NES is one of Germany's largest industrial manufacturing groups. The company wants to set up a holding company to facilitate its manufacturing activities in China. They have authorized representatives in their Beijing office to draw up the holding company application and to negotiate with the Chinese government for terms of this agreement. In order to maximize their chances of having their application accepted, the NES team in Beijing hires a government affairs coordinator who is a native Chinese and whose professional background has familiarized her with Chinese ways of doing business. NES's government affairs coordinator finds herself in a difficult position when she proposes that gifts should be given to government officials in order to establish a working relationship that will better NES's chance of having its application approved. This method of doing business is quite common in China. The other members of the NES team are shocked at what would be considered bribery and a criminal offence in their country. The coordinator must find a practical way to bridge the gap between working within accepted business practices in China and respecting her employers' code of business ethics. The complementary (B) case (9B01C030) gives a brief summary of the eventual solution to this problem.
Chiang-Sho Ltd. is a joint venture producing agricultural machinery in China. The CEO must decide how to respond to pressure from the Chinese partner--also the joint venture's largest customer--to increase production and lower prices. The CEO must choose either a growth or harvest strategy.
Japan experienced rapid growth in the 1950s and 1960s while following a set of policies that differ from current policies in fashion. Although some observers believe that Japanese growth occurred in spite of the policies rather than because of them, several countries have looked to Japan's approach during this period as a way to accelerate their own growth. This case provides data on performance and describes the important institutions, policies, and control tools that were used in Japan. A rewritten version of two earlier cases.
Beijing Jeep Corp. Ltd. was one of the first joint ventures between an American company, DaimlerChrysler Corp., and a Chinese enterprise, Beijing Automotive Works. Early in its operations, Beijing Jeep was given preferential treatment on tariffs and foreign exchange and had spent many years developing relationships with senior government officials who protected it from import competition. After several years of negotiations, there was an agreement of terms for China to enter into the World Trade Organization. Terms of this agreement called for a steep reduction in tariffs for imported automobiles, which would lower entry barriers to the Chinese automotive industry, thus creating more competition for the company. Tariffs on components imported from the United States would also be reduced, but not enough to offset the flood of imported vehicles into the market. Entry into the World Trade Organization would mean a lot of changes, and Beijing Jeep must determine whether it should continue focusing on the relationships it has built with the government, or approach its joint venture partner for additional support.
Glegg Water Company is an international company that specializes in customizing premanufactured components into full industrial water treatment systems. In the early 1990s, the water treatment industry had introduced a process that removes charged particles from water used in industrial applications. This technology was superior to resin technology because it was more environmentally sound and more reliable. However, its applications were limited to low water flows. Glegg, through its development of the E-Cell, refined the technology that made it available to high water flow operations, was expandable and more versatile than previous systems. In spite of the clear technological superiority, Glegg was finding it difficult penetrating the market. The chief executive officer must develop a strategy and marketing plan that will make E-Cell the industry standard.
Beijing Jeep Corporation Ltd. was one of the first joint ventures between an American company, DaimlerChrysler Corporation and a Chinese enterprise, Beijing Automotive Works. Early in its operations, Beijing Jeep was given preferential treatment on tariffs and foreign exchange, and had spent many years developing relationships with senior government officials that protected them from import competition. After several years of negotiations, there was an agreement of terms for China to enter into the World Trade Organization. Terms of this agreement called for a steep reduction in tariffs for imported automobiles, which would lower entry barriers to the Chinese automotive industry, thus creating more competition for the company. Tariffs on components imported from the United States would also be reduced but this would not be enough to offset the flood of imported vehicles into the market. Entry into the World Trade Organization would mean a lot of changes, and Beijing Jeep must determine whether they should continue focusing on the relationships they have built with the government, or approach their joint venture partner for additional support.
A U.K. and a U.S. firm are entering into a merger agreement. Management must decide whether the merged companies should be domiciled in the United Kingdom and account for the merger as a pooling of interests or the United States and account for the merger as a purchase. A rewritten version of an earlier case.
Describes how Siemens, the German electrical engineering giant, has developed and manages global R&D in its large Information and Communications Networks (ICN) division. In 1994, Siemens opened its Bangalore (India) center, which has now grown into one of its largest regional development centers outside Germany. With Bangalore asking for increased resource independence and managerial autonomy, senior management has to decide how the activities in India fit into its global development strategy. This tension is played out in a large software project led by Bangalore developers in which an increase in project autonomy also results in serious technical problems for Siemens in the quality-driven telecommunications equipment industry.
Future Shop is a large retail store chain that specializes in audio, video, computer equipment and software, and appliances. A student group has conducted a research study of Future Shop customers' perception of the strengths and weaknesses of the chain and submitted their findings.
Shanghai Eurotel Center Co. Ltd. is a joint venture formed by four parties from China, France (2) and Singapore to construct and operate a group of buildings including one five-star hotel, a luxury shopping center, some apartments and office space. After the first seven months of operation, actual profit of the hotel was under budget. The chief accountant, in preparing for a report for the board of directors, must decide how to resolve the problems with ambiguous accountability for operations, lack of appropriate performance measures and must analyze performance using flexible budgets.
Tissage et Broderie is a consignment store selling handicrafts. The founders of the store have contacted a consulting firm for the development of a product and customer information system. After a preliminary interview, the consultant leading the project is ready to begin the requirements structuring process. She must create data, process and logic models.
A Sydney-based biotechnology company is attempting to enter the fast-growing proteomics area. This case highlights choices in business design and changes in these over time. Also addresses issues in geographic location.
Describes a start-up company seeking to exploit population genetic data from long-lived, healthy people. The company must address legal, financial, ethical, and personal issues among its team to launch the company.
The footnote disclosure for eBay, Inc. in 2000 indicates that if the company had accounted for employee stock options under the fair value method, its reported profit of $48 million would have been a loss of $91 million. The protagonist is a prospective member of the compensation committee of the board of directors, which provides a corporate governance perspective on the role of compensation in attracting, motivating, and retaining talented employees.