Galya Frayman Molinas, President of Coca-Cola's Turkish Business and a 20-year company veteran, is unexpectedly asked to take the helm of a newly expanded territory with operations across eight additional countries in Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kirgizstan, Tajikistan, Turkmenistan, and Uzbekistan. With seemingly competing instructions to accelerate growth, while not diluting focus in Turkey or Central Asia, Molinas must decide how to balance change versus continuity across functions and country locations. In the meantime, tensions arise amongst the newly combined members of her business unit, as some fear being sidelined or losing their autonomy. Molinas wonders whether her team's leadership is too homogenous to manage this diverse and disgruntled group across emerging markets. Centralizing, decentralizing, or creating a hybrid structure is now Molinas' first priority. On top of these pressing organizational issues, shortly after assuming her new role, domestic and international events suddenly derail her unit's 17 consecutive months of record-breaking performance. Molinas and her largely female and Turkish senior leadership team grapples with the significant financial impact of massive protests in Turkey, the rise of anti-American sentiments, growing national health concerns, the reduction of the U.S. FED's financial stimulus, and capital flight from emerging markets. While Turkey's revenue is in a precipitous decline, Molinas needs the Central Asian region to help alleviate the financial gap during this turbulent time. Molinas questions whether her unit's structure and her homogenous senior team's background are too narrow to help her counteract the external crises.
Supplements the (A) case. Galya Frayman Molinas, President of Coca-Cola's Turkish Business and a 20-year company veteran, is unexpectedly asked to take the helm of a newly expanded territory with operations across eight additional countries in Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kirgizstan, Tajikistan, Turkmenistan, and Uzbekistan. With seemingly competing instructions to accelerate growth, while not diluting focus in Turkey or Central Asia, Molinas must decide how to balance change versus continuity across functions and country locations. In the meantime, tensions arise amongst the newly combined members of her business unit, as some fear being sidelined or losing their autonomy. Molinas wonders whether her team's leadership is too homogenous to manage this diverse and disgruntled group across emerging markets. Centralizing, decentralizing, or creating a hybrid structure is now Molinas' first priority. On top of these pressing organizational issues, shortly after assuming her new role, domestic and international events suddenly derail her unit's 17 consecutive months of record-breaking performance. Molinas and her largely female and Turkish senior leadership team grapples with the significant financial impact of massive protests in Turkey, the rise of anti-American sentiments, growing national health concerns, the reduction of the U.S. FED's financial stimulus, and capital flight from emerging markets. While Turkey's revenue is in a precipitous decline, Molinas needs the Central Asian region to help alleviate the financial gap during this turbulent time. Molinas questions whether her unit's structure and her homogenous senior team's background are too narrow to help her counteract the external crises.
Supplements the (A) case. Galya Frayman Molinas, President of Coca-Cola's Turkish Business and a 20-year company veteran, is unexpectedly asked to take the helm of a newly expanded territory with operations across eight additional countries in Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kirgizstan, Tajikistan, Turkmenistan, and Uzbekistan. With seemingly competing instructions to accelerate growth, while not diluting focus in Turkey or Central Asia, Molinas must decide how to balance change versus continuity across functions and country locations. In the meantime, tensions arise amongst the newly combined members of her business unit, as some fear being sidelined or losing their autonomy. Molinas wonders whether her team's leadership is too homogenous to manage this diverse and disgruntled group across emerging markets. Centralizing, decentralizing, or creating a hybrid structure is now Molinas' first priority. On top of these pressing organizational issues, shortly after assuming her new role, domestic and international events suddenly derail her unit's 17 consecutive months of record-breaking performance. Molinas and her largely female and Turkish senior leadership team grapples with the significant financial impact of massive protests in Turkey, the rise of anti-American sentiments, growing national health concerns, the reduction of the U.S. FED's financial stimulus, and capital flight from emerging markets. While Turkey's revenue is in a precipitous decline, Molinas needs the Central Asian region to help alleviate the financial gap during this turbulent time. Molinas questions whether her unit's structure and her homogenous senior team's background are too narrow to help her counteract the external crises.
Supplements the (A) case. Galya Frayman Molinas, President of Coca-Cola's Turkish Business and a 20-year company veteran, is unexpectedly asked to take the helm of a newly expanded territory with operations across eight additional countries in Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kirgizstan, Tajikistan, Turkmenistan, and Uzbekistan. With seemingly competing instructions to accelerate growth, while not diluting focus in Turkey or Central Asia, Molinas must decide how to balance change versus continuity across functions and country locations. In the meantime, tensions arise amongst the newly combined members of her business unit, as some fear being sidelined or losing their autonomy. Molinas wonders whether her team's leadership is too homogenous to manage this diverse and disgruntled group across emerging markets. Centralizing, decentralizing, or creating a hybrid structure is now Molinas' first priority. On top of these pressing organizational issues, shortly after assuming her new role, domestic and international events suddenly derail her unit's 17 consecutive months of record-breaking performance. Molinas and her largely female and Turkish senior leadership team grapples with the significant financial impact of massive protests in Turkey, the rise of anti-American sentiments, growing national health concerns, the reduction of the U.S. FED's financial stimulus, and capital flight from emerging markets. While Turkey's revenue is in a precipitous decline, Molinas needs the Central Asian region to help alleviate the financial gap during this turbulent time. Molinas questions whether her unit's structure and her homogenous senior team's background are too narrow to help her counteract the external crises.
In September 2015, the Volkswagen Group (VW) was in a state of flux. Its reputation was taking a severe beating in the auto industry and among consumers. The United States Environmental Protection Agency had accused the company of tampering with its EA 189 diesel engines to clear emissions tests. The engines, fitted with a "defeat device," met the stringent emission levels and higher fuel efficiency standards set in the United States. The defeat device controlled emissions during laboratory testing and driving so that they remained within permissible limits; however, during actual on-the-road driving, the nitrogen oxide emissions were up to 40 times higher. VW's admission of the intentional manipulation severely dented its value chain, affecting market share, brand image, internal/external stakeholders trust, and supply chain operations. In the wake of the scandal, the company faced the challenge of organizing a product recall and reconceptualizing the VW brand identity.
An international joint venture is a company that is owned by two or more firms of different nationalities. The purpose of most international joint ventures is to allow partners to pool resources and coordinate their efforts in order to achieve results that neither could obtain acting alone. Virtually all multinational enterprises now use international joint ventures. Joint ventures are the mode of choice about 30 per cent of the time by both U.S. and Japanese multinationals. This note reviews the reasons why companies create international joint ventures (for example, to strengthen the existing business, take existing products to foreign markets, bring foreign products to local markets, and diversify into a new business) and examines specific types of joint ventures (for example, research and development; raw material and component supply; and marketing and distribution). It then considers some guidelines for international joint venture success.
Emily Reyna, the Environmental Defense Fund's (EDF) Director of Diversity, has been in the newly formed position for under a year and has been tasked with implementing the organization's Diversity Plan, which aims to improve internal racial and ethnic diversity as well as reach a more diverse range of constituents within partnerships. EDF recognizes the importance of adequately engaging and representing shifting demographics in the United States and internationally and has focused on improving diversity internally for the past several years. Reyna's priority is a baseline assessment of diversity and inclusion within EDF's culture. Her focus is on inclusion and full participation, not only in the workplace but also in the policies and programs EDF is working to implement. Students will explore the challenges of diversity and develop a strategy for EDF's internal changes and external partnerships.
Jon-Mark Chappellet, Director of Operations at Clos Du Val Winery in Napa Valley, is developing a 50-year plan. The effects of climate change are forcing Chappellet and other Napa Valley vineyards to adopt various adaptation strategies to protect the quality of their grapes and wines. Climate change impacts can include decreased water availability, temperature variations outside optimal growing conditions, and increased threat of pests. Napa Valley is a strong, competitive market for grape growers and vintners and is most known for its ideal growing conditions for cabernet sauvignon grapes where estate wineries like Clos Du Val focus their production efforts. Will Clos Du Val have to abandon its signature brand of cabernet sauvignon wines and adopt other grape varietals capable of thriving in the changing climate conditions? What kind of diversification strategy will Chappellet need to implement to address climate change?
The Poultry Research Centre at the University of Alberta farm was an internationally recognized research, development, and learning hub. It began the Rare Poultry Conservancy Program in 1986 as a way to maintain heritage chicken breeds. In 2009/10, as a result of the global financial crisis, university funding was reduced, and every campus department needed to cut programs or find creative ways to finance them outside of the traditional methods. By 2014, the funding cuts posed a grave concern for the continuation of the heritage chicken program. Annual costs of CA$75,000 were required to maintain the flocks with very limited financial return. However, a leader at the Poultry Research Centre felt that the birds were important enough to develop a model where they could pay for themselves.
An international joint venture is a company that is owned by two or more firms of different nationalities. The purpose of most international joint ventures is to allow partners to pool resources and coordinate their efforts in order to achieve results that neither could obtain acting alone. Virtually all multinational enterprises now use international joint ventures. Joint ventures are the mode of choice about 30 per cent of the time by both U.S. and Japanese multinationals. This note reviews the reasons why companies create international joint ventures (for example, to strengthen the existing business, take existing products to foreign markets, bring foreign products to local markets, and diversify into a new business) and examines specific types of joint ventures (for example, research and development; raw material and component supply; and marketing and distribution). It then considers some guidelines for international joint venture success.
The Poultry Research Centre at the University of Alberta farm was an internationally recognized research, development, and learning hub. It began the Rare Poultry Conservancy Program in 1986 as a way to maintain heritage chicken breeds. In 2009/10, as a result of the global financial crisis, university funding was reduced, and every campus department needed to cut programs or find creative ways to finance them outside of the traditional methods. By 2014, the funding cuts posed a grave concern for the continuation of the heritage chicken program. Annual costs of CA$75,000 were required to maintain the flocks with very limited financial return. However, a leader at the Poultry Research Centre felt that the birds were important enough to develop a model where they could pay for themselves.
The Swiss company TAG Heuer, maker of luxury watches, is part of the LVMH group (Moet Hennessy Louis Vuitton). In 2015, CEO Jean-Claude Biver is deciding whether to launch its first-ever fully connected Swiss watch, manufactured in partnership with Google and Intel. Entering this new market presents an unprecedented challenge: making a watch based on a technology (microprocessors) that the Swiss have not mastered. Is TAG Heuer ready to compete in the digital space - and potentially without the traditional 'Swiss Made' label? Case B takes up the story following the successful launch of the TAG Heuer connected watch. Sales are beyond all expectations for the luxury Swiss watchmaker and its partners Intel and Google. There are a few surprises too - the consumers are older than they expected and the watches sell out far quicker than anticipated - hence the company runs into some supply chain issues. Please visit the https://cases.insead.edu/tag-heuer dedicated case website to access supplementary material.
Since 2000, Bharat Petroleum Corporation Limited, a global Fortune 500 petroleum company largely owned by the government of India, had institutionalized an internal competition called IDEAS. Each year, several employees participated by submitting their innovative ideas to the competition. Many of these innovations involved significant savings and/or improvements. However, by 2015, a degree of fatigue had set in. Was IDEAS an innovation engine or a tool for employee engagement? How could the competition be transformed so that it delivered more for the employees and the organization?
BYD Company Limited (BYD), a Chinese firm that started as a battery manufacturer, produced its first gasoline-fuelled vehicle in 2005. In 2008, BYD then launched its first electric vehicles based on its advantages in battery technology and experience in low-cost research and development. The company expected to gain a strong presence in the automotive market with these electric vehicles; its goal was to secure its place as China's largest auto manufacturer by 2015, and the world's largest by 2025. By February 2015, sales of one of BYD's new energy vehicles, the Qin, accounted for 32 per cent of total new energy vehicle sales in China that month. Yet BYD was ranked 15th among China's passenger vehicle companies. How could the company climb to number one in terms of sales volume?
Eric Ries, one of the most prominent entrepreneurs from Silicon Valley, is launching the Long-Term Stock Exchange (LTSE), a new stock exchange for companies and investors that want to focus on long-term values and sustainable development rather than short-term profit gains. Despite LTSE having a strong value proposition for many companies, this case analyzes the many business challenges that Ries and LTSE must overcome: the large shift required in the systems-thinking of current investors, limiting shareholders' control and influence, gaining the critical mass required to achieve scale and profitability, government legislation and permits, and gaining trust and credibility from potential companies and investors. This case asks students to articulate the risks within the existing, short-term focused stock exchange system, as well as identify the forces that produce short-termism in publicly listed companies.
After recognizing numerous opportunities in the global market, Xiaomi Technology Corporation Ltd. (Xiaomi), based in Beijing, charted its overseas market strategy in 2013. However, opportunities came with challenges, and during the internationalization process, Xiaomi encountered many problems. By 2016, after three years of hard work, Xiaomi had gained more experience than profits. Compared with Xiaomi’s domestic success, Xiaomi’s internationalization strategy was unsatisfactory. How could Xiaomi meet its international goals? Should it establish international strategic alliances, develop its firmware operating system, or consider other options?
BYD Company Limited (BYD), a Chinese firm that started as a battery manufacturer, produced its first gasoline-fuelled vehicle in 2005. In 2008, BYD then launched its first electric vehicles based on its advantages in battery technology and experience in low-cost research and development. The company expected to gain a strong presence in the automotive market with these electric vehicles; its goal was to secure its place as China’s largest auto manufacturer by 2015, and the world’s largest by 2025. By February 2015, sales of one of BYD’s new energy vehicles, the Qin, accounted for 32 per cent of total new energy vehicle sales in China that month. Yet BYD was ranked 15th among China’s passenger vehicle companies. How could the company climb to number one in terms of sales volume?
Since 2000, Bharat Petroleum Corporation Limited, a global Fortune 500 petroleum company largely owned by the government of India, had institutionalized an internal competition called IDEAS. Each year, several employees participated by submitting their innovative ideas to the competition. Many of these innovations involved significant savings and/or improvements. However, by 2015, a degree of fatigue had set in. Was IDEAS an innovation engine or a tool for employee engagement? How could the competition be transformed so that it delivered more for the employees and the organization?
Yushan Bicycles, one of Taiwan's leading bicycle manufacturers, is pursuing an international expansion strategy by increasing demand for its range of traditional and electric bicycles and by shifting its product mix toward higher-margin models sold through specialty bicycle retail shops. However, the manager of its new Australian subsidiary has taken a different approach that focuses on selling lower-priced models through large sporting-goods retailers. The manager's strategy has yielded disappointing financial results so far, and he and company executives disagree on the cause and next steps. The Yushan case was specifically developed for international management and international business courses, but it can also be used in competitive strategy, corporate strategy, and general management programs. It is especially useful for analyzing situations in which issues of strategy, organization, and management converge.