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Trials of Honesty
In 2014, an inquiry was filed against a member of the Indian Police Service who had engaged in his duties as a police officer with the utmost integrity. As the director general of police, the highest administrative position in the police service, he had acted with independence and honesty in pursuing several high-profile cases. Consequently, the state government retaliated by filing a First Information Report (FIR) against him in a matter that was more than 10 years old. Although there were some ambiguities pertaining to the technical details of the case, the director general was proud of his reputation and trusted the judicial system. Would the High Court agree with the director general that this inquiry was unwarranted and exonerate him by quashing the FIR filed against him? -
ENOVE: Business Strategy in a Transitioning Economy
In August 2014, La Société Energies Nouvelles & Environnement (ENOVE), a subdivision of Groupe Bismuth, was developing an expansion strategy in the unstable political and economic environment of Tunisia, the company's home country. Tunisia was the birthplace of the Arab Spring, a series of political revolutions that started in 2010 and swept the Mediterranean region for five years. Tunisia was also quickly moving toward a democratically elected government, but the transition was not an easy one; the country experienced a setback of about 10 to 15 years, in regards to economic development. Years of functional corruption under the long-time president, Ben Ali, were followed by sustained economic growth in manufacturing, tourism, and education. This led the economy into a governmental vacuum. For the first time, workers began exercising their rights to demand better conditions. There was little governmental oversight on customs, labour, or taxation. The threat of terrorism, whether real or perceived, was always present. Under these conditions, ENOVE's president had to make a decision: Should ENOVE expand within Tunisia, or move their manufacturing operations to a more stable country, perhaps nearby Morocco? -
China's Digital Landscape: Imitating or Innovating?
China's digital market is on the rise at an exceptional pace, and giant digital players, such as Baidu, Alibaba and Tencent, have already surpassed some of the U.S. industry's most successful names in terms of market capitalisation. When competing in China's digital market, local Chinese digital players have an advantage over foreign newcomers as access to this market is restricted, and some international digital and social platforms are banned in China due to Internet censorship. However, while the hurdles created by censorship might have opened the gates for local companies to imitate Western innovations without international rivals - the internal competition within China is never easy. Chinese digital companies have to face tough local competition to win users and maintain a high retention rate. This requires them to constantly innovate and improve their products and services to stay ahead of the competition, which vigorously accelerates the development of China's digital markets. The question to ask is: Are Chinese digital companies merely imitating their Western counterparts, or are they also innovating? -
Nedbank Growth Strategy Execution Through Coaching and Mentoring
The chief executive officer of South Africa’s Nedbank Ltd. contemplated the dilemma of growing the bank in a mature, competitive market within his own country, as well as successfully expanding outside of South Africa’s border. Nedbank’s extensive investment in Ecobank, with its pan-African presence, was a risk, and required improvement of the capabilities of the leaders to execute Nedbank’s strategy. To achieve this, Nedbank focused on building an internal capacity through coaching and mentoring programs for its leaders, in addition to other initiatives to enable employees to execute the bank’s strategy. The chief executive officer was proud of his own innovative idea for a new product, and hoped he was setting an example for other leaders. He was equally proud that Nedbank was a values-oriented business that believed in using its influence to positively impact its community and environment. In 2014, despite positive advancements, the economic situation was grim and the chronic lack of skilled workers was a detriment to the country, and to Nedbank in particular. Could Nedbank rapidly increase its capabilities in time to meet the immediate challenges it faced as it expanded into locales where the stakes, and the risks, were higher? -
All Nippon Airways Are Duel Business Models Sustainable
In 2012, All Nippon Airways diversified into Japan’s emerging low-cost carrier market by launching two new low-cost carriers: Peach Aviation and AirAsia Japan. After one year, Peach Aviation experienced financial losses and operations failures; after two years, the company announced cancellation of many flights. The second carrier, AirAsia Japan, ended its operations in 2013, and was later restructured as Vanilla Air, a wholly owned subsidiary of All Nippon Airways. Why was a highly successful flag and legacy carrier unable to successfully run a low-cost carrier in Japan? -
Agarwal Movers and Packers Limited Competing for a Moving Experience
In December 2014, the chairman of Agarwal Packers and Movers Limited (APML) prepared for a meeting with his senior management team. APML was a family-managed business and the largest branded player in the fragmented and largely unorganized house-movers segment of the Indian logistics industry. The company was taking advantage of the Indian economy’s growth, government infrastructure spending, and goods and services tax changes that would bring beneficial changes to the industry. While the company had achieved sales of US$62.6 million in 2013/14 and had been lauded for its safety practices and achievements, the industry had low barriers to entry. APML was faced with several large, and numerous small, moving companies that were fighting for business. Moreover, many small companies fraudulently co-opted the company’s name to steal customers. APML’s chief financial officer had put forth a proposal to increase prices for inter-city relocations. The chairman had to consider the proper price strategy to employ, because any price increase could cost the company customers. -
Walton: Building a Global Brand Through Internationalization
By 2014, the Walton Group, an electrical goods manufacturer based in Bangladesh, sold its products in over 20 different countries. A decision to utilize the advantages of low labour costs in the company's home country was made in the early 2000s, which led to an increase in value and permitted rapid international expansion. To achieve Walton's mission of "Walton at every home," the company established various specialized support units both inside and outside Bangladesh. Government tax incentives in Bangladesh had boosted Walton's cost competitiveness, but how else could Walton compete with other international brands to achieve is goals and become a household name worldwide? -
United Bank of India: Present Fiasco and Future Plans
In 2013, United Bank of India (UBI), predominantly present in the eastern and northeastern parts of India, faces considerable difficulty in managing its swelling amounts of bad debt. A forensic enquiry by an external agency has identified some serious problems in the bank's credit appraisal process, loan disbursement procedures, and non-performing assets (NPA) detection system. With the bank's year-over-year growth of NPAs surpassing the growth of its credit, the management team faces the urgent task of developing an effective turnaround strategy to bring the bank back into a profit position. -
United Bank of India: Present Fiasco and Future Plans
In 2013, United Bank of India (UBI), predominantly present in the eastern and northeastern parts of India, faces considerable difficulty in managing its swelling amounts of bad debt. A forensic enquiry by an external agency has identified some serious problems in the bank’s credit appraisal process, loan disbursement procedures, and non-performing assets (NPA) detection system. With the bank’s year-over-year growth of NPAs surpassing the growth of its credit, the management team faces the urgent task of developing an effective turnaround strategy to bring the bank back into a profit position. -
Nestle SA: The Nescafe Plan in China
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - John Molson MBA Case Writing Competition</strong></p><br>In 2013, Nestlé SA, in an effort to integrate sustainability into its business model, has recently established the NESCAFÉ Plan. This multi-faceted plan is based on creating shared value. It emphasizes sustainability as a source of competitive advantage and wealth creation, rather than viewing sustainability as a cost to be incurred to minimize risks and protect the company’s reputation. Nestlé’s creating shared value manager in the Beverages strategic business unit faces two core dilemmas in executing this plan in China. In the short term, should Nestlé purchase green coffee beans that are socially or environmentally certified (e.g., Fairtrade), or should it instead expand its efforts to work directly with farmers to develop better farming practices? Longer term, would a backward integration into coffee farming provide a better means of ensuring that sustainability is embedded in the business model? -
Nestlé SA: Nescafé Plan in China
Nestlé SA, in an effort to integrate sustainability into its business model, has recently established the NESCAFÉ Plan. This multi-faceted plan is based on creating shared value. It emphasizes sustainability as a source of competitive advantage and wealth creation, rather than viewing sustainability as a cost to be incurred to minimize risks and protect the company's reputation. Nestlé's manager of creating shared value in the beverages strategic business unit faces two core dilemmas in executing this plan in China. In the short term, should Nestlé purchase green coffee beans that are socially or environmentally certified (e.g., Fairtrade), or should it instead expand its efforts to work directly with farmers to develop better farming practices? Longer term, would a backward integration into coffee farming provide a better means of ensuring that sustainability is embedded in the business model? -
IKEA in Saudi Arabia (A)
A Swedish newspaper reveals that IKEA has erased all images of women from its catalog for Saudi Arabia. The article sparks criticism of IKEA from the Swedish government and its customers in the West. Critics contend that IKEA is not living up to its own commitments to gender equality. Some threaten a boycott. IKEA must respond. Reissuing the catalog with women included risks running afoul of Saudi censors who can impose harsh penalties. The company has had a presence in Saudi Arabia for nearly 30 years. -
Neoglory Holdings Group: The Succession Choice
In 2008, the chairwoman of the Neoglory Holdings Group (Group) convinced her 23-year-old son to join the Group’s fashion jewelry business. By 2014, she was determined to quadruple the Group’s assets to RMB 100 billion in 10 years. While she had just appointed her son as the vice-president of the Group in order to help her achieve such an ambition, she pondered when she should let him fully take over the Group; whether she should hire non-family executives (following disappointing results from them in the past); and how she should draw in her other family members. How could her son nurture the career development of his extended family members and set up a family council? With his goal to make the Group the most harmonious family business in China and a role model throughout the world, he would have to establish effective family governance. -
M Power Micro Finance: Early Battle for Survival
When M Power Micro Finance was founded in 2009 in the Indian state of Gujarat, a number of challenges in the microfinance market made it difficult for the company to survive. Just months after M Power’s founding, the microfinance industry was hit by a repayment crisis that eroded both profitability and confidence in the industry. With public sentiment turning against microfinance institutions, M Power’s bright growth prospects suddenly disappeared and its CEO struggled to keep the business afloat. The flow of funding into the microfinance sector dried up, and the management of funds had to be closely monitored on a monthly basis. The CEO’s woes were not over: some of his business partners left the organization as the situation worsened. The company’s future was uncertain. As the industry began to show signs of recovery in 2013, though, the CEO hoped to secure a financing deal and persevere. -
Mabe: Learning To Be A Multinational (B)
Mexican electric appliances company Mabe had grown from being a leading national firm in its field to an international company with presence in most of the Americas and Russia. It had ventured into emerging markets and intended to continue its expansion to other countries. The company gathered together five directors to form an Action Learning team that would evaluate its entry into India together with directors from its potential partner, Italian company Indesit. The Action Learning team had to analyze the company’s prospects and make its recommendations with respect to entering the Indian market. However, despite being a market with great potential, India also posed a series of problems, including a lack of transportation infrastructure, an excess of industry capacity for electric appliances and the cultural challenge of a multinational Mexican company marketing to Indian consumers. Should Mabe go ahead with its move into India? If so, what would be the best way to enter the market?<br><br><br><br>This case can be taught on its own, or in combination with Mabe: Learning to Be a Multinational (A) 9B13M042. -
Easepal: Transforming a Chinese OEM Supplier
As one of the world’s largest OEM suppliers of electric massaging equipment, China’s Easepal has faced increasing challenges in its traditional OEM business over the course of two decades. Since the company’s inception in the 1990s, its founder has always had the ambitious goal of becoming more than just a supplier in the global electric massager market. Easepal’s mature research and development and manufacturing capabilities have the potential to deliver some valuable opportunities in both the Chinese and international markets. With the goal in mind of becoming the international market leader, how can Easepal systematically transform itself from an OEM supplier into a global brand? -
Hefei Xingtai Financial Holding Group: Risk Management
On May 8, 2012, the president of Hefei Xingtai Financial Holding Group (Xingtai) received a message from a senior officer of the Hefei Municipal Government, the company’s authorizing body, asking that Xingtai provide financial support to PanTeng Company (PanTeng), a solar power manufacturing company. In order to survive, PanTeng needed Xingtai to provide a guarantee for a ¥100 million business loan from a commercial bank. PanTeng had already been turned down by Xingtai Financing Guaranty, one of Xingtai’s subsidiaries, because of the potentially high level of guarantee risk. If Xingtai provided a guarantee, it could be liable to reimburse the loan due to PanTeng’s high-risk operation, lose its risk management expertise, and face further violations. However, denying the senior officer’s request would hamper Xingtai’s important relationship with the local government. Should Xingtai take a chance and approve the loan, or should it deny the guarantee? -
Facebook's Free Basics: Free in India?
In February 2015, Facebook’s Free Basics platform was launched in India by Internet.org, a partnership between Facebook and six mobile service and device companies. The platform was meant not only to enable Internet access on a smartphone but also to deliver low-cost Internet connectivity to the masses. Internet.org had already successfully launched Free Basics for a population of eight million people in nine countries across Asia, Africa, and South America. In India, however, the platform was not well received by a few eminent corporations and, more importantly, the Telecom Regulatory Authority of India. The launch of Free Basics stirred a nationwide debate about whether Internet.org was trying to control Internet services in India, creating an imbalance among the existing telecom service providers and causing a disproportionate development of business opportunities. Would Free Basics succeed in its goal, or would it be banned across India? -
The Rise and Fall of Petrobras
From humble beginnings, Petróleo Brasileiro S.A. (Petrobras) became one of the largest integrated oil and gas companies, gaining a reputation for sound leadership and strong technical expertise. By the mid-2000s, the company was often cited as one of the best managed national oil companies. By 2016, Petrobras was in a very different position. The company was embroiled in a multi-billion dollar corruption scandal and was one of the most indebted companies in the world. The decade-long corruption scheme reached the highest levels of business and Brazilian politics - Brazil's President, Dilma Rousseff, was the chairwoman of the Petrobras board from 2003 to 2010. Several senior Petrobras executives and Brazilian politicians had been arrested on allegations of bid rigging and bribery and more arrests were likely. In 2015 Petrobras was forced to write down the value of its assets by $14.9 billion and take a $2.1 billion charge for the scandal. Capital investments would be reduced significantly over the next five years in order to reduce debt and help recover investor confidence. -
The U.S. China Wind Power Dispute
In 2010, China's rapid development of wind energy, and specifically, its policies to promote wind turbine manufacturing, had resulted in significant loss of market share in the wind turbine market in China for U.S. and other foreign manufacturers. Although China was clearly violating WTO rules with its trade policies, U.S. and other firms were reluctant to bring a dispute to the WTO for fear of retaliation on the part of the Chinese government in the form of loss of access to the Chinese market. As a result, the United Steel Workers of America trade union brought the dispute the WTO. Because the trade violations were so clear, China backed down even before the dispute could get out of the first, "consultations" phase of the WTO dispute settlement process.