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Andes Mendiak Exploration Corp.: Navigating Ethical Challenges in Ecuador's Mining Sector
<p style = "color:rgb(197,183,131);"> <strong> AWARD WINNER - 2024 Fox International Case Writing Competition</strong> </p><br>In 2018, Andes Mendiak Exploration Corp., a Canadian-listed junior mining exploration company that specialized in gold and copper, was facing significant ethical and operational challenges. The company was operating in Ecuador, a country with stringent environmental regulations, bureaucratic inefficiencies, and prevalent corruption—especially in the illegal mining sector. The company’s commitment to sustainable and ethical practices put it at a disadvantage, in a market where illegal miners operated with impunity, often with the tacit approval of corrupt officials. The strict and illogical regulatory environment disproportionately targeted mining companies, even when their activities had minimal environmental impact, compared to unregulated sectors such as agriculture. The country manager of Andes Mendiak Exploration Corp. was grappling with a critical dilemma. Should he strictly adhere to rigorous ethical standards and risk financial losses and delays? Or should he agree to engage in unethical practices, such as the so-called “facilitation fee” payments, to expedite operations? -
ASML and the Geopolitics of Chip Manufacturing: Balancing Strategic and Political Pressures
ASML Holding NV (ASML) was a leading technology company headquartered in the Netherlands that specialized in the design and production of advanced semiconductor manufacturing equipment. It had a global presence, with operations in Asia, Europe, and North America. Its unique chip manufacturing technology was essential for the development of technology products from military equipment and laundry machines to the smartphones in peoples’ pockets. ASML produced complex and consequential products that were the foundations of the modern economy. Because of this, ASML played a significant role in global geopolitics and found itself in the middle of the West’s increasing efforts to control exports of semiconductor technology to China. In December 2022, a couple of months after the US government unilaterally restricted exports of chip technology to China, ASML faced a strategic crossroads: should it maximize company profits and ignore Western policy by engaging China, or should it weigh the pitfalls of ignoring the West’s political decision to block China from essential technology and disengage from its business with the People’s Republic of China?