Martha Goldberg Aronson of Medtronic is trying to decide whether to accept the offer from Medtronic CEO Bill Hawkins to become senior vice president and chief talent officer. Aronson returned from an executive role in Europe just 18 months before as vice president, investor relations, but sees herself as a fine executive. Thus, she is undecided about taking a senior staff position.

In August 2005, the leadership of Turkey's Dogus Group considered opportunities for its flagship enterprise, Garanti Bank, to partner with a foreign financial institution. The case describes the Turkish banking industry and Garanti Bank's position within it, and asks students to consider whether partnership makes sense for Garanti and, if so, which bidder it should select.

We can no longer discuss globalization in the future tense. Firms now operate in a global competitive landscape, one that is vibrantly dynamic and continuously changing. Herein, we examine this global landscape in its current form, and the changes we expect to occur over the next few decades. Based on these analyses, we identify firm strategies that are necessary to be successful in this challenging competitive landscape.

This article embarks on a road trip to NASCAR, the National Association for Stock Car Auto Racing, to take a close look at why cheating occurs within that organization. Two arguments drive the article, namely that NASCAR (1) may not be able to stop cheating particularly within the current context, and (2) might not want or be motivated to stop cheating. Obstacles complicating NASCAR's efforts to stop cheating include the long-standing culture of unethical behavior within stock car racing, and the inconsistent imposition of punishments by NASCAR which drivers and race teams perceive as favoritism and unfair treatment. Yellow flags that raise caution include pressure from unwavering fans, and the friction between innovation and maintaining parity among teams. Proposed solutions include changing the culture within the NASCAR community, as well as developing ethical role models, both of which require major action by NASCAR's top managers to signal the importance of ethical behavior. Other key stakeholders such as sponsors and fans must create incentives and rewards for ethical behavior, and consider reducing or ending support for drivers and teams that engage in unethical conduct. Our analysis and recommendations have broad applications because NASCAR is an archetype of a large organization attempting to reduce cheating and unethical behavior.

The ability to interact effectively in multiple cultures is not a skill possessed by all; yet, it is becoming more important in today's global business world. Recently, this skill has been labeled cultural intelligence (CQ), and has caught the attention of business leaders and researchers alike. While previous studies have examined potential outcomes of cultural intelligence, possible antecedents are examined herein. This investigation generates some insight regarding the impact of cultural exposure on CQ, as well as developing an understanding of how the depth of cultural exposure influences a person's cultural intelligence. Findings indicate that certain types of exposures to other cultures (such as education abroad and employment abroad) and the level of exposure from these experiences increases cultural intelligence. These findings are critical for multinational firms as managers hire, promote, train, and prepare employees for international assignments. Additionally, some have discussed how cultural intelligence is a critical skill for global business leaders, and it seems likely that CQ will become increasingly important due to the rise of diversity in the workforce.

Discussions about transfer pricing normally presume the firm's objective is to maximize profit while making the best use of existing capacity. This article differs by exploring the impact of transfer pricing on capital budget decisions. In decentralized firms, decision authority for investment is assigned to division managers whose capital budgets include revenues from internal transfers. When a selling division is under capacity, economic theory recommends a transfer price based on differential cost. Here the seller generates sufficient revenues to recoup operating costs, but not enough to recover capital costs. Consequently, division managers will reject some investments that otherwise would have increased corporate shareholder value. Market-based transfer pricing overcomes this conflict by allocating savings on inter-company transactions to the selling division. However, market transfer pricing may result in shortfalls to corporate profit. Nonetheless, we argue in favor of the use of transfer pricing on the presumption that long-term value creation takes precedence over short-term profit.

Compared to offline media communications, business-to-consumer (B2C) websites possess unique characteristics that affect the likelihood of generating emotional reactions to the web experience itself, the brand, fellow customers, and employees of the firm. The emotion-causing antecedents elucidated in this article are the website's vividness, interactivity, challenge, interaction speed, machine memory, and allowable social interactions. Depending on how a website performs on these dimensions, positive or negative emotions may result. For example, using machine memory to automatically generate purchase recommendations based on prior consumption patterns may be perceived as pleasantly surprising, while a firm sending unsolicited emails based on a user's cookie trail may be annoying. Regardless of the valence of the resultant emotion, the feelings generated may attach to the brand. Because a goal of brand managers is to get consumers to associate positive emotions with a brand, a pre-condition to developing and managing a website is understanding these emotion evoking antecedents and their ramifications.

As more and more firms move activities offshore to countries that are distantly located from their home base of operations, the initial advantages of making this move are increasingly tempered by realities on the ground. For firms contemplating offshoring today, it is important to weigh the advantages and disadvantages of undertaking or extending this strategy in light of what we now know. Broadly speaking, successful offshoring must begin with an understanding of the market and competitive pressures that encourage offshoring, and then build on recognition of how these pressures can be addressed using or modifying the offshoring options currently practiced. Our discussion of these issues is based on analysis of offshoring of IT-enabled services by Fortune Global 500 firms in such areas as software development and business processes that support customer interaction.

Historically, product design has most often been considered a process for creating functional differentiation through added features, superior performance, and so forth. However, with the advent of more design-oriented companies, such as Apple, Dyson, and others, design is increasingly being seen as an important strategic tool in creating preference and deeper emotional value for the consumer. In this research, we show how different design elements may be used strategically to create two very different outcome chains from a consumer's perspective. This work shows that certain design elements are more likely to create functional product differentiation and transactional consumer outcomes, while other design strategies tap a more emotional form of value creation. As we show, an emotional focus in value creation is more likely to create desired and powerful outcomes such as loyalty, joy of use, and even passion. Given current business trends towards relationship-based customer management, this emphasis on emotional value creation through product design is particularly relevant. In order to make these ideas actionable, we offer specific product design strategies that managers can use to enhance the transactional and relational value of their customer relationships.

In August and September 2007, Mattel made a series of product recalls, totaling more than 20 million toys. The recalls were for excessive lead and for magnets that could become loose. All of the recalled toys had been made in China. The Mattel recalls followed on the heels of a number of high profile safety problems with Chinese imports, including contaminated pet food and toothpaste, defective tires, and lead-painted toys. The recalls sparked intense criticism of Mattel and its Chinese supply chain, despite the fact that more than 85 percent of the recalled toys were due to design problems (magnets), not the result of improper manufacturing (use of lead paint). The case provides a basis for discussion of outsourcing and supply chain management. The basic toy manufacturing process is fairly simple, providing a forum for discussing these issues without the complication of advanced manufacturing technology or an involved supply chain. In this case, supply chain defects, such as the use of lead paint by vendors, can have severe consequences. The supply chain must be designed to prevent these defects. The case enables discussion of why companies outsource, managing a supply chain, and the appropriate use of inspection and testing. It also provides the opportunity to examine response to a crisis situation, and the relationship between a company and government.

The case illustrates the tensions, trade-offs and adaptation challenges involved in designing a clean technology venture in a changing regulatory, funding and competitive context (Ontario, Canada, 2006-2008). The multiple decision points in the case have the students critically and iteratively assess the prospects of clean technology ventures and the evolving interface between technology and strategy in Canada's emerging clean energy sector. Beyond understanding the specific challenges faced by the venturing team, students are asked to grapple with the controversies and priorities for Canada's environmental policies in the energy sector, discuss competitive tension or symbiotic relationships between incumbents and disruptors, and actively align new venture design and strategy with a rapidly morphing regulatory, technological and competitive environment. The case discussion also opens up a broader platform for exploring the role of incumbents and disruptive business models in informing provincial and national responses to climate change, and, more generally, the role of cleantech venturing and venture capital in fostering climate change readiness and greener energy solutions. The A case asks students to compare and contrast the clean technologies available, discuss their pros and cons, and articulate a compelling business proposition.

In this supplement to StormFisher (A): Power with Purpose, students are presented with an abbreviated version of the business plan, and challenged to enlist and respond to funding alternatives.

In December 1997, an audit partner at Deloitte was required to render an opinion on five separate but related issues arising out of an on-going working relationship with Livent, a Canadian live entertainment firm. Each issue could be treated in multiple ways, and there seemed to be no immediate clear-cut resolution to each. Issues included: assessing impacts of side agreements between Livent and a real-estate development firm; appropriateness of booking revenues for theatre-naming rights in a particular fiscal quarter; auditing of pre-production costs; accounting for proceeds of sale of receivables to related party; and evaluating the audit of accounts payable. It was crucial to resolve each of the issues within a few days in order to complete the file to meet filing requirements. The auditor must determine the best advice for each issue while understanding that Deloitte had to protect its reputation, yet still grow its revenues in the face of aggressive competition for its business.

On January 2006, the director of performance management for Callaway Golf Canada (Callaway Canada) was in his Toronto office preparing for his upcoming meeting with Callaway Canada's managing director. The managing director had asked the director of performance management to assess the results of the mobile performance team (MPT) and to design a plan for the 2008 golf season that would ensure that Callaway Canada would stay one step ahead of its competitors, who, the director of performance management believed, were preparing to increase their focus and resources on service.

On March 12, 2005, the founder and chief executive officer (CEO) of Chartwell Technologies (Chartwell), a company that specialized in Internet gaming development, noticed something interesting. The CNN headline news ticker on his television read: Online Poker Industry Expected to Grow by Billions within the Year. The CEO and his partner, the vice-president of business development, were about to decide whether to acquire MicroPower Inc. (MicroPower), an online poker company, for US$2.6 million in cash. The industry certainly had the potential for explosive growth. The CEO had to decide whether Chartwell should upgrade its current technology or purchase MicroPower to gain instant access to its C++ platform to take advantage of the growth on the online poker industry.

The goal of the Royal Dutch/Shell in Nigeria Stakeholder Simulation is to illustrate the challenges in anticipating points of common interest, and the difficulties of overcoming initial antagonistic conditions in order to work together to develop better positions. The simulation illustrates the tensions, trade-offs, and challenges involved in mapping and addressing competing stakeholder demands in a long-standing conflict where players' positions are highly polarized. The students are organized in six teams and are asked to take on the position of six different organizations, map the interactions between these six players by taking a specific point of view, and publicly state their position before they begin the engagement exercise. The engagement exercise asks students to develop and execute a stakeholder engagement strategy by stepping into one of the six roles. Beyond understanding the specific challenges faced by each of the key players, students are asked to highlight their key strategic priorities, map stakeholders' interests, and anticipate their changes in position. They are asked to revive or break specific relationships as their own interests evolve in ways that best further their own engagement priorities and short- or long-term goals. The simulation also opens up a broader platform for exploring the complex dynamics of stakeholder engagement; the delicate balance of stakeholders' power, urgency, and legitimacy; the influence chains that help alter the positions of specific groups; and the logics that enable or hinder constructive collaboration with diverse and/or emerging stakeholders.

The goal of the Royal Dutch/Shell in Nigeria Stakeholder Simulation is to illustrate the challenges in anticipating points of common interest, and the difficulties of overcoming initial antagonistic conditions in order to work together to develop better positions. The simulation illustrates the tensions, trade-offs, and challenges involved in mapping and addressing competing stakeholder demands in a long-standing conflict where players' positions are highly polarized. The students are organized in six teams and are asked to take on the position of six different organizations, map the interactions between these six players by taking a specific point of view, and publicly state their position before they begin the engagement exercise. The engagement exercise asks students to develop and execute a stakeholder engagement strategy by stepping into one of the six roles. Beyond understanding the specific challenges faced by each of the key players, students are asked to highlight their key strategic priorities, map stakeholders' interests, and anticipate their changes in position. They are asked to revive or break specific relationships as their own interests evolve in ways that best further their own engagement priorities and short- or long-term goals. The simulation also opens up a broader platform for exploring the complex dynamics of stakeholder engagement; the delicate balance of stakeholders' power, urgency, and legitimacy; the influence chains that help alter the positions of specific groups; and the logics that enable or hinder constructive collaboration with diverse and/or emerging stakeholders.

The goal of the Royal Dutch/Shell in Nigeria Stakeholder Simulation is to illustrate the challenges in anticipating points of common interest, and the difficulties of overcoming initial antagonistic conditions in order to work together to develop better positions. The simulation illustrates the tensions, trade-offs, and challenges involved in mapping and addressing competing stakeholder demands in a long-standing conflict where players’ positions are highly polarized. The students are organized in six teams and are asked to take on the position of six different organizations, map the interactions between these six players by taking a specific point of view, and publicly state their position before they begin the engagement exercise. The engagement exercise asks students to develop and execute a stakeholder engagement strategy by stepping into one of the six roles. Beyond understanding the specific challenges faced by each of the key players, students are asked to highlight their key strategic priorities, map stakeholders’ interests, and anticipate their changes in position. They are asked to revive or break specific relationships as their own interests evolve in ways that best further their own engagement priorities and short- or long-term goals. The simulation also opens up a broader platform for exploring the complex dynamics of stakeholder engagement; the delicate balance of stakeholders’ power, urgency, and legitimacy; the influence chains that help alter the positions of specific groups; and the logics that enable or hinder constructive collaboration with diverse and/or emerging stakeholders.

The goal of the Royal Dutch/Shell in Nigeria Stakeholder Simulation is to illustrate the challenges in anticipating points of common interest, and the difficulties of overcoming initial antagonistic conditions in order to work together to develop better positions. The simulation illustrates the tensions, trade-offs, and challenges involved in mapping and addressing competing stakeholder demands in a long-standing conflict where players' positions are highly polarized. The students are organized in six teams and are asked to take on the position of six different organizations, map the interactions between these six players by taking a specific point of view, and publicly state their position before they begin the engagement exercise. The engagement exercise asks students to develop and execute a stakeholder engagement strategy by stepping into one of the six roles. Beyond understanding the specific challenges faced by each of the key players, students are asked to highlight their key strategic priorities, map stakeholders' interests, and anticipate their changes in position. They are asked to revive or break specific relationships as their own interests evolve in ways that best further their own engagement priorities and short- or long-term goals. The simulation also opens up a broader platform for exploring the complex dynamics of stakeholder engagement; the delicate balance of stakeholders' power, urgency, and legitimacy; the influence chains that help alter the positions of specific groups; and the logics that enable or hinder constructive collaboration with diverse and/or emerging stakeholders.

The goal of the Royal Dutch/Shell in Nigeria Stakeholder Simulation is to illustrate the challenges in anticipating points of common interest, and the difficulties of overcoming initial antagonistic conditions in order to work together to develop better positions. The simulation illustrates the tensions, trade-offs, and challenges involved in mapping and addressing competing stakeholder demands in a long-standing conflict where players' positions are highly polarized. The students are organized in six teams and are asked to take on the position of six different organizations, map the interactions between these six players by taking a specific point of view, and publicly state their position before they begin the engagement exercise. The engagement exercise asks students to develop and execute a stakeholder engagement strategy by stepping into one of the six roles. Beyond understanding the specific challenges faced by each of the key players, students are asked to highlight their key strategic priorities, map stakeholders' interests, and anticipate their changes in position. They are asked to revive or break specific relationships as their own interests evolve in ways that best further their own engagement priorities and short- or long-term goals. The simulation also opens up a broader platform for exploring the complex dynamics of stakeholder engagement; the delicate balance of stakeholders' power, urgency, and legitimacy; the influence chains that help alter the positions of specific groups; and the logics that enable or hinder constructive collaboration with diverse and/or emerging stakeholders.