This case examines the fundamental transformation challenges facing Volkswagen Group as it navigates the intersection of deglobalization and industry disruption. Through chief executive officer Oliver Blume’s perspective, we see how traditionally successful global strategies can become vulnerable when the underlying assumptions of globalization are challenged. The automotive industry was transforming due to technological changes, new consumer preferences, and environmental regulations, while the rise of electric vehicles (EVs), particularly from Chinese competitors, reshaped the market. Geopolitics complicated this transition, including the US–China and European Union–Russia decoupling tensions and the Ukraine War, which disrupted supply chains.

<div style="font-size: 0.95em; line-height: 1.4;"><p align="justify">The Climate Change Conference is a five-party, multi-issue, in-class negotiation simulation that requires no software or other digital means. The exercise develops an understanding of the complex landscape of global climate change mitigation and adaptation measures across various constituencies. At the core of the simulation, students take the roles of representatives from Developed Countries, Developing Countries, the Organization of the Petroleum Exporting Countries (OPEC), Fossil Fuel Companies, and Electric Vehicle (EV) Firms, with each stakeholder having distinct priorities and interests. In a highly interactive small- and large-group negotiation process, participants navigate through three critical issues: (1) securing global net-zero emissions by mid-century by keeping the goal of a maximum 1.5℃ average global temperature rise within reach through (a) meeting emissions reduction targets, (b) coal phase-out, (c) methane reduction, and (d) halting deforestation; (2) protecting communities and natural habitats; and (3) mobilizing climate finance.

In early June 2020, the owner of BYKlyn, an exercise bike fitness studio in New York, was considering her response to the business disruption that the outbreak of the COVID-19 pandemic had caused the health and fitness industry. BYKlyn had recorded consistent annual growth since its launch in 2014. The fitness studio owner had been confirming her business expansion plans by moving into a larger space in the city when the pandemic struck in early 2019. Consequently, she was forced to shut down the business in mid-March 2019, in compliance with COVID-19 regulations. After a two-month lockdown, the New York state government announced phased-in reopening plans, and the fitness studio owner was considering three options for restarting her business: reopen at the existing premises; move to a virtual environment with a new business model; or set up an outdoor fitness club, which would offer fitness club members a completely new workout format.

The Case describes how Penny Wise, the newly appointed managing director of 3M Canada, drew on her personal leadership style, experience and character to keep the Canadian organization strategically relevant through a significant restructuring and the COVID-19 pandemic.

The Case describes how Penny Wise, the newly appointed managing director of 3M Canada, drew on her personal leadership style, experience and character to keep the Canadian organization strategically relevant through a significant restructuring and the COVID-19 pandemic.

In early June 2020, the owner of BYKlyn, an exercise bike fitness studio in New York, was considering her response to the business disruption that the outbreak of the COVID-19 pandemic had caused the health and fitness industry. BYKlyn had recorded consistent annual growth since its launch in 2014. The fitness studio owner had been confirming her business expansion plans by moving into a larger space in the city when the pandemic struck in early 2019. Consequently, she was forced to shut down the business in mid-March 2019, in compliance with COVID-19 regulations. After a two-month lockdown, the New York state government announced phased-in reopening plans, and the fitness studio owner was considering three options for restarting her business: reopen at the existing premises; move to a virtual environment with a new business model; or set up an outdoor fitness club, which would offer fitness club members a completely new workout format.

In April 2020, the interim president of the 3D printing and digital manufacturing business of HP Inc. was weighing his options in resolving three managerial dilemmas: (1) How should HP promote technology awareness among industrial customers? (2) How should HP scale up its production of 3D printers? (3) How could HP promote shorter technology adoption cycles among industrial customers?

In April 2020, the interim president of the 3D printing and digital manufacturing business of HP Inc. was weighing his options in resolving three managerial dilemmas: (1) How should HP promote technology awareness among industrial customers? (2) How should HP scale up its production of 3D printers? (3) How could HP promote shorter technology adoption cycles among industrial customers?

In March 2020, the founder of an auto mechanic shop in a Toronto suburb was contemplating a five-year growth strategy. Given the disruptions in both the auto mechanic sector and the automotive industry at large, she wondered whether her plan was realistic. Should the founder execute the growth strategy according to plan or change the plan and lead the business in a completely different direction?

In March 2020, the founder of an auto mechanic shop in a Toronto suburb was contemplating a five-year growth strategy. Given the disruptions in both the auto mechanic sector and the automotive industry at large, she wondered whether her plan was realistic. Should the founder execute the growth strategy according to plan or change the plan and lead the business in a completely different direction?

In May 2017, the recently appointed chief executive officer of Sobeys, the second-largest grocer in Canada, was considering the company’s financial difficulties. He was tasked with saving Sobeys from near insolvency and planning strategically for the company’s core grocery business. Sobeys had posted a loss of CA$2.1 billion for the fiscal year ending May 2016, compared to a profit of $419 million just a year earlier, partially due to a high-profile acquisition that had gone sour. In addition, a ratings agency had downgraded Sobeys’s debt to junk level, citing underperformance and lost market share as the reasons. The new chief executive officer devised an interim three-year growth plan called Project Sunrise, which had two main objectives: quickly relieve Sobeys of its troubled financial situation, and prepare for the long-term industry disruption that was becoming prevalent, both locally and globally.

When a company is looking to expand, it is natural for the managers involved—including the CEO—to have location preferences. Ivey Professors Andreas Schotter and Paul Beamish investigated how location hassles influence foreign investment decisions and sales. They found that these hassles significantly affected individuals or small groups of employees tasked with assessing potential opportunities. Firms must overcome managerial biases and identify champions willing to tackle location hassles in difficult markets that have the potential to generate a high return on investment—especially if the hassle factors of those markets are keeping the competition away. Many characteristics that are perceived hassles for managers of firms from traditional industrialized locations like Europe, the United States, Canada, and Japan are not seen as such by managers from rapidly internationalizing emerging-market firms. The authors recommend three actions to take to utilize and build on the hassle factor: 1) raise awareness of managerial biases and on-the-ground location factors, 2) raise global strategic capacity, and 3) leverage a more diverse talent pool. Firms should hire for a global mindset and not just for technical job competencies or single-location knowledge. They should also recognize that some otherwise high-performing managers may be ill-suited for roles involving high-hassle locations.

In May 2017, the recently appointed chief executive officer of Sobeys, the second-largest grocer in Canada, was considering the company's financial difficulties. He was tasked with saving Sobeys from near insolvency and planning strategically for the company's core grocery business. Sobeys had posted a loss of CA$2.1 billion for the fiscal year ending May 2016, compared to a profit of $419 million just a year earlier, partially due to a high-profile acquisition that had gone sour. In addition, a ratings agency had downgraded Sobeys's debt to junk level, citing underperformance and lost market share as the reasons. The new chief executive officer devised an interim three-year growth plan called Project Sunrise, which had two main objectives: quickly relieve Sobeys of its troubled financial situation, and prepare for the long-term industry disruption that was becoming prevalent, both locally and globally.

In 2018, Volkswagen Group's newly appointed chief executive officer renewed the company's commitment to Strategy 2025, an ongoing plan intended to radically transform the German automaker. Volkswagen was being challenged by tectonic changes in the automotive industry, including the phasing out of the long-standing internal combustion engine, ongoing digitization, the entry of new competition from technology companies, the introduction of electric vehicles, and the launch of ride-sharing applications. Strategy 2025 was designed to reshuffle the company's existing formal and informal structures and restructure the automaker into a nimble, agile, and innovative corporation ready to face the realities of mobility in the digital age. The new chief executive officer faced huge expectations concerning the effectiveness and sustainability of Strategy 2025. Was the automaker doing enough to transform into a competitive mobility company?

In 2018, Volkswagen Group’s newly appointed chief executive officer renewed the company’s commitment to Strategy 2025, an ongoing plan intended to radically transform the German automaker. Volkswagen was being challenged by tectonic changes in the automotive industry, including the phasing out of the long-standing internal combustion engine, ongoing digitization, the entry of new competition from technology companies, the introduction of electric vehicles, and the launch of ride-sharing applications. Strategy 2025 was designed to reshuffle the company’s existing formal and informal structures and restructure the automaker into a nimble, agile, and innovative corporation ready to face the realities of mobility in the digital age. The new chief executive officer faced huge expectations concerning the effectiveness and sustainability of Strategy 2025. Was the automaker doing enough to transform into a competitive mobility company?

This is an MIT Sloan Management Review article. Despite India's economic growth and potential, developing a successful strategy for the country remains one of the most complex challenges for foreign multinationals. This challenge is rooted in the hard realities of global scale and costs. Most foreign executives have found it difficult to make money in India with their existing product portfolios at the scale of operations dictated by local demand. In addition, India has not provided foreign direct investment incentives anywhere near those of neighboring China. However, U.S. management consulting firm A.T. Kearney estimated in 2014 that India's share of global trade would be approximately five times greater by 2025 -and at that point would represent 6% of all global trade. Given that growth projection, waiting for a target income segment to reach the break-even level or waiting for greater government incentives to materialize is not the right strategy. Indeed, the authors observe, many foreign multinationals have increased their focus on India. However, they add, many foreign executives are frustrated that they cannot replicate the same strategies in India that led to success in China. One reason is the local high-income segment, which constitutes the initial target market for most foreign companies, is relatively small in India compared with China. This often causes foreign executives to refrain from investing in more extensive value-chain activities in India and delay committing to local manufacturing. Based on their research, the authors present a framework for foreign multinationals for a successful first-time entry into India or for upgrading an existing operation in India that has not been very effective. This approach involves simultaneously taking advantage of local sourcing, manufacturing, and marketing activities in conjunction with local adaptation of global products to generate mutually reinforcing advantages.

Shanghai Toex Trading Co., Ltd. (TOEX) was a Chinese pet grooming equipment maker. In 2014, after years of operating internationally solely through third-party distribution channels, TOEX opened a new sales and logistics centre in Dallas, Texas to boost TOEX’s business in the United States. The new centre was also meant to be a model for future expansions to other countries. With more than a decade of industry experience, TOEX's founder believed that succeeding in the United States was critically important for the company’s future. However, he was not sure how to execute a successful international growth strategy and how to best leverage the new U.S. logistics centre.

Shanghai Toex Trading Co., Ltd. (TOEX) was a Chinese pet grooming equipment maker. In 2014, after years of operating internationally solely through third-party distribution channels, TOEX opened a new sales and logistics centre in Dallas, Texas to boost TOEX's business in the United States. The new centre was also meant to be a model for future expansions to other countries. With more than a decade of industry experience, TOEX's founder believed that succeeding in the United States was critically important for the company's future. However, he was not sure how to execute a successful international growth strategy and how to best leverage the new U.S. logistics centre.

On January 4, 2016, the co-founders of Forked River Brewing Company (Forked River), a small brewery in London, Ontario, revisited the company's original business plan from 2012. Over the course of only four years, the founders went from home brewing enthusiasts to owners of a striving, award-winning craft brewery. Forked River beers were now offered in pubs, restaurants, and retail stores across the province of Ontario. In the past year alone, Forked River had expanded its production capacity by 50 per cent, hired an additional full-time brewmaster, and added a retail outlet to the brewing facility. However, business had recently become more complicated due to changes to Ontario retail liquor laws, increasing non-brewing administrative work, and looming decisions about the product portfolio and distribution strategy. Now, the three founders wondered whether Forked River was still on the right track or if a new strategic plan was needed to ensure its long-term success in the fast-changing craft beer industry.

On January 4, 2016, the co-founders of Forked River Brewing Company (Forked River), a small brewery in London, Ontario, revisited the company’s original business plan from 2012. Over the course of only four years, the founders went from home brewing enthusiasts to owners of a striving, award-winning craft brewery. Forked River beers were now offered in pubs, restaurants, and retail stores across the province of Ontario. In the past year alone, Forked River had expanded its production capacity by 50 per cent, hired an additional full-time brewmaster, and added a retail outlet to the brewing facility. However, business had recently become more complicated due to changes to Ontario retail liquor laws, increasing non-brewing administrative work, and looming decisions about the product portfolio and distribution strategy. Now, the three founders wondered whether Forked River was still on the right track or if a new strategic plan was needed to ensure its long-term success in the fast-changing craft beer industry.