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An international joint venture is a company that is owned by two or more firms of different nationalities. The purpose of most international joint ventures is to allow partners to pool resources and coordinate their efforts in order to achieve results that neither could obtain acting alone. Virtually all multinational enterprises now use international joint ventures. Joint ventures are the mode of choice about 30 per cent of the time by both U.S. and Japanese multinationals. This note reviews the reasons why companies create international joint ventures (for example, to strengthen the existing business, take existing products to foreign markets, bring foreign products to local markets, and diversify into a new business) and examines specific types of joint ventures (for example, research and development; raw material and component supply; and marketing and distribution). It then considers some guidelines for international joint venture success.

After recognizing numerous opportunities in the global market, Xiaomi Technology Corporation Ltd. (Xiaomi), based in Beijing, charted its overseas market strategy in 2013. However, opportunities came with challenges, and during the internationalization process, Xiaomi encountered many problems. By 2016, after three years of hard work, Xiaomi had gained more experience than profits. Compared with Xiaomi’s domestic success, Xiaomi’s internationalization strategy was unsatisfactory. How could Xiaomi meet its international goals? Should it establish international strategic alliances, develop its firmware operating system, or consider other options?

BYD Company Limited (BYD), a Chinese firm that started as a battery manufacturer, produced its first gasoline-fuelled vehicle in 2005. In 2008, BYD then launched its first electric vehicles based on its advantages in battery technology and experience in low-cost research and development. The company expected to gain a strong presence in the automotive market with these electric vehicles; its goal was to secure its place as China’s largest auto manufacturer by 2015, and the world’s largest by 2025. By February 2015, sales of one of BYD’s new energy vehicles, the Qin, accounted for 32 per cent of total new energy vehicle sales in China that month. Yet BYD was ranked 15th among China’s passenger vehicle companies. How could the company climb to number one in terms of sales volume?

Eric Ries, one of the most prominent entrepreneurs from Silicon Valley, is launching the Long-Term Stock Exchange (LTSE), a new stock exchange for companies and investors that want to focus on long-term values and sustainable development rather than short-term profit gains. Despite LTSE having a strong value proposition for many companies, this case analyzes the many business challenges that Ries and LTSE must overcome: the large shift required in the systems-thinking of current investors, limiting shareholders' control and influence, gaining the critical mass required to achieve scale and profitability, government legislation and permits, and gaining trust and credibility from potential companies and investors. This case asks students to articulate the risks within the existing, short-term focused stock exchange system, as well as identify the forces that produce short-termism in publicly listed companies.

BYD Company Limited (BYD), a Chinese firm that started as a battery manufacturer, produced its first gasoline-fuelled vehicle in 2005. In 2008, BYD then launched its first electric vehicles based on its advantages in battery technology and experience in low-cost research and development. The company expected to gain a strong presence in the automotive market with these electric vehicles; its goal was to secure its place as China's largest auto manufacturer by 2015, and the world's largest by 2025. By February 2015, sales of one of BYD's new energy vehicles, the Qin, accounted for 32 per cent of total new energy vehicle sales in China that month. Yet BYD was ranked 15th among China's passenger vehicle companies. How could the company climb to number one in terms of sales volume?

In September 2015, the manager of Hind Oil Industries (HOI), a small edible oil manufacturer in Asansol, West Bengal, was challenged by a dilemma in pricing strategy. HOI had seen the price of mustard seeds, its primary raw ingredient, rise steeply because of harsh weather conditions in the previous harvesting season. HOI would need to raise the price of its product significantly in a price-competitive market dominated by larger companies. The manager wondered if he could increase the price of his only product, Maa mustard oil, to cover the substantial increase in production costs without suffering a loss in total revenue earned. If so, what would be the optimum price under various scenarios related to his competitors’ expected price hikes? Could HOI’s price be raised even if the competitors decided against raising their prices?

CIC engages in "guerrilla warfare," offering free or highly discounted rates in order to get its empty offices filled before the opening day of its St. Louis branch. Opening day is a huge success, and CIC St. Louis grows rapidly, even opening a second building. In the following years, it ramps up its expansion efforts and opens new branches or begins the expansion process in multiple cities around the country and the world, as well as expanding its Boston/Cambridge offerings and beginning the expansion process in new cities. CIC is now considering how to improve their expansion operations, while also trying to figure out how fast they should be moving.

In 2014, Mar Hershenson and Pejman Nozad teamed up to form Pear VC, a venture capital firm that invested in start-ups spanning three stages of company development: 1) pre-seed, which Pear termed "soil"; 2) seed; and 3) Series A. The duo had known each other for well over a decade before creating Pear VC. And while they have very different backgrounds-Hershenson had founded several companies after receiving her PhD in electrical engineering, while Nozad had invested in dozens of successful start-ups as an angel investor after immigrating to the United States from Iran-they shared the same deep-rooted mission of helping early-stage start-ups succeed. Along with financial capital, Pear provided its portfolio companies with the tools, network, support, and mentorship needed to grow their businesses. Hershenson and Nozad took great pride in Pear's high-touch, values-driven approach, which they deemed "partnering" rather than "investing." The two spent significant time helping start-ups develop into sustainable, category-defining companies, whether that meant assisting with an operating plan, introducing founders to potential employees, or connecting teams with experts in a given industry. The "Pear VC" case explores the myriad challenges associated with forming and growing a seed-stage venture capital firm, from raising a fund, to aligning on investment criteria, to scaling the business.

Riccardo Zacconi was the co-founder and CEO of King Digital Entertainment, the video game company which had quickly established itself as the world's leading maker of casual games for mobile devices after the sensational success of its game "Candy Crush Saga." Zacconi had only a few days left to decide what to reply to Activision Blizzard, one of the largest video game publishers in the world, which had offered to acquire King for almost $6 billion. King had already managed to successfully adapt to disruptive technological changes in the course of its history, could it continue to go solo? Or would an acquisition by a complementary video game maker like Activision be the best choice for King to continue to thrive? The clock was ticking but Zacconi knew that whatever the final decision, it had to satisfy one condition: Player was King.

The Deutsche Bank cases (A and B) are designed to engage students in an Entrepreneurship or Management Information Systems course.

Teaching Note for HBS Nos. 817-126 and 817-127.

In 2016, the chief executive officer of the ibibo Group, one of the largest players in India’s online travel sector, faced a major decision. MakeMyTrip, India’s market leader in online travel, had expressed interest in acquiring the ibibo Group. Should the ibibo Group’s chief executive officer accept the offer and give up partial or total control of the company, in return for growing with the market leader? Or should he continue with the business he had launched in 2007, and rely on outside investment or the parent company to fund his efforts at growing the business? It was time to evaluate his strategic options.

In 2016, LinkedIn was the largest online platform connecting people to job opportunities and training. The company’s goal was to innovate and co-create with stakeholders a stable, yet emergent online platform that could serve a global business community undergoing rapid transformation in technology, job requirements, and the structure of work itself. <br><br>LinkedIn had a leadership role in this transformation; the company vision, market penetration, and expertise promised to help address major problems of global unemployment and underemployment. The company’s Economic Graph, a massive data set of employment information, was part of the response, but LinkedIn had some challenges to address. How could LinkedIn co-create with stakeholders a stable, increasingly scaled online platform that could serve a global business community, while the structures of those stakeholders inhibited interconnectivity, the skill sets for workers were evolving, and the requirements for and nature of work itself was going through rapid, uncertain transformation? How could it expand to include less educated adults and connect people in regions with different business cultures, values, and practices? How could it better coordinate open-source information among stakeholders? How could it define “soft skills” and connect people with good soft skills with hiring managers?

In February 2017, disruption in the carbonated soft drink value chain in the fictional city of Utopia has raised opportunities for prospective entrants to explore new business-to-business (B2B) partnerships at all levels in the value chain. This in-class, action-oriented strategic B2B partnership exercise has been designed to give learners experience in deciphering how B2B partnerships are built. In teams, participants assume the roles of the key value chain players in the soft drink industry (i.e., strategy heads of beverage companies, bottlers, big retailers, and small retail store owners). Teams are provided with an industry description and specific role information highlighting relevant constraints and opportunities. The teams then work to negotiate contracts during this in-class exercise.

The first part (A) of the case study refers to Asia Genomics Holdings, founded by Dr. Wong Mun Yew in 2014. Asia Genomics considered itself a pioneer in genetic testing in Asia with the aim of providing safe, accurate and timely genetic testing for people with regard to commonly occurring cancer, and foetal health conditions. The technology it used was brought over from the US. The tests were simple to administer, client samples were securely handled, and generated reports that would include recommendations for clients and their doctors on next steps after diagnosis. Part B of the case is about Imagene Labs, which was created in 2016 as a new sister entity under Asia Genomics Holdings to provide genetic testing for wellness in fitness, nutrition and skin. It operated independently from the Asia Genomics business that carried out genetic testing for cancer. The recommendations for clients would come with customised nutritional supplements or facial serums to target their specific genetic conditions. Clients who had tried the product were generally pleased with the depth of the report findings and the results of the customised products. Imagene Labs had been seeing relatively quick uptake of their products and interest in the consumer market. Although Asia Genomics and Imagene Labs had clear value propositions to offer their target markets, marketing was still the biggest challenge. Beyond that, both businesses had to plan a strategy for the development of their respective future business models. This case targets participants who are interested in understanding the organisational capabilities for implementing a business model in the healthcare industry. Participants can use the business model canvas to understand the integral components of a business model, and to innovate an existing business model.

The first part (A) of the case study refers to Asia Genomics Holdings, founded by Dr. Wong Mun Yew in 2014. Asia Genomics considered itself a pioneer in genetic testing in Asia with the aim of providing safe, accurate and timely genetic testing for people with regard to commonly occurring cancer, and foetal health conditions. The technology it used was brought over from the US. The tests were simple to administer, client samples were securely handled, and generated reports that would include recommendations for clients and their doctors on next steps after diagnosis. Part B of the case is about Imagene Labs, which was created in 2016 as a new sister entity under Asia Genomics Holdings to provide genetic testing for wellness in fitness, nutrition and skin. It operated independently from the Asia Genomics business that carried out genetic testing for cancer. The recommendations for clients would come with customised nutritional supplements or facial serums to target their specific genetic conditions. Clients who had tried the product were generally pleased with the depth of the report findings and the results of the customised products. Imagene Labs had been seeing relatively quick uptake of their products and interest in the consumer market. Although Asia Genomics and Imagene Labs had clear value propositions to offer their target markets, marketing was still the biggest challenge. Beyond that, both businesses had to plan a strategy for the development of their respective future business models. This case targets participants who are interested in understanding the organisational capabilities for implementing a business model in the healthcare industry. Participants can use the business model canvas to understand the integral components of a business model, and to innovate an existing business model.

In 2016, a recently retired artilleryman from the Canadian Armed Forces was planning his next steps as a civilian. He had always been passionate about healthy lifestyles, and his sense of entrepreneurship led him to consider the viability of launching a series of fitness boot camps, based on different skill levels and age groups. He saw this boot camp idea as a way of providing health services to a group of clients who were already interested in exercise but who might become more involved if their fitness activities were held outdoors. He could either launch the boot camps on his own or partner with a small local gym. He needed to earn $2,000 after all expenses per month from May to August each year for the business to be feasible. The gym offered him cost-saving options, but was he ready to share his revenue with a partner?

This case examines the strategic choices and evolving business model of Imprimis Pharmaceuticals from the perspective of CEO Mark Baum. The A case provides a brief history of the company and of the compounding business, outlining the challenges faced by Imprimis in 2013. At the time, Imprimis was in the process of seeking FDA approval for a branded drug called Impracor. This process, already difficult, was further complicated by recent manufacturing issues. Meanwhile, the opportunity arose for Imprimis to purchase a technology related to compounded ocular injections. Because of the different competencies and business models required for the traditional pharmaceutical business vs. pharmaceutical compounding, Imprimis did not have the resources to pursue both of these options at once. Instead, Baum had to decide whether or not to abandon the company's previous focus on Impracor and to delve headlong into the compounding business. The two paths would require vastly different approaches to marketing, R&D, and manufacturing, so that either decision would shape the future of the company for years to come.

This case is a supplement to Imprimis (Case A). It describes the company's decision to enter into the pharmaceutical compounding business in 2013-14. Imprimis purchased a compounded ophthalmological medication called Dropless Therapy, which was injected into patients' eyes post-cataract surgery, with the aim of replacing a complex regimen of prescription eye drops. After a successful launch of the compounded medication, Imprimis ran into complications when Medicare changed its policy regarding payment for the drug. Under the new policy, not only would Medicare not cover the medication, but patients could no longer pay for it out of pocket. Instead, the cost had to be absorbed by the physician or surgery center. Imprimis now had to figure out a way to deal with the effects of this policy, whether that be by lobbying for a policy change, creating a compounded eye drop treatment of their own, or moving out of the cataract treatment business entirely.

This case is a supplement to Imprimis (Case A) and Imprimis (Case B). Set in 2015, it first describes Imprimis's decision to introduce its own line of compounded eye drop medication called LessDrops. The case then examines the moral dilemma faced by CEO Mark Baum, who was struck by the problem of high drug prices in the United States. Recent, drastic price hikes on pharmaceutical drugs, such as those initiated by Turing Pharmaceuticals under CEO Martin Shkreli, had recently brought media attention to this issue. Baum believed it would be relatively easy for Imprimis to create compounded versions of many of the affected drugs, which could increase competition in the pharmaceutical industry and lessen the strain both on patients and the healthcare system as a whole. However, doing so would require the company to raise capital, strengthen its sales force, and increase its manufacturing capabilities. The decision was further complicated by the relatively low barrier to entry, and by the ubiquitous nature of the drug pricing problem. Baum had to decide whether Imprimis should stick with its already-successful ophthalmology business, or begin the endeavor of combatting high drug prices, going up against powerful competitors in the drug industry.