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Taming the Dragon: Cummins in China (Condensed)
This case documents more than 15 years of U.S.-based Cummins, a global leader in diesel and allied technology, and its investment activities in China. While the macro level indicators seem to suggest the possibility to hit $1 billion in revenues in China by 2005, there were several pressing problems that put into question Cummins' ability to realize this target. Students are presented with four specific situations and must develop an appropriate action plan. They are related to the respective streamlining and consolidation of several existing joint ventures, distribution and service, and staffing. The case presents the complexity of managing country level operations and the role of executive leadership of a country manager. -
Taming the Dragon: Cummins in China (Condensed)
Documents more than 15 years of U.S.-based Cummins, a global leader in diesel and allied technology, and its investment activities in China. Although macro-level indicators seem to suggest the possibility of hitting $1 billion in revenues in China by 2005, several pressing problems put into question Cummins' ability to realize this target. Presents specific situations--related to the respective streamlining and consolidation of several existing joint ventures, distribution and service, and staffing--for which students must develop appropriate action plans. Presents the complexity of managing country-level operations and the role of executive leadership of a country manager. -
Majestica Hotel in Shanghai?
Majestica Hotels Inc., a leading European operator of luxury hotels, was trying to reach an agreement with Commercial Properties of Shanghai regarding the management contract for a new hotel in Shanghai. A series of issues require resolution for the deal to proceed, including length of contract term, name, and staffing. Majestica was reluctant to make further concessions for fear that doing so might jeopardize its service culture, arguably the key success factor in this industry. At issue was whether Majestica should adopt a contingency approach and relax its operating philosophy or stick to its principles, even if it meant not entering a lucrative market. -
Gonchar Investment Bank
A recent MBA graduate is working as vice-president of equity sales for an investment bank in the Ukraine. The firm's managing director has requested a recommendation regarding whether they should start investing in Ukrainian equities on their own account or retain their practice of acting purely as an agent--buying and selling shares for clients without taking any ownership position. -
Gonchar Investment Bank
A recent MBA graduate is working as vice-president equity sales for an investment bank in the Ukraine. The firm's managing director has requested a recommendation regarding whether they should start investing in Ukrainian equities on their own account, or retain their practice of acting purely as an agent - buying and selling shares for clients without taking any ownership position. -
Sun Life Financial: Entering China
Sun Life Financial is a large insurance conglomerate with $14.7 billion in annual revenues. The vice-president for China must formulate an approach for his company's entrance into China. Sun Life has achieved two important milestones: the right to apply for a license and the signing of a Memorandum of Understanding for Joint Venture with China Everbright, a local securities company. The financial vice-president must consider strategic options for entry and choose a city in which to focus his efforts in getting a license. In doing so, he needs to consider Sun Life's overall priorities, strategic direction, and how he will sell the concept to senior management in Canada. -
Sun Life Financial: Entering China
Sun Life Financial is a large insurance conglomerate with $14.7 billion in annual revenues. The vice-president for China must formulate an approach for his company's entrance into China. Sun Life has achieved two important milestones: the right to apply for license and the signing of a Memorandum of Understanding for Joint Venture with China Everbright, a local securities company. The financial vice-president must consider strategic options for entry and choose a city in which to focus his efforts in getting a license. In doing so, he needs to consider Sun Life's overall priorities, strategic direction and how he will sell the concept to senior management in Canada. Intended for use in an introduction to international business course, the case includes assessing internal capabilities against an environmental scan, formulating strategy and making operational decisions relating to city selection. It also introduces the idea of joint venture management and government relations. -
Kentucky Fried Chicken in China (A) (Traditional Chinese version)
The new vice-president for Kentucky Fried Chicken in southeast Asia, must weigh the growth benefits of investing in China with alternative opportunities in the region. He is at the exploratory stage of market research and is focusing his attention on four possible locations in China. He must also balance his own personal ambitions with the possibilities for failure, not only in China, but the rest of southeast Asia. (A 31-minute video is available with this case, Kentucky Fried Chicken in China - Video.) A follow-up case Kentucky Fried Chicken in China (B) is also available. -
International Decorative Glass (Traditional Chinese version)
International Decorative Glass (IDG) is a small manufacturer of glass panels which are inserted into exterior steel doors. While their primary market is in the U.S., most of IDG's manufacturing is done in China through a joint venture arrangement. In response to rapidly growing customer demand, the vice president of operations, is considering the expansion of either their Chinese or Canadian manufacturing operations. Alternatively, he has been approached by a supplier to form a new joint venture manufacturing operation in Vietnam. Financial, political and infrastructural considerations must be weighed, in addition to any signal that would be sent to their current Chinese partners. -
Kids Market Consulting
The founder of Kids Market Consulting, a market research firm dedicated to the kids, tweens and teens segment, was faced with increasing competition and slowing revenue, and was exploring a variety of possibilities for the future strategic direction of the business. In particular, she had to formulate the best plan for protecting the niche market and decide how aggressively to pursue expansion. In addition, there was the existing relationship with her business partner, and Kids Market Consulting was part of his group of marketing firms. Any changes the founder chose had to respect this relationship and she was therefore restricted to a limited number of options. The over-arching corporate objective for the company was to defend the market from larger businesses who were trying to increase their share of the market research industry. -
Kids Market Consulting
The founder of Kids Market Consulting, a market research firm dedicated to kids, tweens, and teens segment, faces increasing competition and slowing revenue and is exploring the future strategic direction of the business. In particular, she must formulate the best plan for protecting the niche market and decide how aggressively to pursue expansion. In addition, Kids Market Consulting is part of her business partner's group of marketing firms. Any changes the founder chooses has to respect this relationship, restricting her options. The over-arching corporate objective for the company is to defend the market from larger businesses that want to increase their share of the market research industry. -
CQUAY Technologies Corp.
CQUAY Technologies Corp was a privately-held Canadian software company with offices in Toronto, Calgary and Washington, D.C. CQUAY marketed a patented location intelligence engine called Common Ground. The company's technology was designed for an emerging, multi-billion dollar segment of the spatial information management market. A year earlier, the board had asked the chief executive officer to shape the company into an acquisition target over the next 18 to 24 months. A year later there were no imminent acquisition discussions, and recent customer traction and the sales pipeline seemed to merit raising growth capital instead of following the acquisition-focused plan. The CEO wanted to keep his stockholders and board happy by executing the plan they had given him, but did not want to jeopardize possible customer growth. If he refocused the plan, he feared it might change acquisition opportunities. Without further contracts, the existing cash would sustain the company for only another six to eight months. The CEO thought the most likely outcome was to sell the company, but he needed to make the company more attractive. He planned to present options and a recommendation to the board of directors later that month. -
CIBC-Barclays: Should Their Caribbean Operations Be Merged?
At the end of 2001, the Canadian Imperial Bank of Commerce (CIBC) and Barclays Bank PLC were in advanced negotiations regarding the potential merger of their respective retail, corporate, and offshore banking operations in the Caribbean. Some members of each board wondered whether this was the best direction to take. Would the combined company be able to deliver superior returns? Would it be possible to integrate, within budget, companies that had competed with each other in the region for decades? Would either firm be better off divesting regional operations instead? Should the two firms just continue to go it alone with emphasis on continual improvement? A decision needed to be made in the coming week. -
MapQuest
MapQuest is a leading provider of mapping services and destination information as well as a publisher of maps, atlases and other guides. On the Internet, they provide these products and services both to consumers directly and to other businesses enabling these businesses to provide location, mapping and destination information to their own customers. The company completed a successful initial public offering five years ago and were in a strong competitive position. However, the markets were allowing competitors to quickly get funding in both private and public deals. As well, there were perceptions that a general stock market bubble existed for technology companies. The chief executive officer had several options available, and wanted to consider those options and present a recommendation to the board. Possible options included splitting the firm's old and new-line business units, raising capital to fund an acquisition strategy, forging a set of alliances, focusing on organic growth, and pursuing the sale of the firm. -
Broad Air Conditioning and Environmental Protection
Broad Air Conditioning, a Chinese company with a proactive environmental attitude, suffers from deteriorating financial results. The company founder and CEO must decide whether to start producing electricity-powered air conditioners to improve its financial results easily or stick to its ideal and only manufacture machines powered by heat. Focuses on corporate social responsibility by discussing the relationship between company benefits and environmental protection--especially in developing countries. -
Broad Air Conditioning and Environmental Protection
Broad Air Conditioning is a Chinese company with a proactive environmental attitude, but suffering from deteriorating financial results. The company founder and chief executive officer must decide whether to start producing electricity powered air conditioners to improve its financial results easily or stick to its ideal and only manufacture machines powered by heat. The major theme of this case is to understand corporate social responsibility, by discussing how an enterprise can find a way to harmonize the relationship between benefitting the company and protecting the environment, especially in developing countries. -
Eli Lilly in India: Rethinking the Joint Venture Strategy
Eli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations was re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture had run smoothly for a number of years despite their difference in focus, but recently Ranbaxy had been experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives. -
Eli Lilly in India: Rethinking the Joint Venture Strategy
Eli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations is re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture has run smoothly for a number of years despite their differences in focus, but recently Ranbaxy was experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives. -
Jinjian Garment Factory: Motivating Go-slow Workers
Jinjian Garment Factory is a large clothing manufacturer based in Shenzhen with distribution to Hong Kong and overseas. Although Shenzhen had become one of the most advanced garment manufacturing centres in the world, managers in this industry still had few effective ways of dealing with the collective and deliberate slow pace of work by the employees, of motivating workers, and of resolving the problem between seasonal production requirements and retention of skilled workers. However, the owner and managing director of the company must determine the reasons behind the deliberately slow pace of the workers, the pros and cons of the piecework system and the methods he could adopt to motivate the workers effectively. -
Palliser Furniture Ltd.: The China Question
Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?