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WM Wrigley JR. Company: Innovation in China's Confectionery Market
In October 2008, WM Wrigley Jr. Company ("Wrigley"), the world's largest gum-maker, completed a US$23 billion friendly takeover by Mars, a US-based, family-owned company and a global leader in confectionery products. The takeover made Mars the world's largest confectionery company, and Wrigley became a standalone subsidiary of Mars. Wrigley had been outperforming the rest of the confectionery industry in the 10 years leading up to the merger. The merger allowed both Wrigley and Mars to leverage each other's strengths to continue their paths of growth. Mars was attracted by Wrigley's success in China and its product innovation. How has Wrigley succeeded in China's chewing-gum market through product innovation? Bolstered by Mars's financial strength and product portfolio, what product-innovation strategy can it adopt to seize the opportunities for sustained success? -
Carrefour China and the Olympic Torch Relay: Managing Corporate Crisis amid Evolving Expectations of Multinational Firms
Prior to the 2008 Summer Olympics in Beijing, Chinese people were outraged by repeated interruptions of the Olympic torch relay in Paris on 7 April 2008. Soon after the incident, LVMH Group, a shareholder of the retailer Carrefour, was accused by some Chinese internet users of donating money to the exiled spiritual leader of Tibet. The rumor spread on the internet quickly, leading to calls for a large-scale boycott of Carrefour on 1 May 2008. Despite the souring public sentiment, Carrefour did not provide a consistent response to the public, even after one whole week of the crisis. The situation deteriorated quickly, with demonstrations taking place in various cities across China. Meanwhile, further rumors about Carrefour's anti-boycott promotions were circulating on the internet. How should the local management react to the public relations crisis and how can Carrefour manage its corporate image going forward?