Ivey Publishing

International Business

Rugman, A.M., Collinson, S.,5/e (United States, Prentice Hall/Financial Times, 2009)
Prepared By Paul W. Beamish, Professor
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Regional and Global Strategy

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

Product Number: 9B11M107
Publication Date: 11/8/2011
Length: 11 pages

This 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 and the corresponding percentage of world population which each country represents. By summing a group’s collective exposure to the world’s people, the result 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 abroad.


Teaching Note: 8B11M107 (6 pages)
Issues: Career Development; Intercultural Relations; Team Building; Internationalization
Difficulty: 4 - Undergraduate/MBA



CHABROS INTERNATIONAL GROUP: A WORLD OF WOOD
Paul W. Beamish, Bassam Farah

Product Number: 9B10M100
Publication Date: 11/30/2010
Revision Date: 4/17/2014
Length: 16 pages

AWARD WINNING CASE - MENA Business Cases Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. The Chabros International Group case examines how a Lebanese multinational wood company confronts a drastic drop in its largest subsidiary's sales after 2008's global economic crisis. Antoine Chami, Chabros's owner and president, was reviewing his company's 2009 end-of-year financial statements and, in particular, a 30 per cent drop in sales in Dubai. In 2007, a year before the global economic crisis, Chami had invested more than $11 million to acquire and expand a sawmill in Serbia to meet Chabros's growing lumber sales demand. With a much higher capacity to produce lumber and a much lower probability to sell it, Chami had to decide what to do to overcome this challenge. Should he close parts of his Serbian sawmill? Should he try to boost his company's sales to use all of his sawmill's available capacity? If so, should Chabros try to increase sales within the countries where it already operated (UAE, Saudi Arabia, Qatar, Oman, Egypt) or should it expand into a new country (Algeria, Bahrain, Iran, Iraq, Jordan, Kuwait, Libya, Syria, Tunisia)? Would Morocco, among other countries, be the best country to expand into? Was it the right time to embark on such an expansion?

Teaching Note: 8B10M100 (15 pages)
Industry: Manufacturing
Issues: International Expansion; Market Entry; Growth Strategy; Exports
Difficulty: 4 - Undergraduate/MBA



ARE WE READY FOR AN AUTOMOTIVE PLANT?
Yi-Chia Wu, Joo Y. Jung

Product Number: 9B09D014
Publication Date: 2/5/2010
Length: 15 pages

The city of McAllen, Texas and its partners have worked on attracting an automotive assembly plant to the region for over fifteen years. Under the North American Free Trade Agreement (NAFTA) provision, this region enjoys the advantages offered by both sides of the Mexican-U.S. border. Even during the economic downturn of 2007 to 2008, McAllen experienced a lower unemployment rate compared to other cities in the United States. One of the primary reasons was its close proximity and economic ties to Mexico. Lower labour cost, a right-to-work state and proximity to Mexico were some of this region's strengths, while a high illiteracy rate, limited numbers of automotive suppliers and small workforce were among its weaknesses. Based on publicly available data and aggregate score evaluation methods, McAllen is compared to other potential sites. The case addresses a wide range of issue regarding site selection factors within the automotive industry. Teaching objectives include: 1) to examine essential factors for site location of different industries, including the automotive industry 2) to evaluate the potential sites based on a quantitative method, such as the relative aggregate score 3) to understand other qualitative factors that can affect the decision. The case is suitable for courses and workshops concerning operations management, supply chain management, production management, project management, decision science and management science. Exhibits can be omitted for graduate and executive levels, requiring the students to research and come up with their own factors.

Teaching Note: 8B09D14 (6 pages)
Industry: Manufacturing
Issues: Automotive; Site Selection; Global Strategy; Decision Making
Difficulty: 4 - Undergraduate/MBA



ING INSURANCE ASIA/PACIFIC
Rod E. White, Paul W. Beamish, Andreas Schotter

Product Number: 9B06M083
Publication Date: 1/9/2007
Length: 15 pages

The new chief executive officer (CEO) of ING Insurance Asia/Pacific wants to improve the regional operation of the company. ING Group was a global financial services company of Dutch origin with more than 150 years of experience. As part of ING International, ING Insurance Asia/Pacific was responsible for life insurance and asset/wealth management activities throughout the region. The company was doing well, but the new CEO believed that there were still important strategic and operational improvements possible. This case can be used to discuss the local versus regional or global management issue and will yield best results if the class has already been introduced to different strategic and organizational alternatives in the international business context.

Teaching Note: 8B06M83 (12 pages)
Industry: Finance and Insurance
Issues: Subsidiaries; Organization; Leadership; International Management
Difficulty: 4 - Undergraduate/MBA



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



CIBC-BARCLAYS: SHOULD THEIR CARIBBEAN OPERATIONS BE MERGED?
Don Wood, Paul W. Beamish

Product Number: 9B04M067
Publication Date: 1/10/2005
Revision Date: 9/21/2011
Length: 17 pages

At the end of 2001, the Canadian Imperial Bank of Commerce (CIBC) and Barclays Bank PLC were in advanced negotiations regarding the potential merger of their respective retail, corporate and offshore banking operations in the Caribbean. Some members of each board wondered whether this was the best direction to take. Would the combined company be able to deliver superior returns? Would it be possible to integrate, within budget, companies that had competed with each other in the region for decades? Would either firm be better off divesting regional operations instead? Should the two firms just continue to go-it-alone with emphasis on continual improvement? A decision needed to be made within the coming week. This case may be taught on a stand alone basis or in combination with any of the six additional Cross-Enterprise cases that deal with the various functional issues associated with the actual merger: Accounting and Finance - CIBC-Barclays: Accounting for Their Merger, product 9B04B022, Information Systems - Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032, Marketing and Branding - FirstCaribbean International Bank: The Marketing and Branding Challenges of a Start-up, product 9B05A012, Human Resources - Harmonization of Compensation and Benefits for FirstCaribbean International Bank, product 9B04C053, Finance - FirstCaribbean Merger: The Proposed Merger, product 9B06N004, and technical note - Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04M67 (8 pages)
Industry: Finance and Insurance
Issues: Corporate Strategy; Emerging Markets; Mergers & Acquisitions; Integration; University of West Indies
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


Chapter 2 & 3:
The Multinational Enterprise & The Triad and International Business

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



FIRSTCARIBBEAN: THE PROPOSED MERGER
Stephen Sapp

Product Number: 9B06N004
Publication Date: 11/28/2005
Revision Date: 9/23/2009
Length: 18 pages

This case provides students with an abridged version of the Offering Circular provided to investors for the proposed merger of the Caribbean operations of two international banks. Taking the perspective of an investment advisor, students are asked to evaluate the proposed merger and make a recommendation to the existing shareholders regarding how they should manage this investment going forward (i.e. sell or hold the shares in the new company). Students will discuss several of the issues involved in valuing international companies using somewhat limited data and puts them in the position of assessing the value of the proposal to existing shareholders.

Teaching Note: 8B06N04 (6 pages)
Industry: Finance and Insurance
Issues: Valuation; Mergers & Acquisitions; Investment Analysis; 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



CONOCO'S PURCHASE OF GULF CANADA RESOURCES: REAPING SYNERGIES FROM INTEGRATION
David W. Conklin, Ken Mark, Darcy Jones

Product Number: 9B03M038
Publication Date: 11/28/2003
Revision Date: 10/22/2009
Length: 18 pages

Firms in the oil and gas industry were shifting towards a model of vertical integration, innovative technologies and international diversification. Canadian firms like Gulf were not able to achieve this new success paradigm on their own and so they were natural takeover targets for large multinationals like Conoco.

Teaching Note: 8B03M38 (11 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
International Politics

EXPERIENCE CHINA: A NATIONAL IMAGE CAMPAIGN IN THE UNITED STATES
William Wei, Yuanfang Lin, Mei Qin Kok

Product Number: 9B11A033
Publication Date: 10/6/2011
Revision Date: 7/26/2017
Length: 8 pages

The China national image film “People Chapter” — officially a sub-series of the “Experience China” campaign — was launched by the Chinese government to coincide with President Hu Jintao’s visit to the United States in mid-January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per day, and had appeared approximately 8,400 times when the broadcast ended on February 14, 2011. The video showed a series of Chinese people, ranging from ordinary citizens to celebrities. It was a publicity effort aimed at promoting a truer image of China abroad, and signalling that China was opening to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly mixed since the initial release of the promotional film. Experts from China and abroad were skeptical of the effectiveness of the campaign in promoting the national image of modern China to the world. This case presents the opportunity to examine the basic elements in the marketing communication process, analyze how decisions in marketing design affect outcomes, and understand the differences between nation and product promotion.

Teaching Note: 8B11A033 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Advertising Strategy; Advertising Media; Cultural Sensitivity; Public Relations; Target Market; China and United States
Difficulty: 4 - Undergraduate/MBA



BANK OF AMERICA AND THE CHINESE CREDIT CARD MARKET
Charles Dhanaraj, Jing Li, Justin W. Evans

Product Number: 9B10M055
Publication Date: 8/12/2010
Revision Date: 10/19/2010
Length: 11 pages

This case addresses Bank of America Corporation's contemplated joint venture with China Construction Bank to enter the Chinese credit card market. The case builds on the questions of strategic alliances in foreign markets and the state of the banking and credit industries in China generally.

Teaching Note: 8B10M55 (10 pages)
Industry: Finance and Insurance
Issues: China; Credit Card Business; Joint Ventures; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



BANK VOZROZHDENIYE (V.BANK) (B)
David W. Conklin, Danielle Cadieux

Product Number: 9B06M014
Publication Date: 2/6/2006
Revision Date: 5/31/2007
Length: 5 pages

By 2006, in spite of lack a of significant reforms, the Russian banking system had recovered from the 1998 crisis, and its indicators such as capital, assets, and loans greatly exceeded the levels prior to 1998. The Russian economy had expanded rapidly, largely as a result of higher energy prices. However, many analysts were concerned about the large role played by oil and gas, and feared that energy exports were keeping the value of the ruble so high that non-energy manufacturing was being hurt. V. Bank had survived the 1998 crisis, and was considered one of the top 25 banks. In spite of this progress, its financial reports emphasized a series of concerns. Furthermore, Russia's political situation seemed precarious, as illustrated in the Khodorkovsky crisis, as a result of which Gazprom and the Yukos assets returned to majority state ownership. Some analysts pointed to a revival of authoritarian and arbitrary state intervention, and debated the possibility of a liberal political reaction in Russia similar to the Orange Revolution in the Ukraine.

Teaching Note: 8B06M14 (3 pages)
Industry: Finance and Insurance
Issues: Government and Business; Business Policy; Financial Institutions
Difficulty: 4 - Undergraduate/MBA



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



THE ANTAMINA COPPER-ZINC PROJECT: POLITICAL RISK INSURANCE
Stephen Sapp

Product Number: 9B02N018
Publication Date: 2/6/2003
Revision Date: 12/5/2009
Length: 20 pages

Compania Minera Antamina S.A. is a consortium of three large multinational Canadian mining companies set up to exploit a very large copper-zinc deposit north central Peru. The project requires about US$2 billion of financing for the development and exploitation of the deposit. The finance committee needs to determine the best means to raise the necessary funds: loans guaranteed by the sponsors or project finance. The costs and benefits are different across alternatives because the project involves both business and political risks to which the exposure for all of the stakeholders is different.

Teaching Note: 8B02N18 (14 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Financing; Political Environment; Risk Analysis; International Finance
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:
International Culture

MAINTAINING THE “SINGLE SAMSUNG” SPIRIT: NEW CHALLENGES IN A CHANGING ENVIRONMENT
Shaista E. Khilji, Chang Hwan Oh, Nisha Manikoth

Product Number: 9B11C010
Publication Date: 8/2/2011
Length: 13 pages

This case examines how Samsung has grown to become one of the world’s leading companies. It presents a detailed description of Samsung’s “top priority to the people” philosophy and its strong cultural values, both of which have been instrumental in ensuring its continued success in recent decades. Since 1982, the Samsung Human Resource Development Center (SHRDC) has played a critical role in supporting Samsung’s corporate strategy of achieving global competitiveness through programs that focus on maintaining Samsung values and developing a cadre of effective next-generation leaders. New Employee Orientation (NEO), an intensive four-week in-house program for all Samsung employees, is one example of an SHRD program. NEO aligns employees across Samsung affiliates to its strategic direction, thereby fostering a stronger “Single Samsung” culture.

In recent years, however, NEO has been faced with new challenges. First, Samsung’s pool of new employees has become more diverse, with the recruitment of more experienced and foreign (non-Korean) employees in addition to the fresh college graduates whom Samsung has always relied upon. Second, Samsung has become aware of stark value differences between the older employees, who are obedient and easily follow rules, and the younger “digital native” employees, who are more individualistic and prefer egalitarian and open policies. Managers at SHRDC are concerned that the “Single Samsung” spirit, which forms the core of Samsung culture, is being threatened from within.

Students must address issues related to the need for maintaining a unified organizational culture among diverse groups of employees with conflicting values, and propose ways for Samsung to effectively employ and utilize all of its employees.


Teaching Note: 8B11C010 (15 pages)
Industry: Manufacturing
Issues: Corporate Culture; Generational Differences; Human Resource Development; Consumer Electronics; South Korea
Difficulty: 4 - Undergraduate/MBA



JINJIAN GARMENT FACTORY: MOTIVATING GO-SLOW WORKERS
Tieying Huang, Junping Liang, Paul W. Beamish

Product Number: 9B04M033
Publication Date: 5/14/2004
Revision Date: 10/14/2009
Length: 6 pages

Jinjian Garment Factory is a large clothing manufacturer based in Shenzhen with distribution to Hong Kong and overseas. Although Shenzhen had become one of the most advanced garment manufacturing centres in the world, managers in this industry still had few effective ways of dealing with the collective and deliberate slow pace of work by the employees, of motivating workers, and of resolving the problem between seasonal production requirements and retention of skilled workers. However, the owner and managing director of the company must determine the reasons behind the deliberately slow pace of the workers, the pros and cons of the piecework system and the methods he could adopt to motivate the workers effectively.

Teaching Note: 8B04M33 (11 pages)
Industry: Manufacturing
Issues: China; Productivity; Employee Attitude; Piece Work; Performance Measurement; Work-Force Management; Peking University
Difficulty: 4 - Undergraduate/MBA



TEXTRON LTD.
Lawrence Beer

Product Number: 9B01M070
Publication Date: 3/28/2002
Revision Date: 11/9/2012
Length: 10 pages

Textron Ltd. is a family-owned manufacturer of cotton and sponge fabricated items. The company wants to expand its business with an offshore manufacturing enterprise that will fit with the company's policy of caring for their employees and providing quality products. The company is looking at two options: a guaranteed outsourcing purchase agreement or a joint venture. After several meetings with offshore alliance candidates the vice-president of the company must analyse the cross-cultural differences to established corporate guidelines of global ethics and social responsibility that the company can use in their negotiations with a foreign manufacturing firm.

Teaching Note: 8B01M70 (5 pages)
Industry: Manufacturing
Issues: China; International Business; Ethical Issues; Business and Society; Developing Countries
Difficulty: 4 - Undergraduate/MBA



VELSICOL EESTI AS (A): A U.S.-ESTONIAN JOINT VENTURE
Iris Berdrow

Product Number: 9B00M007
Publication Date: 5/16/2001
Revision Date: 1/8/2010
Length: 8 pages

Velsicol Chemical Corporation, a global company focused on producing specialty chemicals, has formed a joint venture with the Estonian government called Velsicol Eesti AS that would produce benzoic acid. The plant that will produce this chemical was previously part of a conglomerate owned and controlled by the Russian government. When Estonia became an independent state this plant was passed on to the country which then privatized and sold a percentage of it to Velsicol. The newly appointed plant manager came from a benzoic plant outside the country and was responsible for government relations, cost management, liaison with the board of directors, performance standards and staffing. He must quickly put together a management team that would be familiar with the current operations and capable of working together to achieve the company's goals. In order to do this, he needed to better understand the employees with whom he was working. A follow-up case, Velsicol Eesti AS (B), is available, (product 9B00M008), as well as a cultural note on Estonia, (product number 9B00M014).

Teaching Note: 8B00M07 (16 pages)
Industry: Manufacturing
Issues: Leadership; Joint Ventures; International Business; Organizational Behaviour
Difficulty: 4 - Undergraduate/MBA



VELSICOL EESTI AS (B): REFLECTIONS AND OUTCOMES
Iris Berdrow

Product Number: 9B00M008
Publication Date: 5/16/2001
Revision Date: 1/8/2010
Length: 13 pages

The plant manager at Velsicol Eesti AS, a joint venture chemical plant in Estonia, had faced and overcome many challenges: cultural differences, communicating in a different language, supplier relations with a hostile partner, and high staff turnover. The outcomes were very positive for both the Estonian plant and the U.S. parent company. The Velsicol Eesti AS (A) case, 9B00M007, outlines the starting point to the outcomes presented in this case. A cultural note on Estonia is also available (product number 9B00M014).

Teaching Note: 8B00M07 (16 pages)
Industry: Manufacturing
Issues: Organizational Behaviour; Joint Ventures; Leadership; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
International Trade

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



CAW AND THE BIG THREE AUTOMAKERS
David W. Conklin, Trevor Hunter

Product Number: 9A98M018
Publication Date: 9/23/1998
Revision Date: 1/29/2010
Length: 15 pages

A major threat to the existence of the CAW is the trend towards outsourcing the production of components to non-unionized, hence lower-cost manufacturers, by the Big Three Automakers (GM, Ford and Chrysler). This trend is costing Canadian Automobile Workers Union (CAW) members their jobs. The typical retaliation is CAW strikes, and negotiating job security agreements. This short-term strategy in fact encourages the move to offshore production in order to remain competitive. The purpose of the case is to discuss issues concerning the evolution of the Canadian economy from one which is manufacturing-based to one based on services, and to try to find answers to questions like: Can the CAW survive? Will the Big Three be producing cars in Canada in the 21st Century? Where else would they go? What are the concerns in moving production off-shore? What kind of strategy should the CAW follow to ensure its survival? How does Canadian automobile production relate to the global industry? How will governments impact the industry?

Teaching Note: 8A98M18 (9 pages)
Industry: Manufacturing
Issues: Business and Society; Globalization; Management in a Global Environment; Labour Unions
Difficulty: 5 - MBA/Postgraduate



KANZEN BERHAD: THE UNITED STATES AND ANTIDUMPING DUTIES
Donald J. Lecraw, Boon Lim

Product Number: 9A97G002
Publication Date: 9/10/1997
Revision Date: 10/17/2002
Length: 25 pages

The managing director of a new Malaysian producer of stainless steel tubing received a letter from the company's attorney in Washington, DC, informing him that the U.S. Specialty Tube Group had written to the U.S. President concerning stainless steel tubing imported into the U.S. from Korea, Taiwan, Thailand and Malaysia at dumped prices that was causing injury to the U.S. industry. For the next year, the managing director considered how he should respond to this threat, while at the same time increasing the company's exports to the U.S. so that it could meet its sales and profits goals. One year later, he was informed that a formal antidumping action had been taken against imports of stainless steel tubing from Malaysia (and other countries). He is considering what he should do now, both to preserve the company's U.S. market and maintain alternative markets in other countries.

Teaching Note: 8A97G02 (5 pages)
Industry: Manufacturing
Issues: International Law; International Trade; Political Environment; Anti-Dumping Action
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
International Financial Markets and Institutions

THAILAND, 1997
David M. Currie

Product Number: 9B01M024
Publication Date: 9/27/2001
Revision Date: 12/21/2009
Length: 20 pages

For most of the 1990's, Thailand's economy was one of the fastest growing in the world. Thailand was popular with foreign investors, and the country's currency was stable due to the central bank's currency peg. However, overspeculation, high interest rates, lower than expected exports and job losses were causing speculation that the central bank would abandon the currency peg. The Bank of Thailand must decide whether to continue or to abandon the peg of the baht to the U.S. dollar. Was the country through the worst of the economic problems or was there more to come? The supplementary cases enable role plays designed to provide an understanding of the forces influencing a decision about appropriate monetary policy as importer (9B01M022 - Exclusive Autos of Bangkok), exporter (9B01M023 - Thai Shoes PCL), investor (9B01M027 - International Assets Investment Company), lender (9B01M026 - Hokkaido Bank), currency speculator (9B01M029 - Quantile Investment Fund), the IMF (9B01M028 - International Monetary Fund), and the Bank of Thailand (9B01M025 - Bank of Thailand in June 1997).

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Economic Conditions; Developing Countries; Government and Business; Exchange Rates
Difficulty: 5 - MBA/Postgraduate



INTERNATIONAL MONETARY FUND
David M. Currie

Product Number: 9B01M028
Publication Date: 9/27/2001
Revision Date: 3/26/2008
Length: 3 pages

This role play supplement to Thailand, 1997 (product 9B01M024), discusses the International Monetary Fund conditions that will be put in effect should Thailand request assistance.

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Developing Countries; Economic Conditions; Exchange Rates; Government and Business
Difficulty: 5 - MBA/Postgraduate



HONG KONG DOLLAR PEG (REVISED)
Stephen Sapp, Robert W. White, Satish Asdhir

Product Number: 9B00N027
Publication Date: 1/30/2001
Revision Date: 1/12/2009
Length: 21 pages

The financial uncertainty in Hong Kong and Asia from mid-1997 to mid-1998 was caused in part by the Asian flu and the return of Hong Kong to the People's Republic of China. A large North American-based insurance company was faced with the decision of managing its Asian assets in light of this uncertainty, especially the possible breaking of the peg between the Hong Kong dollar and the U.S. dollar. As the vice-president of capital markets at Manulife Financial contemplated what strategy he would recommend to the senior executive group, he considered the concepts of fixed/pegged exchange rates and the use of different strategies to manage the risks, as well as the potential profit opportunities that may arise when a fixed/pegged exchange rate is under attack and may break.

Teaching Note: 8B00N27 (12 pages)
Industry: Finance and Insurance
Issues: Exchange Rates; Economic Conditions; Risk Management; International Finance
Difficulty: 4 - Undergraduate/MBA



DHARMALA MANULIFE - A MARKETING STRATEGY
John S. Hulland, Donna Everatt

Product Number: 9A99A022
Publication Date: 2/9/2000
Revision Date: 1/12/2010
Length: 17 pages

The president director of Dharmala Manulife, a large, successful Canadian-Indonesian joint venture life insurance company, faced a significant disruption to operations due to social unrest in Jakarta. Moreover, the Asian financial crisis had resulted in a massive devaluation of the rupiah, in terms of the U.S. dollar. Thus, premiums on U.S.-dollar denominated policies had become prohibitively expensive almost overnight. Policy surrenders, redemptions, and lapses were occurring at an alarming rate. This erosion of the company's client base also meant that sales agents (who worked solely on commissions) were not only losing clients, but were also facing a tremendous challenge in writing new policies in light of the economic, political, and social chaos. Given the external situation, the president director and his senior management team were forced to develop effective strategic marketing decisions. The case asks students to consider the marketing plan for the launch of a new product designed to address the market realities and how to manage the commissioned salesforce in light of the disruption to operations.

Teaching Note: 8A99A22 (10 pages)
Industry: Finance and Insurance
Issues: Sales Strategy; New Products; Market Strategy; Sales Management
Difficulty: 4 - Undergraduate/MBA



ING AND GLOBAL FINANCIAL INTEGRATION
David W. Conklin, Yury Boshyk

Product Number: 9A99M022
Publication Date: 10/27/1999
Revision Date: 1/18/2010
Length: 17 pages

Like many other financial institutions, ING faces the challenges and opportunities of globalization. This case examines financial integration within the European Union, the attempt to harmonize regulations and the creation of a single currency. The Basle Accord establishes international standards for a financial institution's capital as a percentage of loans. There is currently an attempt to modify these standards to reflect the differences in risk associated with different types of assets. The case also examines emerging markets and the foreign exchange crises that repeatedly impact these countries. Finally, the case examines the shift towards electronic commerce and the possibility of entering new markets without having to build or acquire physical facilities. Students are encouraged to analyze these basic changes in the environment of business and to consider how these changes may impact the globalization strategy of a financial institution.

Teaching Note: 8A99M22 (7 pages)
Industry: Finance and Insurance
Issues: Globalization; International Business; Financial Institutions; Business Policy
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
Multinational Strategy

RESEARCH IN MOTION: MANAGING EXPLOSIVE GROWTH
Rod E. White, Paul W. Beamish, Daina Mazutis

Product Number: 9B08M046
Publication Date: 5/15/2008
Revision Date: 5/24/2017
Length: 19 pages

Research in Motion (RIM) is a high technology firm that is experiencing explosive sales growth. David Yach, chief technology officer for software at RIM, has received notice of an impending meeting with the co-chief executive officer regarding his research and development (R&D) expenditures. Although RIM, makers of the very popular BlackBerry, spent almost $360 million in R&D in 2007, this number was low compared to its largest competitors, both in absolute numbers and as a percentage of sales (e.g. Nokia spent $8.2 billion on R&D). This is problematic as it foreshadows the question of whether or not RIM is well positioned to continue to meet expectations, deliver award-winning products and services and maintain its lead in the smartphone market. Furthermore, in the very dynamic mobile telecommunications industry, investment analysts often look to a firm's commitment to R&D as a signal that product sales growth will be sustainable. Just to maintain the status quo, Yach will have to hire 1,400 software engineers in 2008 and is considering a number of alternative paths to managing the expansion. The options include: (1) doing what they are doing now, only more of it, (2) building on their existing and satellite R&D locations, (3) growing through acquisition or (4) going global.

Teaching Note: 8B08M46 (19 pages)
Industry: Manufacturing
Issues: Telecommunication Technology; Change Management; Globalization; Staffing; Growth Strategy
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


Chapter 9:
Organizing Strategy

LUNDBECK KOREA: MANAGING AN INTERNATIONAL GROWTH ENGINE
Paul W. Beamish, Michael Roberts

Product Number: 9B10M012
Publication Date: 2/11/2010
Revision Date: 2/12/2010
Length: 16 pages

In 2005, the vice-president of Lundbeck, a Danish based pharmaceutical firm, needed to decide what to do with one of his most promising subsidiaries, Lundbeck Korea. Over its short lifetime, under the leadership of the country manager and the Asia regional manager, the subsidiary had grown well beyond the original goals set for it. The vice-president wanted to create a reporting structure and management mix that would balance the local demands that Lundbeck Korea required for growth with Lundbeck's overall strategy of specialization, speed, integration and results. The case also traces Lundbeck's internationalization efforts in Asia over the past 20 years. The company had grown from pure licensing arrangements to establishing its own country level subsidiaries. This case introduces the dynamic tensions between taking advantage of local management expertise and executing a corporate strategy developed for an entire global group. In addition, it illustrates the importance, but difficulties, of being sensitive to local management goals, while promoting a global corporate culture.

Teaching Note: 8B10M12 (19 pages)
Industry: Manufacturing
Issues: MNE Reporting Structures; International Strategy; Emerging Markets
Difficulty: 4 - Undergraduate/MBA



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



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



KODAK'S HEALTH IMAGING DIVISION IN ASIA (A)
Richard DeMartino

Product Number: 9B01M055
Publication Date: 9/27/2001
Revision Date: 12/22/2009
Length: 15 pages

Kodak's Health Imaging division is the second largest business unit within Kodak, a worldwide provider of consumer, professional and health imaging products. The regional manager of the Health Imaging division is preparing her presentation for the company's senior management retreat. The East Asian Crisis and its impact on the division are on the agenda. The regional manager reflects on the magnitude of the crisis, and she wonders if the company's responses were reactive instead of strategic. There will be some tough questions to rake through at the meeting. Did the Health Imaging department respond effectively to the crisis? Is Kodak better off because of the crisis? What will the short-term and long-term effects be? Will Kodak's response to the East Asian Crisis preserve customer relationships for the years to come? Information pertaining to Health Imaging's strategic view of the region, the company's organizational structure and the levers employed by Kodak in response to the crisis all serve to produce some answers for the division's future consideration. A supplementary (B) case is available, product 9B01M056.

Teaching Note: 8B01M55 (8 pages)
Industry: Manufacturing
Issues: Foreign Exchange; Pricing Strategy; International Business; International Marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Production Strategy

OPERATIONS STRATEGY AT GALANZ
Stephen (Chi Hung) Ng, Barbara Li, Xiande Zhao, Xuejun Xu, Yang Lei

Product Number: 9B10D005
Publication Date: 8/20/2010
Revision Date: 5/4/2017
Length: 17 pages

Starting from a humble beginning of being a manufacturer of down feather products owned by Shunde Township, Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. This case describes the competitive and operational strategies that Galanz used to achieve such a meteoric growth. The company started out with a clear competitive strategy based on cost leadership. It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.

Teaching Note: 8B10D05 (14 pages)
Industry: Manufacturing
Issues: China; Competitive Strategy; Operations Strategy
Difficulty: 4 - Undergraduate/MBA



WAL-MART CHINA: SUSTAINABLE OPERATIONS STRATEGY
David J. Robb, Ben Hopwood, Lei Wang, Jun Cheng

Product Number: 9B08D009
Publication Date: 5/5/2009
Length: 20 pages

A German expatriate had moved to China in 2005 to take up a merchandizing position at the Wal-Mart China headquarters in Shenzen. By 2008 he had been promoted to the new position of senior director for sustainability for Wal-Mart China (retail) and Global Procurement. His new position required that he lead the rapidly-approaching inaugural Wal-Mart Sustainability Summit. The senior director must ensure that Wal-Mart China's five Strategic Value Networks (SVNs), which were tasked with leading sustainability change within the organization, continued to engage stakeholders by implementing innovative solutions that not only cut costs but also lead to more sustainable operations. The case describes Wal-Mart China's operations (including purchasing, distribution and retail) in the context of the company's desire to improve sustainability in a manner appropriate to China. The immediate issue is to identify opportunities to improve the sustainability of Wal-Mart China's distribution systems and retail operations.

Teaching Note: 8B08D09 (14 pages)
Industry: Retail Trade
Issues: China; Distribution; Purchasing; Logistics; Supply Chain Management; Sustainability; Tsinghua/Ivey
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



PALLISER FURNITURE LTD.: THE CHINA QUESTION
Paul W. Beamish, Jing'an Tang

Product Number: 9B04M005
Publication Date: 3/4/2004
Revision Date: 11/18/2014
Length: 12 pages

Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?

Teaching Note: 8B04M05 (7 pages)
Industry: Manufacturing
Issues: China; Expansion; Imports; Outsourcing; Plant Location
Difficulty: 4 - Undergraduate/MBA



ACER GROUP'S R&D STRATEGY - THE CHINA DECISION
Terence Tsai, Borshiuan Cheng, Donna Everatt

Product Number: 9A99M007
Publication Date: 4/1/1999
Revision Date: 5/23/2017
Length: 11 pages

The Acer Group was one of the world's largest PC and computer component manufacturers. Members of Acer's R&D management team were considering the location of a new R&D lab with a view to maximizing the effectiveness of their global R&D strategy. They must examine the strategic role the lab should take, based on country strengths in China, as well as how logistical, communication, and cross-cultural issues should be managed, taking into account the social, political and economic environment in China. The case also looks at how critical an effective intellectual property protection strategy is in the globalization of R&D strategy.

Teaching Note: 8A99M07 (15 pages)
Industry: Manufacturing
Issues: Intercultural Relations; Competitiveness; Globalization; Research and Development
Difficulty: 4 - Undergraduate/MBA



ACER GROUP'S CHINA MANUFACTURING DECISION
Terence Tsai, Borshiuan Cheng, Donna Everatt

Product Number: 9A99M009
Publication Date: 4/6/1999
Revision Date: 5/24/2017
Length: 15 pages

The Acer Group is one of the world's largest PC and computer component manufacturers. The vice-president of Global Operations is pondering whether the timing and environment is conducive for Acer, based in Taiwan, to commence full-scale manufacturing operations in the Chinese mainland. Students are asked to examine the criteria on which Acer should base their decision to manufacture overseas, and in so doing, create the framework for a corporation's global manufacturing strategy. The teaching objectives also include having students consider the political, economic and social environments of a global manufacturing strategy. A related case entitled Acer Group's R & D Strategy - The China Decision (9A99M007) is also available.

Teaching Note: 8A99M09 (10 pages)
Industry: Manufacturing
Issues: Globalization; Plant Location; Competitiveness; Manufacturing Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Marketing Strategy

EL MAWARDY JEWELRY: EXPANSION DURING A RECESSION
Marina Apaydin, Hend Mostafa, Sherif Ashraf Salem, Ali Tawfik, Jylan Sekaly, Lila Mehrez

Product Number: 9B11M051
Publication Date: 7/7/2011
Length: 11 pages

El Mawardy Jewelry was an Egyptian jewelry company located in Cairo, Egypt. The company was able to attract many customers due to its variety of designs, high-quality products, and competitive prices. The friendly atmosphere and customized services provided by the salespeople helped the company gain a competitive advantage. The Mawardy family was able to build on its success and open different stores across Egypt. In 2009, the financial crisis hit Egypt and many businesses were negatively affected. Faced with this challenge and a goal to go international, the Mawardy family considered different possibilities. The company had many options, but decided to focus on Qatar and the United Kingdom. It needed to decide whether it was better to expand now or later. It also needed to consider where to expand first — Qatar or the United Kingdom.

Teaching Note: 8B11M051 (11 pages)
Industry: Retail Trade
Issues: International Expansion; Growth Opportunities; Gold; Jewelry; United Kingdom; Egypt; Qatar; Middle East
Difficulty: 4 - Undergraduate/MBA



CAPITAL ONE: LAUNCHING A MASS MEDIA CAMPAIGN
Robert J. Fisher, Ken Mark

Product Number: 9B06A005
Publication Date: 4/11/2006
Revision Date: 9/9/2009
Length: 18 pages

The senior Brand Manager for Capital One Canada is developing the firm's strategy for its first mass media advertising campaign in Canada. He had been provided with a menu of U.S. and U.K. advertisements - with test results for each - which he can adapt for a Canadian audience. The key decisions the Senior Brand Manager faces includes which customer segment to focus on, what value proposition to signal to this segment, what advertisements should be used to deliver these messages, and what customization efforts are necessary. He has a presentation to Capital One's senior management team and needs to back up his recommendations with numbers and logic.

Teaching Note: 8B06A05 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Brand Management; Advertising Media; Advertising Strategy; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA



SANTA FE RELOCATION SERVICES: REGIONAL BRAND MANAGEMENT
Niraj Dawar, Nigel Goodwin

Product Number: 9B05A029
Publication Date: 11/28/2005
Revision Date: 9/24/2009
Length: 15 pages

Sante Fe Relocation Services was a premium provider of relocation services based in Hong Kong. Founded in 1980, the company had built a reputation as a reliable, high-quality packer and mover of household goods. By 2000, the company also offered a full range of relocation support services including visa and immigration applications, home searching and cultural and language training. Santa Fe relocated expatriates and their families between Asian countries and between Asia and other regions. The company had its own staff and assets in Asia and managed its international operations through a network of partners. In 2005, the chief operating officer faced three key challenges: differentiating and positioning the brand in a crowded and often price-driven market; incorporating an expanded service line under the original brand and gaining market recognition for those additional services; and managing the brand across the Asian region with an effective balance of standardization versus local adaptation.

Teaching Note: 8B05A29 (6 pages)
Industry: Transportation and Warehousing
Issues: International Marketing; Competitor Analysis; Brand Positioning; Brand Extension; Nanyang
Difficulty: 4 - Undergraduate/MBA



STELLA ARTOIS IN THE U.K.
Paul W. Beamish, Anthony Goerzen

Product Number: 9B01A017
Publication Date: 12/6/2001
Revision Date: 12/4/2009
Length: 15 pages

Stella Artois, Interbrew company's flagship brand of beer, has experienced phenomenal success on the international market. The United Kingdom market has played a critical role in that success, and Interbrew needs to assess the reasons for this. Interbrew's managing director and its chief marketing officer are meeting to have a discussion about how to proceed in developing the Stella Artois brand. First, they need to understand what part of the company's success was due to expert marketing practices and what part might possibly be due to being in the right place at the right time. As well, they want to assess what possible steps might be taken to spread these practices across the corporation for use in the company's global marketing strategy.

Teaching Note: 8B01A17 (8 pages)
Industry: Manufacturing
Issues: Brand Management; European Market; Product Strategy; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA



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



LOOKS.COM (A) - A GREY ISSUE
Kersi Antia, Donna Everatt

Product Number: 9B00A012
Publication Date: 8/29/2000
Revision Date: 1/6/2010
Length: 13 pages

The founder and managing director of looks.com, a soon-to-be-launched Hong Kong based e-commerce site for brand name cosmetics, fragrances, skin care products and fashion aimed at Asian women, had to make a key strategic decision - should he engage in parallel importing? He considered this decision one that would likely have the largest impact on the success, or failure, of his dream. Parallel importing, also known as grey marketing, involves the legal, though disturbing practice (to many manufacturers and distributors) of sourcing products wholesale from unauthorized distributors. The case issue has universal appeal, given the ever-increasing prevalence of parallel importing throughout the world. Students are introduced to the Internet industry in Hong Kong, and are provided the background information for an in-depth analysis of the positives and negatives of engaging in parallel importing. A short supplement is available: Looks.com (B), 9B00A013.

Teaching Note: 8B00A12 (8 pages)
Industry: Retail Trade
Issues: Startups; International Trade; Pricing Strategy
Difficulty: 4 - Undergraduate/MBA



CARVEL ICE CREAM - DEVELOPING THE BEIJING MARKET
Mark B. Vandenbosch, Tom Gleave

Product Number: 9A99A017
Publication Date: 8/5/1999
Revision Date: 5/24/2017
Length: 12 pages

The manager of business development for Carvel Asia Limited is trying to determine how best to increase ice cream cake sales in Beijing. In doing so, he needs to develop a complete marketing program which includes decisions about product offerings, pricing, placement (distribution) and promotion - the 4 Ps. Carvel Asia was a 50-50 joint venture between Carvel (USA) and China's Ministry of Agriculture.

Teaching Note: 8A99A17 (14 pages)
Industry: Manufacturing
Issues: China; Pricing Strategy; Product Concept; Marketing Communication; Distribution
Difficulty: 5 - MBA/Postgraduate


Chapter 12:
Human Resource Management Strategy

L’OREAL S.A.: ROLLING OUT THE GLOBAL DIVERSITY STRATEGY
Cara C. Maurer, Ken Mark

Product Number: 9B10C026
Publication Date: 11/1/2010
Revision Date: 11/7/2011
Length: 14 pages

L’Oreal S.A. is in the process of implementing a global diversity strategy. The firm's Europe diversity director is working with various country units to roll out the strategy. The director faces obstacles such as cultural differences between countries and, generally, low awareness of the benefits a diversity strategy can bring.

Teaching Note: 8B10C026 (12 pages)
Industry: Manufacturing
Issues: Human Behaviour; Communications; Cosmetics; France
Difficulty: 4 - Undergraduate/MBA



HUMAN RESOURCE MANAGEMENT IN MULTINATIONAL BANKS IN TANZANIA
Paul W. Beamish, Aloysius Newenham-Kahindi

Product Number: 9B07C040
Publication Date: 10/30/2007
Length: 18 pages

The case examines how the best practices of two banks were organized and managed to provide financial services to a small niche of foreign customers in the mining, tourism and construction sectors in Tanzania. The two banks claimed to be similar in many ways. They both were from countries whose economies were run broadly on neo-liberal lines, in that there was little state intervention in either economy, however, differences existed with respect to how they managed their operations. The case is ideally suited to illustrate the on-going tension and different types of best practices in cross-market integration. It provides opportunities to explore the challenges faced by multinational company banks in managing global workforces, the evolution of the banking sector, and the influence of technology in shaping work in organizations.

Teaching Note: 8B07C40 (16 pages)
Industry: Finance and Insurance
Issues: International Management; Expatriate Management; Trade Unions; Management Training; Emerging Markets; Performance Evaluation; Recruiting; Subsidiaries; Career Development; Employee Selection
Difficulty: 4 - Undergraduate/MBA



DEVELOPMENT OF A MULTINATIONAL PERSONNEL SELECTION SYSTEM
Diana E. Krause, Reiner Piske

Product Number: 9B07C041
Publication Date: 1/4/2008
Length: 17 pages

The owner of a company with production plants in various regions in the world wants to standardize the methods of personnel selection for the Asian-Pacific region (APAC). A new system of personnel selection has to be developed for middle management positions in APAC. The owner delegates this task to a cross-functional, multinational project team that operates in Hong Kong headed by a human resources (HR) executive and expatriate from Germany. In terms of the new personnel selection system, he has two opposing goals in mind: the new personnel selection system should be highly specific for a particular country and simultaneously valid for different countries. A series of issues must be resolved in order for the project to be successful. Some of these issues are related to the personnel selection system; the job requirements to be assessed, the modules it must include, the stages and methods of each module, and the implementation of the system across countries in APAC. Other issues are interpersonal, such as the cultural differences and the heterogeneous perspectives that exist among the team members, and a conflict between the HR executive and the owner.

Teaching Note: 8B07C41 (9 pages)
Issues: Cross Cultural Management; Aptitude Diagnostics; International Personnel Selection; Teamwork
Difficulty: 4 - Undergraduate/MBA



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



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



HARMONIZATION OF COMPENSATION AND BENEFITS FOR FIRSTCARIBBEAN INTERNATIONAL BANK
Edward Akhentoolove Corbin, Betty Jane Punnett

Product Number: 9B04C053
Publication Date: 4/11/2005
Revision Date: 10/9/2009
Length: 9 pages

The merger of the Caribbean holdings of Barclays Bank Plc. and the Canadian Imperial Bank of Commerce (CIBC) is going ahead, and the reality of integration of very diverse systems and procedures has to be faced. The case deals with understanding the current situation in terms of existing policies and designing policies that would be acceptable to employees from both banks in the organization - FirstCaribbean International Bank - which would be created by the merger. A critical aspect of the merger is the harmonization of compensation and benefits that must be resolved as a matter of priority. This case may be taught on a stand alone basis, or in combination with any of four additional cases that deal with various functional issues: 1) General Management - CIBC and Barclays: Should Their Operations be Merged, product 9B04M067. 2) Information Systems - Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032. 3) Accounting and Finance: CIBC Barclays: Accounting for Their Merger, product 9B04B022 4) Technical note: Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04C53 (6 pages)
Industry: Finance and Insurance
Issues: Consolidations and Mergers; Benefits Policy; Compensation; Change Management; University of West Indies
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 13:
Political Risk and Negotiating Strategy

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



MAJESTICA HOTEL IN SHANGHAI?
Paul W. Beamish, Jane W. Lu

Product Number: 9B05M035
Publication Date: 4/11/2005
Revision Date: 9/21/2011
Length: 14 pages

Majestica Hotels Inc., a leading European operator of luxury hotels, was trying to reach an agreement with Commercial Properties of Shanghai regarding the management contract for a new hotel in Shanghai. A series of issues require resolution for the deal to proceed, including length of contract term, name, staffing and many other control issues. Majestica was reluctant to make further concessions for fear that doing so might jeopardize its service culture, arguably the key success factor in this industry. At issue was whether Majestica should adopt a contingency approach and relax its operating philosophy, or stick to its principles, even if it meant not entering a lucrative market.

Teaching Note: 8B05M35 (8 pages)
Industry: Accommodation & Food Services
Issues: China; Market Entry; Negotiation; Control Systems; Corporate Culture
Difficulty: 4 - Undergraduate/MBA



DIVESTING THE ZAMBIAN MINING INDUSTRY
Luka Powanga

Product Number: 9B04M060
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 19 pages

The Zambian government embarked on a divesture of its mining industry in 1992. However, by July of 2004, 67 per cent of the mining assets were still in government hands and the government is still looking for equity partners. This case can be used as a basis for discussing political and country risk analysis, international negotiations, feasibility study analysis, managing strategic failure, and ethical and social responsibility issues.

Teaching Note: 8B04M60 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Mining; Nationalization; Political Environment; International Business
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



POINT LISAS INDUSTRIAL ESTATE: TRINIDAD (A)
David W. Conklin, Jeffrey Gandz, Trevor Hunter, Jeffrey Chung

Product Number: 9A99M011
Publication Date: 8/6/1999
Revision Date: 1/15/2010
Length: 20 pages

Trinidad has sought to diversify its economy by creating a cluster of petrochemical businesses in Point Lisas Industrial Estate (PLIE). The case is written from the perspective of a potential entrant trying to evaluate the opportunities and challenges that may confront a business that decides to locate in Trinidad. Challenges include the uncertainty about government policies, particularly future pricing policies for oil and natural gas, and the possibility of obtaining financial concessions from the government. Environmental and societal issues also loom in the future, and local citizen groups could react negatively towards the growth of PLIE with its implications for land prices and the nature of the economy. The focus of petrochemical businesses in Trinidad will inevitably be export, and various trade agreements determine the terms and conditions under which a Trinidad company can export to various potential customers. Also of importance will be projected changes in Trinidad's foreign exchange rate. Trinidad's natural gas reserves are relatively small compared with many other countries. Venezuela offers an attractive alternative location in regard to the availability and cost of oil and natural gas, and so the case compares the environment of business in Trinidad with that in Venezuela.

Teaching Note: 8A99M11 (9 pages)
Industry: Manufacturing
Issues: Economic Conditions; Internationalization; Industry Analysis; Government and Business
Difficulty: 5 - MBA/Postgraduate


Chapter 14:
International Financial Management

CIBC MELLON: MANAGING A CROSS-BORDER JOINT VENTURE
Paul W. Beamish, Michael Sartor

Product Number: 9B10M091
Publication Date: 11/5/2010
Revision Date: 5/24/2012
Length: 15 pages

During his 10-year tenure, the president and CEO of CIBC Mellon had presided over the dramatic growth of the jointly owned, Toronto-based asset servicing business of CIBC and The Bank of New York Mellon Corporation (BNY Mellon). In mid-September 2008, the CEO was witnessing the onset of the worst financial crisis since the Great Depression. The impending collapse of several major firms threatened to impact all players in the financial services industry worldwide. Although joint ventures (JVs) were uncommon in the financial sector, the CEO believed that the CIBC Mellon JV was uniquely positioned to withstand the fallout associated with the financial crisis. Two pressing issues faced the JV’s executive management team. First, it needed to discuss how to best manage any risks confronting the JV as a consequence of the financial crisis. How could the policies and practices developed during the past decade be leveraged to sustain the JV through the broader financial crisis? Second, it needed to continue discussions regarding options for refining CIBC Mellon’s strategic focus, so that the JV could emerge from the financial meltdown on even stronger footing.

Teaching Note: 8B10M91 (13 pages)
Industry: Finance and Insurance
Issues: Financial Crisis; Joint Ventures; Leadership; Alliance Management; Managing Multiple Stakeholders; Canada; United States
Difficulty: 4 - Undergraduate/MBA



CASH TECHNOLOGY LIMITED: A CHINESE IPO IN SINGAPORE
Larry Wynant, Nigel Goodwin

Product Number: 9B06N006
Publication Date: 1/13/2006
Revision Date: 8/2/2011
Length: 19 pages

Cash Technology Limited is a Xiamen-based manufacturer of self-service banking machines, touchscreens and related software. The company was set to issue its initial public offering on the Singapore Exchange. The proceeds from the IPO would help the mid-sized, entrepreneurial and private company secure its position in the burgeoning Chinese market for automated teller machines and related equipment. With six weeks left before the IPO, the chief executive officer and chief financial officer attempted to value their company by various methods and assess the reasonableness of the offering price proposed by the IPO manager. The case challenges students to examine the attractiveness and value of a business from the perspective of the issuer and potential investors, and can also provide the opportunity for students to develop a strategy for communicating with institutional investors.

Teaching Note: 8B06N06 (19 pages)
Industry: Manufacturing
Issues: China; Financial Analysis; Initial Public Offerings; Cost of Capital; Valuation; Nanyang
Difficulty: 4 - Undergraduate/MBA



VOYAGES SOLEIL: THE HEDGING DECISION
Stephen Sapp

Product Number: 9B05N024
Publication Date: 11/28/2005
Revision Date: 11/4/2009
Length: 8 pages

The president of a small Canadian tour operator of packaged vacations faces foreign exchange risk resulting from a future transaction in which the firm is committing to pay in U.S. dollars where the company's revenues are in Canadian dollars. The thin profit margins require the company to consider different hedging alternatives. The case provides significant information that will allow students to discuss international parity conditions and various hedging strategies within a relatively simple context.

Teaching Note: 8B05N24 (6 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Derivatives; Strategic Planning; Hedging; Risk Management
Difficulty: 4 - Undergraduate/MBA



MOBITELL (A): MOBILE COMMUNICATIONS IN RUSSIA
Murray J. Bryant, Craig Dunbar, Konstantin Markov

Product Number: 9B05B015
Publication Date: 10/13/2005
Revision Date: 9/24/2009
Length: 15 pages

The Mobitell case series examines the choice and implementation of a currency strategy for a telecommunications company operating in Russia with substantial exposure to the euro and U.S. dollar through various debt instruments. Students have to assess the financial strategy and the appropriate financial reporting under the International Accounting Standards. Mobitell (A): Mobile Communications in Russia, product 9B05B015 provides company and currency exposure history. Supplements Mobitell (B): Hedging Alternatives, product 9B05B016 and Mobitell (C): Accounting For the SWAP Deal, product 9B05B017 follow the situation with a pending deal with AO Citibank Moscow and the finalizing of the deal.

Industry: Information, Media & Telecommunications
Issues: Accounting Standard Setting; Hedging; Foreign Exchange; Debt Policy
Difficulty: 4 - Undergraduate/MBA



INTERNATIONAL MONETARY FUND
David M. Currie

Product Number: 9B01M028
Publication Date: 9/27/2001
Revision Date: 3/26/2008
Length: 3 pages

This role play supplement to Thailand, 1997 (product 9B01M024), discusses the International Monetary Fund conditions that will be put in effect should Thailand request assistance.

Teaching Note: 8B01M24 (20 pages)
Industry: Public Administration
Issues: Developing Countries; Economic Conditions; Exchange Rates; Government and Business
Difficulty: 5 - MBA/Postgraduate



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



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


Chapter 15:
Corporate Strategy and National Competitiveness

GIANT INC.: FORMATION OF THE A-TEAM
Paul W. Beamish, Chwo-Ming (Joseph) Yu

Product Number: 9B09M044
Publication Date: 5/25/2009
Length: 10 pages

This case describes the history and activities of the A-Team, a major alliance of bicycle assembly firms and parts suppliers in Taiwan, which was created in 2003. A strategic alliance with competitors posed challenges. For the A-Team, it was more complicated because the alliance was between both competing bicycle assembly firms and between parts suppliers. By 2006, progress had been made in making the alliance work but the senior executives were wondering what they could do to ensure future progress. The case can be used in a strategy module or course on alliances/joint ventures in a section examining the competition versus cooperation challenge.

Teaching Note: 8B09M44 (8 pages)
Industry: Manufacturing
Issues: Networks; Location Strategy; Learning; Competitive Strategy; Alliances; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA



GLOBALIZATION THREATENS CANADA'S AUTO INDUSTRY: IMPLICATIONS FOR THE ECONOMY AND SOCIETY
David W. Conklin, Danielle Cadieux

Product Number: 9B06M008
Publication Date: 1/13/2006
Revision Date: 9/17/2009
Length: 12 pages

For many decades, the automobile industry had played a major role in Canada's economy. A large portion of Canadian jobs depended on the auto industry, both directly and indirectly. However, by 2005, Canada faced serious globalization threats. Analysts were stating that in the future the number of automobile-related jobs in Canada would depend upon the international competitiveness of Canadian plants. To continue to increase wages would raise Canadian production costs so far above the levels in Mexico, China and other emerging nations, that the assemblers would shift production to low-cost jurisdictions. Meanwhile, the Big Three were losing market share to their non-union competitors, especially Toyota and Honda.

Teaching Note: 8B06M08 (9 pages)
Industry: Manufacturing
Issues: Globalization; International Business; Business and Society
Difficulty: 4 - Undergraduate/MBA



GM IN CHINA - ABRIDGED
David W. Conklin, Danielle Cadieux

Product Number: 9B05M030
Publication Date: 3/22/2005
Revision Date: 10/1/2009
Length: 10 pages

For General Motors (GM) China, 2004 brought a wide variety of new challenges that added to an already complex business environment. Industry structure was changing quickly, demand and supply projections for motor vehicles had promised substantial increases in sales and profits but suddenly optimism faded. China's membership in the World Trade Organization created expectations of a level playing field for foreign investors, but major barriers remained, including continuing government intervention, competition from government-owned assembly firms, arbitrary rules such as sector-specific credit restrictions and violation of intellectual property with the copying of foreign automobile designs and false-branding of parts. Meanwhile, inflation was increasing and the government was unsure whether and how to use monetary and fiscal policies. This is an abridged version of GM in China, product 9B05M007.

Teaching Note: 8B05M07 (6 pages)
Industry: Manufacturing
Issues: China; Business Policy; International Business; Manufacturing; Globalization
Difficulty: 4 - Undergraduate/MBA



PATAGON.COM: EXPANDINNG GLOBALLY AND PENETRATING LOCALLY WHILE CONSTANTLY REINVENTING ITSELF
Ramiro Montealegre, Alberto Ballvé

Product Number: 9B01E012
Publication Date: 5/17/2001
Revision Date: 12/18/2009
Length: 26 pages

Founded in 1998, Patagon.com is a pioneer in Latin American Internet-based financial services. The substantial changes in and growth of its business and operations had placed significant demands on the company's administrative, operational, technological and staffing resources. The rapid growth has strained its ability to adequately integrate the companies it is acquiring. The challenge for the management team is to integrate the confederation of country-specific organizations while maintaining the agility and responsiveness of a small firm - and at the same time, develop management systems and enterprise design that would handle the growing complexity.

Teaching Note: 8B01E12 (17 pages)
Industry: Finance and Insurance
Issues: E-Commerce; Strategy Development; Organizational Change
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
European Union

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



THE CHALLENGES OF INTERNATIONAL ENTREPRENEURSHIP AT EXPATICA.COM
Christopher Williams, Judith vanHerwaarden

Product Number: 9B11M085
Publication Date: 9/23/2011
Revision Date: 5/25/2017
Length: 11 pages

In April 2011, the management team at Expatica Communications B.V. was reviewing the progress of the company and the opportunities for future growth. The management team had to take stock: the external environment was rapidly changing, and threats from competitors were on the rise. Expatica had been founded 11 years earlier to provide English-language information and news to the expatriate community in Europe, delivering its services primarily over the Internet. One of the central issues Expatica faced was how to make its core business model effective across multiple markets. Recent launches of the online platform in new countries were not as successful as hoped and the performance of traditional “bricks and mortar” offerings was also mixed. The company had made tremendous progress over the years but needed to re-evaluate its position and decide which new opportunities for growth, if any, should be pursued.

Teaching Note: 8B11M085 (8 pages)
Industry: Information, Media & Telecommunications
Issues: Company Expansion; Product Development; E-Business; Expatriate Community; the Netherlands
Difficulty: 4 - Undergraduate/MBA



LEGO GROUP: AN OUTSOURCING JOURNEY
Marcus Moller 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



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

Product Number: 9B06M016
Publication Date: 1/11/2006
Revision Date: 9/17/2009
Length: 10 pages

Two years after signing a license agreement in the U.K., the company 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 (A) - Revised, case 9B06M015.)

Teaching Note: 8B06M16 (7 pages)
Industry: Manufacturing
Issues: Licensing; Joint Ventures; International Business; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



KTM - READY TO RACE
Charlene Zietsma, Rob Wong

Product Number: 9B05M036
Publication Date: 5/30/2005
Revision Date: 10/1/2009
Length: 26 pages

KTM is a successful European off-road motorcycle manufacturer with sales in 72 countries. KTM has been experiencing impressive growth in both its top and bottom lines over the past several years, but it is facing significant growth pressure from its venture capitalist investor. The chief financial officer must determine how the company could achieve its growth objectives. Options include geographic expansion (increase U.S. emphasis, or expansion to new European Union countries) or product expansion. Implementation options include a merger, acquisition or internal growth. Several opportunities for geographic expansion and product diversification exist, and implementation options include make, buy or ally decisions.

Teaching Note: 8B05M36 (14 pages)
Industry: Manufacturing
Issues: Corporate Strategy; New Products; International Business; Diversification
Difficulty: 4 - Undergraduate/MBA


Chapter 17:
Japan

SHARP CORPORATION: BEYOND JAPAN
Derek Lehmberg

Product Number: 9B11M007
Publication Date: 3/23/2011
Revision Date: 7/6/2012
Length: 15 pages

Faced with major losses from operations, Sharp Corporation’s young and unconventional president questioned the company’s long-standing operating model. Sharp was a leader in the area of liquid crystal display (LCD) technology and manufacturing. It also held strong positions in several categories of consumer electronics in the Japanese market. Although Sharp had been increasing its involvement in overseas markets, it had yet to replicate its successes overseas. Sharp’s operating model placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. The company jealously guarded its LCD knowhow and had implemented strict security measures at its LCD panel plants. As Sharp’s international sales grew, limitations with its business model became more apparent. Operating primarily in Japan had drawbacks, such as exposure to currency risk, high infrastructure cost, and high taxes. Additionally, the logistics of shipping large items overseas, such as LCDs and solar panels, presented other dilemmas. Sharp needed to reconsider this model and develop an approach that was more suitable to the environment in which it now competed.

Teaching Note: 8B11M007 (10 pages)
Industry: Manufacturing
Issues: Strategy and Resources; International Strategy; Technology; Consumer Electronics; Japan
Difficulty: 4 - Undergraduate/MBA



LOUIS VUITTON IN JAPAN
Justin Paul, Charlotte Feroul

Product Number: 9B10M067
Publication Date: 10/19/2010
Revision Date: 2/22/2017
Length: 20 pages

This case deals with the opportunities and challenges of Louis Vuitton, the leading European luxury-sector multinational firm, in Japan, taking into account the unique features of brand management and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton’s most profitable market, but the global economic crisis has presented challenges.

Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market. The days of relying on a logo and a high price seem to be gone, as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works.

Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton’s successful business model in the Japanese market?


Teaching Note: 8B10M67 (8 pages)
Industry: Manufacturing
Issues: International Marketing; Strategic Management; Brand Management; Luxury Goods; Financial Crisis; Japan; France
Difficulty: 4 - Undergraduate/MBA



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


Chapter 18:
North America

DEVELOPING AN INTERNATIONAL GROWTH STRATEGY AT NEW YORK FRIES
W. Glenn Rowe, Christopher Williams, Sharda Prashad

Product Number: 9B11M082
Publication Date: 8/19/2011
Revision Date: 11/18/2014
Length: 10 pages

New York Fries’ president and executive vice president were preparing for the next biannual meeting of domestic and international franchisees. They planned to provide an update on all aspect of corporate strategy and planning for the year ahead, but they only had a few days to formulate a new international growth strategy. The president and executive vice president were hesitant to expand into new territories partly due to poor experiences in Australia and South Korea, yet international franchisees had encouraged them to investigate promising areas of expansion into China and India. Complicating matters was the future development of the company’s chain of premium hamburger restaurants. While New York Fries was a well-received brand in Canada, it had not yet decided if and how to internationalize the brand. How could the president and executive vice president pursue new opportunities while maintaining their premium brands of French fries and hamburgers?

Teaching Note: 8B11M082 (10 pages)
Industry: Accommodation & Food Services
Issues: Location Selection; International Growth; Brand Management; Franchising; Fast Food; Canada
Difficulty: 4 - Undergraduate/MBA



CHINA MINMETALS CORPORATION AND NORANDA INC.
Isaiah A. Litvak

Product Number: 9B06M013
Publication Date: 2/6/2006
Revision Date: 10/26/2011
Length: 16 pages

The proposed takeover of Noranda Inc. (one of the biggest mineral players in the world) by the Chinese state owned enterprise, China Minmetals Corporation, was cause for Canadian government concern as it required some understanding about the workings and objectives of state owned enterprises. There was particular concern around the labour issues and human rights violations in China, and the possible impact of these on the proposed takeover. Equally important, Canada ran the substantial risk of sending the wrong message to the People's Republic of China if it was to block such a takeover, and in some respects, to be seen as shutting its doors to one of the world's largest and most powerful emerging economies.

Teaching Note: 8B06M13 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: China; Government and Business; Ethical Issues; Business and Society; Politics
Difficulty: 4 - Undergraduate/MBA



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



CAMPBELL SOUP COMPANY LTD.
Mary M. Crossan, Ken Mark

Product Number: 9B02M006
Publication Date: 4/25/2002
Revision Date: 12/1/2009
Length: 16 pages

The president and chief executive officer of a large food manufacturer is preparing his company's strategic agenda for the next five years. One of the top five food manufacturers in Canada, the company went public and restructured its management team six years ago. The efforts were successful, resulting in an increase in the company's market share. Recent food industry trends, however, added box stores and private label brands to the domestic competition. At the same time, the terms of the Canada-U.S. Free Trade Agreement are expected to abolish food-related tariffs within two years, opening up competition from across the border. While the company has experienced success in the past five years, the president and chief executive officer needs a strategic plan that will take the company to the next level.

Teaching Note: 8B02M06 (6 pages)
Industry: Manufacturing
Issues: Communications; Crisis Management; Change Management; Strategy Development
Difficulty: 4 - Undergraduate/MBA


Chapter 19:
Emerging Economies

BLACK CANYON COFFEE
Brian K. Boyd

Product Number: 9B11M074
Publication Date: 9/28/2011
Revision Date: 4/27/2012
Length: 18 pages

This case focuses on Black Canyon Coffee, as it begins to develop its strategy for the firm’s second decade. Founded in 1993, Black Canyon had grown to become the largest chain of coffee houses in Thailand in 2003. Over its first decade, it grew from a single location to 78 retail outlets, serving a mix of hot and cold coffee beverages, as well as Asian cuisine. Thus far, the company had been profitable, and had managed the threat posed by local and foreign competitors, including Starbucks. The coffee house market in Thailand was an emerging industry segment that was expected to grow rapidly. While the company was in a strong position in 2003, competition in the industry was expected to become more intense. One key issue was determining what goals and markets the company should pursue in coming years. Managing director Pravit C. Pong believed that the company should strive for a total of 200 stores in the next decade, while business consultant Michael Holland suggested a more ambitious goal of 1,000 locations. Additionally, the company needed to consider the relative emphasis of domestic versus international expansion, as well as the potential to diversify into other markets. Access to capital and supply chain infrastructure were both tied to the growth targets that the firm pursued.

Teaching Note: 8B11M074 (12 pages)
Industry: Accommodation & Food Services
Issues: Growth Strategy; Entrepreneurial Business Growth; Strategic Positioning; International Expansion; Thailand
Difficulty: 4 - Undergraduate/MBA



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



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 20:
China

BESTSELLER — FACING A NEW COMPETITIVE LANDSCAPE IN CHINA
Michael W. Hansen, Marcus Moller 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



RESINA: MANAGING OPERATIONS IN CHINA
Paul W. Beamish, Jordan Mitchell

Product Number: 9B06M048
Publication Date: 4/28/2006
Revision Date: 9/21/2009
Length: 21 pages

Resina is a global manufacturer of resins and surfacing solutions headquartered in Helsinki, Finland, and has three production facilities and 12 sales offices in China. The head of Asia Pacific for Resina needs to decide what should be done about Beijing and Guangdong. Should Beijing remain in operation, be shut down, or moved to another area where demand for liquid bulk resins is stronger. Similar options exist in Guangdong. In aiming towards profitable operations, he needs to consider the buoyancy of local demand, Resina's partner in Beijing, local and foreign competitors and appropriate managers in each operation.

Teaching Note: 8B06M48 (11 pages)
Industry: Manufacturing
Issues: China; International Management; Risk Analysis; Operations Management; Joint Ventures
Difficulty: 4 - Undergraduate/MBA



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


Chapter 21:
Corporate Ethics and the Natural Environment

BARRICK GOLD CORPORATION - TANZANIA
Aloysius Newenham-Kahindi, Paul W. Beamish

Product Number: 9B10M020
Publication Date: 10/20/2010
Revision Date: 11/19/2014
Length: 15 pages

This case examines the giant Canadian mining corporation, Barrick Gold Corporation (Barrick), (called Africa Barrick Gold plc since 2009), and the way it engages in sustainable community developments that surround its mining activities in Tanzania. Following recent organized tensions and heightened criticism from local communities, media, international social lobbyists and local not-for-profit organizations (NFOs), Barrick has attempted to deal with the local communities in a responsible manner. At issue for senior management was whether there was much more that it could reasonably do to resolve the tensions.

The case considers: how MNEs seek social license and local legitimacy; the relevance of hybrid institutional infrastructures; the evolving global roles for MNEs and their subsidiaries. The case is appropriate for use in courses in international management, global corporations and society, and international development and sustainable value creation.


Teaching Note: 8B10M20 (17 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Subsidiaries; Business and Society; Corporate Social Responsibility; Cross Sector Social Partnership; Government Relations
Difficulty: 5 - MBA/Postgraduate



FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY - GREEN MAKEOVER OR "GREENWASHING"?
James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA



BP AND CORPORATE GREENWASH
Michael Sider

Product Number: 9B05C010
Publication Date: 2/21/2005
Revision Date: 9/28/2009
Length: 7 pages

Bp's green re-branding efforts began officially with the unveiling of its new bp Helios mark, named after the Greek sun god. The new logo did away with 70 years of corporate branding, replacing the bp shield, long associated in consumers' minds with the strength of British imperialism. The Helios mark cost US$7 million to develop and was forecast to cost the company another US$100 million a year to integrate into marketing and operations over the next two years. At the logo's unveiling, the company's chief executive officer directed attention to the company's recent purchase of the solar energy company Solarex, an acquisition that made bp the world's largest solar energy company. The unveiling of the Helios logo was a formalization of a re-branding strategy that had begun to emerge the year before with the CEO's announcement that 200 new bp sites around the world would be powered in part by solar energy, through solar panels placed on the roofs of gas pumps, and his commitment to reducing bp's own carbon dioxide emissions by 10 per cent by the year 2010. From the start, however, environmental groups heaped scorn on bp's green re-branding. Greenpeace gave the company its Greenhouse Greenwash Award, given to the largest corporate climate culprit on earth.

Teaching Note: 8B05C10 (4 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Ethical Issues; Communications; Public Relations; Marketing Management
Difficulty: 4 - Undergraduate/MBA



TEXTRON LTD.
Lawrence Beer

Product Number: 9B01M070
Publication Date: 3/28/2002
Revision Date: 11/9/2012
Length: 10 pages

Textron Ltd. is a family-owned manufacturer of cotton and sponge fabricated items. The company wants to expand its business with an offshore manufacturing enterprise that will fit with the company's policy of caring for their employees and providing quality products. The company is looking at two options: a guaranteed outsourcing purchase agreement or a joint venture. After several meetings with offshore alliance candidates the vice-president of the company must analyse the cross-cultural differences to established corporate guidelines of global ethics and social responsibility that the company can use in their negotiations with a foreign manufacturing firm.

Teaching Note: 8B01M70 (5 pages)
Industry: Manufacturing
Issues: China; International Business; Ethical Issues; Business and Society; Developing Countries
Difficulty: 4 - Undergraduate/MBA



NIKE INC.: DEVELOPING AN EFFECTIVE PUBLIC RELATIONS STRATEGY
Kathleen E. Slaughter, Donna Everatt

Product Number: 9A99C034
Publication Date: 5/29/2000
Revision Date: 1/14/2010
Length: 20 pages

It had been almost a decade since the first article surfaced in the media alleging that factories sub-contracted by Nike in China and Indonesia were forcing workers to work long hours for low pay, and for physically and verbally abusive managers. The article was the seed of a media campaign that created a public relations nightmare for the company. A financial crisis in Asia and intense competition in the domestic market contributed to a decline in Nike's revenue and market share after three years of record performance. Though no direct correlation could be proven between the consumer's negative perceptions of Nike and the company's decline in market share and stock, it certainly did not help in their efforts to establish themselves as the global leader in a hotly competitive industry. A linear overview of the adverse publicity that Nike received, and the perspectives of Nike senior management, demonstrates to students the importance and elements of the timely development of an effective media and consumer relations campaign.

Teaching Note: 8A99C34 (14 pages)
Industry: Manufacturing
Issues: China; Public Relations; Consumer Relations; Management Philosophy; Corporate Responsibility
Difficulty: 4 - Undergraduate/MBA