• Banyan Tree: Sustainability of a Brand During Rapid Global Expansion

    Following a successful IPO in June 2006, Banyan Tree Holdings Limited planned to use parts of the proceeds to finance an ambitious expansion plan. At the core of this business development plan was an ambitious proposal to open 28 new resorts over four years which would span non-Asian territories from Greece to Mexico. The Asian Financial Crisis of 1997, the SARS crisis of 2003 and the Indian Ocean tsunami of 2004 had taken their toll on the travel and tourism industry in the region where Banyan Tree's resorts and spas were concentrated. Although recovery was on the horizon, those events left haunting memories and CEO Ho Kwon Ping understood the need to diversify risks across geographic regions. This case considers how a company with an experiential brand should manage its global expansion without losing the core values associated with its brand.
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  • Hong Kong Economic Times Group: Diversification and Differentiation

    Founded in 1988 and chaired by Lawrence Fung, the Hong Kong Economic Times Group ("HKET Group") started off as a publisher of Hong Kong Economics Times (HKET)-the first Chinese-language financial newspaper in Hong Kong. Launched when the city's economy was booming, the newspaper set out to be the Chinese-language equivalent of the Financial Times and to become one of the pre-eminent financial and business information and service providers in Greater China. Widely recognized for its quality content and leading market status, Hong Kong Economic Times has evolved closely with the economic and business environment of the city, catering to the changing needs of the local business community, such as the addition of a property section during the rise of the property market in the early 1990s and an IT section during the dotcom bubble in the mid- to late 1990s. In the face of new challenges to traditional newspaper industry like the proliferation of the Internet, the HKET Group responds by focusing on two fundamental driving forces that have become the pillars to its success: diversification and differentiation. With a vision to becoming a diversified media group, HKET has branched out to book publishing, multimedia services, electronic information services, recruitment advertising and training. Set in 2006, this case addresses the changes faced by the print newspaper industry and HKET's market positioning amid such changes. The case explores the role of creativity, especially in the context of Blue Ocean Strategy. It can also be used to teach differentiation strategy and entrepreneurship. All of these concepts can be discussed within the context of a corporate culture that creates a healthy environment for business growth.
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  • Dell: Selling Directly, Globally (2007)

    On 31 January 2007, Dell Inc. announced the return of Michael Dell, its founder, to the position of CEO, replacing Kevin Rollins in providing day-to-day leadership to the troubled PC maker. The radical decision came after a turbulent year that saw a sharp decline in both market share and profitability, and which ended with Dell losing its leading position in the industry to Hewlett-Packard, from which it took in 2003. Once a high-flying success case with its revolutionary direct business-to-customer model, Dell was now facing an obvious challenge in turning itself around. This is a management strategy case concerned with the applicability of the direct business-to-customer model in global expansion, further complicated by changing industry dynamics. The application of the model is dependent on many factors that are outside the control of the company. The combined effect of these factors-such as physical infrastructure, telecommunications infrastructure, political climate, transportation networks, availability of suitable staff-determines the market readiness of the country concerned. Meanwhile, the changing market conditions, such as consumer purchasing patterns and market growth patterns, may also impair the effectiveness of the model. The test is whether Dell can successfully apply its direct model in other markets with different social and economic contexts, notably China. In addition, should Dell unswervingly adhere to the direct model in the face of shifting market conditions, globally and regionally? What are the strategies it should develop to conquer the world's second-largest PC market-China?
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  • Constructing an e-Supply Chain at Eastman Chemical Company

    Craig Knight, Asia Pacific Digital Business and Customer Services Manager of Eastman Chemical Company, was given a mandate to sell Eastman's philosophy for an integrated electronic supply chain, otherwise known as the Integrated System Solution (ISS), to its business partners in the region, and to encourage adoption. Having invested in a state-of-the-art technical architecture that would support interconnectivity with all parties along the supply chain, Eastman was keen to realise the full benefits to be gained from an integrated e-supply chain on a global scale. Following numerous rounds of discussion with key business partners in the Asia Pacific region, some progress had been made. Nagase & Co., Ltd. of Japan had agreed to adopt ISS connections with Eastman, but had some reservations regarding the extent of integration. Although the benefits of integration were proven, suppliers, customers, distributors and other interested parties were faced with numerous limitations and considerations that would have significant implications on their established business processes and even the shaping of their corporate strategy. Adoption was not a simple choice. Craig understood these shortcomings and was making every effort to ease the adoption process by identifying the longer-term benefits to Nagase and other business partners of applying XML technology to their businesses.
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  • Banyan Tree Hotels & Resorts: Gauging Investors' Views on Corporate Social Responsibility

    In January 2003, Mr. Ho Kwok Ping ("KP"), the cofounder and chairman of Singapore-based Banyan Tree Hotels & Resorts, was debating whether to take his privately held company public. The company developed and operated several boutique resorts and spas around Asia. What set the company apart in the marketplace, and was an integral part of the Banyan Tree brand, was its strong commitment to protecting the environment, both physical and human, driven by its leaders' passionate belief in behaving ethically and responsibly. The company had major plans for expansion in Asia and around the world. These expansion plans required financing, and one obvious option was to take the company public through an IPO. But KP had his doubts about an IPO. Would investors feel as passionately as he did about the company's pro-environment values and initiatives? Or would he and his managers have to compromise their values to deliver acceptable returns to the company's shareholders? In the current economic climate in Asia and globally, was it the right time to go public?
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  • Australia Post: Towards the Online Economy with netPOS

    Examines how the "old economy" of the traditional postal service has changed over time and how Australia Post is adapting to the many pressures that threaten its existence. With increasing adoption of e-mail as a means of communication, increased competition as a result of deregulation, and the strain of servicing a country with huge distances between inhabited locations and low population density, Australia Post needed to find a solution that would ensure the long-term viability of its business. The retail sector, with its 4,000-plus post office outlets, processed many different types of across-the-counter financial transactions, including banking transactions and utility payments. A project team was established to address the fundamental issue of how to structure the IT infrastructure to enable retail outlets to generate future revenue flows for Post. However, having established the Internet-based infrastructure to connect the extensive chain of retail outlets, the question was whether this new infrastructure would successfully entice third parties to buy into the model.
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  • Constructing an e-Supply Chain at Eastman Chemical Co.

    Craig Knight, Asia Pacific digital business and customer services manager of Eastman Chemical Co., was given a mandate to sell Eastman's philosophy for an integrated electronic supply chain, otherwise known as the Integrated System Solution (ISS), to its business partners in the region and to encourage adoption. Having invested in a state-of-the-art technical architecture that would support interconnectivity with all parties along the supply chain, Eastman was keen to realize the full benefits to be gained from an integrated e-supply chain on a global scale. Following numerous rounds of discussion with key business partners in the Asia Pacific region, some progress had been made. Nagase & Co. Ltd. of Japan had agreed to adopt ISS connections with Eastman, but had some reservations regarding the extent of integration. Although the benefits of integration were proven, suppliers, customers, distributors, and other interested parties were faced with numerous limitations and considerations that would have significant implications on their established business processes and even the shaping of their corporate strategy. Adoption was not a simple choice. Knight understood these shortcomings and was making every effort to ease the adoption process by identifying to Nagase and other business partners the longer term benefits of applying XML technology to their businesses.
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  • E-Procurement at Cathay Pacific Airways: e-Business Valuation

    At the end of 2001, Cathay Pacific's CXeBuy electronic procurement system was fully operational for its headquarters in Hong Kong. The 14-month implementation project aimed at applying Internet-based technology to build the most efficient purchasing process and capability in the industry. Although the project was far from complete, a member of the Project Steering Committee (PSC) queried the actual benefits realized so far as a result of e-procurement implementation. Robert Lamoureux, manager in charge of the e-procurement initiative, proposed to the PSC to formulate a methodology that user departments could apply at will to assess the impact of CXeBuy on their operations. However, some members of the committee raised concerns that such a voluntary approach would serve only a limited purpose and would fall short of providing department heads with an overview of the impact of CXeBuy on the overall corporate mission. Other PSC members were unsure of the need for such a valuation exercise at this early stage. Something had to be done to reinstate the need for accountability and support the premise that any Cathay Pacific e-business initiative had to prove its value.
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  • Japan Net Bank: Japan's First Internet-Only Bank

    Japan Net Bank (JNB), Japan's first Internet bank without physical branches, began operation in October 2000. It attracted mainly young customers looking for convenient, round-the-clock bank services with much more competitive interest rates and transaction charges than traditional Japanese banks. Its access channels included the mobile Internet service i-mode and fixed-line Internet. JNB relied on flexible, open computer systems and a small, young workforce to minimize operation cost. Its shareholders, including parent company Sumitomo Mitsui Banking Corp. as well as NTT DoCoMo (provider of i-mode), were all big companies from different industry sectors. By April 2001, JNB had 130,000 customers. But it needed to resolve a number of issues before being able to achieve long-term success in the face of strong competition from bricks-and-mortar banks and new Internet-only banks. One of those issues was about how to meet with wide fluctuations in usage without overinvesting; the other was alliance management, i.e., how to cooperate with alliance partners to achieve competitive advantage.
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  • Dell: Selling Directly, Globally

    One of the first companies to practice the highly touted business-to-consumer Internet business model, Dell entered the PC market with force and shook up the industry with its revolutionary, customer-oriented, streamlined distribution style. Selling PCs online was a natural progression to Dell's existing strategy; Dell realized this synergy early and was the first market entrant. This case tracks Dells' evolving business and industry and highlights its entry strategy for China.
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  • FedEx Corp.: Structural Transformation Through e-Business

    Set in 2000, the case provides a comprehensive analysis of transportation logistics and FedEx's internal integrated logistics applications. FedEx demonstrates the shift from "physical" to "information and value-added services" in an e-commerce environment. An excellent scenario to discuss whether companies should focus on core competencies or seek vertical and forward integration to provide integrated services. Also addresses issues that companies face when they wish to transform themselves from a conventional to an e-business model.
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  • EUROCAP Bank: Bonuses Driving Performance or Driving Discontent

    By March 2000's first quarter evaluation, it was evident that EUROCAP Equities Japan had performed beyond expectations. Its primary year-2000 objective was to become the top-choice broker for its client for Japanese equities. However, when bonuses were handed out in March for 1999's performance, two key research analysts threatened to resign and the team was overall dispirited, as bonuses were lower than expected and lower than industry payouts. Key issues facing EUROCAP Equities Japan management included: How would key employees' expectations be managed in 2000? How was EUROCAP Equities Japan going to retain its employees in a bull-run with competitive pressures on the small local resource pool? How would employees be motivated through compensation packages, and what other methods would be used to make employees excel in their performance and thrust EUROCAP Equities Japan's performance into the limelight?
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  • Cold Storage (Singapore): Establishing Trust Among On-line Consumers

    Cold Storage, which operated a chain of 31 supermarkets located across the city-state of Singapore, was a well-established retail operation renowned for the quality of its fresh food. In June 1998, the company launched its supermarket services on the Internet in an effort to better serve its customers. Now in June 2000, Lester Quah, operations director at Cold Storage, had to evaluate the factors that helped its on-line shoppers to establish trust in its virtual store and the value of being a member of CaseTrust, a third-party trust accreditation scheme, for promoting its online e-tailing business.
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  • Dairy Farm Group: Redesign of Business Systems and Processes

    In 1997, retail sales begain to slump for the Dairy Farm Group of Companies (DFG), a major food retailer based in Hong Kong with operations in many major cities in Asia Pacific. The Asian economic crisis of 1997 was one cause. However, another major cause was increasing competition from aggressive European and U.S. retail chains that were preparing to gain a foothold in the growing Asian market. DFG realized that to combat competition and retain its dominant position in Asia Pacific, it had to change its business strategy from that of "buying and selling" to "sensing and responding." The case investigates DFG's existing business systems and processes and looks at the possibilities of gaining competitive advantage, either by acquiring state of the art systems and technical infrastructure or through radical redesign of its critical business processes supported by technology.
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  • To Move or Not to Move: Cathay Pacific Airways

    Cathay Pacific's Data Centre, located in Hong Kong, had experienced an explosion and fire that disrupted normal business for 13 hours. In the search for a more secure location, the problems with finding suitable offices in Hong Kong were highlighted, while the benefits and advantages offered by other countries presented the company with the option of relocating the data center offshore.
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