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On November 8, 2001, the entrepreneurial owner of Flex Industries, a leading Indian firm in the flexible packaging industry, was accused of bribing the central excise commissioner in a case of evasion of excise duties. Excise duty is levied under the federal structure of the Indian taxation system on the production and manufacture of goods. Excise duty liability arises immediately on the movement of goods from the plant gate. Evasion of excise duty is a cognizable offence and carries severe penalties that can adversely affect the management of the company. The owner of Flex Industries, was an experienced professional recognized for his important contribution in revolutionizing the flexible packaging industry in India. However, the incident dented his long-standing record. Meanwhile, other controversies surfaced while the case was under disposition in the courts. The ensuing period gave an impression that there were other suspect events related to its governance that Flex Industries could have done without. However, the final verdict announced by the courts found the owner not guilty. The events were significant in the evolution of Flex Industries, which was strongly positioned in the flexible packaging industry. However, the market reaction to the news of the arrest of Flex Industries' owner was very different from the news of his exoneration. This case demonstrates the impact of market disciplining forces and the premium stockholder's place on good governance.

The owners of Decorative Interiors Inc. (DI) must decide the future of their business. DI had been their family's sole source of income for the past 18 years. Although the owners would like to increase sales and profitability, they are unsure how to proceed after one of the owners suffered a heart attack and the doctor advised him to change his lifestyle. The case provides the opportunity to discuss the following: the strategic management tension model (can, want, need analysis); the evaluation of industry key success factors; the evaluation of strategic alternatives; and firm valuation.

After a Danish newspaper publishes cartoons depicting the Prophet Muhammad, consumers across the Middle East decide to boycott Danish goods. Arla Foods (Arla) is one of Europe's largest dairy companies. Suddenly, it finds itself caught in the middle of a crisis that appears to be beyond its control. Prior to the boycott, the Middle East was Arla's fastest growing region and represented an important component of the company's long-term growth strategy. As the largest Danish company in the region, it stands to lose up to $550 million in annual revenues. Students are asked to take the role of the communication director for Arla, who, along with other members of the newly formed Crisis and Communication Group, must decide on a course of action to deal with the crisis. The case addresses a variety of topics, including culture and religion, international management, risk management, crisis communications, and managing in a boycott situation. It also creates an opportunity to discuss doing business in the Middle East and management in an Islamic context.

The communications director of Arla Foods is hoping the decision to denounce to the cartoons will bring an end to the boycott. Instead, it brings complaints from Danish women's groups. This is a supplement to Arla Foods and the Cartoon Crisis (A), Ivey product 9B08M005.

Just as Arla Foods has re-established its reputation in the Middle East, another provocative cartoon is released in a Swedish paper and the communications director of Arla Foods must decide how the company will respond. This is a supplement to Arla Foods and the Cartoon Crisis (A), Ivey product 9B08M005.

The company, workopolisCampus.com, was an online job site for students and new graduates of Canadian colleges and universities. The website was established by several Toronto universities in the late 1990s and was acquired soon after by Workopolis to complement the company's primary job site, workopoliscom. After several years of steady but slow growth, workopolisCampus.com's future prospects appeared limited in 2007. The provides an opportunity to explore options for organizational change.

Setting up the goal to become one of the top 20 enterprises in the world dairy industry by 2010, the Inner Mongolia Yili Group had ambitious plans. As one of China's biggest national dairy companies, its main challenge was competing as a local company against joint venture rivals who benefited from perks granted to "foreign" companies. To set itself apart, Yili focused on research and development and innovative ways to improve the industry. Proving that it could shift industry standards and lead a country not accustomed to dairy consumption, to a point where demand is outpacing supply, the Yili Group is making its mark to go global. As an Official Sponsor of the 2008 Olympic Games in Beijing and the Official dairy supplier of the games, it is betting that the brand can go further beyond China. Will the day that tykes from Topeka have a bottle of Yili milk in their hands be coming soon?

After fifty-five years in the semiconductor industry, Morris Chang, founder and Chairman of Taiwan Semiconductor Manufacturing Company (TSMC), was seeing a change. After four decades of regular double-digit growth the industry was still growing-but now at a much slower pace. In 2004, TSMC entered the China market, the world's second largest for semiconductors, by building a fabrication plant in Shanghai. Was China the market opportunity which TSMC could bet on for expansion, or should its strategy be to focus on new product development and innovation?

Two Brattle Center (TBC) is a struggling for-profit private mental health clinic based in Harvard Square. Its founder, Dr. Joan Wheelis, is a nationally recognized practicing psychiatrist who has developed outpatient treatment programs based on Dialectical Behavior Therapy (DBT) for patients with borderline personality disorder (BPD). These patients, typically adolescent girls and young women, struggle with emotional crises and are prone to destructive behaviors such as cutting, excessive use of alcohol, taking drugs and suicide attempts. These patients are very difficult to treat and TBC has developed programs that make a noticeable difference to these patients. DBT requires teams of people with different types of expertise and so the original operating model developed by Dr. Wheelis was one in which TBC was staffed by a large number of part-time clinicians, the "affiliate model." However, changes in the health care environment, particularly the advent of managed care, have put very real pressures on this model and the company is now in a state of crisis. Dr. Wheelis is trying to decide whether and how to keep it going. The key decision is whether to shift to a "staffing model" based on a larger number of full-time clinicians. This will require a larger patient population to make the economics of greater fixed capacity viable. Another constraint is the poor state of its basic financial systems. Morale is low and thus staff turnover is high, with many clinicians taking patients with them into their private practice when they go. TBC is trying to decide whether to join the Blue Cross Blue Shield network, which would increase its patient population but at rates much lower than it currently charges by only taking private patients. Dr. Wheelis is also pondering whether to start a non-profit foundation as a way of getting money to support its teaching and training programs, or even making the company a non-profit itself.

After an international IPO yielding extraordinary returns to original investors, Banco Compartamos, Mexico's leading microfinance institution, contemplates its future strategic and competing priorities: maintaining growth, defending industry, leadership, preserving social mission and meeting the expectations of a demanding capital market. Additionally, Compartamos' Co-CEOs must decide how to face the highly polarized reactions in the microfinance industry to its IPO. In the process, the case examines the history of Compartamos, from its NGO origins to its license as a full service bank; describes the competitive context of low-income sector of financing in Mexico; and reviews the decisions leading to the IPO in the Mexican Stock Exchange.

ProntoWash management considers whether franchising and the Balanced Scorecard could be combined to help customer-facing employees provide consistent service across the world and capture relevant management information. In 2007, ProntoWash, an international car-wash company based in Argentina, was planning for rapid growth throug a combination of owned and franchised operations. CEO Sergio Kompel needed to fina a performance management system that would help the firm maintain a unified focus and operational consistency in new and existing points of sale around the world. One measure that Kompel and his team were considering was the Balanced Scorecard, a tool traditionally used by top management. The challenge for ProntoWash was to design a Balanced Scorecard that would be accessible throughout the organization, from the executives in the central office, to the franchises, to the workers at the front line.

This note summarizes a lot of the research on communication and language in its relationship to exercising power. Specifically. How language is used to negotiate power, what are the characteristics of effective communication, and how you can tell if someone is lying are all briefly considered. The note is used in a class on power in organizations, for a session on the use of language in attracting support and allies.

This note summarizes important ideas in the social networks literature-including brokerage and structural holes and the trade-offs between networking and getting work done and between brokerage relationships and the dense connections required to build trust. The note was prepared for a class on power in organizations for a session on building efficient social networks. It can be used with readings or cases on the importance of social relations in building power.

Supplements the A case [308027]. With its dual listings on the Hong Kong stock market and New York stock Exchange, state-owned enterprise, China Netcom was mandated to meet the listing requirements of these exchanges. From this initial step, China Netcom's Chairman, Zhang Chunjiang, began a program that sought to further develop the company's corporate governance practices to meet international corporate governance standards. The company hoped that its commitment in developing a globally-accepted governance structure would help the capital markets and potential investors understand that the company was true, modern corporation, even with the state as a majority owner.

In 1993, Nuria Chinchilla had recently completed her doctoral thesis at IESE Business School in Barcelona, on the topic of organizational turnover, with no particular focus on women, flexible work arrangements, or work-family issues. She chose to remain at IESE, where she had worked since the early 1980s as an assistant professor. By 2003, just over a decade later, she had attained the rank of full professor, had founded the International Center of Work and Family at IESE, and was generally acknowledged to be a leader if not the leader in workplace flexibility and work-family issues internationally, attending conferences all over the globe and being extremely visible in the media. Many observers echoed the comments of Gloria Renom, a deputy in the Catalonia parliament: "for a long time, Nuria has been considered the leading authority in the field of work-life balance." Renom attributed Nuria's success to a good understanding of the themes involved and intense preparation for the challenges she faced. Indeed, how else to explain Chinchilla's remarkable ability to influence others and to use a number of levers of power extremely successfully? It was not clear how Chinchilla had accomplished so much in so short a time, and what else she might do to be even more effective in obtaining changes in workplace flexibility in the future. And there was another interesting aspect to her career. Chinchilla seemed to have largely surmounted the trade-offs faced by so many people in positions of power-the apparent need to choose between having influence and being true to one's values and beliefs, as well as the choice between one's work and the rest of one's life. How had she been able to accomplish this?

This five-case series, sold as a package, presents an opportunity for students to understand that having the leadership mindset is not about going from crisis to crisis, but anticipating and shaping your organization. Through four case scenarios, students learn the need to recognize when there is a crisis situation, explore problems that often occur when issues are ignored, and take appropriate actions to remedy the situation. In the (A) case, students become a member of the senior executive team at Treading H2O Inc., a water-treatment equipment company located in the Midwestern United States, at a meeting to discuss a recently released World Health Organization (WHO) report. The statement announced that there was indication of human-to-human transmission of the Avian Flu in rural China near Shanghai. The company's regional sales manager sent information stating that the Chinese government had closed off access to the region?a key area for sales. On top of that, there are several Treading H2O employees in the same area. Students must determine what, if anything, needs to be done.

This five-case series, sold as a package, presents an opportunity for students to understand that leadership mindset is not going from crisis to crisis, but anticipating and shaping your organization. Through four case scenarios, students learn the need to recognize when there is a crisis situation, explore problems that often occur when issues are ignored, and take appropriate actions to remedy the situation. In the (B) case, one month has elapsed since executives at H2O Inc., first learned of an Avian Flu outbreak in China and Indonesia. More cases have surfaced in Europe and now the United States. The leadership team meets to discuss the contents of an e-mail from the plant manager. The team must now prioritize what needs to be done based on the latest challenges.

Juliana Azevedo Schahin, a local marketing director for Procter & Gamble in Sao Paulo, had worked closely with Tarek Fahahat, a regional executive based in Caracas, to solve the growth and profitability problems of P&G Brazil. They did so through the creation of lower-cost versions of two premium products which reached BOP (bottom of the pyramid) consumers--an approach not considered then as a company strategy. The case follows Azevedo and Farahat through their steps in helping to conceive the change, sell it to senior management, and implement it. The true test comes when the subsidiary wants to extend the model to its third and largest category, laundry care, which had also struggled. But Azevedo did not oversee that business in Brazil, and Farahat worked in another category in Caracas. Her country colleagues go to her to learn more about the success of the first two products. Now the question is whether this is a one-time wonder or an innovation that should be diffused to other products and geographies.

Supplements with the (A) Case.

The Reflexite Corporation made plastic films and other products engineered to focus reflected light. The company had recently shifted their strategy to include new applications in broader markets. In March, 2007, the organization structure and compensation systems that had successfully guided the company to this time were under fire. Michael Foley, Chief Executive Officer of the Reflexite Corporation had to decide whether to proceed with a change in company's employee stock ownership plan. The management and employees had held two rounds of "town meetings" to discuss changes in the allocation formula that determined how much stock employees would receive. Their recommendation was to change to allocate stock based on corporate-wide performance. Previously, the company based allocations on business-unit performance, causing wide variance in the amount of stock employees received. While the non-binding "town meeting" vote favored the change by a wide margin, the Chairman of the Board of Directors was adamant in his opposition. Foley, still in his first year as CEO wondered; the employees had spoken, but when the man who had built the company strongly objected, shouldn't one listen?