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BROAD’s Holon Building: Internationalization Strategy
On June 5, 2021, an eleven-story building developed by the BROAD Group was completed in Changsha, China, in just 28 hours and 45 minutes. This building, known as the Holon Building, had the advantages of a long lifespan, short construction period, strong earthquake and typhoon resistance, low cost, high comfort and energy savings, and global transportability. Because of its standardized installation and 100 per cent factory prefabrication of all modules, Holon was well suited to various types of buildings. However, as a newly emerging technology, the Holon Building needed time and great effort to gain wide acceptance. BROAD's chairman and chief executive officer, Zhang Yue, was wondering about the feasibility of Holon buildings’ global market expansion. -
Konecta: Strategic Transformations in a Digital Era
The case analyzes the evolution of the business model of the Spanish multinational Konecta, which, since its origin, was dedicated to providing Contact Center services. During a process of digital transformation, Konecta added the offer of comprehensive solutions and Business Process Outsourcing (BPO) to traditional end-user services of client companies. Given the digital transformation, senior management decided to carry out a first phase of organizational restructuring to reflect these changes. To that end, it instructed the Strategic Transformation Committee to recommend modifications to the organizational design in order to meet new commercial and operational challenges. Proposals were to be tested as a pilot project to link the parent company with Konecta Peru, a subsidiary that operated in a market with important business prospects for the group. The members of the Committee were faced with the challenge of restructuring the organizational framework to leverage Konecta's position as a multinational company at the service of companies and clients with multiple demands. In this context, they needed to assess how the changes in structure could affect the local performance and the level of autonomy and flexibility in each country, while the parent company demanded an integrated approach that would promote synergies. -
MitiMeth: A Nigerian Social Enterprise Goes Global
In January 2022, MitiMeth was a Nigeria-based innovative social enterprise that produces handcrafted products made from natural fibres—agricultural waste and aquatic weeds—that are otherwise considered to be waste or a hazard to the environment. MitiMeth added value to this material by transforming it into well-designed furniture and home furnishings, storage boxes, lamps, kitchen and dinner ware, stationery, and souvenir items. Mitimeth’s initiative of transforming this environmental nuisance into marketable products provided work for more than 600 people from over twenty-five communities in Nigeria. Despite challenges in exporting from Nigeria, MitiMeth had made good progress in reaching international markets. MitiMeth had already gone through several challenges, and the COVID-19 pandemic only added to the difficulties the enterprise had experienced. Mitimeth needed a plan that ensured MitiMeth’s long-term sustainability. -
Lavazza: The Challenges of Foreign Market Entry in a Brand-Intensive Industry
Luigi Lavazza SpA (Lavazza) was the largest coffee maker in Italy and the seventh-largest coffee roaster in the world. Despite its success in global markets, Lavazza was finding it difficult to make its mark in the United States. After establishing its North American subsidiary in 1989, Lavazza entered the US market in the 1990s with strategic partnerships with restaurants and hotels to cater to US consumers. But even as a strong global brand with thirty years of experience in the US market, Lavazza continued to struggle. As competition in the global coffee industry intensified, Lavazza could no longer afford to be complacent with its performance in the US markets, and it sought to increase its market share. However, Lavazza faced a key strategic decision: should it try to introduce US consumers to the “Italian way” of drinking espresso coffee, or should it create a new brand identity and a new portfolio of products that were more aligned with the tastes of US consumers? -
Green Monday: Flexitarianism, Innovation, and Endorsement
The Green Monday Group was co-founded in 2012 by Hong Kong entrepreneur David Yeung. Capitalizing on the developing global sustainability movement and the market opportunity from growth in flexitarianism, Yeung acquired a research and development company to innovate a plant-based pig meat product, OmniPork. Through product innovation, global distribution, and celebrity endorsement, Yeung was determined to bring OmniPork to global markets. He announced in 2020 that Green Monday Holdings had raised US$70 million of equity investment, the largest funding of its kind in Asia. In 2021, the question left was how those funds could be used to expand flexitarianism globally and capture new consumers of OmniPork. -
Maersk’s Non-Market Strategy Towards State-Owned Chinese Rivals
After the 2008–09 financial crisis, the Chinese shipping industry grew markedly and took on a more dominant role in global shipping. As a result, it was felt by some that China’s state-driven economic model had possibly created an unequal playing field. Under the political agenda of the Belt and Road Initiative, specifically the Maritime Silk Road, Chinese state-owned enterprises acquired strategic infrastructure assets, establishing a global network of shipping infrastructure through investments in strategically important ports and terminals. The growth of China’s shipping industry raised several concerns in Europe and for AP Moller–Maersk, the largest container shipping conglomerate in the market. By late 2020, some European governments were becoming more cautious; the European Union had increased restrictions on investments by Chinese companies, and European governments had become increasingly outspoken about China’s geopolitical ambitions. How could AP Moller–Maersk use non-market strategies to better position itself relative to increasing competition from China? -
Takeda's Takeover Bid for Shire: When Rumours Dilute Whisky
Appointed to his position in 2015, Christophe Weber, a French national and president and CEO of Japan-based Takeda Pharmaceuticals, had begun transforming the company into a global player. He knew that, if the business was to survive, he would have to accelerate its transformation and globalization, and he believed the solution was the acquisition of Shire, an Irish pharmaceutical company and a similar-sized firm. If successful, this would be the largest cross-border acquisition ever negotiated by a Japanese company. Weber had known that the acquisition would be costly - and controversial among the company's shareholders, who could challenge his leadership. Although he was confident in his proposal, his bid did not go as planned. Despite his best efforts to keep the deal secret, using Japanese whisky-inspired code names for Shire and Takeda, the details had leaked before he had had a chance to inform Shire's board of his attempt and discuss it with them. On April 8, 2018, Shire's board rejected his offer. At the time, many questions remained as to how Takeda should proceed. -
Bank of Japan's Dilemma: Should its Ultra- Easy Monetary Policy End Under Inflationary Pressure and a Weak JPY?
In countering the threat of broader monetary policy divergence between the two nations, the JPY sank sharply against the USD. Although the BOJ continued with vigorous monetary easing, the US Federal Reserve started to restrict its monetary policy as inflation rose. Japanese exporters viewed a weak JPY as a bonus when funds were repatriated because it improved their overseas profits. But when coupled with an increased cost of crude oil and other commodities, it raised import costs and hindered consumer spending in Japan, a resource-scarce economy. Kuroda, the governor of the BOJ emphasized that it would retain its current policy if an increase in the consumer price index seemed temporary and not sustained. He cautioned that if the index rose above 2%, the BOJ would change its policies. His term of office as Governor of the Bank of Japan was scheduled to end in April 2023, but with an Upper House election in 2022, he was under domestic pressure to ensure that inflation remained under control -
Amazon's Second Headquarters: (A) Choosing the City
Case A reviews Amazon's location choices from its founding in 1994 to 2017, explaining how it moved its offices from Bellevue, Washington, to various Seattle locations, eventually establishing campuses in South Lake Union in 2010 and then in downtown Seattle in 2016. The case then explores Amazon's strategic plan to establish a second headquarters in another North American city, illustrating the complex relationship between cities and major corporations. Case B describes Amazon's cancellation of its New York project, how the company was affected by local zoning laws and urban politics, and how various local interest groups responded to its plan. The subject of the case is business-government relations at the city level. -
Amazon's Second Headquarters: (B) Switching Gears
Case A reviews Amazon's location choices from its founding in 1994 to 2017, explaining how it moved its offices from Bellevue, Washington, to various Seattle locations, eventually establishing campuses in South Lake Union in 2010 and then in downtown Seattle in 2016. The case then explores Amazon's strategic plan to establish a second headquarters in another North American city, illustrating the complex relationship between cities and major corporations. Case B describes Amazon's cancellation of its New York project, how the company was affected by local zoning laws and urban politics, and how various local interest groups responded to its plan. The subject of the case is business-government relations at the city level. -
Starbucks: Creating the ambience and rekindling people's thirst by bringing the brew to the world
The case analysis facilitates deeper understanding, critical thinking and application of concepts pertaining to organizational environment and strategic planning using the example of Starbucks, an American multinational chain that positions itself as a premier roaster, marketer and retailer of specialty coffee. The case illustrates how the macro and competitive environments impact the Starbucks' strategies and performance, focusing in particular on macro elements such as Economy, Technology, Laws and Regulations, Demographics, Social and Natural Environment/Ecology. The competitive environment analysis explores the five key elements of Industry Rivalry, New Entrants, Customers, Substitutes and Complements and Suppliers. Students are encouraged to investigate the implementation of appropriate effective strategies after gaining a thorough comprehension of the external and internal environmental factors. -
Tim Hortons: Bringing Canada’s Iconic Coffee to China
In February 2019, Tim Hortons, Canada’s iconic coffee franchise, opened its first coffee shop in China in Shanghai, thereby extending its international footprint to China. To accomplish this entry, Restaurant Brands International (RBI), the parent company of Tim Hortons, formed a joint venture (JV) Tim Hortons (China) Holdings Co., Ltd. (Tims China) with Cartesian Capital, a private equity fund that had operated in China for more than twenty years. As the minority owner, RBI granted Tims China the master franchise rights, covering the use of trademarks, core products, store management procedures, and so on. Cartesian Capital, on the other hand, held majority ownership and would manage the strategy and daily operation of the joint enterprise. A veteran of Cartesian Capital was dispatched to the JV to be its chief executive officer. The fast-growing coffee market in China presented enormous opportunities, but Tim Hortons was a latecomer compared with foreign brands like Starbucks and numerous local coffee providers. In this situation, how should he best position and expand Tim Hortons in the new market? -
Winds of Change at Hero Honda
Pawan Munjal, the CEO of Hero Honda, started a media briefing in December 2010 with the statement: "This is the most important announcement I have made in the last 25 years." The announcement by Pawan Munjal referred to the destiny of Hero Honda, the joint venture (JV) between India's Hero Group (Hero) and Japan's Honda Motor Company (Honda). At the time, the JV was the longest serving strategic alliance in the stable of Honda's overseas ventures and among the very few surviving JVs that were set up in India's automobile market in the 1980s. This was now coming to an end. When Hero Honda ended, many analysts and industry experts predicted a tough road ahead for the newly christened Hero MotoCorp. Some wrote the obituary for Hero's two-wheeler business. However, during the subsequent decade, Hero enjoyed many successes and was looking forward to the Future of Mobility (outlined in its tagline) as it entered a new era in 2022 with Harley-Davidson and other strategic partners to take on the emerging challenges. -
NorthCan Packaging and Logistics: Leveraging Growth through International Expansion
The chief executive officer (CEO)of NorthCan Packaging and Logistics (NorthCan) was considering options for NorthCan’s planned expansion into the United States. He had to decide whether NorthCan should (1) construct or purchase a facility in the United States; (2) develop a strategic partnership with an established, complementary US-based packaging solutions company; (3) franchise sales and service in the United States; or (4) expand into the United States, while keeping core operations in Canada. The CEO had to ensure that, with any option, the full-service and value-added aspects of NorthCan remained central. He had to also consider the social and economic costs and benefits of each option, including potential for international growth and competitive advantage, sustainability, regulations, and stakeholder preferences. -
NorthCan Packaging and Logistics: Leveraging Growth through International Expansion
The chief executive officer (CEO)of NorthCan Packaging and Logistics (NorthCan) was considering options for NorthCan's planned expansion into the United States. He had to decide whether NorthCan should (1) construct or purchase a facility in the United States; (2) develop a strategic partnership with an established, complementary US-based packaging solutions company; (3) franchise sales and service in the United States; or (4) expand into the United States, while keeping core operations in Canada. The CEO had to ensure that, with any option, the full-service and value-added aspects of NorthCan remained central. He had to also consider the social and economic costs and benefits of each option, including potential for international growth and competitive advantage, sustainability, regulations, and stakeholder preferences. -
51Talk: Navigating China’s New Tutoring Policy
On July 24, 2021, Chinese authorities issued the Double Reduction Policy to ease the burden of excessive homework and off-campus tutoring for students undergoing compulsory education in China. Off-campus English tutoring became strictly regulated, and hiring foreign teachers abroad to carry out training activities was strictly prohibited. 51Talk had achieved great success in the K–12 English online tutoring market, and this business accounted for more than 95 per cent of the company’s total revenue. However, the company would not be able to continue its K–12 student English online tutoring business in the Chinese market under the Double Reduction Policy. Jack Huang, 51Talk’s founder and chief executive officer, had to consider how to transform the company in order to survive. -
Transparency, Traceability, and Compliance in Uniqlo’s Global Value Chain
In January 2021, the Japanese fashion company Uniqlo was accused of using forced labour in its supply chains. Various news reports had been claiming that Uyghur Muslims were being detained and forced to work on cotton farms, production factories, and processing facilities in China’s Xinjiang Uyghur Autonomous Region. The United States Customs and Border Protection claimed that Uniqlo was not able to fully demonstrate that its products and inputs were manufactured without use of forced labour or modern slavery in Xinjiang, China and issued a Withhold Release Order to detain Uniqlo’s shipment of cotton garments. Uniqlo’s attempts to dispute the allegations and overturn the WRO were unsuccessful. The company had to find a way to ensure transparency and uphold traceability across all streams of its value chain activity. But how could Uniqlo ensure ethical sourcing for all aspects of its products, given limited oversight over suppliers and subcontractors? Was cotton traceability a viable and feasible option? How could Uniqlo ensure the compliance all key actors in its value chain streams, across tiers of suppliers and layers of subcontractors? -
Understanding the Rise of Tech in China
Five new books explore the threats and opportunities of China's tech rise: Influence Empire, by Lulu Chen; The Cashless Revolution, by Martin Chorzempa; When AI Rules the World, by Handel Jones; Chip War, by Chris Miller; and The Power of Crisis, by Ian Bremmer. -
Groupe Aliments Choix: Building Capabilities for the Future
In 2022, the newly appointed general manager (GM) of the global cookie business at Groupe Aliments Choix must build his business unit in the throes of a major corporate shift in strategy and structure. The newly announced corporate changes are a challenge to the GM because of his unit’s traditional country-centred approach to business. He is under added pressure because he has been given just forty-five days to develop an action plan. His recommendations will include structural changes and targets for building new organizational capabilities. As a new leader in a new position, the GM also needs to assess his own capabilities relative to the challenging tasks ahead. -
The Michelin Group India: Handling Accusations of Misconduct
In July 2012, the French multinational company Michelin Group, one of the largest tire manufacturers in the world, was facing accusations of failing to respect human rights and environmental rights in its operations in Tamil Nadu, India. This complaint came at the surprise of managers at the company who had made efforts to create relationships with local communities. At Michelin Group’s headquarters in France, the senior member of the sustainability team had to decide how to respond to the complaint in a way that would satisfy both external stakeholders (e.g., local communities and civil society organizations) and internal stakeholders (e.g., employees and managers from other departments).