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The global recorded music industry was undergoing a major transition in 2006. Sales had been declining for a decade, and consumers were buying music in new formats and through different distribution channels. CD sales still accounted for the majority of revenues, but sales of music in digital formats (downloads, videos, ringtones) were growing significantly and accounting for approximately 10% of the industry's revenues in 2006. Many considered digital the future of the music business but the format posed both opportunities and challenges. While it had revitalized the singles market, for instance, digital had also facilitated rampant piracy. The music industry was retaliating, launching lawsuits against illegitimate peer-to-peer operators such as groups caught downloading illegally. Whether this would be enough to stop the trend was a matter of much debate. Meanwhile, the industry continued to consolidate. In 2004, Sony Music and BMG, the third- and fifth-largest record firms at the time, merged to form Sony BMG. Surprisingly, in 2006 the European Union's Court of First Instance annulled the merger--which the European Commission had approved two years earlier--after a group of independent music labels complained about the merger's effect on competition. While Sony and BMG were defending the merger in court, EMI Group plc wondered if its desired takeover of Warner Music Group--which it had been pursuing since 2000--would ever happen. If it did, how much business would the new entity have in the rapidly changing environment? All wondered how the industry would evolve.

Income tax cuts for individuals and businesses, ambitious government spending plans, financial assistance for citizens affected by the December 2004 tsunami, rising costs of the national healthcare system, and public pressure to curb alcohol consumption all contributed to the Government of Thailand's decision to consider raising its excise taxes on alcoholic beverages. By September 2005 the Thai cabinet had to make a decision on reform of the system of liquor taxation. The current scheme was a mixed system that charged excise taxes based on both liquor values and the quantity of alcohol content, whichever yielded higher revenues. The cabinet caught between the competing interests of its own revenue needs, the profit objective of local producers, and consumer preferences and welfare was considering three options for reform proposed by the ministry of Finance's Excise Tax Department. The case reviews key factors that affected the conditions and desires of each stakeholder, as well as provides an international comparative perspective on the taxation of alcoholic beverages. The case can be used in both public policy and business courses, as it demonstrates the dynamic interaction between government policies, corporate strategies, and consumer interests. HKS Case Number 1857.0

This case details cement, ready-mix, and concrete giant CEMEX's consideration of a set of strategies designed to grow the Mexican market from the bottom of the economic pyramid: the low-income do-it-yourself homebuilders that characterized an untapped market there. Alfredo de Armas, VP of business development at CEMEX, must consider the needs and limitations of customers with no access to credit and a budget that might allow a purchase of just one bag of cement per week. What would it take to reach that market? Would doing so be profitable?

The vice president of sales and marketing was contemplating how to grow the Rayovac Battery Division of Spectrum Brands Canada Inc. (Spectrum). Spectrum, a global consumer products company, owned a variety of brand name products. The vice president of sales and marketing knew that, with effective marketing, the rechargeable battery market was one that would likely grow within North America as it had in Europe. Major competitors were not focusing on this product category, fearful that it would cannibalize sales of their non-rechargeable products. Rayovac could use this opportunity to increase its presence and brand name recognition by entering the "back door" instead of competing head-to-head against the well-established market leaders--Duracell and Energizer. The vice president wondered whether this was a business worth pursuing and, if so, how he would market the Rayovac line within Canada.

This case allows for a discussion on loyalty programs. How should irewards, a consumer loyalty program, take advantage of the new capabilities promised by Indigo's new customer relationship management (CRM) system. Would adjustments to the pricing structure or the membership discounts be appropriate? Ultimately, how could Indigo ensure that its irewards program was both meaningful to customers and contributed to sales growth? The basis of the irewards program was an annual membership that afforded the member discounts on books. Members were assigned a membership card with a specific number that referred to their account; an annual membership fee was the cost of the program to the customer.

Investigates managing large supply chain outsourcing relationships over time, while focusing on the challenges service providers and their customers face as they seek to continually find new sources of value as the relationships change. Emphasis is placed on issues related to coordinated capabilities across functional boundaries, information sharing, and developing information technology readiness.

A leading sporting goods company in China competes aggressively against global brands Nike and Adidas, with marketing strategies adapted to geographic segments. In the main cities, where competition takes place at a very conceptual level, Li Ning has chosen to adopt a very controversial "oriental theme" for its brand, while becoming at the same time a major sponsor of international athletes of the highest caliber.

Amid efforts to engineer a turnaround at South African Airways (SAA), the CEO confronts an impending strike at the struggling company. How should the company address questions of distributive and procedural justice in post-Apartheid South Africa, and how should the CEO recover from a crucial misstep at the start of the strike? Chronicles the challenges and missteps of previous CEOs and the turnaround plan put in place by Ngqula to help curtail waste and abuse and capitalize on the growing international market.

Enables the study of early business formation and venture capital funding within an international setting. Relates to the company's first round of funding in December 15, 1999. Sanjeev Aggarwal co-founded Daksh as one of the first independent, India-based BPO (Business Process Outsourcing) companies that targeted U.S.-based customers from the outset. Introduces the industry, Daksh's founders, the company's initial formation, and its first business plan--as presented to a small number of angel investors in India. Students are asked to evaluate Daksh's investment opportunity from the perspective of India- and U.S.-based investors, while focusing on its financial projections, term sheet, and expected returns.

The founder/owner of Sunripe Marketplace (Sunripe) is thinking about the stores' product offerings. He has two fresh produce-focused stores and a unique set of distribution and store-level systems that differentiate Sunripe from other supermarkets. Being a small retailer allows the owner to only choose the best and freshest products for his two stores. His stores have several private labels that customers like. Sunripe's owner must now consider how to improve the marketing of these private labels.

The manager of business development for Carvel Asia Limited is trying to determine how best to increase ice cream cake sales in Beijing. In doing so, he needs to develop a complete marketing program which includes decisions about product offerings, pricing, placement (distribution) and promotion - the 4 Ps. Carvel Asia was a 50-50 joint venture between Carvel (USA) and China's Ministry of Agriculture.

Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. Recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. The early stages of Interbrew's global branding strategy and tactics are examined, enabling students to consider these concepts in the context of a fragmented but consolidating industry. It is suitable for use in courses in consumer marketing, international marketing and international business.

Selkirk Group is a family-owned brick manufacturer which has built an export business to Japan and other Asian markets from zero to 10% of its volume in seven years. The managing director of the company raises the question of whether it is time to change their regional export strategy and organizational structure in light of the Asian economic crisis and the reasons for their competitive success in both Australia and Asia.

Palliser is Canada's second largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company had faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow, should it be an investment, either wholly or partly owned, or should it be through subcontracting?

Sun Life Financial is a large insurance conglomerate with $14.7 billion in annual revenues. The vice-president for China must formulate an approach for his company's entrance into China. Sun Life has achieved two important milestones: the right to apply for license and the signing of a Memorandum of Understanding for Joint Venture with China Everbright, a local securities company. The financial vice-president must consider strategic options for entry and choose a city in which to focus his efforts in getting a license. In doing so, he needs to consider Sun Life's overall priorities, strategic direction and how he will sell the concept to senior management in Canada. Intended for use in an introduction to international business course, the case includes assessing internal capabilities against an environmental scan, formulating strategy and making operational decisions relating to city selection. It also introduces the idea of joint venture management and government relations.

This case documents more than 15 years of U.S.-based Cummins, a global leader in diesel and allied technology, and its investment activities in China. While the macro level indicators seem to suggest the possibility to hit $1 billion in revenues in China by 2005, there were several pressing problems that put into question Cummins' ability to realize this target. Students are presented with four specific situations and must develop an appropriate action plan. They are related to the respective streamlining and consolidation of several existing joint ventures, distribution and service, and staffing. The case presents the complexity of managing country level operations and the role of executive leadership of a country manager.

In 2005, the vice president of sales and marketing for the Canadian division of Spectrum Brands Inc. must determine his next steps regarding the structure of his sales force. Spectrum Brands (Spectrum), a global consumer products company formerly known as Rayovac Corporation, had made a number of acquisitions to diversify and expand its product and brand portfolio. With these changes, Spectrum had become a leading supplier of consumer batteries, lawn and garden care products, specialty pet supplies, and shaving and grooming products. The vice president of sales and marketing was charged with the task of creating a national sales force from the teams of the newly merged companies. Knowing the importance of the sales function to each of these companies, he wanted to ensure, despite the differences among the diverse groups, that he still maintained a team which would effectively and efficiently continue to increase the sales of each business unit.

A CIO decides whether to adopt the "Capability Maturity Model" (CMM) within her IT department. The decision is proving surprisingly controversial; some of her best developers prefer adopting an "agile" methodological approach instead. Compares and contrasts the CMM and agile methodologies, such as Kent Beck's eXtreme Programming.

Urban Video Game Academy was founded to enhance the academic and career prospects of urban youth. How will its founder grow it into a sustainable business? Provides an opportunity to discuss the challenges of social entrepreneurship and how to create a sustainable business model for a social venture.

Fernando del Sol, president of F. S. Inversiones in Chile, had just bought himself a headache as a New Year's present. On December 31, 2001, he purchased a Chilean electricity generation and transmission company called Edelnor that was in danger of becoming insolvent within months. del Sol had six months to restructure the company before it would become completely insolvent, and his headache was compounded by the fact that the process for company reorganization in Chile typically dragged on in the courts, often for two or more years. Any debtor, no matter how small, could hold up the process at any point by issuing written complaints to the court. del Sol needed to figure out whether the company was worth saving, whether it had a business strategy that could succeed if the company's debt was restructured, and whether he could find some means of saving the company in time.