Cases

Globalizing Consumer Durables: Singer Sewing Machine before 1914

Geoffrey Jones
Examines the global strategy of Singer, one of the world's first multinationals, before 1914. Singer, a U.S. pioneer of the modern sewing machine, established its first foreign factory in Scotland in 1867. Investments followed in manufacturing and marketing in other countries, especially Russia. By 1914, Singer held a remarkable 90% share of all sewing machine sales outside the United States and was the seventh largest firm in the world. Examines why sewing machines became one of world's first global products and the entrepreneurial and organizational factors behind Singer's international success.

Opium and Empire in the Nineteenth Century

Geoffrey Jones
This case concerns the growth of multinational trading companies in the first global economy. It examines two Scottish-owned merchant houses, Jardine Matheson and James Finlay. It shows their changing trade and investment strategies, and their use of an organizational form later known as business groups. The case also demonstrates the role of ethnic networks in globalization in this historical period.

Hans Wilsdorf and Rolex

Geoffrey Jones
This case explores the creation of the Rolex watch by Hans Wilsdorf. It provides a case study of how one of the world's leading luxury brands was created and, more generally, provides a vehicle for exploring the competitive advantage of Switzerland in watchmaking (and other industries). Although Switzerland was a traditional watchmaking center, Wilsdorf--who was neither a watchmaker nor Swiss--created this successful brand through his emphasis on quality and reliability, combined with celebrity marketing.

Weetman Pearson and the Mexican Oil Industry (A)

Geoffrey Jones
This case explores the role of the British entrepreneur Weetman Pearson in developing the Mexican oil industry before 1914. The case shows this entrepreneur's evolution from a domestic British builder to an international contractor building tunnels, railroads, and harbors worldwide, including the United States and Mexico. In Mexico, where Pearson developed close relations with the dictator Porfirio Diaz, large oil concessions were awarded by the government. In 1910 Pearson discovered one of the world's largest oil wells, and this was used as a basis to build an integrated oil company, but by 1918 - when the case ends - Pearson is considering whether to sell his investment in the face of growing political risk.

Ivar Kreuger and the Swedish Match Empire

Geoffrey Jones
Taught in Entrepreneurship and Global Capitalism, globalization and corporate fraud are the central themes of this case on the international growth of Swedish Match in the interwar years. Between 1913 and 1932, Ivar Kreuger, known as the "Swedish Match King," built a small, family-owned match business into a $600 million global match empire. Despite the economic and political disruptions of the interwar period, Swedish Match owned manufacturing operations in 36 countries, had monopolies in 16 countries, and controlled 40% of the world's match production. Kreuger companies lent over $300 million dollars to governments in Europe, Latin America, and Asia in exchange for national match monopolies. Relying on international capital markets to finance acquisitions and monopoly deals, by 1929 the stocks and bonds of Kreuger companies were the most widely held securities in the United States and the world. After Kreuger's 1932 suicide, forensic auditors discovered that Kreuger had operated a giant pyramid scheme. His accounts were ridden with fictitious assets, the truth hidden in a maze of over 400 subsidiary companies. Swedish Match's deficits exceeded Sweden's national debt.

Aristotle Onassis and the Greek Shipping Industry

Geoffrey Jones
Examines the career of Aristotle Onassis and his creation of one of the world's largest shipping companies between 1945 and 1973. Explores the role of ethnic and family networks in Greek shipping and how Onassis was able to penetrate this system despite being an outsider. Looks at Onassis' role as a strategic innovator in flags of convenience and supertankers. Examines the dynamics of competitive advantage in shipping, as well as the strengths and weaknesses of family-owned firms. Ends with the death of Onassis' only son in 1973 and the resulting vacuum in succession.

The Octopus and the Generals: The United Fruit Co. in Guatemala

Geoffrey Jones, Marcelo Bucheli
The case examines the overthrow of President Jacobo Arbenz of Guatemala in 1954 in a U.S.-backed coup in support of the United Fruit Co. Over the previous half century, United Fruit had built a large vertically integrated tropical fruit business that owned large banana plantations in the "banana republics" of Central America, including Guatemala. The case examines the impact and role of United Fruit in the Guatemalan economy, one of the poorest in the world, and the reasons for growing hostility toward the company, culminating in Arbenz's agrarian reform policies aimed at redistributing some of the land held by United Fruit. The United States, which regarded Arbenz as pro-communist, supported United Fruit in the context of the Cold War.

McKinsey and the Globalization of Consultancy

Geoffrey Jones
Considers McKinsey's strategy during the first stage of the globalization of the management consultancy industry between the 1950s and 1973. Briefly reviews the history of management consulting before considering the factors that led McKinsey to open its first international office in London in 1959. Describes the subsequent rapid international growth of McKinsey and its leading competitors and their role in diffusing American management concepts worldwide. By 1973, however, McKinsey's new managing director faced evidence that the global demands for such services was in decline, in part because the American management model was becoming less attractive.

Making China Beautiful: Shiseido and the China Market

Geoffrey Jones
This case describes the multinational growth of Shiseido, the world's fourth-largest cosmetics company, with a focus on its strategy in China since 1981. It is designed to explore the challenges faced by firms in the globalization of a culturally-specific industry such as cosmetics. The Japanese company displayed an early interest in international expansion, but its early investments were lost during World War II. Thereafter it sought to build businesses in Europe and North America, but was challenged by market conditions quite different from those in Japan. Even within its home market, deregulation and the entry of foreign firms during the 1990s led to a significant loss in market share. Shiseido entered China in 1981 and built Aupres, a large cosmetics brand specifically aimed at Chinese women. Further growth followed, and in 2003 plans were announced to build a large network of voluntary chain stores. The case highlights the managerial challenges of further growing the China business in the face of growing competition and provides a framework for discussing the challenges of prioritizing the allocation of resources in a global business.

L'Oreal and the Globalization of American Beauty

Geoffrey Jones
Examines L'Oreal's acquisition of leading U.S. cosmetics brands, including Maybelline, Redken, and Kiehl's, and their subsequent renewal and globalization. Reviews the history of L'Oreal, now the world's largest cosmetics company, from its origins in France in 1907. The company entered the United States in 1953, and from 1990, expanded rapidly with the acquisition of U.S. brands, which were renewed and then taken international. Focuses on Kiehl's--since 1851, a quirky New York luxury brand--which L'Oreal acquired in 2000 and is now expanding globally. Shows how L'Oreal developed a portfolio of U.S. and European brands that are now sold globally. Explores the corporate strategy and marketing challenges facing consumer products firms as they globalize and how acquisitions can facilitate globalization.

Cisco Goes to China: Routing an Emerging Economy

Geoffrey Jones
This case examines the entry and growth in China since 1994 of Cisco, the corporate leader in the provision of infrastructure for the internet. It explores the opportunities and challenges faced by a company such as Cisco, which designs products that are largely invisible and outsources their manufacture, in an emerging economy. China was among the fastest growing IT markets in the world, but Cisco faced growing competition from Chinese firms including Huawei, and there were serious issues arising from software piracy. Cisco also had to manage a delicate relationship with the Chinese government which was seeking international technology standards that favored Chinese technology firms.

Henry Heinz: Making Markets for Processed Foods

Nancy F. Koehn
Outlines many of the supply-side innovations, such as improved transportation, communication, and technological developments, that greatly expanded the productive capacity of the United States in the late 19th century. Explores a range of demand-side shifts, including rising incomes, population growth, and urbanization, that changed consumers' wants and needs. These developments, taken together with those on the supply side, altered the nature of the American economy, ushering in widespread industrialization, markets of unprecedented size, and consumption on an entirely new scale. Investigates how H.J. Heinz created a successful food processing business in the last three decades of the 19th century.

Candy Land: The Utopian Vision of Milton Hershey

Nancy F. Koehn
Explores the life, work, and achievements of Milton S. Hershey. Analyzes his entrepreneurial achievements, including the creation of the Hershey bar, the founding of the business, and the development of the mass market for chocolate. Also investigates the broader contributions that Milton Hershey made to a sustainable, mutually beneficial social contract between business and community.

Bumble and bumble: Building a Successful Business in Beauty and Fashion

Nancy F. Koehn
Explores the creation and subsequent rise of Bumble and bumble, a trend-setting hair-care company. Analyzes the vision and achievements of the founding entrepreneur, Michael Gordon, and charts the evolution of the company within the $230 billion global beauty industry. Focuses on the development of the Bumble brand, its strategic importance in the market for premium hair-care products, and its cultural significance within the company. Also, takes up the acquisition of Bumble and bumble by the Estee Lauder Companies and the implications of this ownership structure for organizational priorities and performance.

Howard Schultz and Starbucks Coffee Co.

Nancy F. Koehn
Investigates the entrepreneur's strategic initiatives to make a mass market for specialty coffee in the 1980s and 1990s. These initiatives included the development of premium products, rapid expansion of company-owned stores--each with attractive retail environments and responsive customer service--and, especially, the creation of a strong brand. Also devotes considerable attention to how Schultz built the Starbucks organization, examining the consistent emphasis that he and his colleagues placed on the company's relationship with its employees, how Schultz financed Starbucks' early expansion, the significance of vertical integration in ensuring quality control, and how--strategically and operationally--the company managed its phenomenal domestic and international growth after 1993.

Oprah Winfrey

Nancy F. Koehn
Examines the entrepreneurial career of Oprah Winfrey, analyzing her evolution from part-time radio newscaster to internationally recognized talk show host and media executive. Examines Winfrey's childhood, her rapid rise through several television news positions to co-host of local morning talk shows in Baltimore and Chicago, and the lucrative development and distribution of The Oprah Winfrey Show. Provides background on the broadcast television industry and the development of the talk show genre. Also investigates the creation of the "Oprah" brand and Winfrey's role in steering her company, Harpo, Inc., into highly successful television and feature films, a magazine, a Web site, and other media ventures.

Business Systems and Industries

Railroads and the Beginnings of Modern Management

Alfred D. Chandler, Jr.
Consists of three selections by the most innovative of the early American railroad managers describing the organizational structures and control systems they created. Questions to be asked are: why and how were such managerial techniques created, how well did they work, and how did they differ from present-day techniques.

"The American Challenge:" Europe's Response to American Business

Geoffrey Jones
This case examines the tensions caused by multinationals focussed on Europe's reaction to the growing U.S. multinational investment in the twentieth century. Initially, Europeans rarely felt threatened by U.S. investments. However, over time tensions grew. After the Second World War there was a major political and cultural storm over the "Coca Colonization" of France. In other countries, U.S. management practices aroused antagonism. The case takes its name from the often-cited book by Jean-Jacques Servan-Schreiber, published in 1967, which symbolized the ambiguous feelings towards U.S. investment felt by many Europeans, which were a mixture of alarm and admiration.

Brazil at the Wheel

Geoffrey Jones
This case examines the costs and benefits of the Brazilian government's policies to encourage foreign multinationals to develop an automobile industry from the 1950s. A combination of incentives and market closure were used to attract foreign direct investment. Volkswagen responded more positively than the U.S. firm Ford and GM, and was able to become market leader as a result.

Multinational Corporations in Apartheid-era South Africa: The Issue of Reparations

Geoffrey Jones
The case considers the law suits filed on behalf of victims of apartheid against multinationals which operated in South Africa prior to 1994. It reviews the debates about divestment from and sanctions against South Africa from the 1950s. There are case studies of companies that divested - Eastman Kodak and IBM - and stayed - Royal Dutch/Shell and Johnson & Johnson. It concludes with evidence on the use of the Alien Tort Clains Act against corporations in other international contexts.

Can Bollywood Go Global?

Geoffrey Jones
Considers the opportunities and challenges facing Indian film producers in accessing the global film market. Provides a historical context by describing the history of the cinema and the rise of Hollywood to global dominance by the 1920s. Although film industries continued elsewhere, including Great Britain and France, their products had limited international appeal. Discusses the rise of the Indian film industry and the industry structure. Bollywood films, produced in Mumbai (formerly Bombay), are the most well-known genre. They are typically long, melodramatic, and musical. There are also regional language films produced in Chennai, independent films, and "crossover" films, typically incorporating the experience of the Diaspora in Western countries. Bollywood films in particular have sold well in Southeast Asia and among the Indian Diaspora. Raises the issue whether Indian content films can compete with Hollywood in global markets and to what extent a change in content is necessary for this strategy to work.

Second Bank of the United States: Banks and Banking Before the Second Bank of the United States

Thomas K. McCraw
Describes the problems of early banking, early attempts at central banking, achieving a sound uniform currency, and economic growth. Illustrates the problems of developing a sound money economy in a developing country and shows the difficulties of branch management in an era of primitive communication.

Nations

Japan: Beyond the Bubble

Richard H.K. Vietor
By summer 2001, Japan's economy had been generally stagnant for nearly ten years--since the collapse of the bubble economy in 1990-1991. Its development strategy, which had driven the nation during earlier decades, had been fulfilled, and by 1989 Japan's GDP per capita exceeded that of the United States. Now, the Japanese knew neither where they wanted their nation to go, nor how to deal with globalization.

Singapore Inc.

Richard H.K. Vietor
Singapore's economic performance since 1965 is the subject of this case. In particular, with respect to business-government relations, the case addresses how these contributed to Singapore's overall economic performance. Specifically, it looks at the role of savings and investment, how productivity growth has been attained, and why it is growing rather slowly of late.

Events and Topics

In Search of Global Regulation

Geoffrey Jones
Surveys the history of the international regulation of global capitalism and addresses the challenges facing firms confronting international, national, and regional regulation. Follows the history of global regulation after 1914, from the League of Nations' Conference on the Codification of International Law to the establishment of the World Trade Organization. Tracks initiatives by the OECD and the United Nations to develop regulatory regimes for multinationals and explores why none of these initiatives resulted in mandatory regulations. Also describes a range of other regulation tools, including bilateral investment treaties and corporate codes of conduct. Teaching Purpose: To consider the challenges of devising an appropriate level of global regulation by asking students to examine whether they think the world needs a system of global regulation. If so, what form would that regulation take? Further, what responsibility do entrepreneurs and firms have to the global economy?

"Walking on a Tightrope:" Maintaining London As a Financial Center

Geoffrey Jones
This case focuses on the development of the City of London as a leading international financial center and the difficulties it faces maintaining its status. It looks at London's history as a financial center from Roman times to the present day. London's position in the 19th century rested on the great importance of Britain in the world economy and the role of sterling as the major international currency. By the mid-20th century, both of these factors were much reduced in importance, but London was renewed as the physical home of the Euromarkets. Examines the regulatory and other factors, including economies of agglomeration, which contribute to making a financial center.

Creating the International Trade Organization

David A. Moss, George Appling, Andrew Archer
In the late 1940s, officials at the U.S. State Department began campaigning for the creation of an International Trade Organization (ITO). This new organization would oversee global negotiations on trade liberalization, foreign direct investment, cartels, and commodity agreements; and it would complement the IMF and the World Bank, both of which were founded at the Bretton Woods Conference in 1944 to address international financial flows. Together, the IMF, the World Bank, and the ITO would comprise a comprehensive system for the management of international economic affairs. As it turned out, however, the proposed ITO proved extremely controversial both within the United States and around the world. When President Truman finally sent the ITO Charter to Congress in 1949, lawmakers there had to decide whether to endorse this product of three years of intense international negotiations or simply let it die an unceremonious death in Washington, D.C.

Constructing a Nation: The United States and Their Constitution--1763-92

David A. Moss
Examines the founding of the United States of America during the second half of the eighteenth century. Focuses on: 1) the reasons why the American colonists rebelled from Britain (1763-74); 2) the problems confronted by the new nation during the War of Independence and under the Articles of Confederation (1775-88); 3) the main issues taken up at the Constitutional Convention in Philadelphia (1787); and 4) the enormous challenges facing Alexander Hamilton as Secretary of the Treasury in the first Washington Administration (1789-92). A complete version of the Constitution (including the first ten amendments) is attached as an appendix.