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As the economies of Greater China continued the process of rapid transformation and industrialization, newly industrialized countries (NICs), such as Taiwan and mainland China, experienced dramatic changes in their business settings. Accompanying the industrialization of east Asian economies, business ethics were in a state of flux, as traditional values were often swept aside to justify profit maximization. In this ever-changing business environment, what were the characteristics and benefits of Chinese business ethics? What role did they play? Could an integrity-based business practice serve as a source of competitive advantage? What business settings were supporting business ethics? Few studies have paid attention to these kinds of questions. Sinyi was one of the most successful real estate agent companies in Taiwan and mainland China. From a Confucian perspective, Sinyi's founder cultivated a "people-centered" culture for both its customers and employees. By applying business ethics as a central differentiating strategy, Sinyi established an excellent corporate image and was regarded by many as the role model of responsible business. Sinyi service was regarded as premier in Taiwan. Its customer satisfaction rating was also far above the industry average. Trustworthiness and fair dealing were the company's guiding principles. This was in contrast to the-then chaotic environment of the real estate industry in Taiwan, where basic trust between buyers and sellers was rare and deceit existed everywhere. Focusing on using business ethics as a central differentiating strategy, Sinyi had grown into Sinyi Group, which successfully integrated upstream, midstream and downstream industries and established a highly-acclaimed business model. Over the past two decades, Sinyi Group had expanded its operations to mainland China and forged an alliance with global real estate brokerage Coldwell Banker.

This case describes the evolution of a liquid petroleum gas (LPG) distributor start-up, incubated by two not-for-profit NGOs to help improve the vaccine cold chain in Northern Mozambique. These NGOs must face the decision whether and how to sell their participation in the start-up. VillageReach and the Mozambican Foundation for Community Development (FDC), both NGOs, got involved in the national immunization program, the Expanded Program on Immunization (EPI), in northern Mozambique. This program's goal was to ensure prompt and universal access to vaccines and other medical supplies. Early on, VillageReach had realized that the program's goals could not be satisfied unless cold storage (and transportation) of the vaccines was guaranteed. Because electricity was scarce and unreliable in the region, VillageReach searched for alternative solutions for supporting cold storage. VillageReach finally decided to use LPG powered refrigerators, and, due to the lack of reliable sources of LPG in the region, FDC and VillageReach went on to fund VidaGas, an LPG distribution company. It soon became evident that an efficient distribution network of LPG could provide benefits to society above and beyond health: at the time, most businesses and households in the region cooked using biomass fuels. Such fuels are a significant health hazard, and also contribute to deforestation in the region. Although VidaGas could be considered a success, it had yet to reach breakeven in its current operations. In addition, new investments would be required to expand operations to neighboring provinces beyond the province used for the pilot, Cabo Delgado. As the Ministry of Health (MoH), FDC and VillageReach are planning to expand the improvements in the national immunization program to these provinces, the presence of a reliable source of LPG would be essential to their goals. At the same time, VillageReach and FDC's resources for further investment are limited.

Private entrepreneur, Tony Fernandez took over the debt ridden AirAsia airlines from the Malaysian government in December 2001, months after the terrorist attacks of 9/11. One month later, he relaunched the airline as South-East Asia's first low cost carrier (LCC) and achieved an instant success with increased profitability and rapid route expansion. Under the tagline of "Now Everyone Can Fly", AirAsia was able to keep the lowest cost structure among its competitors and offered low airfare to customers. Being innovative down to the corporate bone, AirAsia pioneered several new services for its operation, including an ambitious plan that many other low cost, short-haul carriers viewed as risky-extending services to include long haul routes. In 2007, AirAsia was ranked as the best LCC in the Asia region. Its success had not only inspired many LCC followers in the Asia Pacific region, but also severely threatened the well-being of full-service operators, especially its major competitor at home, Malaysia Airlines ("MAS"). In May 2008, MAS initiated an unexpected price war by launching the "Everyday Low Fare" campaign, offering zero fare for domestic and short-haul flights, which were largely dominated by AirAsia. Amid surging flight operation costs globally and ever intense competition in the Asia Pacific region, how could AirAsia increase its competitiveness?

On 12 September 2008, Sanlu Group, the biggest producer of milk powder in China, rocked the country when it admitted that its infant formula had been contaminated with the toxic chemical melamine. China's national inspection agency extended its investigation to other dairy manufacturers across the nation. Shockingly, products of 21 other dairies, including some famous Chinese brands, also tested positive for melamine. Due to consumption of melamine-laced milk products, more than 56,000 infants and young children had become sick and four babies had died from kidney failure by the end of September. The melamine scare also resulted in many countries recalling and banning goods using milk products from China. When Sanlu became the key culprit in the milk crisis after its infant formula was revealed to contain as much as four times more melamine than other tainted brands, the company apologized to the public. Sanlu also explained that its unscrupulous raw-milk dealers had illegally added melamine to milk. However, it failed to explain its delay in alerting the public when it first received customer complaints in late 2007. Instead, Sanlu had tried to cover up the news until being prompted by its New Zealand partner, Fonterra, which later alerted the New Zealand government. As a result of the milk crisis, the local government of Shijiazhuang, where Sanlu was headquartered, was accused of holding back the news from the central government. Fonterra wrote off all its investment in Sanlu, and Sanlu finally declared bankruptcy on 24 December 2008. The Sanlu incident has spotlighted the inadequacy of China's entire dairy supply chain and has forced the government and the industry to make a collective effort to restore consumer confidence in Chinese dairy products.

This case discusses the housing registration system that was implemented in China in the late 1950s and categorized individuals into two groups: urban and rural. This was a status that individuals were born with and passed from one generation to the next. It not only defined their place of residence and work, but also the social benefits, housing, healthcare and education they were entitled to. In the period after 1978, with reforms in rural areas and the development of urban coastal areas, cheap labor flocked to the cities. With over 200 million migrants to urban areas in 20 years, the housing registration system prevented many from finding proper jobs, housing, healthcare and education. The Chinese government embarked on a number of reforms with varying degrees of success. This case highlights rural-urban disparities and the resulting migration to urban areas.

A month after Best Buy Inc. (Best Buy), the largest retailer of consumer electronics in the United States, acquired Five Star, the third largest retailer of appliances and consumer electronics in China in May 2006, the management of Best Buy is weighing in on a branding option. Should Five Star lose its identity and be marketed as Best Buy? Or should Best Buy retain the Five Star brand and let the two brands compete with each other in the Chinese market? The option has a sense of déjà vu because, when it first stepped out of its home turf in January of 2002 by acquiring Future Shop, the largest consumer electronics retailer in Canada, Best Buy was facing a similar dilemma. The company had decided, at the time, in favor of dual brand strategy. It had worked. There was no evidence of cannibalization, the single largest risk in dual branding. Best Buy and Future Shop had both grown together as independent brands in Canada. But, does dual brand strategy work in the vastly different retail environment of China?

Dabur, an Indian consumer package goods company, had established a strong brand equity in India by offering, for decades, a vast portfolio of over-the-counter products. In seeking international expansion in 1987, it first took the export route. It also "followed" the customer, targeting the Indian diaspora in the Middle East, Africa and the United States, already familiar with the brand. By 2006, Dabur had set up five manufacturing facilities outside India. In June 2007, Dabur had to make, in countries such as Nigeria for example, some critical choices. It had to choose between sticking to the diaspora, a market it understood best, and targeting the mainstream population. It had to choose its growth options between categories like personal care, in which it had built up competencies, and categories such as oral care and home care, which were the new engines of growth in its international markets but in which the company had no track record, either on the home front or overseas. The case study helps students deal with issues of growth and consolidation in a global market from the perspective of the company's chief executive officer and the head of its international operations.

Bio-Oil is a multi-purpose skin care product that has gone from being sold only in South Africa to being the No. 1 scar treatment product in 16 of the 17 countries that it is distributed. Retail sales have jumped from R3 million per annum to R1 billion from 2000 to 2008. Justin and David Letschert made key decisions to eliminate all of the other 119 products that were being manufactured by the company that they took over in 2000, and focused on the mainstay product of Bio-Oil. Union-Swiss accomplished its successful sales through the use of a hybrid distribution model that compelled its distributors in each country to communicate and share knowledge with each other. Union-Swiss also ensured that it remained focused on building the brand through limiting its activities in the value chain to that of marketing. It did this to such an extent that it created a separate entity to run the distribution of Bio-Oil in South Africa.

The co-founder and chief investment officer (CIO) of Red River Asset Management is trying to improve the way he communicates his firm's key benefits to clients. The CIO's central challenge is that his firm's investment philosophy focuses on quantitative analysis while most clients are only familiar with - and trust - qualitative analysis. In addition, his presentation skills are not as polished as he would like. This case allows an instructor to discuss the importance of message development and delivery in the financial context. The supplement (B) case, product # 909C14, highlights the CIO's decision and outcome.

In April 2009, the founder and owner of Terra Bite Lounge was considering opening another location. The Terra Bite Lounge was a Kirkland, Washington café with no prices and voluntary payment. The owner believed that Terra Bite was a demonstration of a high level of honesty and trust, between himself and the customer. There were several considerations to evaluate in deciding to open a new location. Where should the new location be? The current location was in an affluent suburb but the owner believed that several types of neighbourhoods would be receptive. What types of consumer characteristics would best be suited towards this model of trusting that payment would be made? Is there anything that could be added to the current model to make Terra Bite more successful? He was careful to consider those changes or additions that were consistent with the current social trust component of the original Terra Bite model.

In November 2007, Barack Obama, along with his chief strategist and campaign manager, was faced with a Gallup Poll of Democratic Presidential Candidates that indicated among Democratic voters Hillary Clinton held 48 per cent support of voters, compared with Obama's 21 per cent. Pundits and analysts essentially declared the race over; however, the triumvirate was convinced they had devised a perfect campaign strategy to overcome the long odds and win the nomination. Their confidence was validated when Barack Obama was elected the President of the United States in November 2008. This win was aided by a strategy that focused on competing in markets that other candidates did not, and embracing technological developments in a manner that other candidates would not. The Obama campaign employed such tools as lowering the target donation from potential donors, competing in non-traditional markets, unique resource allocation and use of technology to gain tactical advantages.

In 2006, Alpina had processing facilities in Colombia, Ecuador and Venezuela and its products were distributed in 34 countries. With annual sales of nearly $275 million, it was one of the largest private dairy companies in the Andean region. Alpina's social initiatives began early in the organization's history. The founders of the company and the families that were involved in its operations created a work environment in which the needs of stakeholders were a priority. As the company grew, there were changes in its ownership structure. Yet, in 2006, the owners of Alpina, Inc. were still a relatively small number of family investors. With growth there was also an expansion of social initiatives, which were carried out in different areas. Between 2002 and 2006, the Human Resources Department initiated a series of actions to consolidate social responsibility (SR) activities and to achieve greater impact. These efforts fell short when, in 2006, upon implementing a new corporate model, the Executive Committee began to question the purpose and scope of these social activities. The case puts the students in the place of Juan Pablo Fernández who, after three years in the company, was named Vice-President of Marketing. The Executive Committee gave his office the task of preparing a proposal to increase Alpina's social impact and established a limit on the amount of resources available for these activities. The information provided in the case allows the student to study and analyze two paths. One possibility was to expand the activities carried out by the company up until that point, which were aligned to varying degrees with the commercial activities of the company but were generally incorporated into the value chain. This was the path chosen by others in the industry and it would allow the company to tackle different risks and inefficiencies that affected the company's overall performance.

An international corporation's agricultural business division reviews its seven-year-old IT initiative among rural Indian farmers. Suitable for learners at all levels, the case is ideal for modules on strategic change, transformational change in a value chain, and development at the bottom of the pyramid. It also provides excellent insight into how corporations can improve both profits and lifestyles in developing nations while bolstering their worldwide competitiveness. The e-Choupal initiative provides Internet access to connect and unite farmers by teaching them more efficient farming methods and wholesaler accountability strategies. Should the company expand the initiative throughout the country? Given India's size and the various challenges involved, expansion would not be an easy task.

In November 2007, a global, cross-functional team at Cisco Systems, Inc. was seeking management approval to start manufacturing a new router, code-named Viking. The team faced a host of challenges in launching the low-cost but powerful router for telecommunications service providers. After overhauling the project to sharply increase the router's planned speed and capacity, the company had just one year to launch the product, an unusually fast schedule. In addition, Cisco wanted to debut China as a low-cost manufacturing base for the high-end product. It planned to use contract manufacturer Foxconn Technology Group to produce the machine, even though Foxconn had never made such a complex product for Cisco. Could Foxconn handle the technical complexity? Could Cisco work closely with Foxconn to mitigate the project risks? Could Cisco's methodology for new product introduction rise to the necessary level of sophistication? The case highlights the challenges and complexities of developing and manufacturing a sophisticated technology product for a worldwide market. Students will consider what it takes to achieve success in new product introduction, or NPI. The case also offers an opportunity to evaluate supply chain issues in a company that outsources manufacturing globally.

The chief financial officer of Pixonix Inc. is trying to decide if she should hedge, given the current strength of the Canadian dollar. Her company licenses proprietary software through a U.S. company that will cost $7.5 million in three months time. The case provides the students with the opportunity to understand the impact of exchange rate fluctuations on her firm's cash flows and some of the instruments available to manage risk, including puts and calls and forward contracts.

Green Bank of the Philippines was known for its product innovation and its ability to bring new products to market. In 2002, Green Bank designed an untested commitment savings product that both gave individuals access to formal savings and helped them commit to reaching their savings goals. Omar Andaya, the Green Bank president, must decide how to evaluate the success of this product. The management team at Green Bank discusses various evaluation methods, including a formal quantitative impact evaluation using a randomized control trial (RCT), and the value an impact assessment brings to the Bank. In particular, they grapple with the question of how success is measured for a product both for the bank and for its clients. The case highlights the issues an organization must consider before deciding to do an impact assessment as well as common design challenges.

A manufacturer of private-label personal care products must decide whether to fund an unprecedented expansion of manufacturing capacity. The decision prompts fundamental financial analysis of the potential project, including development of cash flow projections and net present value calculations. Students will be required to compute net operating profit after tax, cash investment in working capital, and ongoing capital expenditures for a proposed investment, and to discount values to the present. The case also facilitates a systematic consideration of the company's capital planning process.

The account manager at the Canadian Commercial Bank (CCB) in Barron, Ontario, reviewed his latest loan request. The co-founder of Druthers Forming Limited (Druthers), a long-time CCB customer, was requesting a $350,000 loan to construct a new building to house Druthers' existing operations. Construction was already well underway. The account manager also noted that Druthers was currently operating without a line of credit and he wondered whether the business could generate enough cash to cover expenses, including the new loan payments. He had one week to decide whether to lend funds and provide supporting rationale for his decision. To aid in his decision, the account manager began by assessing financial performance using statements of cash flows and ratio analysis; financial statement projection; and consideration of working capital requirements, including performing a sensitivity analysis on the days of accounts receivable, inventory and/or accounts payable.

By 2005, AXA had become one of the world's largest and most successful insurance companies, but Claude Brunet, Member of the Management Board, in charge of Transversal Operations, Communication, Marketing and Human Resources, believed that to achieve its ambitions the company was going to have to become much more customer focused. AXA Way, a culture change program that included many elements of Six Sigma philosophy and methodology, was the spearhead of this change. The case describes the AXA Way program, the challenges of its implementation, and how AXA overcame those challenges. Learning objectives: Understand how to manage the culture change necessary to improve customer service using Six Sigma. Six Sigma is sometimes seen as a technical change, as just a methodology, but change in attitude and mindset--in culture--are required for Six Sigma to succeed. Understand how Six Sigma can be successfully adopted in a service industry.

Family members knew something was very wrong when Adolf Merckle, who had guided the family holding company, VEM Vermögensverwaltung GmbH, through dozens of successful investments, left the house one afternoon in January 2009 and failed to return. That night their fears were confirmed when a German railway worker located Merckle's body near a commuter train line near his hometown of Blaubeuren, about a hundred miles west of Munich. It was no secret that the recent financial crisis had taken a toll on Merckle's investments. He was known in Germany as a savvy investor, but had lost hundreds of millions of Euros after being caught on the wrong side of a short squeeze of epic proportions involving Volkswagen stock. This was not the only large bet against that company's stock. A number of hedge funds, including Greenlight Capital, SAC Capital, Glenview Capital, Tiger Asia, and Perry Capital, lost billions of Euros in a few hours based on their large short positions in Volkswagen's stock following the news on October 26, 2008, that Porsche AG had obtained a large long synthetic position in Volkswagen stock through cash-settled options. In the next two days, this short squeeze produced a fivefold increase in Volkswagen's share price, as demand for shares from hedge funds exceeded the supply of borrowable shares.