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Mental and Natural: Building a Cloud-Based Collaboration Platform in China
In late 2016, the entrepreneurial founder of Mental and Natural Company, a digital multimedia company in China, wanted to have ready access to China's best multimedia talent and expertise, but without burdening the company with an excessive number of employees. The entrepreneur and his team were developing a cloud-based multimedia crowdsourcing and collaboration platform, which would allow the company to quickly and easily crowdsource the needed freelance talent from around China. Yet, even before the platform was fully up and running, a new growth opportunity presented three possible options for the company to pursue. The entrepreneur and his team had just three weeks to decide on which option best fit the company's existing business model, made best use of its resources, and was the best choice to secure the company's future. -
Hewlett Packard eHealth Center: Healthcare Access Through Technology Convergence
In 2012, eHealth Centers (eHCs) digitally delivered affordable medical care and diagnostic support for patients in villages and remote areas of India where it was otherwise unavailable. The solution was initially conceived and developed as a mandate from Hewlett Packard India’s corporate social responsibility team under the leadership of the chief technology officer. The eHCs design incorporated a self-contained diagnostic centre in a container, operated by a staff of paramedics. Doctors located in urban health hubs provided consulting care through video conferencing, and patients could experience the feeling of being in a doctor’s office in real-time. These eHCs slowly turned out to be a business opportunity for Hewlett Packard India. By early 2016, there were 55 centres in operation. The challenge before the company was to scale up exponentially. -
Managing a Severe Crisis: PharmaCorp in Ukraine
In early 2015, the newly appointed country head of PharmaCorp’s operating unit in Ukraine faced internal and external challenges in managing the global pharmaceutical company’s operations in the crisis-ridden country. Since November 2013, Ukraine had undergone massive disruptions, including riots in Kiev, the annexation of Crimea by Russia, and a war in its easternmost region. Amid these economic and political turbulences, PharmaCorp Ukraine experienced plummeting sales, increased workload, amplified human resources issues, and decreased market share. Furthermore, the multinational corporation’s internal routines became less effective in the context of the crisis. Although the regional headquarters in Lausanne, Switzerland, offered guidance and resources, inefficiencies in responding to local issues emerged during the crisis. Should PharmaCorp exit the market? Or should it stay in Ukraine and revise its local marketing strategy by offering more innovative products? Should it implement cost-saving measures? Should the business model be revised to gain more autonomy for its operations? The country head was scheduled to meet with representatives from the regional headquarters and needed to prepare a comprehensive strategy for improving the local situation. -
The World's Next Great Manufacturing Center
According to data from the Chinese Ministry of Commerce, privately owned Chinese companies are making more than 150 investments a year in Africa's manufacturing sector, up from only two in 2000. These companies are having a major impact: They smelt steel in Nigeria to fuel its construction boom; they've made the clothing industry the largest economic sector in Lesotho; and the board of Humanwell, a Chinese pharmaceutical company, has approved an eventual investment of $100 million in Ethiopia. These and other investments are transforming Africa's economy and society by providing millions of Africans with formal employment for the first time, fostering a generation of African entrepreneurs, and inspiring African institutions to support vibrant manufacturing clusters. -
One Earth Designs: A "One Country, Two Systems" Model to Build a Social Business
In 2008, a team of students from Harvard, MIT, and Wellesley College in the US and Qinghai Normal University in China worked together as One Earth Designs ("OED") to create technologies to help off-grid communities in western China. These communities often have no access to readily available energy sources, nor clean air and safe water. The initial success of OED's first product in China - SolSource, a solar concentrator for clean cooking -encouraged the organization to build a global business to bring efficient and affordable solar energy to the world. OED has a unique business model for a social business: while many businesses with social goals cooperate with charitable foundations at arm's length and through partnerships, few have set up a non-profit and for-profit integrated group structure with technology licensing business relationships between the two distinct arms. Scot Frank and Catlin Powers, the co-founders of OED wondered how they could scale their business model and keep their vision. -
Tommy Chen: Using Sun Tzu's Art of War in Business
In 2014, the general manager and a director of an Australian building company were seeking an outside investor to provide the company with the needed resources to recover from a disastrous takeover. The two found such an investor in a Chinese entrepreneur and Sun Tzu master based in Hong Kong. To the shock of those involved with the Australian company, the Chinese investor used Sun Tzu war strategies to take over and destroy the smaller Australian company, while flouting ethical business practices and Australia's standards of corporate governance.<br><br>The Australians' naïveté and their desperate need for capital made the investor's tactics possible. With the benefit of hindsight and omniscient narration revealing the thoughts and actions of both parties, students can evaluate how the events in the case led to the shocking conclusion in 2015, leaving a shell of a company worth penny stock. -
Ana by Karma: One Scarf, One Hope
In 2014, a Hong Kong-based chartered accountant inadvertently started a social enterprise called Ana by Karma. The initial intent of helping an illiterate Bhutanese woman soon evolved into a journey to empower women in Bhutan to use their creative talents to become financially independent. As a result of her own charming personality and communication skills, the chartered accountant mobilized a team of volunteers to promote scarves that were handwoven by Bhutanese women and thereby bring hope to an increasing number of Bhutanese families who were living in poverty. In early 2016, while relishing her experiences over the previous 18 months, the chartered accountant mulled over the future development of Ana by Karma. How could the venture evolve sustainably? Was it realistic for her to operate Ana by Karma on a full-time basis? -
Time Out: A New Global Strategy to Bring Back Profit
In June 2016, the chief executive officer (CEO) of the United Kingdom-based Time Out Group PLC (Time Out), had just taken the company through an initial public offering, raising much-needed capital for investment and growth. Time Out, which provided consumers with information, tickets, and access to theatre, concerts, and events, as well as food, drink, and cultural experiences in its Time Out Market, had reported significant losses in 2014 and 2015. However, there was momentum in new market areas, and the recently launched Time Out Market in Lisbon, Portugal, had seen revenue growth of 67 per cent between 2014 and 2015. Now, with £59 million to invest, the CEO had to lead the company back to profitability. He needed to balance foreign direct investment in physical Time Out Markets with digital transformation of the company’s offerings. At the same time, he had to find ways to reinforce the new organizational culture he was building at Time Out as a way to help fulfil his corporate vision of Time Out as a disruptive force. -
Tommy Chen: Using Sun Tzu's Art of War in Business
In 2014, the general manager and a director of an Australian building company were seeking an outside investor to provide the company with the needed resources to recover from a disastrous takeover. The two found such an investor in a Chinese entrepreneur and Sun Tzu master based in Hong Kong. To the shock of those involved with the Australian company, the Chinese investor used Sun Tzu war strategies to take over and destroy the smaller Australian company, while flouting ethical business practices and Australia's standards of corporate governance. The Australians' naivete and their desperate need for capital made the investor's tactics possible. With the benefit of hindsight and omniscient narration revealing the thoughts and actions of both parties, students can evaluate how the events in the case led to the shocking conclusion in 2015, leaving a shell of a company worth penny stock. -
My Kind of Cakes: An Expansion Dilemma
My Kind of Cakes (MKOC), a cake boutique in Ghaziabad, India, had carved a niche for itself with its unique bakery products, quality food, and excellent service, all offered at a reasonable price. Within five years of opening, the business had flourished, growing in worth from 7.2 million in 2012 to 19.5 million in 2016. In January 2017, the owner of the cake shop pondered his strategies for achieving his target revenue of 50 million by 2020. He wondered if he should expand geographically and open franchises in nearby towns or if he should increase his product range. Should he build a digital platform to increase awareness of his brand or launch a loyalty program to strengthen MKOC's customer relationships? If so, how should he build such a program? Since he had also been asked to photograph special occasions such as baby showers, he wondered whether he should add theme photography to MKOC's offerings. -
My Kind of Cakes: An Expansion Dilemma
My Kind of Cakes (MKOC), a cake boutique in Ghaziabad, India, had carved a niche for itself with its unique bakery products, quality food, and excellent service, all offered at a reasonable price. Within five years of opening, the business had flourished, growing in worth from ?7.2 million in 2012 to ?19.5 million in 2016. In January 2017, the owner of the cake shop pondered his strategies for achieving his target revenue of ?50 million by 2020. He wondered if he should expand geographically and open franchises in nearby towns or if he should increase his product range. Should he build a digital platform to increase awareness of his brand or launch a loyalty program to strengthen MKOC’s customer relationships? If so, how should he build such a program? Since he had also been asked to photograph special occasions such as baby showers, he wondered whether he should add theme photography to MKOC's offerings. -
Ratan Tata: Ethical Leadership
Ratan Tata began his journey with the Tata group on the shop floor of the Tata Iron and Steel Company Limited and eventually rose to become chairman of the Tata group—a conglomerate with operations in more than 80 countries across six continents. Known as a value-based, principled, and visionary leader, Ratan Tata helped the Tata group grow immensely over two decades of leadership. When he retired in 2012, he passed the leadership to a new chairman. However, four years later, on October 24, 2016, the Tata Sons board, which controlled the Tata group, decided to replace the chairman. His ousting led to a public clash over ethics and corporate governance at the top of the Tata empire. Ratan Tata was asked to return as interim chairman and help find a new successor. How could he succeed in this task and help the Tata group retain its glory, without compromising its values and beliefs? -
The Awethu Project: Values-Driven Decisions for Profit and Social Impact
The Awethu Project (Awethu) was a South African-based social enterprise that operated as a venture capital and investment firm for small, medium, and micro-sized enterprises. The company was widely acknowledged for its social mission of creating jobs and benefiting society while maximizing profit. In March 2016, Awethu’s leaders signed an agreement with a prominent South African corporation, which could allow Awethu to operate within a higher segment, bringing the company closer to fulfilling its strategy. But Awethu continued to wrestle with a number of challenges, such as its socioeconomic environment and strategic focus decisions, and the question of how to continually attract capital and deliver on the company’s vision. Finding themselves at an important moment in their company’s history, Awethu’s leaders considered how the new partnership could help Awethu address these looming challenges, while creating sustainable profit and value. -
Indorama Eleme Petrochemicals Limited: Beyond CSR for Secure, Safe and Sustainable Operations in Nigeria
"Indorama Eleme Petrochemicals Limited: Beyond CSR for Secure, Safe and Sustainable Operations in Nigeria" focusses on Indorama Corporation, a multinational conglomerate of Asian origin who bought the ailing petrochemical plant in Eleme Nigeria called Eleme Petrochemicals Limited (EPCL) to establish Indorama Eleme Petrochemicals Ltd. (IEPL). This case describes the successful story of how IEPL is trying to build a trusting relationship with the local community in the Niger Delta, which has a history of distrust and conflict with multinationals. The case focusses on the ethical dilemma of the board of the multinational corporation operating in a foreign land in making a critical business decision of whether to bring the community stakeholders inside its boardroom or not under its Public-Private Partnership scheme. -
Tokyo Electron: The Competitive Consolidation and Antitrust Challenge
In September 2013, Tokyo Electron Limited announced a merger with Applied Materials Inc. The deal would place the new entity in the leader position in the highly consolidated global semiconductor manufacturing equipment industry, which counted Intel Corporation and Samsung Group as major customers. Due to antitrust issues, the deal was eventually cancelled. Shortly after, in October 2015, Lam Research Corporation announced a merger with KLA-Tencor Corporation. If this deal was accepted, the market would be led by three companies—Applied Materials Inc., ASML Holding, and Lam/KLA-Tencor—while Tokyo Electron would be marginalized. Given the tremendous cost pressures from the consolidated competitors and powerful customers, should Tokyo Electron initiate another merger to consolidate its position? Were there other effective competitive options? What could it learn from its failed merger with Applied Materials Inc.? -
Note on the Design and Management of International Joint Ventures
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. -
Note on the Design and Management of International Joint Ventures
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. -
Xiaomi: Entering International Markets
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’s Electric Vehicle Roadmap
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? -
Yushan Bicycles: Learning to Ride Abroad
Yushan Bicycles, one of Taiwan's leading bicycle manufacturers, is pursuing an international expansion strategy by increasing demand for its range of traditional and electric bicycles and by shifting its product mix toward higher-margin models sold through specialty bicycle retail shops. However, the manager of its new Australian subsidiary has taken a different approach that focuses on selling lower-priced models through large sporting-goods retailers. The manager's strategy has yielded disappointing financial results so far, and he and company executives disagree on the cause and next steps. The Yushan case was specifically developed for international management and international business courses, but it can also be used in competitive strategy, corporate strategy, and general management programs. It is especially useful for analyzing situations in which issues of strategy, organization, and management converge.