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Trip Trap: Managing Certification in the Global Supply Chain
A small Danish design company seeks to collaborate with its largest supplier in Thailand in order to improve health, safety and environmental conditions, as well as labour standards, as a core element of complying with the UN Global Compact principles. The company takes its corporate social responsibility (CSR) agenda seriously and has developed a new standard for CSR in its supplier factories that is implemented and audited by a non-governmental organization. New challenges emerge as attention shifts to the certification of production inputs such as wood. Although Western small- and medium-sized enterprises (SMEs) face pressures to audit their suppliers in developing countries, these SMEs often lack the financial and political resources to change behaviours in supplier factories. The firm’s quality manager must evaluate its sustainability approach. How much leverage can a small company expect to have with its suppliers? Furthermore, is the cost of auditing suppliers in a country such as Thailand too high? -
Indian Metal Company's Talent Management Dilemma
By 2013, the Indian Metal Company, headquartered in Metconagar in eastern India, had been a leading metallurgical company in India for 100 years. While it had ambitious expansion plans, both at home and abroad, it was bedeviled by an increasing attrition of professionals and difficulty in attracting candidates from premier educational institutions. This shortage of talent could jeopardize the company’s investments. The chief executive officer convened an urgent meeting of senior executives to discuss the problem and explore possible solutions. The meeting ended in a confusing barrage of views and counterviews. A committee was appointed to synthesize the competing views and prepare a master plan for talent management. It began its work by reviewing past data related to attrition and holding discussions with small groups of young professionals. The time had now come to prepare its report and recommendations. -
Trip Trap: Managing Certification in the Global Supply Chain
A small Danish design company seeks to collaborate with its largest supplier in Thailand in order to improve health, safety and environmental conditions, as well as labour standards, as a core element of complying with the UN Global Compact principles. The company takes its corporate social responsibility (CSR) agenda seriously and has developed a new standard for CSR in its supplier factories that is implemented and audited by a non-governmental organization. New challenges emerge as attention shifts to the certification of production inputs such as wood. Although Western small- and medium-sized enterprises (SMEs) face pressures to audit their suppliers in developing countries, these SMEs often lack the financial and political resources to change behaviours in supplier factories. The firm's quality manager must evaluate its sustainability approach. How much leverage can a small company expect to have with its suppliers? Furthermore, is the cost of auditing suppliers in a country such as Thailand too high? -
Battle in the Shipyard
Great Offshore Limited (GOL), a leading player in the Indian offshore oilfield services industry, was one of the largest customers of Bharati Shipyard Limited (BSL), the second-largest private-sector shipbuilding company in India. BSL had acquired an approximately 15 per cent stake in GOL (by invoking a share pledge) and made a public offer for a further 20 per cent stake in GOL. BSL’s rival — ABG Shipyard Limited (ABG) — announced a counter-offer. By early August 2009, both BSL and ABG had made further counter-offers and the latest offer price by ABG was 51 per cent higher than the first offer made by BSL. Both players had also invested substantially in building up their equity holdings in GOL. BSL had to decide on how far it should go to make the acquisition. -
Narayana Hrudayalaya: From Heart Care to Human Care
Narayana Hrudayalaya (NH), a leading cardiac hospital network with many firsts to its credit, has revolutionized heart care in India. It has a market share close to 15 per cent in the cardiac sector, has successfully completed 70,000 surgeries and has given insurance to over four million farmers through its microinsurance scheme. Its motto, “caring with compassion,” is its guiding philosophy and the telemedicine network set up at NH has been able to provide treatment for over 50,000 cardiac patients free of charge. The case highlights the evolution of NH and the vision of its founder, and outlines his ambitions and struggles in seeking to increase the number of cardiac surgeries performed each day. How can he retain the top surgeons and fulfill his mission to offer affordable heart care while the compensation of doctors is rapidly increasing? -
Prince Pipes and Fittings Pvt. Ltd., India
Prince Pipes and Fittings (Prince) — a family managed enterprise in the Indian PVC pipe industry — had not only navigated the 2008 Global financial crisis, a period when more than 1000 Indian pipe companies had shut down within 90 days, it had in fact used the crisis as an opportunity to successfully transition from an small and medium enterprise (SME) to a large enterprise through acquisitions. In 2013, the company faced a bleak macroeconomic environment of declining GDP growth rates, tight monetary conditions, a pessimistic industrial outlook, a depreciating rupee and rising crude prices. It also faced growing domestic competition. Would Prince be able to reach its goals for 2013/14? -
Shelby Division 2012
The vice-president and general manager for Michigan Plastic Inc.’s Shelby Division (Shelby) is faced with various options. Shelby specializes in thermoforming plastic gasoline tanks for global automotive companies such as General Motors, Ford and Toyota. The vice-president is looking at ways to restart growth at Shelby, a division that has been the subject of a turnaround effort from 2007 to 2010. In fact, the vice-president has committed to his chief executive officer to double sales in the next five years. This case looks at the competitive environment – competitors and the state of technology – and the vice-president's challenge in selecting the growth option. -
Tim Hortons Inc.
In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete with Starbucks, McDonald’s and Dunkin’ Donuts, the world’s largest and best known providers of fast food such as coffee, donuts and sandwiches. However, while the brand is almost synonymous with Canada, it is far less known beyond that country’s borders. In mid-August, the company announced its potential acquisition by 3G Capital, the Brazilian parent of Burger King, but this still has to be approved by its shareholders and likely by Canadian and U.S. regulators. The potential merger might help the company move forward, but will it be enough to create a competitive advantage on a global scale? -
Shanghai NSE Electric Co. Ltd. and Its International Cooperation
Shanghai NSE Electric Co. Ltd. (NSE), a medium-sized manufacturer of marine switch panels, had entered into a joint venture with Schneider Electric under which NSE was Schneider’s sole technology licensee in China. NSE felt fortunate because the world shipbuilding market was strong and orders were often full. With comprehensive and close cooperation, NSE was confident in Schneider. Nevertheless, Schneider announced that it would issue a second license to NSE’s outsourcing manufacturer, SaierNico Electric & Automation. This meant that a competitor that produced and sold products of the same brand would emerge in the Chinese market. What was worse, this competitor had been cultivated by NSE. The CEO of NSE believed that NSE had three options: (1) continue to cooperate with Schneider; (2) broaden its business and cooperate with other powerful companies; or (3) invest more in local innovation to develop its own brand. -
Portfolio Diversification Enigma
In early January 2013, a product manager with one of the leading insurance companies in Delhi, India, sat in his home office and pondered the strategy he had followed for his personal investment portfolio over the last three years. He was worried that talk of tapering off the U.S. Federal Reserve’s Quantitative Easing Program, undertaken in the aftermath of the 2008 global financial crisis, and the Indian general elections in May 2014 might affect the value of his investments. In order to achieve higher risk-adjusted returns, he was considering diversifying his all-equity portfolio by adding gold. Before he went ahead, he needed to test the data by using past returns, standard deviations and correlations and then use the Sharpe Ratio to compare the risk-adjusted returns of the diversified portfolio (comprising gold and equity) vis-à-vis an all-equity portfolio. -
KwikAxess: A New Business Model
A health services company is planning for an initial public offering. Its new business model is the farming of body parts to feed into the organ supply chain in developed economies to help reduce the waiting lists for organ transplants. -
AUB Medical Center: Achieving 2020 Vision (A)
An academic and medical practitioner leaves Harvard Medical School to join the American University of Beirut Medical Center (AUBMC) as dean of the School of Medicine and vice president of medical affairs. Faced with unmotivated staff, a huge deficit, a plethora of procedural inefficiencies, and the chaotic political situation of the country, he is determined to turn things around and raise the institution to international standards and position it as the premier medical institution in the Middle East and North Africa (MENA) region. He restructures the management team and sets a new vision of growth and expansion. However, he must face problems related to a lack of patient-centered service, tense relations between nurses and doctors, operational inefficiencies, and branding issues. Will AUBMC be able to pursue an ambitious growth strategy in the face of an adverse financial and political situation?<br><br>See B Case 9B14C043. -
AUB Medical Center: Achieving 2020 Vision (B)
This case is a supplement to AUB Medical Center: In Search of a Vision (A) . See 9B14C042. It introduces the AUBMC 2020 vision with its six paths and AUBMC’s strategic plan to implement this vision. It also highlights the internal restructuring that AUBMC has gone through and its efforts to create an organizational culture conducive to a positive work environment. Finally, it presents the internal and external strategic communication plan to rebrand AUBMC and communicate with the public. -
BRI Bayres Ritz International: Ready to Launch?
This case describes the entrepreneurial process of an Argentinean Canadian who created a new international venture based on the demand of Vancouver firms for international human resource management services and of Argentinean nationals for overseas internships and vocational training. Students will learn about the entrepreneur's background and how it influenced his opportunity recognition and organization of resources. They will also learn about business model evaluation and financial, personal, and social changes driven by entrepreneurship. -
IT-Ration's Quest for Growth: A Market Choice Challenge
This case uses the story of IT-Ration, a small firm based in Montreal, Quebec, Canada, to enable students to conduct an in-depth analysis of the founding manager, the firm, and the industry so as to make a strategic growth decision. The story unfolds in 2009 at a time when IT-Ration was at a crossroads - should it continue to focus on the Quebec market or go into the U.S. in order to grow? Remaining in Quebec meant that the business would face problems related to limited market size. However, a move to the U.S. would also bring its share of challenges. The entrepreneur had to weigh the pros and cons in order to make an informed decision. -
Cancer Care Ontario: An Innovation Strategy for Managing Wait Times
Cancer Care Ontario, the organization that oversees cancer treatment in Ontario, is challenged with establishing an innovative approach to reducing wait times for breast cancer and prostate cancer therapy across Ontario after wait times increased to more than two months. The special advisor on cancer issues to the Ontario Minister of Health and Long-Term Care needs to report his recommendation to Cancer Care Ontario’s board of directors, who manage all regional cancer centres in the province. The major challenge is to balance the needs and values of all the various stakeholders, while developing short-, medium- and long-term solutions to the wait list dilemma. -
Asclepius Consulting: The Sales Force Dilemma
In 2012, Asclepius Consulting is one of the many small software companies in India that have aspirations to become product companies as opposed to being services companies. Asclepius Consulting deals in hospital management information systems and has a product and service offering that is competitive and well received by customers. However, due to lack of capital, the company has been unable to invest in a sales force, and this has created a problem of reach. It is currently selling through a combination of resellers (external parties contracted to sell the software) and an inside sales force. Now, one of its three co-founders, whose expertise is in business process restructuring and business planning and strategy, is looking at revisiting the sales and marketing model in this complex marketplace. -
Modern Agricultural Farm: Budgeting for Control
In May 2011, the managing partner of the Modern Agricultural Farm in rural Pakistan was reviewing the set of performance reports for the previous month sent by the farm accountant. These reports had been designed by a management analysis and research consultant to convert the farm system to that used by the head office of the Alamgir Group of businesses, of which the farm was a part. There were two concerns: how to handle the fluctuations in the farm’s monthly cash flow and how to plan the right combination of plantings and crops to ensure a profit. A computer-based accounting software program had been purchased to help expedite accounting and reporting, and an annual master budget plan had been established to control operations. Given the special risks faced in agriculture where the portfolio of crops was dependent on uncontrollable factors, such as the weather, the managing director wondered how he could develop a workable budget for the coming year.<br><br>Student spreadsheet 7B13B025 with data is available. -
Diversey in India: The Growth Challenges and Options
Diversey, a leading global brand in the business-to-business cleaning industry, had entered the Indian market positioned as a total cleaning solution provider to institutional customers. It differentiated itself from the competition with its end-to-end solutions, superior products and service levels, research and development capabilities and value-based pricing. While it had some success in India, it felt that there was a huge untapped opportunity for growth. However, a developing country like India posed several challenges due to its social and cultural differences (e.g., local unorganized competition, customer price sensitivity, complex distribution channels, etc.) versus developed countries. The case provides an opportunity for students to apply a number of conceptual tools (i.e. Porter’s 5 forces analysis, 4C analysis, SWOT analysis, value- chain analysis and the stakeholder power/interest matrix) to analyze the current strategy and identify the best alternatives for Diversey to move forward with its growth objectives. -
Dalian Airport's Alliance Management Dilemma
The general manager of market development for the Dalian International Airport in China was worried. Two years after he had successfully launched the Northeastern Hinterland and Bohai Rim Region Airport Aviation Market Strategic Alliance in 2009, it was facing serious external and internal challenges. Competitors had begun to impact on the alliance by intensively adding flights to regional airports with the support of subsidies from provincial and local governments. And as alliance members gained more air traffic, they began to compete for transport resources, which challenged the organization’s sustainable development. From the beginning, Dalian International Airport, as the core of the organization, had shared its routes and ticket fares with other alliance member airports, had removed landing fees for stopover flights and had organized a trade fair to encourage interactions between small regional airports and the airlines that had ignored them in the past, not recognizing how China’s booming economy was making even remote routes potentially profitable. The general manager had three possible options: utilizing outside help, increasing his airport’s market position and strengthening internal ties to resist external forces. All three options had their pros and cons. What should he do?