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China is facing a shortage of workers as its demographics and role as the “factory of the world” change. Though set to remain an export hub, China is climbing the value chain and its middle class is growing, so that “Made in China” will turn into “Sales in China.” Since the economic crisis, Asian markets have shown resilience for three reasons. Firstly, Asia is diversifying its trade base, with less dependence on Western trade and more domestic and intra-Asia trade. Also, economic diversity has stabilized the region, due to the presence of developed financial centres like Hong Kong, sophisticated manufacturing bases like mainland China, and low-cost manufacturing, such as in Vietnam and Bangladesh. Finally, the region is well financed, with such rapid economic growth that the Asian middle class is expected to account for over 40 per cent of total global consumption by 2020. A global talent imbalance exists due to high unemployment in mature markets and talent scarcity and rapid economic growth in Asian markets. Opportunities in this scenario include the chance for foreign universities to attract more Chinese students, a role for the subsidiaries of multinational enterprises to develop capable talent for Chinese operations, a prioritization of Chinese-language schools, and a strengthening of relations with China in the key area of trade engagement.

The senior vice president and head of Mutual Life's group division, was trying to decide whether to proceed with a plan to guarantee his division's services as a task force had recommended. If the division decided to proceed, he would have to decide whether to accept the task force's suggestions on the design of the guarantee and answer a number of questions that they have left unanswered. Students have to assess whether Mutual Life would benefit from a guarantee and the performance of the division and the task force so far, as well as address the design issues. A sequel to this case Mutual Life of Canada - The Group Client Service Guarantee (B), describes the guarantee and an issue that has arisen.

The regional group marketing director, was trying to decide what to do about Consolidated, a client who had made a claim for $9,500 under the company's new group client service guarantee. The problem was that, although she believed Consolidated's claim was completely without basis, the guarantee prominently said: If you have a problem, we will pay, no questions asked. Students have to assess Mutual Life's guarantee and decide what to do about both the Consolidated incident and the guarantee. This case can be used either alone, or in conjunction with Mutual Life of Canada - The Group Client Service Guarantee (A), which addresses several issues in the design of the guarantee.