRATEGY
Charles Dhanaraj, Paul W. Beamish, Nikhil Celly

Product Number: 9B04M016
Publication Date: 5/14/2004
Revision Date: 3/13/2017
Length: 18 pages

Eli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations is re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture has run smoothly for a number of years despite their differences in focus, but recently Ranbaxy was experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives.

Teaching Note: 8B04M16 (20 pages)
Industry: Manufacturing
Issues: Joint Ventures; Emerging Markets; International Management; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



COLA WARS IN CHINA: THE FUTURE IS HERE
Niraj Dawar, Nancy Dai

Product Number: 9B03A006
Publication Date: 8/6/2003
Revision Date: 5/24/2017
Length: 18 pages

The Wahaha Hangzhou Group Co. Ltd. is one of China's largest soft-drink producers. One of the company's products, Future Cola, was launched a few years ago to compete with Coca Cola and PepsiCo and has made significant progress in the soft-drink markets that were developed by these cola giants. The issue now is to maintain the momentum of growth in the face of major competition from the giant multinationals, and to achieve its goal of dominant market share.

Teaching Note: 8B03A06 (7 pages)
Industry: Manufacturing
Issues: China; Market Strategy; Competition; Brand Management; Emerging Markets
Difficulty: 5 - MBA/Postgraduate



COMPETING BY THE BOOK: DESTINATION CHINA
Cyril Bouquet, William Hawkins, John J. Wegener

Product Number: 9B05M061
Publication Date: 10/28/2005
Revision Date: 10/3/2009
Length: 8 pages

Lingo Media is a leading publisher of English language learning programs in China. But market share leadership hasn't come easily for the Canadian-based company, and doesn't equate with impressive sales or tangible profitability. Described is the company's learning journey in China and looks at the lessons learned on choosing the right alliance partner, tailoring products to unique local Chinese customers, and what unique resources are necessary to successfully do business in 21st century China.

Teaching Note: 8B05M61 (11 pages)
Industry: Manufacturing
Issues: China; Managing a Small Firm; Strategic Alliances; Strategic Planning; Internationalization
Difficulty: 4 - Undergraduate/MBA



MEKONG CORPORATION AND THE VIET NAM MOTOR VEHICLE INDUSTRY
David W. Conklin, Huan Ngo

Product Number: 9A96H002
Publication Date: 9/3/1996
Revision Date: 2/10/2010
Length: 29 pages

Mekong, a joint venture among Japanese, Korean and Vietnamese auto assemblers, is facing significant changes in the business environment in Vietnam. As the government of Vietnam has implemented its economic and administrative reform program, foreign and domestic companies in Vietnam have had to deal with changes in regulations and competitive forces. In addition, Vietnam's membership in ASEAN (Association of South-East Asian Nations) has further complicated the business decisions that foreign companies have to make in this newly-opened economy. Students will be challenged to devise a strategy for Mekong as a multi-national company operating in the Far East.

Teaching Note: 8A96H02 (5 pages)
Industry: Manufacturing
Issues: Government Regulation; Economic Conditions; Management in a Global Environment; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Building the Knowledge Base

SWATCH AND THE GLOBAL WATCH INDUSTRY
Allen Morrison, Cyril Bouquet

Product Number: 9A99M023
Publication Date: 5/9/2000
Revision Date: 5/23/2017
Length: 22 pages

The efforts of Swatch to reposition itself in the increasingly competitive global watch industry are reviewed in this case. Extensive information on the history and structure of the global watch industry is provided and the shrinking time horizons decision makers face in formulating strategy and in responding to changes in the industry are highlighted. In particular, the case discusses how technology and globalization have changed industry dynamics and have caused companies to reassess their sources of competitive advantage. Like other companies, Swatch faces the difficult task of deciding whether to emphasize product breadth, or focus on a few key global brands. It also must decide whether to shift manufacturing away from Switzerland to lower cost countries like India.

Teaching Note: 8A99M23 (10 pages)
Industry: Manufacturing
Issues: International Business; Industry Analysis; Competing with Multinationals; Globalization
Difficulty: 5 - MBA/Postgraduate



BUNDY ASIA PACIFIC - CHINA STRATEGY
Paul W. Beamish, Jack Li, Nancy Wang, Steven Zuo

Product Number: 9A98M003
Publication Date: 4/20/1998
Revision Date: 1/29/2010
Length: 19 pages

Phil Stephenson, the director of China for Bundy Asia Pacific (BAP), was preoccupied with Bundy's business in China. BAP's CEO, Tony Martin, had shown Phil the fax from Robin Thompson, the new marketing and product development director of Bundy International, BAP's UK-based parent company. Thompson had asked BAP about its strategy for the refrigeration business in China. Despite 10 years of experience in China, Bundy had not met its market goals. Whatever strategy was developed, it would be an important part of Bundy's proposed global refrigeration strategy. This rich case allows detailed discussion around issues including (a) business (re)development strategy, (b) joint ventures versus wholly owned subsidiaries, (c) organizational structure, and (d) expatriate and local staffing.

Teaching Note: 8A98M03 (9 pages)
Industry: Manufacturing
Issues: China; Joint Ventures; Strategic Planning; Staffing; Organizational Structure
Difficulty: 4 - Undergraduate/MBA



NOTE ON THE MALAYSIAN PEWTER INDUSTRY
Paul W. Beamish, R. Azimah Ainuddin

Product Number: 9A94M014
Publication Date: 10/26/1994
Revision Date: 2/25/2010
Length: 19 pages

This note examines an industry that is losing its competitive advantages due to globalization. Suitable for use in a section of an international strategy/business policy course which introduces the topic of industry analysis.

Teaching Note: 8A94M14 (23 pages)
Industry: Manufacturing
Issues: Internationalization; Industry Analysis; Value Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Entry and Expansion

BEN & JERRY'S - JAPAN
James M. Hagen

Product Number: 9A99A037
Publication Date: 4/13/2000
Revision Date: 5/23/2017
Length: 17 pages

The CEO of Ben & Jerry's Homemade, Inc. needed to give sales and profits a serious boost; despite the company's excellent brand equity, it was losing market share and struggling to make a profit. The company's product was on store shelves in all U.S. states, but efforts to enter foreign markets had only been haphazard with non-U.S. sales accounting for just three per cent of total sales. The CEO needed to focus serious attention on entering the world's second largest ice cream market, Japan. An objective of Ben & Jerry's was to use the excess manufacturing capacity it had in the U.S., and it found that exporting ice cream from Vermont to Japan was feasible from a logistics and cost perspective. The company identified two leading partnering options. One was to give a Japanese convenience store chain exclusive rights to the product for a limited time. The other was to give long-term rights for all sales of the product in Japan to a Japanese-American who would build the brand. For the company to enter Japan in time for the upcoming summer season, it would have to be through one of these two partnering arrangements.

Teaching Note: 8A99A37 (6 pages)
Industry: Manufacturing
Issues: Strategic Alliances; Market Entry; International Marketing; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



TROJAN TECHNOLOGIES INC: THE CHINA OPPORTUNITY
Pratima Bansal, Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M028
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 14 pages

The senior market associate of Trojan Technologies reflected on the water shortages anticipated in developing countries created by their explosive economic growth. Trojan sold water disinfecting equipment, and the senior market associate's job was to find new areas for growth. China was particularly intriguing because it had as much water as Canada, but 40 times the population, and its economic boom would further stress current water resources. Trojan had set growth hurdles of 30 per cent per year, and it needed new markets to reach that objective. The task in new market development was to determine if Trojan should enter China, and if so, when, where and how. The associate knew little of China: how decisions were made for water disinfecting equipment, whether Trojan's patents would be protected, and what level of resources would be required. The vice-president of new business development wanted to see recommendations within the month. AWARD WINNING CASE - This case was second place winner of the MDC of Hong Kong Case Writer of the Year Award in 2000.

Teaching Note: 8A99M28 (10 pages)
Industry: Utilities
Issues: China; Environment; Strategic Planning; International Business
Difficulty: 4 - Undergraduate/MBA



NOTE ON INTERNATIONAL LICENSING
Paul W. Beamish

Product Number: 9B06M005
Publication Date: 11/28/2005
Revision Date: 9/17/2009
Length: 18 pages

Licensing is a strategy for technology transfer; and an approach to internationalization that requires less time or depth of involvement in foreign markets, compared to exports, joint ventures, and foreign direct investment. This note examines when licensing is employed, risks associated with it, intellectual property rights, costs of licensing, unattractive markets for licensing, and the major elements of the license agreement.

Issues: Technology Transfer; Licensing; Corporate Strategy; Internationalization
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Strategic Planning

TAMING THE DRAGON: CUMMINS IN CHINA (CONDENSED)
Charles Dhanaraj, Maria Morgan, Jing Li, Paul W. Beamish

Product Number: 9B05M034
Publication Date: 9/22/2005
Revision Date: 10/1/2009
Length: 15 pages

This case documents more than 15 years of U.S.-based Cummins, a global leader in diesel and allied technology, and its investment activities in China. While the macro level indicators seem to suggest the possibility to hit $1 billion in revenues in China by 2005, there were several pressing problems that put into question Cummins' ability to realize this target. Students are presented with four specific situations and must develop an appropriate action plan. They are related to the respective streamlining and consolidation of several existing joint ventures, distribution and service, and staffing. The case presents the complexity of managing country level operations and the role of executive leadership of a country manager.

Teaching Note: 8B05M34 (14 pages)
Industry: Manufacturing
Issues: China; International Strategy; International Joint Venture; Country Manager; Global Strategy
Difficulty: 4 - Undergraduate/MBA



ALLISON TRANSMISSION: CREATING A EUROPEAN FACE
Charles Dhanaraj

Product Number: 9B04M045
Publication Date: 9/22/2005
Revision Date: 10/15/2009
Length: 17 pages

Allison Transmission Division is a $2 billion unit within General Motors (GM) with a very specialized product - heavy-duty automatic transmissions for commercial vehicles. Although the division is part of GM, more than 90 per cent of its output is directed to external customers. The case presents a familiar challenge faced by many globalizing firms: a pioneer and leader in a market holding more the 60 per cent of the market in North America, but less than 10 per cent outside North America. The presence of leading original equipment manufacturers in Europe who are the key customers for Allison, and the large market potential in Europe presents a strategic opportunity, but the cultural and institutional differences present a formidable challenge. The technological differences in Europe augments this challenge and the uncertainty surrounding a new hybrid technology that is emerging in Europe make the decision even more complex. Also presented is the company's attempts in Europe for a decade leading to the trigger issue - a decision between a joint venture in Austria and a wholly owned unit in Hungary. The case provides a rich organizational context to challenge students to go beyond a typical alternative analysis to consider the broad strategic issues and identify a comprehensive strategy for Europe.

Teaching Note: 8B04M45 (14 pages)
Industry: Manufacturing
Issues: Entry Mode; International Strategy; Legitimacy in International Marketplace; International Marketing
Difficulty: 4 - Undergraduate/MBA



SELKIRK GROUP IN ASIA (CONDENSED)
Paul W. Beamish, Lambros Karavis

Product Number: 9B02M041
Publication Date: 11/29/2002
Revision Date: 12/3/2009
Length: 10 pages

Selkirk Group is a family-owned brick manufacturer which has built an export business to Japan and other Asian markets from zero to 10% of its volume in seven years. The managing director of the company raises the question of whether it is time to change their regional export strategy and organizational structure in light of the Asian economic crisis and the reasons for their competitive success in both Australia and Asia.

Teaching Note: 8A99M03 (9 pages)
Industry: Manufacturing
Issues: International Business; Exports; Organizational Structure; International Marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Organization, Implementation, and Control

BAX GLOBAL LIMITED: STAFF TURNOVER IN MAINLAND CHINA
Jean-Louis Schaan, Nigel Goodwin

Product Number: 9B05C035
Publication Date: 11/28/2005
Revision Date: 9/28/2009
Length: 13 pages

The human resources manager for logistics and supply chain management at BAX China must consider her company's high rate of staff turnover. In her monthly report to the managing director, the turnover had reached 12 per cent in the first eight months of the year. The human resources manager must evaluate the company's current methods of dealing with turnover and consider what additional action should be taken. Logistics was a complex and rapidly growing industry, particularly in mainland China. Many multinational and domestic service providers were entering the marketing and expanding their operations; however, these companies had to respond to complex operational challenges and escalating customer demands. The resulting demand for skilled workers led to high turnover rates across the industry and at all organizational levels, and created margin pressure and other management challenges. The case offers a uniquely Chinese perspective on workforce recruitment, management and retention. The industry and the broader economy were growing rapidly. Skilled workers were in short supply because logistics was a new and developing discipline in the former command economy. Also, in the human resources manager's opinion, cultural attitudes resulted in low loyalty among the workers.

Teaching Note: 8B05C35 (9 pages)
Industry: Transportation and Warehousing
Issues: China; Employee Retention; Recruiting; Compensation; Nanyang
Difficulty: 4 - Undergraduate/MBA



S-S TECHNOLOGIES INC. (COMPENSATION)
Alexander Mikalachki

Product Number: 9A97C005
Publication Date: 6/3/1997
Revision Date: 2/3/2010
Length: 10 pages

The owners of the company were concerned with the rapid rate of growth facing their company. The company had revenues of $6.3 million and employed 30 highly skilled workers. These numbers were expected to double or triple in the next couple of years. To determine how well the company was structured to achieve its future goals, they hired a consultant he had worked with successfully in the past. The consultant's major role was to make recommendations as to the appropriate organizational design (culture, people, layers of management and administrative systems) in the event that the company grew from 30 to 60 or even 120 employees. Among other issues, questions regarding compensation were surfacing, and the owners wanted to address these questions as soon as possible.

Teaching Note: 8A97C05 (4 pages)
Industry: Manufacturing
Issues: High Technology Products; Communications; Compensation; Bonuses
Difficulty: 4 - Undergraduate/MBA



FIVE STAR BEER - PAY FOR PERFORMANCE
Brian Golden, Tom Gleave

Product Number: 9A98C004
Publication Date: 10/8/1998
Revision Date: 1/25/2010
Length: 13 pages

The president and general manager are reviewing a pay for performance system. The president needs to determine whether or not these systems were properly designed to ensure that they are producing higher quality product at progressively lower costs. If not, he needs to consider how he might suggest that these and other systems be changed in order to achieve cost and quality objectives.

Teaching Note: 8A98C04 (8 pages)
Industry: Manufacturing
Issues: China; Pay for Performance; Joint Ventures; Organizational Design; Change Management
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Marketing

GLOBAL BRANDING OF STELLA ARTOIS
Paul W. Beamish, Anthony Goerzen

Product Number: 9B00A019
Publication Date: 10/19/2000
Revision Date: 5/23/2017
Length: 19 pages

Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. Recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. The early stages of Interbrew's global branding strategy and tactics are examined, enabling students to consider these concepts in the context of a fragmented but consolidating industry. It is suitable for use in courses in consumer marketing, international marketing and international business.

Teaching Note: 8B00A19 (10 pages)
Industry: Manufacturing
Issues: Global Product; International Business; International Marketing; Brands
Difficulty: 4 - Undergraduate/MBA



BRAND IN THE HAND: MOBILE MARKETING AT ADIDAS
Andy Rohm, Fareena Sultan, David T.A. Wesley

Product Number: 9B05A024
Publication Date: 9/26/2005
Revision Date: 5/23/2017
Length: 22 pages

The Global Media manager for adidas International is responsible for developing and championing a new marketing strategy at adidas called brand in the hand that is based on the convergence of cell phones and wireless Internet. The case presents company background information, data on the penetration of mobile devices such as cell phones, the growth of global mobile marketing practices, and several mobile marketing communications campaigns that adidas launched in 2004, such as a mobile newsticker for the 2004 European soccer championship. The case then introduces a specific campaign - Respect M.E. - featuring Missy Elliott, a popular female hip-hop artist, and discusses the company's mobile marketing strategy to support MissyElliott's new line of sportswear. This case can be used to highlight the role of new technology in overall marketing strategy and integrated marketing communications.

Teaching Note: 8B05A24 (13 pages)
Industry: Manufacturing
Issues: Marketing Channels; Marketing Communication; International Marketing; Telecommunication Technology; Northeastern
Difficulty: 4 - Undergraduate/MBA



WALT DISNEY INTERNET GROUP JAPAN'S DIMO PROJECT
Philip Sugai

Product Number: 9B04A026
Publication Date: 11/23/2004
Revision Date: 10/7/2009
Length: 25 pages

The Walt Disney Internet Group Japan has recently launched an entirely new set of interactive mobile character/agents for the NTT DoCoMo iMode platform, called Dimo. Having built Japan's most successful mobile entertainment business using traditional Disney-branded characters and related content, these Dimo characters have been designed to go well beyond entertainment and become valuable guides, assistants and friends for users of the continuously evolving Mobile Internet and the increasingly complex tasks enabled by this platform. Although the Walt Disney Internet Group Japan team feels strongly that these types of character/agents will be the future of human-device interactions, subscription figures six months after Dimo's launch suggest that Japan's mobile consumers may not share this belief.

Teaching Note: 8B04A26 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: E-Business; Brand Management; Competitive Advantage; Consumer Behaviour
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Services

KNOWLEDGE MANAGEMENT AT ACCENTURE
Darren Meister

Product Number: 9B05E018
Publication Date: 11/28/2005
Revision Date: 10/9/2009
Length: 17 pages

Accenture has long been seen as a leader in knowledge management, having received awards for many years. Over the years though, islands of knowledge have developed throughout the organization and the delivery infrastructure has become progressively more expensive. In 2004, the global knowledge management lead has been given the mandate to lead a revitalization of knowledge management. This case outlines governance challenges in the global firm, the transition to a new IT infrastructure and the strategic challenges and opportunities facing knowledge management within Accenture.

Teaching Note: 8B05E018 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Technological Change; Consulting; Knowledge Based Systems; Knowledge Management
Difficulty: 4 - Undergraduate/MBA



ROSENBLUTH INTERNATIONAL MEXICO
John Kamauff, Sara Allan, David Ager

Product Number: 9A95D005
Publication Date: 3/10/1995
Revision Date: 2/12/2010
Length: 22 pages

The general manager of Rosenbluth International's Mexican operations, had recently been given the task of transforming Bancomer Travel Services, a small Mexican-owned agency, into a branch office of Rosenbluth International. The Rosenbluth service concept has contributed to RI's success in the US and Canadian business travel industry, but the US/Canadian success does not imply that the Rosenbluth service concept can be taken carte blanche into Mexico. The case challenges students to consider if and how to adapt the service concept for the Mexican market, the Mexican business traveller and for travel in Mexico.

Teaching Note: 8A95D05 (22 pages)
Industry: Transportation and Warehousing
Issues: International Business; Services; Partnership; Operations Management
Difficulty: 4 - Undergraduate/MBA



RUSSKI ADVENTURES
Paul W. Beamish, Ian Sullivan

Product Number: 9A92G002
Publication Date: 7/9/1992
Revision Date: 3/22/2010
Length: 18 pages

The two major partners in Russki Adventures contemplated their next move. They had spent the last year and a half exploring the possibility of starting a helicopter skiing operation in Russia. Their plan was to bring clients from Europe, North America and Japan to the Caucasus Mountains to ski the vast areas of secluded mountain terrain made accessible by the use of helicopter and the recent business opportunities offered by 'glasnost'. Three options for proceeding were being considered. The first was to proceed with the venture on their own, in the Caucasus Mountains area that had been made available to them by a Soviet government agency. The second was to accept the offer of partnership with Extreme Dreams, a French tour operator that had recently begun operations in the Caucasus region. The final option was to wait, save their money and not proceed with the venture at this time. This is a good case to emphasize small-scale international ventures and the complexities of operating in a rapidly changing and politically unstable environment.

Teaching Note: 8A92G02 (8 pages)
Industry: Accommodation & Food Services
Issues: Political environment; joint ventures; risk analysis; luxury services
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Logistics and Supply-Chain Management

DAIKIN INDUSTRIES
Chris J. Piper, Tetsu Imigi

Product Number: 9B04D018
Publication Date: 8/10/2004
Revision Date: 10/9/2009
Length: 9 pages

The president of Daikin Industries Residential Air Conditioning Shiga Factory was confronted by the prospects of an unseasonably cold summer, at a time when the Shiga Factory had large quantities of its products in inventory in anticipation of strong summer sales. The president was concerned not only about pending losses in the current year, but also about the factory's long-term survival. Unprofitability was unacceptable and Daikin was caught in a stagnant market in which it was increasingly difficult to build share by product differentiation. The Shiga Factory had been forced to use large inventories to cope with uncertain demand and a long and unwieldy supply chain. The president must decide whether to reduce the number of models, build a lower-cost factory outside Japan, or exit the business. He must also determine if there are any other options.

Teaching Note: 8B04D18 (23 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Inventory; Operations Strategy; Lead Time
Difficulty: 4 - Undergraduate/MBA



ROSENBLUTH: SUPPLY CHAIN MANAGEMENT IN SERVICES
John Kamauff, Sara Allan

Product Number: 9A95D021
Publication Date: 5/13/1996
Revision Date: 10/23/2008
Length: 18 pages

This case demonstrates how forming strategic partnerships with suppliers and clients can lead to win-win-win situations in the supply chain. It can be used to discuss the importance of information sharing and the use of information technology to drive the direction of the individual relationships. It also shows how cultivating partnerships can result in a competitive advantage in a highly competitive service industry. Techniques for developing and maintaining such a relationship are also brought out in the case, and it provides an opportunity to focus on the key concepts of supply chain management as they apply to service industries.

Teaching Note: 8A95D21 (3 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Customer Relations; Management in a Global Environment; Supplier Relations; Supplier Selection
Difficulty: 4 - Undergraduate/MBA



UNIFINE RICHARDSON
Carol Prahinski

Product Number: 9B02D020
Publication Date: 1/10/2003
Revision Date: 11/30/2009
Length: 4 pages

Unifine Richardson is a food manufacturer with 110 employees. The company's sole supplier of honey announced that effective immediately it was no longer able to supply Chinese honey. The Canadian Food Inspection Agency had rejected the importation of Chinese honey due to recently found traces of an antibiotic chemical. China had provided 20 per cent of the world's honey supply. Faced with escalating prices, issues with customers' preferences and possible product recalls, the purchasing manager must determine the company's next step. International sourcing, supply disruptions, supply chain management and quality issues must be considered.

Teaching Note: 8B02D20 (13 pages)
Industry: Manufacturing
Issues: Imports; Quality; Supplier Relations; Purchasing
Difficulty: 4 - Undergraduate/MBA


Chapter 17:
Financial Management

WRIGHT-ANDERSON MACHINES
Paul M. Bishop, Richard Nason

Product Number: 9A90B007
Publication Date: 1/1/1990
Revision Date: 1/31/2002
Length: 2 pages

The vice-president finance for a Canadian manufacturer has to decide how best to refinance a Swiss franc loan that is about to mature. The case involves consideration of interest rate risk and foreign exchange risk. The case is designed to introduce students to borrowing in international markets. It gives students an idea of the many opportunities to borrow internationally. By examining the cost of the previous loan, students should gain an appreciation of how changes in exchange rates can affect the cost of a loan.

Teaching Note: 8A90B07 (4 pages)
Industry: Manufacturing
Issues: Foreign Exchange; Financing; International Finance; Hedging
Difficulty: 4 - Undergraduate/MBA



PEPSICO CHANGCHUN JOINT VENTURE: CAPITAL EXPENDITURE ANALYSIS
Larry Wynant, Claude P. Lanfranconi, Peter Yuan, Geoff Crum

Product Number: 9B00N016
Publication Date: 2/2/2001
Revision Date: 1/12/2010
Length: 15 pages

PepsiCo Inc. spanned more than 190 countries and accounted for approximately one-quarter of the world's soft drinks. The vice-president of finance for PepsiCo East Asia had been collecting data on the firm's proposed equity joint venture in Changchun, People's Republic of China (PRC). While PepsiCo was already involved in seven joint ventures in the PRC, this proposal would be one of the first two green-field equity joint ventures with PepsiCo control over both the board and day-to-day management. Every investment project at PepsiCo had to go through a systematic evaluation process that involved using capital budgeting tools such as new present value (NPV) and internal rate of return (IRR). He needed to decide if the proposed Changchun joint venture would meet PepsiCo's required return on investment. He was also concerned what the local partners would think of the project. The final decision would be made after a presentation to the president of PepsiCo Asia-Pacific.

Teaching Note: 8B00N16 (11 pages)
Industry: Manufacturing
Issues: China; Net Present Value Method; Joint Ventures; Financial Analysis; Internal Rate of Return
Difficulty: 4 - Undergraduate/MBA


Chapter 18:
Corporate Governance, Accounting, and Taxation

KOMANDOR SA (A)
David J. Sharp, Karen Bong

Product Number: 9B01B013
Publication Date: 10/18/2001
Revision Date: 12/7/2009
Length: 9 pages

Komandor SA is a subsidiary of a Polish holding company that manufactures sliding doors and closet organizer systems. The company president and his Canadian counterpart must decide on a transfer pricing policy for consulting services and associated components shipped between the two countries. Polish tax regulations seem unclear and arbitrary and the tax auditor has disallowed the consulting fees. The two presidents must decide whether allocating the consulting fee to product overhead will solve the problem.

Teaching Note: 8B01B13 (8 pages)
Industry: Manufacturing
Issues: International Accounting; International Trade; Transfer Pricing; Ethical Issues
Difficulty: 5 - MBA/Postgraduate



TALISMAN ENERGY INC.
Lawrence G. Tapp, Gail Robertson

Product Number: 9B03M028
Publication Date: 5/28/2003
Revision Date: 10/26/2011
Length: 28 pages

Talisman Energy is the largest Canadian oil and gas producer, with main business activities in exploration, development, production and marketing of crude oil, natural gas and natural gas liquid. At a special board of directors meeting, the management and board of Talisman conducted a review of the Sudan operations to assess its fit within the current business portfolio. After years of direct and often angry criticism by human rights groups and the fact that the United States government was threatening to restrict firms operating in Sudan from listing their securities on American markets, the board was considering its options in the region. The Sudan project had good economic value for Talisman with good future prospects and production possibilities. Additionally, the company had gone to considerable lengths to develop and implement socially responsible policies and programs in Sudan. Senior management believed that they had contributed to an increased quality of life for the people of Sudan. Despite this, activist groups had continued to attack Talisman for their role in Sudan. The continued pressure from activists and governments were believed to be responsible for a steady decrease in share price. The issue before the board in conducting this review was to question whether continuing operations in Sudan was compatible with Talisman's mandate to operate in the best interests of the company and its shareholders.

Teaching Note: 8B03M28 (10 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Board of Directors; International Management; Corporate Governance; Ethical Issues
Difficulty: 4 - Undergraduate/MBA


Chapter 19:
Human Resource Management

INTEL IN CHINA
Kathleen E. Slaughter, Donna Everatt, Xiaojun Qian

Product Number: 9A99C007
Publication Date: 6/23/1999
Revision Date: 5/24/2017
Length: 8 pages

The newly appointed division head must examine organizational or communication problems within a division of a billion dollar semiconductor manufacturer. The manager made a decision, which an employee emotionally responded to, creating the potential for conflict within the department. Cross-cultural issues come into play given that the manager, although originally from China, was educated and gathered extensive experience in the West and was thus considered an expatriate by his employees. The manager must also examine the effect of organizational culture on an employee's behavior.

Teaching Note: 8A99C07 (8 pages)
Industry: Manufacturing
Issues: China; Interpersonal Relations; Intercultural Relations; Conflict Resolution; Management Communication
Difficulty: 4 - Undergraduate/MBA



LARSON IN NIGERIA (REVISED)
Paul W. Beamish, Isaiah A. Litvak, Harry Cheung

Product Number: 9B04M012
Publication Date: 2/3/2004
Revision Date: 10/9/2009
Length: 7 pages

The vice-president of international operations must decide whether to continue to operate or abandon the company's Nigerian joint venture. Although the expatriate general manager of the Nigerian operation has delivered a very pessimistic report, Larson's own hunch was to stay in that country. Maintaining the operation was complicated by problems in staffing, complying with a promise to increase the share of local ownership, a joint venture partner with divergent views, and increasing costs of doing business in Nigeria. If Larson decides to maintain the existing operation, the issues of increasing local equity participation (i.e. coping with indigenization) and staffing problems (especially in terms of the joint venture general manager) have to be addressed.

Teaching Note: 8B04M12 (11 pages)
Industry: Manufacturing
Issues: Subsidiaries; Third World; Government Regulation; Staffing
Difficulty: 4 - Undergraduate/MBA



FRANS RYCKEBOSCH: AN INTERNATIONAL MANAGER (A)
Aimin Yan, Leslie Steinberg

Product Number: 9A99C030
Publication Date: 2/9/2000
Revision Date: 1/14/2010
Length: 12 pages

In a 30-year career, a recently retired international manager of Xerox Corporation played a major role in the company's international expansion to emerging economies, assumed key responsibilities for the negotiation and founding of several international joint ventures, and served as an expatriate manager of these ventures in several countries (e.g., Mexico, Brazil, and China). The case provides a learning opportunity at both the individual and the organizational levels. As a manager or future manager, the student can learn about critical career decisions, development through international assignments, and the joys and frustrations of the portable life of an expatriate family. At the organizational level, the case provides useful examples of international growth/expansion strategies, challenges for managing joint venture operations, and international human resource policies and practices. Importantly, the case presents these examples/issues in the context of doing business in emerging economies. Frans Ryckebosch: An International Manager (B) case, (9A99C031) may be used as a supplement to this case.

Teaching Note: 8A99C30 (9 pages)
Industry: Manufacturing
Issues: China; Career Development; Organizational Behaviour; International Business; Human Resources Management
Difficulty: 4 - Undergraduate/MBA



GTI IN RUSSIA
Mikhail Grachev, Peggy C. Smith, Mariya A. Bobina

Product Number: 9B03C008
Publication Date: 2/27/2003
Revision Date: 10/17/2009
Length: 14 pages

GTI is Global Traffic Inc., a U.S.-based sign manufacturer. The vice-president of the company is asked to recommend a human resources strategy for possible entry in the Russian market. He must develop a plan for expatriate assignment, the selection and compensation of personnel and the training needs, as well as outline the organizational culture.

Teaching Note: 8B03C08 (6 pages)
Industry: Manufacturing
Issues: Expatriate Management; Compensation; Management Training; Cross Cultural Management
Difficulty: 4 - Undergraduate/MBA


Chapter 20:
New Horizons

SUN LIFE FINANCIAL: ENTERING CHINA
Paul W. Beamish, Ken Mark, Jordan Mitchell

Product Number: 9B04M066
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 17 pages

Sun Life Financial is a large insurance conglomerate with $14.7 billion in annual revenues. The vice-president for China must formulate an approach for his company's entrance into China. Sun Life has achieved two important milestones: the right to apply for license and the signing of a Memorandum of Understanding for Joint Venture with China Everbright, a local securities company. The financial vice-president must consider strategic options for entry and choose a city in which to focus his efforts in getting a license. In doing so, he needs to consider Sun Life's overall priorities, strategic direction and how he will sell the concept to senior management in Canada. Intended for use in an introduction to international business course, the case includes assessing internal capabilities against an environmental scan, formulating strategy and making operational decisions relating to city selection. It also introduces the idea of joint venture management and government relations.

Teaching Note: 8B04M66 (12 pages)
Industry: Finance and Insurance
Issues: China; Joint Ventures; Market Entry; Risk Analysis; International Business
Difficulty: 4 - Undergraduate/MBA



DE BEERS AND THE GLOBAL DIAMOND INDUSTRY
David W. Conklin, Danielle Cadieux

Product Number: 9B05M040
Publication Date: 7/15/2005
Revision Date: 10/1/2009
Length: 17 pages

De Beers Consolidated Mines has successfully managed the global diamond industry for many decades, propping up prices at all stages of the value chain, reducing price volatility and increasing consumer demand. By the end of the 20th century, however, a series of forces threatened De Beer's role and profitability. New diamond mining firms were selling their production on the open market rather than through De Beers' Central Selling Organization. The new competitors were attempting to grade, polish and cut diamonds outside of the De Beers value chain. Some retailers were purchasing shares in new mines in order to create their own value chain. New technology offered the possibility of creating synthetic diamonds that would be indistinguishable from diamonds created by natural forces. Governments were threatening antitrust actions. Meanwhile, an illicit trade in conflict diamonds was supporting revolutionary groups and disrupting the market. De Beers now had to decide whether to maintain its traditional functions or to embark on a new strategy. In particular, De Beers contemplated a shift into the retail jewelry business in a joint venture with France's Moet Hennessy-Louis Vuitton luxury goods corporation that would sell De Beers-branded diamond jewelry.

Teaching Note: 8B05M40 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Value Chain; Globalization; International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA