POSCO is one of the largest and best steelmakers in the world. Since the construction of Pohang Steelworks in 1973, Pohang Iron and Steel Company ("POSCO") has grown continuously in the world's steel industry. But in the late 1990s, when the Asian financial crisis hit the Korean economy hard, the company began paying great attention to innovation as an important source of competitive advantage. Since then, POSCO has made every effort to promote an innovation-friendly environment: in 1999, it embarked on process innovation to build its innovation hardware, and in 2002, it adopted Six Sigma, an infrastructure for innovation, and finalised its manufacturing execution system ("MES") for effective decision-making. Even though the hardware and infrastructure for innovation were in place, the company needed to internalise the innovation in order to maximise corporate performance effectively. In 2008, the global recession and turbulent economic situation spread from America and dealt a serious blow to the company's innovation initiatives. Meanwhile, employees were exhibiting fatigue with the protracted innovation drive. POSCO's chief executive, Chung Joon-yang, is considering what the POSCO way of innovation has achieved since its takeoff in earnest in 2006. He must now make a hard decision on what additional measures the company must take to overcome the looming crisis.

The high-speed internet industry was one of the fastest growing and fastest evolving industries in the Republic of Korea. From the first telephone line-based high-speed internet service in 1996 to hybrid fiber coaxial to asymmetric DSL in late 1999, access speeds made available to end users jumped from 128 kilobits per second to 10 megabits per second. By 2008, services offered had also evolved from pure internet access to triple-play service, which bundled IPTV, high-speed internet and telephone services. Likewise, players in the industry included telecommunications companies from the early days as well as new players, such as system operators ("SOs") and multiple system operators ("MSOs"). With new technologies and services appearing at a breakneck speed, the face of competition was constantly evolving.      

LG Chemical had entered into China's market for ABS, a common plastic, through their subsidiary LG Yong Xing ("LGYX"). From its foundation in 1996, LGYX had targeted Chinese manufacturers who served the domestic market and made just one type of low grade ABS. By the end of 2006, LGYX was the largest company in the Chinese ABS market, boasting a 27% market share and sales of US$709 million annually. However, the market for ABS was changing. With exports by Chinese manufacturers growing, demand was shifting to higher grades of ABS. Moreover, LGYX was facing competitive pressure from both local producers as well as producers in the Middle East. Should LGYX stick to its current product mix? Management decided that it must critically review the subsidiary's strategy over the previous ten years in order not to be entrapped in rigid group thinking