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Domino's Pizza Japan: Fortressing or Market Expansion?
In late 2018, the chief executive officer and president of Domino's Pizza Japan Inc. was convinced that a substantial expansion in the Japanese market was needed and feasible for continued growth. His company had already grown to nearly 550 stores across Japan, which was over double the number only five years earlier. The company had numerous opportunities to grow further, including opening new markets; opening stores closer to the company's customers; and building on customer insights, new menu offerings, and a new marketing approach. In particular, the chief executive officer wondered whether priority should be given to new markets in Japan that the company had not yet entered, or if priority should be given to greater penetration in Japanese locations where it already operated. What strategy was the best option for expansion in the Japanese market? -
Domino’s Pizza Japan: Fortressing or Market Expansion?
In late 2018, the chief executive officer and president of Domino's Pizza Japan Inc. was convinced that a substantial expansion in the Japanese market was needed and feasible for continued growth. His company had already grown to nearly 550 stores across Japan, which was over double the number only five years earlier. The company had numerous opportunities to grow further, including opening new markets; opening stores closer to the company's customers; and building on customer insights, new menu offerings, and a new marketing approach. In particular, the chief executive officer wondered whether priority should be given to new markets in Japan that the company had not yet entered, or if priority should be given to greater penetration in Japanese locations where it already operated. What strategy was the best option for expansion in the Japanese market? -
The Qingdao International Beer Festival’s Pandemic Predicament
In mid-2020, the organizer of the Qingdao International Beer Festival (QIBF) faced a predicament. The QIBF was an annual festival held every August in Qingdao, China; however, due to the COVID-19 pandemic, the organizer had initially abandoned the idea of holding the QIBF in 2020. By the end of March 2020, the spread of the pandemic in China had been basically contained. The organizer then decided to restart the event preparations. However, on June 12, 2020, a second COVID-19 outbreak occurred in Beijing. Could the QIBF be held as expected in August 2020? What should be done to control the pandemic’s spread and coordinate the planning and design work of the festival? Based on this predicament, could the organizer meet the festival's goals while safeguarding the health of all participants? -
McDonald’s in India: Not a Happy Meal
In September 2017, news spread of McDonald’s India terminating its franchise arrangement with its joint venture (JV) in India. The termination notice was the newest step in the saga of the conflict between the two JV partners—US-based McDonald’s and the Indian partner Vikram Bakshi of Connaught Plaza Restaurants Limited (CPRL). McDonald’s entered India in 1996 through a JV that was originally seen as the perfect combination to share investments, reduce risks, and succeed. The events between 2013 and 2017 showed that this was not true, and many reasons were suggested in the media for the problems—strategy, team, resources, and a mismatched value system. Did the former franchise holder CPRL have a legal right to use the McDonald’s name anymore? Could the partners resolve their differences? -
Where Have You Been?: An Exercise To Assess Your Exposure To The Rest Of The World's Peoples (2020)
This annually updated exercise assesses one's exposure to the rest of the world's peoples. A series of worksheets require the respondents to check off the number and names of countries they have visited whether for business, family or tourism reasons, and the corresponding percentage of world population which each country represents. The summary of a group's collective exposure to the world's people will inevitably be the recognition that together they have seen much, even if individually some have seen little. The teaching note provides assignments and discussion questions which look at: why there is such a high variability in individual profiles; the implications of each profile for one's business career; and, what it would take for the respondent to change his/her profile. For marketers, it underscores the need to gather greater base knowledge about opportunities in 211 countries spread across 8 regions: Africa; North America and Caribbean; South America; Western Europe; Eastern Europe; Central Asia and Indian Subcontinent; Middle East; Asia Pacific. -
Airbnb: Home Sharing in China
In 2015, Airbnb, Inc. began to explore entry into the Chinese market. In August of that year, it announced a partnership with two of its China-based investors to help it navigate the expansion. By January 2016, the company was facing a number of fundamental questions. First, how should it best position itself in China to ensure a successful expansion? Should it work with a local competitor and, if so, who? If it chose to instead continue expanding alone, should it replicate its established global formula or should it localize? If it pursued a localization strategy, what were the different ways it could localize its operations? And which of these should it prioritize? -
Airbnb: Home Sharing in China
In 2015, Airbnb, Inc. began to explore entry into the Chinese market. In August of that year, it announced a partnership with two of its China-based investors to help it navigate the expansion. By January 2016, the company was facing a number of fundamental questions. First, how should it best position itself in China to ensure a successful expansion? Should it work with a local competitor and, if so, who? If it chose to instead continue expanding alone, should it replicate its established global formula or should it localize? If it pursued a localization strategy, what were the different ways it could localize its operations? And which of these should it prioritize? -
Toyota Tsusho in the South Pacific
In 2018, Toyota Tsusho South Pacific Holdings, the leading automotive company in the South Pacific, was celebrating its 20th anniversary. The company, which operated a network of 27 dealerships through subsidiary companies in seven island nations, had been through a number of dramatic changes since its origins in the 19th century, and its Brisbane, Australia, office had transitioned from its early role as a corporate head office with 15 employees to become the regional headquarters for Toyota Tsusho Corporation, one of 17 major Toyota Group companies. In early July 2018, a new managing director was selected. Among his many duties, he would need to review the steps taken to date in transforming the Brisbane office and determine the appropriate steps to take in the future. Were any changes were required in the relationship between the regional headquarters and the island subsidiaries? -
Toyota Tsusho in the South Pacific
In 2018, Toyota Tsusho South Pacific Holdings, the leading automotive company in the South Pacific, was celebrating its 20th anniversary. The company, which operated a network of 27 dealerships through subsidiary companies in seven island nations, had been through a number of dramatic changes since its origins in the 19th century, and its Brisbane, Australia, office had transitioned from its early role as a corporate head office with 15 employees to become the regional headquarters for Toyota Tsusho Corporation, one of 17 major Toyota Group companies. In early July 2018, a new managing director was selected. Among his many duties, he would need to review the steps taken to date in transforming the Brisbane office and determine the appropriate steps to take in the future. Were any changes were required in the relationship between the regional headquarters and the island subsidiaries? -
Karatu Coffee Company in Tanzania: What Strategy Next?
In 2018, the founder and owner of the Karatu Coffee Company needed to decide what to do next with his company. He was considering several options: increasing the tourism part of the business, growing the original farm, pursuing a property development project in the capital city, or simply selling out and walking away. The company, located in Tanzania, began as a coffee farm, expanded into tourism with a remote, idyllic coffee lodge, and then brought coffee and tourism together with a bustling inner-city coffee house, which also housed a boutique hotel. The final phase of expansion included the purchase of high-quality coffee equipment and highly-prized roasting facilities to capture a larger share of the coffee value chain. The owner's decision would require insights into both the coffee industry and Tanzania itself. -
Managing the Hassle Factor in the Age of Disruption
When a company is looking to expand, it is natural for the managers involved—including the CEO—to have location preferences. Ivey Professors Andreas Schotter and Paul Beamish investigated how location hassles influence foreign investment decisions and sales. They found that these hassles significantly affected individuals or small groups of employees tasked with assessing potential opportunities. Firms must overcome managerial biases and identify champions willing to tackle location hassles in difficult markets that have the potential to generate a high return on investment—especially if the hassle factors of those markets are keeping the competition away. Many characteristics that are perceived hassles for managers of firms from traditional industrialized locations like Europe, the United States, Canada, and Japan are not seen as such by managers from rapidly internationalizing emerging-market firms. The authors recommend three actions to take to utilize and build on the hassle factor: 1) raise awareness of managerial biases and on-the-ground location factors, 2) raise global strategic capacity, and 3) leverage a more diverse talent pool. Firms should hire for a global mindset and not just for technical job competencies or single-location knowledge. They should also recognize that some otherwise high-performing managers may be ill-suited for roles involving high-hassle locations. -
Where Have You Been?: An Exercise To Assess Your Exposure To The Rest Of The World’s Peoples (2020)
This annually updated exercise assesses one’s exposure to the rest of the world’s peoples. A series of worksheets require the respondents to check off the number and names of countries they have visited whether for business, family or tourism reasons, and the corresponding percentage of world population which each country represents. The summary of a group’s collective exposure to the world’s people will inevitably be the recognition that together they have seen much, even if individually some have seen little. The teaching note provides assignments and discussion questions which look at: why there is such a high variability in individual profiles; the implications of each profile for one’s business career; and, what it would take for the respondent to change his/her profile.<br><br>For marketers, it underscores the need to gather greater base knowledge about opportunities in 211 countries spread across 8 regions: Africa; North America and Caribbean; South America; Western Europe; Eastern Europe; Central Asia and Indian Subcontinent; Middle East; Asia Pacific. -
Karatu Coffee Company in Tanzania: What Strategy Next?
In 2018, the founder and owner of the Karatu Coffee Company needed to decide what to do next with his company. He was considering several options: increasing the tourism part of the business, growing the original farm, pursuing a property development project in the capital city, or simply selling out and walking away. The company, located in Tanzania, began as a coffee farm, expanded into tourism with a remote, idyllic coffee lodge, and then brought coffee and tourism together with a bustling inner-city coffee house, which also housed a boutique hotel. The final phase of expansion included the purchase of high-quality coffee equipment and highly-prized roasting facilities to capture a larger share of the coffee value chain. The owner's decision would require insights into both the coffee industry and Tanzania itself. -
McDonald's in India: Not a Happy Meal
In September 2017, news spread of McDonald's India terminating its franchise arrangement with its joint venture (JV) in India. The termination notice was the newest step in the saga of the conflict between the two JV partners-US-based McDonald's and the Indian partner Vikram Bakshi of Connaught Plaza Restaurants Limited (CPRL). McDonald's entered India in 1996 through a JV that was originally seen as the perfect combination to share investments, reduce risks, and succeed. The events between 2013 and 2017 showed that this was not true, and many reasons were suggested in the media for the problems-strategy, team, resources, and a mismatched value system. Did the former franchise holder CPRL have a legal right to use the McDonald's name anymore? Could the partners resolve their differences? -
Garrard Japan: Global or Local?
In late September 2017, the country manager of Garrard Japan was reviewing an interim strategy to deal with emerging, negative views on the ongoing globalization of industry and commerce. Garrard Japan was a wholly owned subsidiary of Garrard S.A., a leading packaged foods company. The European-based multinational enterprise had been a major contributor to globalizing trade and commerce, and the survey results had highlighted a Japanese view that global companies were concerned more with profits than with meeting the needs of local communities. The country manager wondered whether the strategy developed by his team to change these perceptions was adequate. He was also considering how to execute the strategy and who should pay for it: Garrard Japan or Garrard S.A.? -
Garrard Japan: Global or Local?
In late September 2017, the country manager of Garrard Japan was reviewing an interim strategy to deal with emerging, negative views on the ongoing globalization of industry and commerce. Garrard Japan was a wholly owned subsidiary of Garrard S.A., a leading packaged foods company. The European-based multinational enterprise had been a major contributor to globalizing trade and commerce, and the survey results had highlighted a Japanese view that global companies were concerned more with profits than with meeting the needs of local communities. The country manager wondered whether the strategy developed by his team to change these perceptions was adequate. He was also considering how to execute the strategy and who should pay for it: Garrard Japan or Garrard S.A.? -
Sunton Manufacturing in Cambodia: Exit or Remain?
In January 2017, the founder of Sunton Manufacturing in Wuxi, Jiangsu Province, China, boarded a flight to Cambodia. He had to tackle the performance issue of the company’s garment manufacturing joint venture (JV) there—after two years in operation, it had run out of cash. After meeting with his JV partner, he concluded that the existing JV in Sihanoukville was beyond repair. He now needed to decide whether to exit Cambodia or to remain there, albeit in a different city and with a new partner. A new factory would require further investment. If he quit Cambodia, could his company survive and develop in the future? -
Sunton Manufacturing in Cambodia: Exit or Remain?
In January 2017, the founder of Sunton Manufacturing in Wuxi, Jiangsu Province, China, boarded a flight to Cambodia. He had to tackle the performance issue of the company's garment manufacturing joint venture (JV) there-after two years in operation, it had run out of cash. After meeting with his JV partner, he concluded that the existing JV in Sihanoukville was beyond repair. He now needed to decide whether to exit Cambodia or to remain there, albeit in a different city and with a new partner. A new factory would require further investment. If he quit Cambodia, could his company survive and develop in the future? -
The Pearl Industry: Is There a Market Opportunity?
In May 2018, a China-born entrepreneur living in Canada was at a seaside market in Qingdao, China, inspecting inexpensive pearls. She wondered whether pearls presented a good market opportunity in the West. At markets in China, she consistently found cultured pearls that would cost far more in Canada. This experience led her to wonder whether or not it was feasible to sell pearls on a wholesale basis in Canada, or perhaps through one of many retail options. Or was there a reason why pearls—such a timeless product—did not present more of a dynamic market opportunity in the West? -
Western Regions Gas Pipeline Company: The Joint Ventures
In August 2015, the general manager of Western Regions Gas Pipeline Company was gazing at a natural gas pipeline map in his Beijing office. The multinational natural gas pipeline (MNGP) would deliver natural gas from the Republic of Timur to China through the Republic of Frespirit. The construction of the pipeline was at the planning stage. To construct and operate the MNGP, Western Regions Gas Pipeline Company was legally required to set up a joint venture with a local company in each of the transit countries. However, the construction period for the MNGP was extremely tight, and the relationships between the stakeholders were quite complicated. How to exercise control in the joint ventures to ensure the smooth construction and operation of the MNGP had become a difficult issue.