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  • Nestlé: A Social Media Nightmare (B)

    This case is a supplement to Nestlé: A Social Media Nightmare (A).
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  • Privatization of the Tiger Leaping Guest House in Nanjing, PRC

    The Liang family, experienced family hoteliers in China, had to leave the mainland under the pressure of the forces of Chairman Mao and the Communist Party of China in 1949. They resettled in Taiwan, resumed their hospitality business and now, two generations later, have returned to Nanjing to find that their family’s old guest house has been allowed to run down and deteriorate as a Chinese state-owned enterprise (SoE). They repurchase the old guest house with the intention to redevelop it. How will they deal with this privatization and the inevitable bureaucracy of purchasing, demolishing, and rebuilding the old guest house? How will they convert the existing SoE human resources (trained under planned-economy conditions) into dynamic employees operating in the market economy, while being sensitive to the cultural characteristics and challenges of this mainland Chinese workplace? With more than 6,000 Chinese SoEs still being targeted for privatization, this case is very relevant and provides a real-world opportunity for students to exercise their research, analytical, international management, entrepreneurial, and cross-cultural management skills.
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  • ABC Energy Limited: Culture and Formalization

    AWARD-WINNING CASE: Adjudged third-best case at the ISB Case Competition 2010 held in partnership with the Richard Ivey School of Business and the Association of Indian Management Schools and sponsored by the Chartered Institute of Management Accountants.<br><br>ABC Energy Limited (ABCEL) was created in March 2007 by ABC Infra Private Limited and XYG Private Limited. In September 2007, MNP Finance Limited joined ABCEL as an equity partner. In 2010, ABCEL operated in power generation and had plans to diversify into transmission and distribution. It aspired to be a world-class energy company with operations in India and neighbouring countries. ABCEL had grown by investing in greenfield projects and acquiring existing operations. The promoters of ABCEL had set a target of achieving a project portfolio of 30,000 megawatts by 2015, up from the current portfolio of 8,655 megawatts. The chief executive officer of ABCEL wanted to discuss the following issues at the board meeting on July 31, 2010, with regard to the opportunities and challenges in the growing market: 1) the key organizational needs that ABCEL might have in achieving its target by 2015, 2) the present culture of ABCEL, 3) the relationship between the culture and extent of formalization and hence the ramp-up of formalization that ABCEL might require, and 4) the method of introducing this formalization.
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  • Sharp Corporation: Beyond Japan

    Faced with major losses from operations, Sharp Corporation’s young and unconventional president questioned the company’s long-standing operating model. Sharp was a leader in the area of liquid crystal display (LCD) technology and manufacturing. It also held strong positions in several categories of consumer electronics in the Japanese market. Although Sharp had been increasing its involvement in overseas markets, it had yet to replicate its successes overseas. Sharp’s operating model placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. The company jealously guarded its LCD knowhow and had implemented strict security measures at its LCD panel plants. As Sharp’s international sales grew, limitations with its business model became more apparent. Operating primarily in Japan had drawbacks, such as exposure to currency risk, high infrastructure cost, and high taxes. Additionally, the logistics of shipping large items overseas, such as LCDs and solar panels, presented other dilemmas. Sharp needed to reconsider this model and develop an approach that was more suitable to the environment in which it now competed.
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  • Carlsberg in Emerging Markets

    Risking becoming the target of a hostile takeover or being cornered as a small regional player in the global beer industry, the Danish brewery Carlsberg decided in the early 2000s to expand into rapidly growing emerging markets to pursue new arenas of growth. By 2008, this strategy had paid off, and Carlsberg was positioned among the five largest breweries in the world. In the Russian market — one of the fastest-growing markets in the world — Carlsberg had become the market leader. In China — the world’s largest beer market in terms of size and population — the company had achieved a 55 per cent market share in Western China, and operated 20 brewery plants with approximately 5,000 employees. The ambitious acquisition strategy applied in emerging markets had become essential to Carlsberg’s business in relation to future growth and profits. Accordingly, the case focuses on Carlsberg’s entry into China, which started as a commercial failure in the eastern part of the country, but subsequently developed successfully in the west.
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  • Trying to Create a Stir: Opening a Coffee Shop in Korea

    A critical question for entrepreneurs starting a business, particularly in a foreign country, is choosing whether or not franchising is the appropriate mode of entry. Franchising offers the entrepreneur instant brand recognition, established business processes and supply chains, regulatory and tax guidance, and a ready supply of assistance in the early months. However, it deprives the entrepreneur of what many of them crave - the ability to create and grow a business from one’s imagination. The two entrepreneurs in this case had regular salaries, but wanted to try opening a coffee shop - or a chain of coffee shops - in South Korea, which already had many brands with multiple outlets.
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  • What do Firms From Transition Economies Want From Their Strategic Alliance Partners?

    A financial system engaged in active transition from central planning to free market may be dubbed a transition economy. On today's global landscape, there are several important transition economies, all at various stages of transition and with differing degrees of success. Yet, much is not known about this important sector of the world economy. As outside enterprises seek alliances with firms from transition economies, it is important to know what these firms want from alliance partners. To learn more, we conducted a study interviewing managers of private firms from the two largest and most strategically important transition economies: China and Russia. We found that while Chinese and Russian firms often hope for some of the same things as their counterparts in mature economies as regards alliances, they are also interested in other things not normally associated with alliances: political influence, relief from paying bribes, and protection from extortion or even violence. Moreover, we discovered that because of differing institutional conditions in the two countries, Chinese firms are not always looking for the same things from alliances as are Russian firms-in spite of surface similarities between the two economies. Based on these findings, we provide guidelines for firms seeking alliance partners in transition economies, to assist them in determining if an alliance is right for them and planning accordingly.
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  • 3M Taiwan: Product Innovation in the Subsidiary

    On January 17, 2005, 3M Taiwan’s function head of its health care business division found himself in a meeting with the Acne Dressing project team. In 2004, the function head had initiated a project team to exploit local market needs for 3M hydrocolloid dressing, a technology that had existed in the company for many years without any practical applications. The local project team suggested applying the material for acne treatment. The product would be known as Acne Dressing. There was no standardized solution for acne treatment in Taiwan. If developed, Acne Dressing would be a brand new product in the local market.<br><br>The biggest challenge would be how to change local consumer behaviours on new acne treatment products. In addition, since there were no similar products in the market, the project team only had limited information and potential sales and volumes were uncertain. If the local development was launched, Acne Dressing would be 3M’s first product application of hydrocolloid dressing technology. With little previous experience in product development and no similar products existing in the market, the function head had to decide fast whether to proceed with this new product development. If so, what options did the local project team have? What kind of resources and support should the local health care business segment seek from headquarters for the product development? Should the local project team collaborate with other subsidiaries?
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  • United Cereal: Lora Brill's Eurobrand Challenge

    The case, set within the European organization of a giant multinational breakfast foods company, describes a launch decision for a new cereal product. As the case evolves, the decision has major strategic and organizational implications for Lora Brill, European VP. The case focuses especially on two important decisions facing Brill: Should Healthy Berry Crunch become the company's first Eurobrand and be introduced in a coordinated manner Europewide? And, from an organizational perspective, should she create Eurobrand Teams to implement her proposed Eurobrand concept?
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  • Poweo: David and Goliath in the French Electricity Market

    Charles Beigbeder, the president and founder of Poweo, an alternative electricity and gas operator in France, needs to decide on the company's strategy in light of electricity deregulation and the dominant position of Électricité de France (EDF) in the French market. Can Poweo successfully compete against EDF, with its giant installed nuclear base, and will competition bring benefits to French consumers?
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  • China Construction America (A): The Road Ahead

    How did a Chinese state-owned construction company strike one deal after another in South Carolina despite political backlash and in New York where well-established competitors dominate? The case examines the U.S. market entry strategy of the CSCEC, China's leading state-owned construction company. It does so by way of the CEO of its U.S. subsidiary and his challenge to sustain the company's exceptional growth in the face of an unprecedented slowdown in the U.S. construction industry. The case also offers a window into the processes and related issues associated with the accelerated overseas expansion of Chinese state-owned businesses.
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  • China Construction America (B): The Baha Mar Resort Deal

    Why is a Chinese state-owned construction company building the largest mega-resort and casino in the Caribbean? This case examines the intricate deal-making by which CSCEC, China's leading global engineering and construction contractor, emerged as a key market player. Having beat out Harrah's and other contenders for a stake in the Baha Mar Project, CSCEC now also has an equity stake in the Bahamas' gaming and resort industry. The case explores the growing role of project financing by way of China's Export-Import Bank and its implications for business deal-making and the competitiveness of China's increasingly globalizing businesses.
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  • Birzeit Pharmaceutical Company: Marketing from Palestine

    Birzeit Pharmaceutical Company (BPC), established in 1974, had successfully completed a number of mergers and had overcome challenges and development phases in order to secure a strong position in its local market, Palestine, as well as introduce a wide range of products in the export market. BPC’s continuous success, despite political instability and continuous restrictions on its growth and expansion, led the company to focus beyond its local presence. Despite the growth of BPC and its financial solidity, it was very similar to other Arab businesses, which were reluctant to invest significantly and take big risks in growing outside their areas. BPC did not wish to risk large amounts of money, and instead chose to expand to new markets or introduce new niche products on a conservative basis. BPC invested in an Algerian packaging company in 2006 and aimed to meet its vision of growth by entering new markets and introducing new products. It wanted the packaging company to later grow to a manufacturing company, and accordingly to an export location. In a business environment that was characterized by quick decisions and high competition, the company needed to make faster decisions, invest more money, and choose a new path to secure its business development and growth. Competition in pharmaceutical manufacturing, especially among generics, was increasing greatly, and the faster BPC moved, the more competitive it would be.
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  • Just Us! Community-based Tourism

    The development coordinator for Just Us! Development Education Society (JUDES) was reviewing the preliminary agenda for the JUDES Annual General Meeting (AGM). The meeting would take place some time between May 1 and May 14, 2010, during Canada’s National Fair Trade Weeks. The coordinator was preparing her to-do list for the event. Just Us!, a Nova Scotia-based cooperative that offered fair trade products, had a very loyal regional following, and the coordinator wanted to communicate how the premium paid for fair trade products actually helped producer communities. She was planning several events for the AGM, most importantly presentations and discussions of the Community-based Tourism (CBT) trip that JUDES personnel had taken to Oaxaca, Mexico, in 2009, and planned to take again in 2010. For the AGM presentation, she wanted to organize the trip guidelines and the budget information into a triple bottom line format.
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  • Dr. Amita Joshi at Samuel Drugs Limited

    AWARD-WINNING CASE: Adjudged second-best case at the ISB Case Competition 2010 held in partnership with the Richard Ivey School of Business and the Association of Indian Management Schools and sponsored by the Chartered Institute of Management Accountants.<br><br>This case describes the successful journey of Dr. Amita Joshi in a medium-sized Indian pharmaceuticals organization, Samuel Drugs, which was facing serious performance problems. As CEO, Joshi realized that the organization had strong manufacturing capability but that it lacked marketing excellence and badly needed someone who could be tasked with making the company marketing-oriented. Joshi selected a young general manager of sales, Rajesh Mishra, as director of marketing. He proved to be an excellent choice and performed very well in his new role. Samuel Drugs had three subsidiaries and one of them, Eastern Pharmaceuticals Limited, required a managing director and Mishra was selected. He also continued to perform his previous role of director of marketing. Then conflict ensued between Joshi and Mishra. This case reveals the important roles of communication, co-ordination, multiple and diverse stakeholders, and organizational conflict in determining organizational effectiveness. It also highlights the point that managers need to tackle both formal and informal aspects of an organization, rational and social sides of organizational life, and changing dynamics of relationships.
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  • Is the Bottom of the Pyramid Really for You?

    If your company is intrigued by the opportunities at the bottom of the pyramid but is hesitant to plunge in, it's not alone: Despite the immensity of the markets and the volume of the hype, few multinational firms have built sizable businesses serving consumers or producers who survive on just a few dollars a day. The reason, say Karamchandani, Kubzansky, and Lalwani, is that it's far more difficult than many global corporations realized to get prices low enough to attract consumers and to manage distributed low-income producers. The authors, from Monitor Group, report on the results of a study of 700 market-based initiatives for social change in India and Africa. The obstacles to doing business at the bottom of the pyramid are significant: uncertain customer cash flow, difficulty gauging demand, distribution challenges, disaggregated providers, and undeveloped business ecosystems. Using examples from many diverse sectors-including microfinance, housing, insurance, and water purification-the authors explore innovative ways to surmount those obstacles and serve the world's poor.
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  • Keda’s SAP Implementation

    Keda, a manufacturer of large-scale machinery in China, had successfully deployed an enterprise resource planning (ERP) solution that was paying for itself through more efficient inventory management. This was significant because despite China’s increasing demand for ERP systems, an estimated 80 per cent of ERP implementation efforts failed in the country. The vice general manager of Keda had a large backlog of other information technology projects, and he wanted to carefully evaluate the ERP project to determine what had gone right, what had gone wrong, and what Keda had achieved through simple luck.
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  • International Entrepreneurship at Infusion

    Infusion had grown over the 10 years between 2000 and 2010 to become a $50 million per year international software services business with 350 employees. The president was wondering how he could move the company towards becoming a $100 million per year international business through a mix of organic growth and initiatives with partners. The entrepreneurial vision of its original founders lived on in many ways, but the company had found it necessary to install an administrative structure with a professional management layer to underpin delivery in both domestic and international markets. It had not been an easy ride. The company had encountered problems in India, and there had been periods of staff attrition and challenging deliveries to clients. Clients were beginning to pull the company in new directions. The pace of technology change appeared to be relentless. While entrepreneurship was still encouraged in the form of an idea incubator called Infusion Angels, the CEO was faced with some critical decisions.
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  • A Bomb in Your Pocket? Crisis Leadership at Nokia India (A)

    This case addresses the theme of crisis leadership in a multinational enterprise in order to help students internalize the critical challenges of a multinational company in an emerging market. In August 2007, a routine product feedback and defect analysis process identified a defective batch of batteries supplied by a Japanese vendor. India happened to be the recipient of the largest proportion of the defective batch. Nokia’s corporate communications team, based in Finland, in cooperation with the Indian team, responded with a customary global product advisory. Instructions were made available on the Internet for customers to diagnose a defective battery and get a free replacement. Nokia was shocked to see the antagonistic response from the Indian press to the product advisory and the ensuing mayhem that spread quickly through the country. The head of Nokia India and his team had to act swiftly to preserve the company’s hard-earned reputation and market share. Case (A) is set as a midnight strategy session at Nokia’s Indian headquarters to chart out the way forward. A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) is a short version of what actually happened: how Nokia and the team responded to the crisis and and used the situation to create new organizational capabilities.
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  • A Bomb in Your Pocket? Crisis Leadership at Nokia India (B)

    This case is a supplement to A Bomb in Your Pocket? Crisis Leadership at Nokia India (A).
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