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Baidu.com, Inc.: Valuation at IPO
Since its official launch in January 2000, Baidu.com, Inc. (Baidu) quickly grew to become the leading Internet search engine in China. After three rounds of private funding, Baidu registered to go public on the NASDAQ Stock Market (Ticker Symbol: BIDU) on August 5, 2005. This case can be used for at least three types of courses: business valuation, entrepreneurship in emerging markets, or doing business in China. When used for a business valuation or corporate finance course, the case highlights issues involved in the valuation of early-stage companies in emerging growth industries and economies. When used for an entrepreneurship course, the case highlights the opportunities and challenges of starting and growing ventures in emerging markets; it also illustrates how a start-up company can take an existing entrepreneurial idea and proven business model from another country and successfully adapt it to the home market. Three steps in this successful adaptation are: (1) leveraging its local knowledge and expertise, (2) creating a unique competitive advantage for the venture, and (3) creating an entry barrier for its competitors. In a course on doing business in China, the case highlights the strategies for business success in China and the role of culture, government, economy, legal and financial systems, and consumer market in shaping these strategies. -
PCH International: Managing the Flows of Information, Goods and Finance
PCH International started out as a sourcing agent of low-priced electronic components from Taiwan and China to the Western world in the mid 1990s, it had evolved to become a provider of comprehensive supply chain solutions to global technology companies by 2007. PCH was designed to address the needs of a complex global technology supply chain landscape. The first section of the case provides an overview of the global technology supply chain in the 2000s; the second section describes the physical, information and capital "flows" in the technology supply chain and the third section discusses how PCH had designed solutions to address the challenges in the three "flows." Customers examples included in the case to illustrate the various supply chain principles. -
Eu Yan Sang: Reviving a Traditional Business with Modern Business Principles
Eu Yan Sang International was an Asia-based traditional chinese medicine (TCM) provider. The company was established in the late 1890s and had been in operations for over 100 years. By 2007, it was managed by a combination of fourth-generation descendents and professional managers. The first section of this case examines the dramatic rise and fall of the Eu family business empire over several generations, and illustrates the complex interplay of preserving family values, managing personal egos, and reviving a 100-year-old business using modern management techniques. The second section discusses Eu Yan Sang's growth in the 1990s as it transitioned from a purely family-run business to one which had to balance preserving traditional values and meeting the expectations of a modern day corporation. The last section discusses Richard Eu's, fourth generation CEO of the company, considerations in succession planning as the business prepared for a new generation of leadership.