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  • Groupe PSA: Acquisition of Opel/Vauxhall—From Turnaround to Profitable Growth

    In 2017, the French automaker Groupe PSA (PSA) agreed to buy loss-making Opel/Vauxhall units from General Motors Company. PSA had just recovered one year earlier from losses it had sustained since the global financial crisis. With the recovery, PSA had launched a new strategic plan with aggressive goals for sustainable profitable growth. However, PSA’s sales were continuing to drop in the important Chinese market due to fierce competition, and the newly acquired units were still making losses. The use of electric cars was on the rise, and the European Commission had proposed a reduction in carbon dioxide emissions. PSA was planning to re-enter the United States, and in Britain, it was facing ambiguous Brexit negotiations, raising concerns about increased costs with importing and exporting parts and finished vehicles. In light of all of these challenges, how could PSA still reach its aggressive goals for sustainable growth?
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  • Illumination Solar: Delivering Energy Poverty Solutions

    In October 2017, the co-founder of Australian social enterprise Illumination Solar was rethinking his company’s Give Power campaign. After five marginally profitable years designing and supplying portable solar lanterns to some of the world’s most energy impoverished communities, including refugee camps, the co-founder had decided to market his products to Australian customers for outdoor uses such as camping and hiking. Under the Give Power campaign, Illumination Solar donated one solar lantern to a community in need for every solar product purchased by Australian customers. However, this strategy was not successful. The co-founder’s main goal for his company was to sustainably provide good quality solar lanterns to impoverished people in developing countries. To reach that goal, he wondered which strategy to follow; should he return to the original business model, re-structure the Give Power campaign, or come up with something entirely new to generate higher profits?
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  • Mining And Corporate Social Responsibility: Scotbar Proprietary Limited

    The chief executive officer of Scotbar Proprietary Limited (Scotbar) in Queensland, Australia, decided to develop a process to convert sandstone to sand, a technique that large multinational mining companies failed to perfect. The stakes could not have been higher, with global environmental disaster looming and the world quickly depleting its reserves of construction sand, severely affecting coastal communities and destroying marine ecosystems in the process. After spending years and millions of dollars on research, Scotbar appeared to have developed a process to produce construction sand, although more expensive than natural sand. Scotbar decided not to patent its process in hopes that more companies would adopt it and thereby reduce the harmful impact of mining on the environment. Was Scotbar’s approach to sustainability through innovation an effective response to the environmental legacy of more traditional mining processes? Was the company’s approach to intellectual property appropriate in this context?
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  • Sink Or Float: An Oliver Wyman And Duke Royalty Investment Opportunity

    In late 2016, an analyst at Oliver Wyman (OW), was contemplating the high stakes of her new project. European riverboat company Temarca Group (Temarca) had just approached Duke Royalty (Duke) seeking €9.0 million to expand its riverboat fleet at the time. The analyst had to consider the first potential investment for the newly-formed partnership. If a financing decision was made, Temarca would be one of the first investments in Duke’s portfolio. The analyst had to ensure this investment was aligned with Duke’s investment mandate, met the financial criteria, and delivered the targeted returns essential to please keystone investors. Similarly, she knew this deal would be highly scrutinized by the OW partners because Temarca would be OW’s first fully-financed deal with Duke. With all this in mind, the analyst's task was to make a preliminary recommendation to the chief executive officer of Duke and a founding partner of OW about the soundness of the opportunity. She had to decide whether Duke should invest in Temarca or pass on this opportunity.
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  • Ziwo Agricultural Service Co. Ltd.: Vertical Integration

    Ziwo Agricultural Service Co. Ltd. (Ziwo), located in the city of Shenyang in Liaoning Province in northeastern China, was a market leader in sales of agricultural materials. In 2006, China began changing how cropland was distributed and used. Over the next few years, decentralized, small farm households gave way to larger, more centralized, family farms. The change undermined Ziwo’s business, driving it into a sharp decline in market share and income from 2008 to 2011.<br><br>In December 2011, the company considered integrating the supply chain vertically to survive the decline. Was this move necessary, and if so, which direction should the vertical integration strategy take—forward or backward? How could Ziwo even achieve vertical integration under its current circumstances? Finally, would vertical integration help Ziwo deal with an emerging threat from Chinese Internet retailers that were entering the agricultural supply chain?
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  • AmorePacific Hong Kong: Marketing Korean Beauty Products

    As the end of 2016 approached, the managing director of AmorePacific Hong Kong (APHK) was setting the media mix and budget for APHK's four makeup and skin care brands: ETUDE HOUSE, LANEIGE, Sulwhasoo, and AMOREPACIFIC. Tourists shopping in Hong Kong from mainland China comprised over half of the company's sales. However, in the face of a declining number of tourists and the shrinking of luxury goods spending, the managing director had to consider the marketing tools in the customer decision journey; competitive positioning; and the distribution of the marketing budget between traditional and digital channels in the upcoming bi-monthly campaigns. She needed to strike an appropriate balance between recruiting new customers and retaining existing customers within APHK's overall strategy for Greater China.
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  • Skutis: Negotiating Production in China

    In August 2015, a law student in Singapore came up with the idea for his first scooter when he needed a simple and economical mode of transport to get from his apartment to university. The student, who was Norwegian, and his Singaporean partner registered and incorporated Skutis Corporation Pte Ltd (Skutis) within only five days. The Skutis e-scooter emitted no fumes or noise and featured a quick folding design for easy storage. As new entrants in the industry, they felt confident that their combined study skills (law and business) would help them design and produce a more durable and dynamic scooter than those currently available. However, by April 2017, Skutis had already encountered major difficulties dealing with a Chinese manufacturer of its products. After 20 months of experience in the market, the two entrepreneurs were planning their company's strategy for the future. Having experienced the lows and highs of the Chinese production market, they were searching for ways to make their business more profitable and develop a long-term trustworthy relationship with a reliable manufacturer who would produce their designs.
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  • IMPSA: Restructuring to Innovate with Existing Resources

    In late 2012, an executive vice-president faced a dilemma at Industrias Metalúrgicas Pescarmona S.A. (IMPSA), an Argentine multinational company that designed and produced cranes, dams, and components for power plants, and had recently begun building hydroelectric and wind power projects. The company's chief executive officer had tasked the executive vice-president with recommending how IMPSA could be radically restructured to adapt to changes in the world marketplace for renewable energy. However, IMPSA was at the top of its game, and the company had a backlog of orders valued at US$3.3 billion. The executive vice-president knew that the chief executive officer would not accept a minor reorganization but would demand a major restructuring based on the firm's existing resources, which was a strategy that, in the past, had proven to be successful for the company, particularly in emerging markets. The executive vice-president wondered how IMPSA could build on its existing wind power and hydroelectric dam business without abandoning the resources the firm had developed over the years.
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  • A 'Glocalization' Approach to the Internationalization of Crisis Communication

    This article focuses on the field of international crisis communication, whereby multinationals and their expatriate staff respond to crisis events in international and/or multicultural contexts. The field of international crisis communication is at or near a state of crisis due to lack of research and, more importantly, methods used by practitioners. 'Glocalization'-which is used successfully in fields as diverse as marketing, education, theology, and others as an effective and expedient way of leveraging global capabilities to meet local demands-is proposed as one method for addressing this need pragmatically. Using glocalization for the internationalizing of crisis communication benefits practitioners and researchers alike in a way that avoids imposing Western frameworks and interpretations onto non-Western crisis situations. We demonstrate the approach with a case study involving multinational McDonald's Corporation and its foreign subsidiary, McDonald's Japan.
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  • DMart: Disrupting Food Retailing

    In early 2017, 15 years after being launched, DMart was India’s second-largest and most profitable food and grocery retailer. To achieve its stellar growth, the company had followed a no-frills, limited assortment model and had restricted itself to limited geographies within the country. The company was listed in the capital market and attracted very favourable views from investors. As a listed company, DMart might be expected by shareholders to expand to new locations and develop an online presence. Would DMart be able to meet the challenges of exploring new geographies and new formats? What strategies would it need to adopt to remain competitive?
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  • Debito Technologies: Taking a Debt Management App Abroad

    Debito Technologies s.r.o. was started in December 2014 to help creditors better manage their issued debt. The company provided a complete beginning-to-end service using a debt management application (app) that traced debtors by following their digital footprint. The whole process was managed with just the mobile app and had no upfront fees. In 2017, with success in the Czech market, the company was considering expanding its operations abroad. The company needed to first select a country that provided excellent market potential and product fit, and then develop an ideal market entry.
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  • Debito Technologies: Taking a Debt Management App Abroad

    Debito Technologies s.r.o. was started in December 2014 to help creditors better manage their issued debt. The company provided a complete beginning-to-end service using a debt management application (app) that traced debtors by following their digital footprint. The whole process was managed with just the mobile app and had no upfront fees. In 2017, with success in the Czech market, the company was considering expanding its operations abroad. The company needed to first select a country that provided excellent market potential and product fit, and then develop an ideal market entry.
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  • The Zurna Lubb Hotel, Lazistan

    A management consultant had a bad experience at a globally branded luxury hotel in Zurna City, Lazistan. After writing a candid online review of the hotel, the consultant found himself embroiled in an altercation when the hotel management lashed out and tried to discredit him by complaining to his organization.
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  • Andrea Jung: The Challenges of Letting Go

    Andrea Jung became CEO of Avon Products Inc. in 1999 - the first woman to ever hold the position since the foundation of the iconic cosmetics company, in 1886. In a few years at the helm, Jung tripled the company's profits, modernized its culture and was elected one of "The World's 100 Most Powerful Women" by Forbes. By 2005, however, Avon had become bloated with too many hierarchical layers and profits came up flat for the first time in five years. In order to address the looming crisis, Jung was forced to make a difficult decision: Avon would lay off one-third of all employees in middle and senior management positions, which represented approximately 12,000 jobs in total. Even more challenging than making the decision, however, would be executing it successfully while confronting an array of hard questions. How should the CEO announce the layoff to the company? Who should be in the room when she informed some of her direct reports that she would have to let them go? How should she deal with one of her most important executives when that person begged to stay? What was the best way to address questions related to gender and race in the context of the layoff? Should she make any exceptions to the process? There were no easy answers.
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  • Competing with Patanjali: Can You Bend Like the Baba?

    Since being founded in 2006, Patanjali Ayurved Ltd. had emerged as a major player in India’s fast-moving consumer goods sector. The company differentiated its products with a unique mix of Indian nationalism, yoga spiritualism, social welfare motives, and natural/Ayurvedic ingredients. In combination with low prices and a low-cost position, this strategy challenged the incumbent multinational and conventional Indian competitors. As a result, competitors, including Hindustan Unilever Ltd., Colgate-Palmolive India, Dabur India Ltd., and Sri Sri Ayurveda, had to decide how to respond to this new competitor and capitalize on the growth opportunities in the Indian market.
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  • The ALDI Brand: Private Label Success in Australia

    In 2016, ALDI Stores (Aldi) in Australia posted its first downturn in annual growth since it opened in 2001. The German discount grocery store had been on a steady climb towards a top position among competitors such as Coles Supermarkets Australia Pty. Ltd., and Woolworths Limited. Amazon Inc. and Lidl Stiftung & co. KG, another German competitor, had begun to take steps towards entering the Australian market. What can Aldi do to ensure its continued success and retain its market share?
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  • Rajesh Exports: Gold Trader to International Jewellery Retailer

    Rajesh Exports Limited (REL), founded by Rajesh Mehta in the 1980s and based in India, was the world’s largest, lowest cost gold jewellery manufacturer. REL derived more than 90 per cent of its total revenue from exporting gold jewellery to more than 60 countries; but, in 2017, REL set a goal of increasing the portion of revenue contributed by the retail segment to 90 per cent by 2030—an increase from the current contribution of 10 per cent. REL had initiated strategies to differentiate itself in the retail jewellery segment; nonetheless, analysts were skeptical about REL’s ability to achieve its revenue goal. They pointed to the hindrances of severe competition in the global retail jewellery market; REL’s lack of experience in retail jewellery; and the perception of low quality associated with products produced in India. Was Mehta’s vision to establish REL’s presence in the retail segment appropriate, and if so, how could REL overcome the barriers and establish its identity in the international retail jewellery market?
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  • Rajesh Exports: Gold Trader to International Jewellery Retailer

    Rajesh Exports Limited (REL), founded by Rajesh Mehta in the 1980s and based in India, was the world's largest, lowest cost gold jewellery manufacturer. REL derived more than 90 per cent of its total revenue from exporting gold jewellery to more than 60 countries; but, in 2017, REL set a goal of increasing the portion of revenue contributed by the retail segment to 90 per cent by 2030-an increase from the current contribution of 10 per cent. REL had initiated strategies to differentiate itself in the retail jewellery segment; nonetheless, analysts were skeptical about REL's ability to achieve its revenue goal. They pointed to the hindrances of severe competition in the global retail jewellery market; REL's lack of experience in retail jewellery; and the perception of low quality associated with products produced in India. Was Mehta's vision to establish REL's presence in the retail segment appropriate, and if so, how could REL overcome the barriers and establish its identity in the international retail jewellery market?
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  • Alibaba Group: Acquiring Lazada to Win The Southeeast Asia E-Commerce Battle

    In April 2016, Alibaba Group Holding Limited (Alibaba) acquired the cash-strapped German e-commerce company Lazada Group (Lazada) to enter the Southeast Asian market and gain an additional source of revenue. Lazada’s value proposition of an effortless shopping experience, combined with rising competition, had caused Lazada to over-invest in logistics infrastructure. The cash injection from Alibaba’s acquisition would allow Lazada to continue to pursue its strategic imperatives while leveraging Alibaba’s online experience and other resources in China. Given the competitive environment in China, was the entry into Southeast Asia through the acquisition of Lazada an appropriate strategy for Alibaba? Had Lazada made the appropriate decision to sell its company to Alibaba? How should Alibaba implement its post-merger integration in 2017?
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  • Ajanta Packaging: Key Account Management

    In the fall of 2017, Ajanta Packaging (Ajanta) was among the fastest growing glass bottle-packaging companies in India. Although the company had a large buyer base of 1,700 customers, it still earned around 50 per cent of its business from 10 key accounts, including its biggest buyer, S.F. Foods (SF), which accounted for 15 per cent of Ajanta’s revenue. The position of privilege enjoyed by SF became a cause of concern for a director at Ajanta because of the client’s unrealistic demands. After a $25 million order from SF with a profit margin of less than 7 per cent, a payment period of 60 days, and a very short turnaround time, the director was forced to review his relationship with his company’s biggest client, and to decide whether to accept the order on SF’s terms, or renegotiate the price, payment terms, and delivery schedule to benefit Ajanta.
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