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The global pharmaceutical industry has gone through substantial changes in the last few decade and pharmaceutical firms face major challenges, including headline-grabbing litigation, imminent patent expirations, new technologies, rising drug development costs, generic drug substitution, international competitors, and complex public policy issues. Describes the pharmaceutical industry in 2006, including: the drug development process; threats from biotech and generics competitors; pharmaceutical manufacturing, selling, and marketing; and pharmaceutical consumption in Europe, the third world, and the U.S. Merck and Pfizer are analyzed in-depth and a contrast between Merck, as a research-based firm opposed to mergers, and Pfizer, as a marketing powerhouse growing through acquisitions, is developed. Thirteen exhibits give concrete focus to the issues of the case.

Anticipating the expiration of its Prozac patent, Eli Lilly has to make tough decisions regarding the development of its next-generation antidepressant drug. In particular, the company needs to decide whether to first establish that once-a-day dosing for Cymbalta (Duloxetine) is effective in treating major depressive disorder and only after launch get FDA approval for treating painful physical symptoms, or to first establish efficacy in treating pain and later get FDA approval for once-a-day dosing. The decision needs to take into account how Cymbalta can be differentiated in the marketplace vis-a-vis other antidepressants and the marketing challenges to getting adoption that the new drug will face. Lilly's new antidepressant team making this decision has several market research inputs on physicians and patients at its disposal.

Describes a set of decisions confronting the management team of a rapidly growing online psychological testing and social networking company. They can either sell the company to a large public company, raise another round of capital from a preeminent venture capital fund, or continue to grow using existing positive cash flow.

Activist investors Carl Icahn and Barry Rosenstein acquire a stake in Oklahoma-based company Kerr-McGee. They demand two board seats and ask the company to make several operational and financial changes, including the repurchase of equity and divestiture of their chemicals business. The case protagonist, Luke Corbett, CEO, opposes these changes.

A professor is shopping for a diamond engagement ring. He finds one with certain specifications for a certain price, and wishes to determine if the price of the diamond is fair. He collects data on the prices and characteristics (cut, color, clarity, and carats) of several hundred diamonds from three Internet wholesalers. Can be used for linear regression analysis with categorical variables as well as other statistical techniques.

Luen Thai is considering adopting a "design-to-store" supply chain strategy to compete in the apparel market as he faces increasing margin pressure, new market entrants, and China's WTO entry. The decision to implement "design-to-store" will depend on the success of partner process integration (between fabric mill, manufacturer, and brand) and mechanisms to enhance "collaborative behavior" between partners. Luen Thai endeavors to fundamentally improve information flow which could lead to change in processes and create multi-company efficiencies.

The case describes an attempt by Steve Gundrum, the CEO and President of Mattson, to improve the company's innovativeness. Mattson, located in Silicon Valley, California, is an independent developer of new products for the food and beverage industry. Mattson creates, develops, and brings to market new beverages, snacks, frozen meals, and many other food and beverage products as a contractor to the large producers in the industry. Gundrum believes there's an opportunity to improve his innovation system by borrowing from the leading-edge software firms that surround him. To test new methods of developing products, Gundrum creates a contest - to develop a better cookie - and commissions three teams: one using Mattson's traditional hierarchical team structure, one using open source (OS) development, and a third using extreme programming (XP). The Mattson Project Delta (A), (B), and (C) cases explain what happened. Learning objectives: The study and discussion of this case can help students understand more deeply the importance of team composition and structure in the innovation process. It also shows the power of reaching across industry boundaries to find new ideas, not just for products but for business process and structure as well. The key lessons in this case are that: 1) Team structure and management can make a big difference in both creativity and productivity. 2) Problem solving (internal generation of new answers to problems) and solution finding (external exploration for existing solutions to problems) can each be valuable in different situations and at different stages in the innovation life cycle. 3) Managers have many options when choosing a team structure. Further, the case provides a nice language for talking about team structure. 4) Prototyping can be applied not just for new products, but new structures and processes for innovation.

Looks at the different business models of two highly successful and profitable airlines: Chilean-based Lan Airlines and U.S.-based Southwest Airlines. Lan Airlines pursues a hub-to-spoke international full-service model where passenger and cargo operations are highly integrated. Southwest, on the other hand, is set up for a point-to-point, low-fare, "no frill's" service with a homogenous fleet. Designed for a course on the design of business models.

In late 2000, Vincent Lo, a prominent Hong Kong developer was invited by the Deputy Mayor of Chongqing, China to undertake a major redevelopment of the urban core. Lo had previously successfully developed the landmark Xintiandi retail and entertainment district in Shanghai. Lo must decide if the opportunity is the right fit in terms of place, timing, government support, and market demand.

Focuses on a district's efforts to improve student achievement at chronically low-performing schools using a strategy that both differentiates treatment to a set of schools and integrates the district's reform work. Details the origins of, and rational behind, the STAR Initiative at San Francisco Unified and describes the various resources and support provided to STAR schools. Finally, documents the challenges and achievements of the strategy in its first year of implementation. A particular emphasis is placed on managerial challenges the design team faces as the district undergoes political unrest.

This country-case on Malaysia extends forward by seven years the case Malaysia: Capital and Control (702-040). It is based on Malaysia's ninth plan, which took effect in 2006. The ninth plan proposed five thrusts--moving the economy to higher value-added goods and services, raising the capacity for knowledge, addressing socioeconomic inequalities, improving the quality of life, and strengthening institutions and the civil service--to achieve 6% growth annually. All of this is to achieve "Vision 2020," a long-range plan for becoming developed. Considers the difficulties Malaysia faces, stuck between China and India on the low (value-added) side, and Korea, Taiwan, and Singapore on the high (value-added) end.

In 1978, Deng Xiaoping assumed the leadership of an impoverished China, after Mao Zedong's disastrous Cultural Revolution. During the next 17 years, Deng applied pragmatic policies to liberalize the Chinese economy gradually while maintaining the power of the Communist state. In hindsight, this strategy was among the most successful development strategies ever. Reviews Chinese political history and explores in detail eight parts of Deng's development strategy. Concludes by looking at the problems facing Jiang Zemin in 1997 as he takes control of China for the next leg of economic development.

Pitney Bowes, the world's dominant maker of equipment used in generating and handling mail, is facing flattening growth in its core businesses and needs to create new growth products and businesses. Describes how a group of employees use state-of-the-art techniques for understanding customers' needs to conceive and develop a postage meter for small businesses. Also describes the challenges the team faced in forging an appropriate disruptive channel to this market.

Events in the history of Cheung Kong's growth reveal how Li Ka-Shing applied his skills as a "first-class noticer" to complex political and socioeconomic environments. While Li's determination to succeed is legendary, so are his skills in reading and responding to the policies and norms of the People's Republic of China, British colonial Hong Kong, and the post-World War II international system. Since Li became the taipan of Hutchison Whampoa in the late 1970s, he has adjusted his ownership shares in a vast portfolio of businesses-including ports, energy, real estate, retail, telecommunications, and new media. Illustrates how Li applied his business acumen and his ability as a first-class noticer to decisions about raising or lowering his stake in these businesses, and whether to acquire new ones. After starting Cheung Kong Inc. in 1950, at age 21, Li built upon his knowledge and contacts in the plastics industry to become Hong Kong's King of Plastic Flowers. In the 1960s, amid political turmoil and labor unrest on both the mainland and in colonial Hong Kong, Li purchased rights to properties on Hong Kong island that were selling at distressed rates. Li's successes in industry and real estate continued, and he cultivated contacts and built a strong reputation that set the stage for his purchase of the hong Hutchinson Whampoa, thereby becoming the first Chinese taipan. As taipan, Li reorganized and reallocated his various financial holdings in the 1980s and 1990s as conditions were in flux due to the Westernization of China after Deng Xiaoping succeeded Mao Zedong, and amid concerns about the transfer of Hong Kong from Britain back to China in 1997.

This note examines an industry that is losing its competitive advantages due to globalization. Suitable for use in a section of an international strategy/business policy course which introduces the topic of industry analysis. It is intended to be used as an application of Michael Porter's Five Forces Model, where students are asked to determine the attractiveness of an industry and its ultimate profit potential. Because pewter design, product and sales occur in an international value chain, this case can also be used in an international management course.

The CEO of a Singapore-based computer company, with successful operations in Europe and Asia, was contemplating whether to pursue growth opportunities in the United States. The company had to decide between developing its own subsidiary, acquiring a small mail-order company based in Austin, Texas, or not entering the U.S. market at this time. If the acquisition option was pursued, there were challenges regarding fixing an appropriate value for the company, as well as integrating the American subsidiary into its own global network.

Mekong, a joint venture among Japanese, Korean and Vietnamese auto assemblers, is facing significant changes in the business environment in Vietnam. As the government of Vietnam has implemented its economic and administrative reform program, foreign and domestic companies in Vietnam have had to deal with changes in regulations and competitive forces. In addition, Vietnam's membership in ASEAN (Association of South-East Asian Nations) has further complicated the business decisions that foreign companies have to make in this newly-opened economy. Students will be challenged to devise a strategy for Mekong as a multi-national company operating in the Far East.

The managing director of a new Malaysian producer of stainless steel tubing received a letter from the company's attorney in Washington, DC, informing him that the U.S. Specialty Tube Group had written to the U.S. President concerning stainless steel tubing imported into the U.S. from Korea, Taiwan, Thailand and Malaysia at dumped prices that was causing injury to the U.S. industry. For the next year, the managing director considered how he should respond to this threat, while at the same time increasing the company's exports to the U.S. so that it could meet its sales and profits goals. One year later, he was informed that a formal antidumping action had been taken against imports of stainless steel tubing from Malaysia (and other countries). He is considering what he should do now, both to preserve the company's U.S. market and maintain alternative markets in other countries.

The managing director and founder of Bangkok-based Siam Canadian Foods Co., Ltd., was considering the emerging business opportunities in neighboring Burma (also known as Myanmar). Although relatively undeveloped compared to the rest of Southeast Asia, Burma had been experiencing increasing levels of foreign investment activity in recent years. Siam, who had considered entering Burma in the past but declined, needed to determine if the time was now appropriate for the company to enter the market.

The case describes Lincoln Electric's business strategy and incentive system, and it discusses the global strategy choices that the company faces going forward. Lincoln Electric is deciding whether a strong push into India should be the next step in the company's globalization. The company has enjoyed increasing success in China as a result of its aggressive expansion through both a joint venture and set of majority-owned plants. The company is deciding how it could apply the lessons of the Chinese experience, as well as the lessons of its experience across Asia, Europe, and Latin America, to India. First of all, should Lincoln Electric own a manufacturing operation in India? If yes, Lincoln Electric could enter the India market by acquisition, by joint venture, or by building a new plant on its own. If the company were to enter by acquisition, it was unclear what type of valuation to apply to any of the Indian incumbent companies. If the company were to enter by joint venture, the question was: How could Lincoln ensure its ability to make key business decisions? If the company were to build its own plant, the question was: Would the cost of starting from scratch be more than sufficiently compensated by the total control the company would enjoy?