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The chief executive responsible for the Indonesian railways, a state-owned enterprise, is under pressure to show profits, but he also needs to balance widely diverging stakeholder expectations that include inexpensive transportation and excellent customer service. The government subsidizes the railway's passenger travel segment and has capped its fare prices, which has turned the railway's mainstay into a loss-making business. The chief executive wonders how to best trade off the different stakeholder expectations. He needs to develop a plan to present to the minister for State-Owned Enterprises.

The chief executive responsible for the Indonesian railways, a state-owned enterprise, is under pressure to show profits, but he also needs to balance widely diverging stakeholder expectations that include inexpensive transportation and excellent customer service. The government subsidizes the railway’s passenger travel segment and has capped its fare prices, which has turned the railway’s mainstay into a loss-making business. The chief executive wonders how to best trade off the different stakeholder expectations. He needs to develop a plan to present to the minister for State-Owned Enterprises.

Led by CEO S.D. Darmono, Jababeka was a publicly listed real estate firm in Indonesia specializing in industrial estates. Due to infrastructure and logistics bottlenecks in Indonesia, the company had moved into various infrastructure projects, including a power plant and a port. Even though the company had identified substantial business opportunities in the form of a captive market of industrial estate tenants, both projects suffered from delays due to regulatory complexity. Darmono skillfully aligned the interests of private and public-sector partners, but was still unable to get quick returns on his considerable investments, necessitating an allocation of more funds. The case illustrates the opportunities and risks of emerging market infrastructure projects. Students are asked to evaluate the viability of Jababeka's new infrastructure strategy and formulate an action plan.

Led by CEO S.D. Darmono, Jababeka was a publicly listed real estate firm in Indonesia specializing in industrial estates. Due to infrastructure and logistics bottlenecks in Indonesia, the company had moved into various infrastructure projects, including a power plant and a port. Even though the company had identified substantial business opportunities in the form of a captive market of industrial estate tenants, both projects suffered from delays due to regulatory complexity. Darmono skillfully aligned the interests of private and public-sector partners, but was still unable to get quick returns on his considerable investments, necessitating an allocation of more funds. The case illustrates the opportunities and risks of emerging market infrastructure projects. Students are asked to evaluate the viability of Jababeka’s new infrastructure strategy and formulate an action plan.

The Wang Group was created by Alfred Wang in Hong Kong after fleeing China during the turbulence at the beginning of the Communist regime. After successfully building up a diversified trading business and expanding to various other Asian countries, the business was taken over in 1995 by his second son, Charles Wang, a charismatic leader. Charles wished to create a more sustainable family business, attuned to global trends and run by non-family members. To this end, Charles hired an outside CEO to carry out his vision after implementing a far-reaching corporate change program. The global economic crisis that started in 2008, however, affected the company halfway through this reorganization, and brought losses and the departure of the newly hired CEO. Charles Wang had no other option than to again take up the top job himself, and he had to reconsider the path towards a sustainable future for the family firm.

The Wang Group was created by Alfred Wang in Hong Kong after fleeing China during the turbulence that marked the beginning of the communist regime. After successfully building up the diversified trading business and expanding to various other Asian countries, in 1995, the business was taken over by his second son, Charles Wang, a charismatic leader. Charles wished to create a more sustainable family business, tuned in to today's global trends, and run by non-family members. To this end, Charles hired an outside CEO to implement his vision after implementing a far-reaching corporate change program. The global economic crisis that started in 2008, however, caught the company halfway through the reorganization, and brought losses and the departure of the newly hired CEO. Charles Wang had no other option than to again take up the top job himself, and had to reconsider the path towards a sustainable future for the family firm.

Marco Polo Marine (MPM) Ltd was a medium-sized Singaporean shipping company listed on the Singapore Stock Exchange that was involved in regional shipping and shipbuilding. The company was part of a larger Indonesian family business group, and had been built from scratch by the CEO. MPM had started off providing barges to transport sand and mining products, initially for the group’s mining operations, but increasingly for third parties. It subsequently entered the shipbuilding industry by establishing a shipyard in Batam, Indonesia, an island near Singapore. As a next step to grow the company, the CEO intended to become an international player in the much more sophisticated offshore marine services sector, but he had yet to decide what strategy to take to achieve it. The case allows students to analyze a global industry and present recommendations to the CEO for positioning the company within this industry. MPM is an example of an aspiring emerging market multinational, and the case discusses the challenges such companies face in catching up with more advanced incumbents in global industries. In order to penetrate the offshore marine services sector, decisions were required as to what types of vessels to build or buy, which countries to target, and how to enter this market given financial constraints and limited technical expertise.

Marco Polo Marine (MPM) Ltd is a medium-sized Singaporean shipping company listed on the Singapore Stock Exchange, involved in regional shipping and shipbuilding. The company was part of a larger Indonesian family business group, and had been built from scratch by the CEO, the heir to the group. MPM had started off providing barges to transport mining products and sand, initially for the group's mining operations, but increasingly for third parties. It subsequently entered the shipbuilding industry by establishing a shipyard in Batam, Indonesia, an island near Singapore. As a next step to grow the company, the CEO intended to become an international player in the much more sophisticated offshore marine services sector, but he had yet to decide what strategy to take to achieve it. The case study allows students to analyze a global industry and present recommendations to the CEO for positioning the company within this industry. As a company from an emerging market, MPM is an example of an aspiring "emerging market multinational" and the case discusses the challenges such companies face in catching up with more advanced incumbents in global industries. In order to penetrate this market, decisions are required as to what types of vessels to build or buy, which countries to target and how to enter this market given financial constraints and limited technical expertise.

The case discusses the story of the IOI Group, one of the largest palm oil players in Malaysia, which has seen rapid growth in the past two decades. Family-controlled since 1982, the IOI Group's main businesses initially were property and palm plantations. As a relative latecomer in the palm oil industry, it grew both organically and through acquisitions, and, in 2010, had sales of about US$4.3 billion and employed 30,000 people. Over the years, the IOI Group moved away from producing crude palm oil (CPO), a key commodity, and pursued a strategy of vertical integration by moving into downstream activities such as food ingredients manufacturing and oleochemicals. This transformed IOI from a Malaysian plantation company to a global ingredients manufacturer, making IOI a good example of a so-called emerging market multinational.<br><br>The case takes the point of view of the second generation family leader who is currently in charge of the downstream businesses, and discusses three challenges he faces in IOI's transformation process: 1) the issue of optimizing and integrating the global value chain; 2) the most suitable way to coordinate a multinational company with substantial global sales and operations; and 3) adaptation to changing needs of global customers. All this is supported by extensive information on the changing dynamics in the palm oil industry, where emerging market players are moving up the value chain, snapping up manufacturing assets from global fast-moving consumer goods companies, such as Unilever, while the latter increasingly focus on branded goods and seek to exit the lower margin and capital intensive manufacturing of ingredients. Students are asked to analyze the changing industry dynamics and provide recommendations given the goal to make IOI a leading palm oil player.

The case discusses the story of the IOI Group, one of the largest palm oil players in Malaysia, which has seen rapid growth in the past two decades. Family-controlled since 1982, the IOI Group's main businesses initially were property and palm plantations. As a relative latecomer in the palm oil industry, it grew both organically and through acquisitions, and, in 2010, had sales of about US$4.3 billion and employed 30,000 people. Over the years, the IOI Group moved away from producing crude palm oil (CPO), a key commodity, and pursued a strategy of vertical integration by moving into downstream activities such as food ingredients manufacturing and oleochemicals. This transformed IOI from a Malaysian plantation company to a global ingredients manufacturer, making IOI a good example of a so-called "emerging market multinational." The case takes the point of view of the second generation family leader who is currently in charge of the downstream businesses, and discusses three challenges he faces in IOI's transformation process: 1) the issue of optimizing and integrating the global value chain; 2) the most suitable way to coordinate a multinational company with substantial global sales and operations; and 3) adaptation to changing needs of global customers. All this is supported by extensive information on the changing dynamics in the palm oil industry, where emerging market players are moving up the value chain, snapping up manufacturing assets from global fast-moving consumer goods companies, such as Unilever, while the latter increasingly focus on branded goods and seek to exit the lower margin and capital intensive manufacturing of ingredients. Students are asked to analyze the changing industry dynamics and provide recommendations given the goal to make IOI a leading palm oil player.

The Ciputra Group was set up by Mr. Ciputra in the 1980s, after a long entrepreneurial career with a vision to provide a business for his children. The case describes the development of this group, which evolved into a prominent and innovative player in the Indonesian property sector. Under Ciputra's guidance, the company became known for its satellite cities, in which the group combined technical, construction and urban planning qualities, along with the ability to understand and manoeuvre in the difficult Indonesian environment. The Ciputra Group moved into areas where the government was weak (public facilities, roads, sewerage, city management, security, etc) and as such became an "institutional entrepreneur" that shaped Indonesia's cities. This model was later exported to other emerging markets. The case ends with the company facing two sets of interlinked problems. One set is strategic, as the company's business model has proven to be vulnerable, and it is undergoing various changes. The question is what strategic option the company should choose. The second set of issues concerns the leadership and corporate structure of the group. Since Ciputra is in his late 70s, a generational change in leadership is imminent, and students are asked to reflect on the most appropriate path towards further development of the business from one led by a charismatic entrepreneur towards a professional family business. The two sets of issues are interlinked with each other and pose opportunities and constraints.

The Ciputra Group was set up by Mr. Ciputra in the 1980s, after a long entrepreneurial career with a vision to provide a business for his children. The case describes the development of this group, which evolved into a prominent and innovative player in the Indonesian property sector. Under Ciputra's guidance, the company became known for its satellite cities, in which the group combined technical, construction and urban planning qualities, along with the ability to understand and manoeuvre in the difficult Indonesian environment. The Ciputra Group moved into areas where the government was weak (public facilities, roads, sewerage, city management, security, etc) and as such became an institutional entrepreneur that shaped Indonesia's cities. This model was later exported to other emerging markets. The case ends with the company facing two sets of interlinked problems. One set is strategic, as the company's business model has proven to be vulnerable, and it is undergoing various changes. The question is what strategic option the company should choose. The second set of issues concerns the leadership and corporate structure of the group. Since Ciputra is in his late 70s, a generational change in leadership is imminent, and students are asked to reflect on the most appropriate path towards further development of the business from one led by a charismatic entrepreneur towards a professional family business. The two sets of issues are interlinked with each other and pose opportunities and constraints.

By 2008, Rodamas Group, owned by the ethnic Chinese Tan family, was one of the top-20 business groups in Indonesia. The company started as a trading firm in 1951 and, over time, became a joint venture partner in manufacturing businesses with a range of mainly Japanese partners. In the 1980s, the company transferred to the second generation leader. The businesses included glass manufacturing (with Asahi), personal care products (with Kao), packaging (with Dai Nippon) and MSG production. The role of Rodamas in these partnerships was to deal with local regulations, hire local personnel and distribute the products in Indonesia. When the then President Suharto was toppled in the Asian Crisis in 1998, Indonesia underwent several drastic changes, including the transition to democracy. Its economy became more open, and foreign firms were allowed to operate in the country without having a local partner. In addition, several global business developments, including the tendency of multinationals to rely on lawyers and consultants rather than local equity partners, threatened the Rodamas business model. In view of this, the current leader, Mucki Tan, is reconsidering the future of his company and weighing strategic options: 1) internationalize with existing partners; 2) develop own businesses that need little technology, such as property; 3) buy existing manufacturing firms; 4) focus on distribution of products for foreign multinationals; 5) focus on a traditional partnership role with a new wave of foreign direct investment (FDI) from developing market multinationals, more specifically, China. Students are asked to analyze the company and its environment, decide on a strategic direction and reflect on the consequences.<br><br>Rodamas Group: Designing the Portfolio (9B14M029) is available as a supplement to this case.

The case narrates the story of the Rodamas Group, owned by the ethnic Chinese Tan family in Indonesia. The company started as a trading firm in 1951 and, over time, became a joint venture partner in manufacturing businesses with a range of mainly Japanese partners after Indonesia started to embark on an industrialization program in the late 1960s. In the 1980s, the company was slowly transferred to the second generation leader, and continued to grow and prosper until it became part of the top-20 business groups in Indonesia. The businesses included glass manufacturing (with Asahi), personal care products (with Kao), packaging (with Dai Nippon) and MSG production. The role of Rodamas in these partnerships was to deal with local regulations, hire local personnel and distribute the products in Indonesia. When the then President Suharto was toppled in the Asian Crisis in 1998, Indonesia underwent several drastic changes, including the transition to democracy. Its economy became more open, and foreign firms were allowed to operate in the country without having a local partner. In addition, several global business developments, including the tendency of multinationals to rely on lawyers and consultants rather than local equity partners, threatened the Rodamas business model. In view of this, the current leader, Mucki Tan, is reconsidering the future of his company and weighing a few options. The case ends with these strategic options: 1) internationalize with existing partners; 2) develop own businesses that need little technology, such as property; 3) buy existing manufacturing firms; 4) focus on distribution of products for foreign multinationals; 5) focus on a traditional partnership role with a new wave of foreign direct investment (FDI) from developing market multinationals, more specifically, China. Students are asked to analyze the company and its environment, decide on a strategic direction and reflect on the consequences.