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, the 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.

Ernesto Tornquist: Making a Fortune on the Pampas

Geoffrey Jones
Examines the career of Ernesto Tornquist, a cosmopolitan financier considered to be the most significant entrepreneur in Argentina at the end of the 19th century. Tornquist created a diversified business group, linked to the political elite, which integrated Argentina into the trading and financial networks of the first global economy. Provides an opportunity to understand why Argentina was such a successful economy at this time, and to debate whether its very success laid the basis for the country's subsequent poor economic performance.

Yataro Iwasaki: Founding Mitsubishi (A)

Geoffrey Jones
Considers the entrepreneurial career of the founder of Mitsubishi, Yataro Iwasaki, who built a large shipping company against the opposition of powerful Western incumbents. Although sometimes supported by the Japanese government, and often times opposed, the case identifies Iwasaki's entrepreneurial talent and organization-building skills as key drivers of success. This case provides a vehicle for examining the entrepreneurial factors behind Japan's remarkable transition from a feudal to a modern society in the second half of the nineteenth century.

Ivar Kreuger and the Swedish Match Empire

Geoffrey Jones
Taught in Evolution of Global Business. 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, Marcelo Bucheli
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.

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

Geoffrey Jones
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. 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.

Christian Dior: A New Look for Haute Couture

Geoffrey Jones
The case describes the foundation of Christian Dior, the leading Parisian fashion house, in 1946 and its subsequent globalization strategy. After explaining the historical origins of France's pre-eminence in upscale fashion, the case explores the challenges to this position from New York after World War 2, and the importance of Christian Dior's New Look in restoring French fashion to world leadership. The case examines, in particular, Dior's innovative strategy to combine a high fashion business in Paris with a ready-to-wear business in New York, and his subsequent pursuit of licensing opportunities in jewelry and other luxury products. The case provides an opportunity to explore the role of creativity in the luxury fashion industry, and the challenges and opportunities of globalizing such an industry.

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.

Bernd Beetz: Creating the New Coty

Geoffrey Jones
Considers the creation of the world's largest fragrance company by Bernd Beetz, appointed chief executive of Coty Inc. in 2001. In 1990 the German consumer goods company Benkiser began acquiring fragrance and cosmetics brands with the intent of developing a beauty business. These included the long-established, but relatively small US fragrance company Coty. In 1996 the beauty business was spun off under the name Coty. When Beetz was hired as chief executive, it was still a fragmented collection of recently acquired brands. The case describes how Beetz re-ignited the dormant celebrity fragrance business with the successful launch of a new Jennifer Lopez fragrance line. Fashioning a new entrepreneurial culture based on the principles of "faster, further, freer," Coty hired longstanding executives from other firms and liberated their entrepreneurial capabilities, refreshing brands which had been tarnished into a global mass color cosmetics brand. In 2005 the acquisition of Calvin Klein from Unilever, and its renewal, catapulted Coty into the position of the world's largest fragrance company. The case provides an opportunity to examine the entrepreneurial, cultural, and organizational factors which enable acquired brands and employees to be re-invigorated and molded into a dynamic new global business. It asks if the cultural and other factors behind its rapid growth can sustain the company as it seeks growth much further as a top five beauty company.

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.

Rong Family:A Chinese Business History

Elisabeth Koll
Provides the complex historical background to understanding the development of family businesses in China from the late 19th century to the present. Using the example of the Rong family, China's most prominent industrialist family in pre-1949 China, analyzes the organizational structure and transformation of Chinese family firms in terms of managerial hierarchies, kinship alliances, and local networks. Emphasizes the response of the family business to major political crises, demonstrates how they dealt with the transition to a socialist government in 1949, and interprets the success of overseas Chinese family business as well as the revival of family business networks in the wake of China's economic reforms.

Enterprise Culture in Chinese History:Zhang Jian and the Dasheng Cotton Mills

Elisabeth Koll
This case focuses on the legal and managerial evolution of limited-liability firms in China, using the example of the Dasheng cotton mills in Nantong near Shanghai. Dasheng, one of the earliest and most successful industrial enterprises in pre-war China, was founded by the famous entrepreneur Zhang Jian (1853-1926). Having survived various economic and political crises, the Dasheng cotton mills became a state-owned enterprise in 1953. In the wake of the economic reforms the successor to the original Dasheng Enterprise was restructured as the Jiangsu Dasheng Co. Ltd. in 1996. Issues of corporate governance, legal environment, government relations and the role of family business structures are discussed in the context of how they shaped the business environment in pre-war China and continue to influence Chinese enterprise culture in 2008.

Financial Networks and Informal Banking in China: From Pawn Shops to Private Equity

Elisabeth Koll
Provides an analysis of why informal financial networks and institutions still play an extremely important role in China's economy in the 21st century. Although China has emerged as one of the fastest growing economies in the world, it still suffers from a weak financial system dominated by state-controlled banks and severely limited access to capital for private entrepreneurs and consumers. The case shows how the political climate, economic regulatory environment and social attitudes towards lending practices have shaped the approach to and structure of financing private enterprises over time. It also addresses the response of the Chinese government to the resilient curb market in the context of the economic reforms and policy changes for the banking and financial sector.

The Ice King

Tom Nicholas
Provides an opportunity to examine the risk-reward tradeoff and the travails of entrepreneurial venturing in the nascent U.S. economy. Traces the origins and development of Frederic Tudor's Ice Company, a business which developed during the 19th century to hack chunks of ice from New England freshwater ponds and transport it by ship for sale around the globe. Explores how Tudor managed operations in ports as far flung as New Orleans, Charleston, Havana, Bombay, and Calcutta, and how he overcame personal difficulties to create a successful business enterprise.

Crosley

Tom Nicholas
In October 1941, a top secret envoy from the U.S. military was sent to Crosley Corporation in Cincinnati, Ohio to request their assistance to construct a weapon that would drastically strengthen the defenses of U.S. troops: the proximity fuze. Such a fuze would allow enemy aircraft to be shot down with a rate of accuracy well above that of previous weaponry. The task would be a challenging one, as conventional wisdom held that it took at least four years for a weapon to go from concept to production, whereas the proximity fuze was needed on a shorter time frame. Moreover, the production process would be complex, requiring hundreds of components produced by dozens of manufacturers, all of which Crosley would have to assemble to produce the finished product. Would Crosley accept the assignment?

Al Capone

Tom Nicholas
In 1929, Chicago, IL mob boss Al Capone was at the height of his power. As head of the extensive crime organization known as "The Outfit" during most of U.S.'s Prohibition Era (1920-1933), Capone oversaw hundreds of brothels, speakeasies, and roadhouses which served as venues for gang-administered gambling, prostitution, and illegal alcohol sales. At their peak, yearly revenues from all of his enterprises combined totaled over $100 million. Capone's ability to operate these establishments with impunity stemmed from a combination of his political ties and a profound fear of reprisal. Capone's ascension had come at the tremendous loss of human life. Turf wars between Chicago gangs had caused roughly 700 gang-related deaths from 1920 to 1930. By some estimates, Capone had been directly or indirectly responsible for over 200 murders, the most notorious of which was the St. Valentine's Day Massacre in February 1929, a shootout that had killed seven men from a rival gang. The brutality, efficiency, and wealth of Capone's organization demonstrated the destructive forms of American entrepreneurship in the early 20th century.

Control Data and the Urban Crisis

Tom Nicholas
Control Data Corporation is considering its response to the assassination of renowned civil rights activist Martin Luther King. Four months prior, William Norris, president of the Minneapolis-based computer firm had already committed to building a plant in a low-income area of Minneapolis, but with pressure rising on businesses to respond to inner-city needs and increase minority hiring, Norris urges the company to consider building yet another inner-city plant, this time in Washington, D.C.

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.