<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.
BOE Technology Group Ltd. (BOE) was a leading semiconductor display company worldwide. This case study examines BOE’s journey from facing near bankruptcy to becoming a major player in the display industry and subsequently transitioning into the Internet of Things (IoT) space. The company leveraged effective knowledge management to streamline resources; accelerate knowledge sharing, flow, and application; improve internal management and operational efficiency; mitigate the impact of industry cycles; enhance profitability and innovation capabilities; and support development at each stage. Meanwhile, the firm also faced many challenges. How could BOE further upgrade its capability and transform into a leader in the IoT age?
In May 2023, Lei Yang, general manager of Jiangsu Tianan Smart Science and Technology Co. Ltd. (Tianan), based in Wuxi, Jiangsu Province, China, was deciding how to improve his company’s profitability. In its early days, Tianan had sold in-vehicle infotainment devices to automobile companies, and in 2014, it started installing in-vehicle software systems and driver terminals. But from 2010 to 2017, the company lost money. So when the Chinese government announced in 2018 its plan to create internet of vehicle (IoV) pilot zones throughout China, Yang recognized this as an opportunity to transform his company and get rid of its losses. He restructured Tianan’s team, integrated its hardware and software suppliers, took advantage of the government’s help, and turned Tianan into an IoV system service provider. Tianan was profitable in 2020, 2021, and 2022—but Yang was not yet satisfied. Despite the turnaround, the company’s revenue still came primarily from the government, its project delivery capacity was too low to increase sales volume, and its limited bargaining power led to high purchase costs from suppliers. Now, in 2023, what could Yang do to improve his company’s profitability?
Raymond Green, Chief Researcher at Amber Global, a global energy think tank, believes that climate change could be slowed by consumers switching to electric vehicles (EVs). He analyses the lithium-ion (li-ion) battery industry's origins and its ascendance to an ecosystem that encompasses diverse actors such as lead firms (key li-ion battery manufacturers), upstream suppliers of raw and processed minerals, and downstream complementors of battery management system (BMS) providers and charging stations. In particular, governments play integral roles as members of the li-ion battery ecosystem in which their unique ties with lead firms have led to the rise of diverse ecosystems across the countries of Japan, South Korea, and China. Consequently, the government and lead firms co-lead and also co-develop the specific li-ion battery ecosystem to align the set of multilateral actors to materialise the value proposition of high-energy and low-cost li-ion batteries for the end-user. How has the emphasis of the different governments influenced the rise of the diverse li-ion battery ecosystems and therefore, the alignment of the diverse actors? What are the strengths and weaknesses of each approach and how would it effect the emergence of the specific li-ion battery ecosystem as a winner in the future?
In 2020, when everyone had been quarantined at home due to the COVID-19 pandemic, South Korea-based Eric Kim jumped onto YouTube, a video-sharing digital platform. Although his initial growth on the platform was relatively fast, it soon began to stagnate. Kim decided to consider four key strategies to overcome this situation, which included revealing his face in his videos, business expansion, strategic alliances through Multi-Channel Networks (MCNs), and internationalisation. Would Kim regain his rapid expansion of influence on YouTube? Could his subsequent growth efforts be sufficient to ensure his channel's continued success in an increasingly digital world?
Seattle-based Dropbox Inc. (Dropbox) was a leading provider of cloud storage and online collaboration tools. The company had successfully grown a global user base by combining digital channels (user-driven viral growth) with investments in physical assets (offices and infrastructure) overseas. However, in 2020, when the COVID-19 pandemic forced individuals and organizations worldwide to work remotely and created an unprecedented growth opportunity, the company found itself outflanked by more aggressive rivals. Dropbox needed to reassess its existing strategy and find a way forward.
Seattle-based Dropbox Inc. (Dropbox) was a leading provider of cloud storage and online collaboration tools. The company had successfully grown a global user base by combining digital channels (user-driven viral growth) with investments in physical assets (offices and infrastructure) overseas. However, in 2020, when the COVID-19 pandemic forced individuals and organizations worldwide to work remotely and created an unprecedented growth opportunity, the company found itself outflanked by more aggressive rivals. Dropbox needed to reassess its existing strategy and find a way forward.
Suning Logistics, a retail logistics enterprise, was located in Nanjing, Jiangsu, China. As a subsidiary of Suning Holding Group (Suning), Suning Logistics represented the core competitiveness of Suning in occupying the leading position in China's retail landscape. Suning Logistics was registered as a company in 2012 but was a subsidiary of Suning before growing into Suning Logistics Group (Suning Logistics) in 2015. During the 30-year development process, Suning Logistics had repeatedly iterated and upgraded its logistics model to support the transformation from a physical retailer to online retailer. With the China's new retail wave, experiential shopping and digital consumption brought challenges to the logistics upgrade. To win competitive advantage, the general manager of Suning Logistics had to make a choice between two transformational directions: Should the company improve the logistics efficiency of multi-scenario retail? Or, should it explore the reverse supply chain with emerging technology?
Suning Logistics, a retail logistics enterprise, was located in Nanjing, Jiangsu, China. As a subsidiary of Suning Holding Group (Suning), Suning Logistics represented the core competitiveness of Suning in occupying the leading position in China's retail landscape. Suning Logistics was registered as a company in 2012 but was a subsidiary of Suning before growing into Suning Logistics Group (Suning Logistics) in 2015. During the 30-year development process, Suning Logistics had repeatedly iterated and upgraded its logistics model to support the transformation from a physical retailer to online retailer. With the China's new retail wave, experiential shopping and digital consumption brought challenges to the logistics upgrade. To win competitive advantage, the general manager of Suning Logistics had to make a choice between two transformational directions: Should the company improve the logistics efficiency of multi-scenario retail? Or, should it explore the reverse supply chain with emerging technology?
Hangzhou Kub Baby Products Co. Ltd. (Kub), an e-commerce company established in 2009, sold maternal and child products. After a decade of development, Kub had earned praise from customers for the high-value, high-quality, and cost-effective products it sold, but the company's own brand, KÜB, remained less well known. In July 2018, Kub launched a three-day brand marketing campaign, called "KÜB×Tmall Happy Day," which largely relied on new media. The event was successful with increased brand effectiveness; however, new media was increasingly fragmenting marketing and brand awareness. How could Kub maintain its brand success in that context?
Hangzhou Kub Baby Products Co. Ltd. (Kub), an e-commerce company established in 2009, sold maternal and child products. After a decade of development, Kub had earned praise from customers for the high-value, high-quality, and cost-effective products it sold, but the company's own brand, KÜB, remained less well known. In July 2018, Kub launched a three-day brand marketing campaign, called "KÜB×Tmall Happy Day," which largely relied on new media. The event was successful with increased brand effectiveness; however, new media was increasingly fragmenting marketing and brand awareness. How could Kub maintain its brand success in that context?
TikTok was a short-video sharing app based in China. On November 9, 2017, TikTok’s parent company, the Chinese tech company Beijing ByteDance Technology Co. (ByteDance), announced a strategic acquisition of Musical.ly, a popular short-video sharing app based in the United States. With more than 100 million users and similar features to TikTok, Musical.ly was a powerful competitor for TikTok’s international expansion into the North American markets. For ByteDance and TikTok, the closing of the Musical.ly acquisition in August 2018 was not the end goal, as it would create another new challenge. Would it be better to keep Musical.ly as a separate platform, as Musical.ly had achieved a good reputation and millions of users in the United States? Or should Musical.ly be replaced to create a global app under the TikTok brand, which was relatively new to the US market?
TikTok was a short-video sharing app based in China. On November 9, 2017, TikTok's parent company, the Chinese tech company Beijing ByteDance Technology Co. (ByteDance), announced a strategic acquisition of Musical.ly, a popular short-video sharing app based in the United States. With more than 100 million users and similar features to TikTok, Musical.ly was a powerful competitor for TikTok's international expansion into the North American markets. For ByteDance and TikTok, the closing of the Musical.ly acquisition in August 2018 was not the end goal, as it would create another new challenge. Would it be better to keep Musical.ly as a separate platform, as Musical.ly had achieved a good reputation and millions of users in the United States? Or should Musical.ly be replaced to create a global app under the TikTok brand, which was relatively new to the US market?
Founded in 2007, Kunwu Jiuding Capital Co., Ltd (hereinafter referred to as Jiuding) is a Chinese private equity (PE) firm that specializes in equity investments in late-stage, pre-IPO companies. Despite its brief history, the firm had secured a strong foothold in China's PE industry with its tremendous growth and dazzling investment returns. As of 2011, Jiuding had 260 employees and 6 RMB-denominated funds with 6 million RMB under management. While investors showed strong enthusiasm for the firm, Jiuding nevertheless had generated much debate in the PE community about its pioneering investment practice - known as the "PE factory" model where investment activities were carried out in a way similar to large-scale industrial production. This model has subverted the traditional PE business practice in many ways. Concerns were raised about whether or not Jiuding's business model was sustainable in the next ten years, given the fast-changing landscape of China's PE industry.
Shenzhen Development Bank, China's first publicly traded company, was undergoing the non-tradable share reform. Its current controlling shareholder, private equity firm Newbridge Capital LLC, needs to negotiate with its diverse minority shareholders to find a compromise on the terms of the conversion of the non-tradable shares held by Newbridge into tradable shares. Further delay in implementing this reform will put Shenzhen Development Bank into jeopardy as the bank will not be allowed to raise the additional capital it very much needed, but the negotiation between Newbridge and other shareholders was breaking down. The case discussed the non-tradable share reform in China, its causes and its implications, and from the perspective of one private equity play, discussed the issues of corporate governance, conflicts of interest, and the fiduciary duty of corporate managers in an emerging market.
Examines an acquisition in the highly competitive outdoor media advertising industry in China in late 2005. The transaction leads to eventual consolidation of the whole industry and positive stock reactions. Discusses equity consideration in the context of an M&A transaction, and the role of private equity and venture capital in the development and the eventual consolidation of the industry in emerging markets. Provides a context in which to discuss the impact of antitrust regulation, or lack thereof, on the industrial organization in China.
Gome, China's largest electronics retailer, is plotting the best course to go public. Unlike many high-growth businesses in China, Gome has only moderate financing needs. Its charismatic and ambitious chairman Wong Kwongyu has built an expansive retail network in China and successfully used trade credits by suppliers and banks to make Gome a highly cash generative business. The decision to go public has three inseparable components: why, where, and how. Does Gome really face substantial funding shortages for its operations? If so, are there any alternatives other than going public? If not, what are the other potential motivations to go public? Given these considerations, financial and otherwise, which stock market is the best one to list Gome's shares on? And between an IPO and a backdoor listing, which option suits Gome the best in terms of timing, costs, feasibility, and risks? Assuming Gome chooses to go public via a backdoor listing, what is the process and how are transactions structured? Lastly, for Wong and his top managers, how will each listing choice affect Gome's future development in the context of the pending market deregulation and expected industry consolidation?
Gome, China's largest electronics retailer, has the opportunity to acquire China Paradise, the number three player in the Chinese electronic retailer industry. This happened in the general context of a great market development and potential consolidation of the household electronic appliance retailing sector. Gome, Suning, and China Paradise, the three largest players in the market, all experienced phenomenal growth, but Gome is slowly losing steam and risks being overtaken by the current number two, Suning. In addition, following China's entry into the WTO and the end of its five-year protection period, foreign competition, such as Best Buy, has entered the market and is bound to change the competitive landscape. Gome needs to decide what to do, and if it proceeds, it needs to move very fast. The decision will hinge on answering a few important questions. Why did China Paradise want to sell? If China Paradise failed, how could Gome guarantee that it would not follow suit? Is this the best time to snap up China Paradise? Should it focus on fixing it's per store performance measure or should it still rely on the growth of the total size of the operation in terms of the total number of stores? Does the acquisition of China Paradise put Gome in a position that it would again be very high in total number of stores but falling behind in the per store performance? This might be a big concern, especially if the acquired operation has a different culture than its existing operation. How can Gome remedy that? How does the acquisition, if it happens, fit the overall corporate strategy of relying on thin margin and volume? How would this strengthen or hurt Gome in its positioning when competition with both domestic and international players is expected to intensify?
Fu Ji, the largest corporate caterer in China, is thinking about how its financing strategy accommodates the overall corporate strategy. Fu Ji has enjoyed phenomenal growth as the corporate catering market in China develops. But that growth in the business also entails a transition from a single restaurant to a restaurant chain, then to a catering business. Is Fu Ji well equipped for the new business model? What does it need to do on the financing side to accommodate the transition of its business model? The company is listed on the Hong Kong Stock Exchange and is thinking about issuing additional convertible bonds to finance its growth. What is the funding need? What are the alternative sources of funding that it has? How would the choice of financial instrument affect, and be affected by, the business strategy and how is the instrument choice influenced by the general development of the financial markets in China?