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Audi has taken the lead in sales and dominated the luxury car market at the beginning of its entry in China. During the second stage (2001-2011), the localization of true Audi standard has experienced a shallow-to-deep and easy-to-difficult process. Moreover, FAW-Volkswagen reforms the marketing channel and establishes independent sales network for Audi A6 to start top-grade brand strategy of Audi. This is also the period that a large number of international competitors began to enter and compete in Chinese markets. To outperform competitors, Audi adopted such-called "localization of the whole value chain" strategy, i.e., realizing localization in product R&D, procurement, production, marketing and other links. The strategy allowed the quality to be more stable and the cost to be reduced effectively. With this strategy, by 2012, Audi became the most popular car brand, and its sales volume grew at the speed of 100,000 vehicles per year. Audi defines the concept and image of Chinese "luxury car" in a real sense and an all-around manner.

Audi is one of Germany's great automobile manufacturers that have the longest history. Its principle of adhering to high-tech level, high-quality standards and high-powered criteria has led the Audi brand to becoming the landmark among the most notable luxury cars. Audi's history in China can be traced back to 1988, when FAW and Audi signed the "Technology Transfer License Contract on the Production of Audi FAW". In 1991, FAW-Volkswagen Automotive Co., Ltd. (hereinafter referred to as FAW-Volkswagen) was founded. With 25 years of development, FAW-Volkswagen has set up three bases in the cities of Changchun, Chengdu and Foshan, which are respectively located in the Northeast, Southwest and South of China, as well as seven large-scale plants that are specialized in production. Audi is the first luxury car brand stepping into the Chinese market. Over the past 30 years, it has made remarkable achievements. The FAW-Volkswagen Audi "trilogy" case has described Audi's development history in China, and the situation as well as the strategies of FAW-Volkswagen Audi during three stages. The first stage (1987-2000) of development for FAW-Volkswagen Audi in China has laid a foundation for its leading position among luxury car brands. The case describes the founding of joint ventures, the conflicts among partners, and the strategies adopted to initiate and lead Chinese luxury car industry, all of which are very typical for most foreign entrants into Chinese markets during the beginning of China's 'opening up'.

In the second stage of development (2001-2011), FAW-Volkswagen Audi launched a strategy of "localization of the whole value chain", i.e., realizing localization in product R&D, procurement, production, marketing and other links. The strategy allowed the quality to be more stable and the cost to be reduced effectively. In terms of product category, FAW-Volkswagen Audi has been keeping in step with Chinese consumers' habits and constantly introducing new localized models. In terms of brand construction, FAW-Volkswagen Audi put forward three core values: honorable, enterprising and dynamic, communicated Audi's brand image to consumers from product quality to marketing model and after-sales service through various ways. By virtue of the successful strategy and the employees' efforts, FAW-Volkswagen Audi has obtained overall advantages in whole industrial chain, defining the concept and image of Chinese "luxury car" in a real sense and an all-around manner. However, after 2012, new changes occurred in the overall industry environment. While FAW-Volkswagen Audi still ranked the first in Chinese luxury car market, the gap between it and the followers is shrinking; the consumers have transformed from the previous herd mentality and concern to basic functions to pursuit of individuation and differentiation; from 1987 to 2012, there have always been a lot of government and high-end business people who favored Audi A6L. Though Audi has launched a number of personalized and youthful products and expanded its product line, a deep impression of Audi as 'official car' still remains in the minds of most consumers. What is more, some new potential rivals, such as new energy car and Internet car, keep on emerging in Chinese market. In this condition, how would FAW-Volkswagen Audi deal with the challenges? This case describes the challenges and Audi's strategic choices at the gate of new era.

In June 2016, Benjamin (Bibi) Netanyahu, Prime Minister of Israel, wrestled with how to sustain Israel's strong innovation track record and the country's reputation as the 'startup nation.' Despite the economic miracle the country had wrought since its founding, he knew he could not be complacent. On the one hand, in 2015 Israeli start-ups raised record-breaking amounts of venture capital, and exits for the year totaled over $8 Billion. On the other hand, government expenditure on R&D had decreased and Israel's position in the Global Innovation Index had fallen. Several other indicators, such as achievement tests among elementary school students in math and science, painted a grim picture. Furthermore, in spite of the wealth created by many high-tech Israeli firms, socioeconomic gaps in the country had widened. A two-tier economy had formed. The long-term sustainability of the "innovation economy" was in doubt, as the sector faced increased competition from foreign innovation hubs, was being reshaped by the growth of Multinational Corporations (MNCs) locating R&D centers in Israel, and had to contend with a vexing shortage of human capital and low labor force participation among some groups. Netanyahu had to assess whether it was time to sound the alarm, and whether drastic and immediate measures were needed to right the innovation economy ship. Bibi mulled over which policies or interventions would best curb the erosion of Israel's competitive position as an innovation powerhouse and how best to promote social equality. He pondered whether public policy could make a difference or whether the market and societal currents, responsible for these trends, were too strong for him and his government to try to contend with.

On 2012, Gary Taubes lunched the Nutrition Science initiative (NuSI), a not for profit organization aiming to question the mainstream scientific paradigm regarding obesity and dietary recommendations. This case provides a brief scientific background on obesity and its causes, comorbidities and the economic cost of this epidemic. It then discusses the two main hypotheses of diet, and the formation of NuSI. Finally, it describes the unique challenges and hurdles NuSI has faced both with funding and with impacting the mainstream scientific community. Could this NGO model of funding the "right" clinical trials be successful? Could it be duplicated across other scientific areas? What can be learned from NuSI's experience? And what is the roadmap for NuSI going forward?

In this exercise, the manager of The Virginian, a small restaurant and bar in Charlottesville, has asked for help in reducing the average queue size at its bar. The Virginian prides itself on its fast and consistent service. (View the video at http://thevirginiancville.com/.) Students are offered four scenarios to guide their analyses. Students conduct analyses by preparing a simulated model on their own or using a simulation created with AnyLogic software. This exercise is supported by "A Late Night at The Virginian Restaurant: Model Documentation and Guide." After learning the steps to run the model, students are asked to run it for four hours of simulated time under the four scenario conditions.

The founder of a digital media firm had to decide whether to list or to sell his company, PacificLink iMedia (PacificLink) in 2015. The founder had fielded more than 20 offers from various companies to acquire PacificLink since 2007-2008. He rejected all these past offers, because he was working to position the company to list on the main board of the Hong Kong Stock Exchange. However, in 2015, the founder received an offer from Accenture that appealed to him because PacificLink was finally in a position to satisfy all listing requirements for the Hong Kong Stock Exchange. He knew that he must consider many criteria in making his critical decision to sell or list PacificLink. See also the first and second cases in the three-part series.

In November 2014, the Residence Services department at MacEwan University in Alberta, Canada, needed to replace a residence assistant who was exiting midway through the academic year. The new hire would have one semester of work for the current academic year and, with good performance, was expected to return for two semesters of work in the following academic year. One of the qualified applicants had a distinguishable disability: she used a wheelchair. On the one hand, it would be easier for Residence Services to not hire her because of the various potential risks, concerns, or expected difficulties that could arise with her employment. The primary concern was her ability to respond effectively to emergency situations. A secondary concern was the impact on operational efficiency and the need to adapt work and staff routines to accommodate the use of a wheelchair. On the other hand, it was not legal to discriminate against the candidate for employment, and Residence Services valued inclusive hiring practices. The decision to hire or not hire this candidate needed to be made very soon.

The case presents the dilemma of Vivek Gupta, director Sanmarg pvt limited as he contemplates the road ahead for the 70 year old Hindi daily-Sanmarg. Headquartered in Kolkata and catering to the Hindi literate of west Bengal, Sanmarg also came out with state level editions from Bihar, Orissa and Jharkhand. The 16 page daily newspaper had stayed constant in its offering and only lately had come out with an on-line version. Was this consistency a strength or did the customer seek variety? Was it time to reinvent the newspaper? Or would it be easier to tap the untapped potential of neighboring states? Digital new age media and English dailies eying the language market demanded quick action. Makeover or market expansion, what was the right path for Sanmarg?

Russia has emerged as a dominant player especially in the natural gas segment of the global oil and gas industry. Its position of power has been cemented over the last decade on a variety of fronts ranging from the execution of the first offshore project, the first LNG project, the first Arctic exploration program, and the emergence of global giants, namely Gazprom and Rosneft, that have exerted considerable influence in attracting global super majors to Russia. The case study explores the execution of the two major Sakhalin projects that were instrumental in establishing Russia's position as a pre-eminent source of natural gas. These projects were among the earliest ones on a global scale that involved multiple global partners and were executed in a forbidding part of the country, offshore Russia in the Sea of Okhotsk. Both development deals were struck when Russia was in the midst of significant economic chaos following the breakup of the USSR into constituent republics. This period in Russian history was marked by significant opportunities as well as significant risks.

When the Meta Abo Brewery Company, Ethiopia's second largest brewery based in Sebeta, Ethiopia, was purchased from the government by UK-based Diageo PLC in 2012, sustainability of raw material supply, especially barley, was a key concern. At the time of the acquisition, the Meta Abo Brewery was importing all its malt barley. Diageo wanted to push local raw material sourcing to 70 percent. In May 2012, Paul Walsh, Diageo's CEO, attended the Symposium on Global Agriculture and Food Security hosted by the Chicago Council on Global Affairs, in collaboration with the World Economic Forum. During the symposium, Walsh signed a pledge to support the launch of the G8's New Alliance for Food Security and Nutrition (see case Exhibit 2). In the same year, Walsh signed the letter of intent committing Diageo to invest US$1.5 million scalable value chain project to source barley for the Meta Abo Brewery from about 6,000 smallholder farmers with the potential to scale up to 20,000 metric tons per year by 2016. This would still not meet all demands for the malt barley required to produce the malt needed by the Meta Abo Brewery, but it was a step in the right direction in terms of increasing local content in a market computing for inputs. The goal was clear, but the implementation details had to be worked out. How would Diageo and Meta Abo Brewery implement this bold initiative to partner with 6,000 smallholder farmers to increase both quality and quantity of local sourced malt barley? They had experience working on development projects in Africa, but would those projects provide sufficient lessons learned for this challenge?

The Prysmian Group is a leading global cable manufacturer based in Milan, Italy. Although dominant in Europe and other areas, it has been struggling to improve its market share in the Asia Pacific region. Its competitors are small family-owned businesses that operate within their individual countries in the region. Unable to execute its strategy practised in other regions-of acquiring companies and streamlining their operations-in Asia, Prysmian management decides on a business strategy of improving cooperation within business units and becoming more customer-centric. The three regional leaders in APAC, Luigi Migliorini, CEO of Prysmian China, Frederic Grosse, CEO of Prysmian ASEAN and Frederick Persson, CEO of Prysmian Australia & New Zealand had just completed a strategy meeting in the Singapore office and all understand that the key to implementing the business strategy is its human capital. This case is targeted for participants who are interested in understanding the human capital challenges associated with implementing a business strategy for a multinational corporation. After the session, the students will be able to describe the challenges associated with change in a multi-national corporation, and determine how human capital can impact the implementation of strategy.

Luigi Migliorini, CEO of Prysmian China, Frederic Grosse, CEO of Prysmian ASEAN and Frederick Persson, CEO of Prysmian Australia & New Zealand were discussing ways of increasing business in APAC. Prysmian is seeking to make the APAC region a second home market for the group. Previously, the APAC region had been neglected as Prysmian had concentrated on Europe. However, there are several challenges facing the management team. The tried and tested method of acquiring companies and streamlining their processes was difficult to replicate in APAC because competitors tended to be small and privately owned. Internally, the centralised decision-making structure made Prysmian slower than its competitors in providing quotes and rolling out products. Its scattered manufacturing plants worldwide also made intercompany transactions more important. Communications over product specifications and availability had to be made in a timely manner. Additionally, the diverse nature of individual countries and industries in APAC had resulted in niche product opportunities, but made operations more difficult. Still, APAC was a growth region and future infrastructure investments would require various types of cables. The three regional leaders had to devise a strategic approach for Prysmian to grow in APAC. Participants will learn that changing the culture of a multinational corporation is difficult but can be achieved by addressing the company's human capital in terms of talent, leadership, culture, and structure.

Since the flood of child migrants from Central America burst upon the southern United States in the summer of 2014-a vast rise in arrivals dubbed "the Surge"-Kids in Need of Defense (KIND) had been facing overwhelming demand for its legal services. Wendy Young, KIND's president, explained that the organization's primary mission was to ensure that no child appears alone in immigration court, but KIND also wanted to provide leadership, research, and advocacy to protect these "children on the move" from laws and practices that threatened their fundamental human rights. Ms. Young was facing a critical juncture in the organizational life of KIND: where and how should it focus its resources for greatest effectiveness in protecting child migrants? What limits must the organization set on its activities when facing an almost unlimited need for legal, social, health, and educational support of these vulnerable children?

Two years ago Ram Kapur's most valuable employee quit and decamped to a rival firm. Now he wants his job back. In this fictional case study, Kapur, the founder and CEO of a sustainable living and design firm based in Gurgaon, India, contemplates whether he should rehire his former star. After the unexpected departure, Kapur had struggled to keep the business afloat, but now he was on strong footing again. Two of his remaining staff had stepped up and filled the void and he was considering expanding into the Middle East. Having his top performer back would make growing the business easier--but was it the right move? Could he get over his hurt and anger? And could the rest of the staff?

Two years ago Ram Kapur's most valuable employee quit and decamped to a rival firm. Now he wants his job back. In this fictional case study, Kapur, the founder and CEO of a sustainable living and design firm based in Gurgaon, India, contemplates whether he should rehire his former star. After the unexpected departure, Kapur had struggled to keep the business afloat, but now he was on strong footing again. Two of his remaining staff had stepped up and filled the void and he was considering expanding into the Middle East. Having his top performer back would make growing the business easier--but was it the right move? Could he get over his hurt and anger? And could the rest of the staff?

Two years ago Ram Kapur's most valuable employee quit and decamped to a rival firm. Now he wants his job back. In this fictional case study, Kapur, the founder and CEO of a sustainable living and design firm based in Gurgaon, India, contemplates whether he should rehire his former star. After the unexpected departure, Kapur had struggled to keep the business afloat, but now he was on strong footing again. Two of his remaining staff had stepped up and filled the void and he was considering expanding into the Middle East. Having his top performer back would make growing the business easier--but was it the right move? Could he get over his hurt and anger? And could the rest of the staff?

This case captures the roller-coaster ride of India's first multinational pharmaceutical company that after winning several accolades lost its way only to eventually plead guilty for the unethical practices it had resorted to in fulfilling its growth aspirations. Tracing the strategic choices of the company since its inception until it ceased to exist, the case covers the reign of several different CEOs. It enables examination of the drivers of a firm's strategic choices at the point of decision making, and serves to illustrate the dynamic aspects of leadership. Among others, it highlights the role of aspirations as a driver of firm's choices and the difficult tradeoffs that are inherent to aspiration-driven strategies. Demonstrating the negative repercussions of an aspiration-led strategy as well as the challenges a firm's leadership faces as they seek to re-define the aspirations, it serves as an intriguing story of the dark side of aspirations. The teaching note provides a set of discussion questions and pre-reads that can be assigned to the class, and suggests a detailed teaching plan that is divided into five pastures.

The case tells the story of Familitet, a small social enterprise in Ryazan, Russia, and its CEO, Tatiana Gschwend. In the post-Soviet world, where institutions are still very traditional, Familitet fills certain gaps. By offering classes in family and perinatal yoga, speech therapy, and social skills; organizing workshops on marital and parental psychology, breastfeeding, and anthropology; and offering the support of a midwife, Familitet has made its mark as a trail blazer. The case describes events that took place in 2015, when Familitet was experiencing the impact of the economic crisis caused by Western sanctions. That same year, the company had been approached by a Kazakh company wishing to explore the possibility of opening a franchise - an opportunity that could be advantageous to Familitet both during the crisis and over the long term. Tatiana and her team had to decide how to respond to the crisis by adapting their business model in Ryazan and choosing the optimal business model for the Kazakh market.