Tarun Khanna

Jorge Paulo Lemann Professor

Tarun Khanna is the Jorge Paulo Lemann Professor at the Harvard Business School, where he has studied and worked with multinational and indigenous companies and investors in emerging markets worldwide. He was named Harvard University's Director of the South Asia Institute in the fall of 2010. He joined the HBS faculty in 1993, after obtaining an engineering degree from Princeton University (1988) and a Ph.D. from Harvard (1993), and an interim stint on Wall Street.  During this time, he has served as the head of several courses on strategy, corporate governance, and international business targeted to MBA students and senior executives at Harvard. He currently teaches in Harvard’s College's General Education core curriculum in a university wide elective course on entrepreneurship in South Asia. He is also the Faculty Chair for HBS activities in India.

Tarun Khanna is the Jorge Paulo Lemann Professor at the Harvard Business School, where he has studied and worked with multinational and indigenous companies and investors in emerging markets worldwide. He was named Harvard University's Director of the South Asia Institute in the fall of 2010. He joined the HBS faculty in 1993, after obtaining an engineering degree from Princeton University (1988) and a Ph.D. from Harvard (1993), and an interim stint on Wall Street.  During this time, he has served as the head of several courses on strategy, corporate governance, and international business targeted to MBA students and senior executives at Harvard. He currently teaches in Harvard’s College's General Education core curriculum in a university wide elective course on entrepreneurship in South Asia. He is also the Faculty Chair for HBS activities in India.

His book, Billions of Entrepreneurs: How China and India are Reshaping Their Futures and Yours, was published in February 2008 by Harvard Business Press (Penguin in South Asia), and has been translated into several languages. It focuses on the drivers of entrepreneurship in China and India and builds on over a decade of work with companies, investors and non-profits in developing countries worldwide.

His most recent co-authored book, Winning in Emerging Markets: A Roadmap for Strategy and Execution, was published by Harvard Business Press in March 2010.

His scholarly work has been published in a range of economics and management journals, several of which he also serves in an editorial capacity.  Articles in the Harvard Business Review (e.g. China + India: The Power of Two, 2007; Emerging Giants: Building World Class Companies in Emerging Markets, 2006) and Foreign Policy (e.g. Can India Overtake China?, 2003) distil the implications of this research for practicing managers.  His work is frequently featured in global newsmagazines as well as on TV and radio.

Outside HBS, he serves on the boards of the global power company, AES Corporation, and India's largest microfinance firm, SKS Microfinance, along with several others in the financial services, energy, automotive, and life sciences sectors, and actively invests in and mentors startups in Asia. He also serves on the advisory boards of Parliamentary Research Services, an NGO dedicated to providing non-partisan research input to India's Members of Parliament to enhance the quality of democratic discourse and that of Primary Source, a Boston-based NGO dedicated to helping US schools, from K-12 grades, adopt curricular material reflecting global societies.

In 2007, he was nominated to be a Young Global Leader (under 40) by the World Economic Forum. In 2009, he was elected a Fellow of the Academy of International Business.

He lives in Newton, MA, with his wife, daughter and son.

Books

  1. Winning in Emerging Markets: A Road Map for Strategy and Execution

    The best way to select emerging markets to exploit is to evaluate their size or growth potential, right? Not according to Krishna Palepu and Tarun Khanna. In 'Winning in Emerging Markets,' these leading scholars on the subject present a decidedly different framework for making this crucial choice. The authors argue that the primary exploitable characteristic of emerging markets is the lack of institutions (credit-card systems, intellectual-property adjudication, data research firms) that facilitate efficient business operations. While such "institutional voids" present challenges, they also provide major opportunities for multinationals and local contenders. Palepu and Khanna provide a playbook for assessing emerging markets' potential and for crafting strategies for succeeding in those markets. They explain how to spot institutional voids in developing economies, including in product, labor, and capital markets, as well as social and political systems; identify opportunities to fill those voids, for example, by building or improving market institutions yourself; and exploit those opportunities through a rigorous five-phase process, including studying the market over time and acquiring new capabilities. Packed with vivid examples and practical toolkits, 'Winning in Emerging Markets' is a crucial resource for any company seeking to define and execute business strategy in developing economies.

    Keywords: Developing Countries and Economies; Management Analysis, Tools, and Techniques; Emerging Markets; Organizations; Opportunities; Business Strategy;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Richard Bullock. Winning in Emerging Markets: A Road Map for Strategy and Execution. Harvard Business Press, 2010. View Details
  2. Billions of Entrepreneurs: How China and India Are Reshaping Their Futures and Yours

    China and India are home to one-third of the world's population. And they're undergoing social and economic revolutions that are capturing the best minds--and money--of Western business. In "Billions of Entrepreneurs," Tarun Khanna examines the entrepreneurial forces driving China's and India's trajectories of development. He shows where these trajectories overlap and complement one another--and where they diverge and compete. He also reveals how Western companies can participate in this development. Through intriguing comparisons, the author probes important differences between China and India in areas such as information and transparency, the roles of capital markets and talent, public and private property rights, social constraints on market forces, attitudes toward expatriates abroad and foreigners at home, entrepreneurial and corporate opportunities, and the importance of urban and rural communities. He explains how these differences will influence China's and India's future development, what the two countries can learn from each other, and how they will ultimately reshape business, politics, and society in the world around them. Engaging and incisive, this book is a critical resource for anyone working in China or India or planning to do business in these two countries.

    Keywords: Talent and Talent Management; Development Economics; Entrepreneurship; Globalized Economies and Regions; China; India;

    Citation:

    Khanna, Tarun. Billions of Entrepreneurs: How China and India Are Reshaping Their Futures and Yours. Harvard Business School Press, 2008. View Details

Journal Articles

  1. Contextual Intelligence

    The author has come to a conclusion that may surprise you: trying to apply management practices uniformly across geographies is a fool's errand. Best practices simply don't travel well across borders. That's because conditions not just of economic development but of institutional maturity, educational norms, language, and culture vary enormously from place to place. Students of managerial practice once thought that their technical knowledge of best manufacturing practices (to take one example) was sufficiently developed that processes simply needed to be tweaked to fit local conditions. More often, it turns out, they have to be reworked quite radically—not because the technology is wrong but because everything around it changes how it will work. There's nothing wrong with the tools we have at our disposal, but their application requires contextual intelligence: the ability to understand the limits of our knowledge and to adapt that knowledge to a context different from the one in which it was acquired. Until we can better develop and apply contextual intelligence, failure rates for cross-border businesses will remain high, what we learn from experiments unfolding around the world will remain limited, and the promise of healthy growth in all parts of the world will remain unfulfilled.

    Citation:

    Khanna, Tarun. "Contextual Intelligence." Harvard Business Review 92, no. 9 (September 2014): 58–68. View Details
  2. Charting Dynamic Trajectories: Multinational Firms in India

    In this article, we provide a synthesizing framework that we call the "dynamic trajectories" framework to study the evolution of multinational enterprises (MNEs) in host countries over time. We argue that a change in the policy environment in a host country presents an MNE with two sets of interrelated decisions. First, the MNE has to decide whether to enter, exit, or stay in the host country at the onset of each policy epoch; second, conditional on the first choice, it has to decide on its local responsiveness strategy at the onset of each policy epoch. India, which experienced two policy shocks—shutting down to MNEs in 1970 and then opening up again in 1991—offers an interesting laboratory to explore the "dynamic trajectories" perspective. We collect and analyze a unique dataset of all entry and exit events for Fortune 50 and FTSE 50 firms (as of 1991) in India in the period from 1858 to 2013 and, additionally, we document detailed case studies of four MNEs (that arguably represent outliers in our sample).

    Keywords: Multinational Firms and Management; Change; India;

    Citation:

    Choudhury, Prithwiraj, and Tarun Khanna. "Charting Dynamic Trajectories: Multinational Firms in India." Special Issue on Business, Networks, and the State in India. Business History Review 88, no. 1 (Spring 2014): 133–169. View Details
  3. Toward Resource Independence—Why State-Owned Entities Become Multinationals: An Empirical Study of India's Public R&D Laboratories

    In this paper, we build on the standard resource dependence theory and its departure suggested by Vernon to offer a novel explanation for why state-owned entities (SOEs) might seek a global footprint and global cash flows: to achieve resource independence from other state actors. In the context of state-owned entities, the power-use hypothesis of standard resource dependence theory can be used to analyze the dependence of SOEs on other state actors, such as government ministries and government agencies that have ownership and control rights in the SOE. Building on Vernon, we argue that the SOE can break free from this power imbalance and establish resource independence from other state actors by becoming a multinational firm and/or by generating global cash flows. We leverage a natural experiment in India and outline both quantitative and qualitative evidence from 42 Indian state-owned laboratories to support this argument.

    Citation:

    Choudhury, Prithwiraj, and Tarun Khanna. "Toward Resource Independence—Why State-Owned Entities Become Multinationals: An Empirical Study of India's Public R&D Laboratories." Special Issue on Governments as Owners: Globalizing State-Owned Multinational Enterprises edited by Alvaro Cuervo-Cazurra, Andrew Inkpen, Aldo Musacchio and Kannan Ramaswamy. Journal of International Business Studies 45, no. 8 (October–November 2014): 943–960. View Details
  4. Industrial Policy and the Creation of New Industries: Evidence from Brazil's Bioethanol Industry

    Industrial policy programs are frequently used by governments to stimulate economic activity in particular sectors of the economy. This study explores how an industrial policy program can affect the creation and evolution of an industry and, ultimately, the long-term performance of firms. We examine the history of the Brazilian bioethanol industry, focusing on the industrial policy program implemented by the Brazilian government in the 1970s to develop the industry. We put together a novel data set containing detailed information about the history of bioethanol producers. Our findings show that plants founded during the industrial policy program tend to be, in the long run, more productive than those founded before the program was in place. Based on additional analyses and complementary fieldwork, we infer that the wave of acquisitions that occurred after the end of the industrial policy program had an important effect on the performance of the plants founded when the program was in place. Industrial policy, especially in conjunction with a competitive post-industrial policy business landscape, can succeed in nurturing competitive firms.

    Keywords: Economic Sectors; Policy; Economic Growth; Government and Politics; Energy Sources; Green Technology Industry; Energy Industry; Brazil;

    Citation:

    Mingo, Santiago, and Tarun Khanna. "Industrial Policy and the Creation of New Industries: Evidence from Brazil's Bioethanol Industry." Industrial and Corporate Change (forthcoming). View Details
  5. Caste and Entrepreneurship in India

    It is now widely accepted that the lower castes have risen in Indian politics. Has there been a corresponding change in the economy? Using comprehensive data on enterprise ownership from the Economic Censuses of 1990, 1998, and 2005, we document substantial caste differences in entrepreneurship across India. The Scheduled Castes and Scheduled Tribes are significantly under-represented in the ownership of enterprises and the share of the workforce employed by them. These differences are widespread across all states, have decreased very modestly between 1990 and 2005, and cannot be attributed to broad differences in access to physical or human capital.

    Keywords: Equality and Inequality; Income Characteristics; Entrepreneurship; Rank and Position; India;

    Citation:

    Iyer, Lakshmi, Tarun Khanna, and Ashutosh Varshney. "Caste and Entrepreneurship in India." Economic & Political Weekly 48, no. 6 (February 9, 2013): 52–60. View Details
  6. A 'Core Periphery' Framework to Navigate Emerging Market Governments—Qualitative Evidence from a Biotechnology Multinational

    We build on the emerging literature of influence-based models to study how multinational firms can navigate host governments. Our "core-periphery" framework posits that the actions that an MNC takes with actors in what we call the "periphery"—comprised of state, quasi-state, and civil society actors—can lead to positive or negative influence with interconnected state actors in a "core." There are two mechanisms by which this can happen: engaging the periphery may either change the information set of the core or help align incentives of multiple core actors. Engaging the periphery might be particularly relevant in settings where the institutional framework is still emerging. We build a case study of a multinational firm in the biotechnology sector to illustrate how the core-periphery framework works in multiple emerging markets across institutional differences. The analysis is based on 32 interviews conducted with the CEO and other executives of Genzyme at the corporate headquarters in Cambridge, Massachusetts, and in subsidiaries in Brazil, China, Costa Rica, France, India, and the United States.

    Keywords: Emerging Markets; Multinational Firms and Management; Business and Government Relations; Power and Influence; Framework; Biotechnology Industry; Massachusetts; Brazil; China; Costa Rica; France; India;

    Citation:

    Choudhury, Prithwiraj, James Geraghty, and Tarun Khanna. "A 'Core Periphery' Framework to Navigate Emerging Market Governments—Qualitative Evidence from a Biotechnology Multinational." Global Strategy Journal 2, no. 1 (February 2012): 71–87. View Details
  7. EXEMPLARY CONTRIBUTION: Transforming Mental Models on Emerging Markets

    Economic growth in the Western world increasingly depends on meaningful engagement with emerging markets such as Brazil, China, India, South Africa, and Turkey. Business schools are responding with increased attention to these markets in their research and curricula. However, in order to understand and leverage these opportunities for teaching and learning, it is apparent that students and executives may require a major transformation of their mental models, not just incremental adjustments or extensions. Institutional economics can help prospective and established managers recognize the role of formal and informal institutions and enable them to work around the "institutional voids" in emerging markets (Khanna & Palepu, 2010). We draw on this framework to identify critical shifts in mental models required for managing effectively in emerging markets and suggest core elements of the management learning process required to accomplish such a change.

    Keywords: Emerging Markets; Business Model; Economic Growth; Developing Countries and Economies; Research; Business Education; Learning; Financial Institutions; Framework; Transformation; Perspective; India; China; Brazil; South Africa; Turkey;

    Citation:

    Dhanaraj, Charles, and Tarun Khanna. "EXEMPLARY CONTRIBUTION: Transforming Mental Models on Emerging Markets." Academy of Management Learning & Education 10, no. 4 (December 2011). View Details
  8. The Paradox of Samsung's Rise

    Twenty years ago, few people would have predicted that Samsung could transform itself from a low-cost original equipment manufacturer to a world leader in R&D, marketing, and design, with a brand more valuable than Pepsi, Nike, or American Express. Fewer still would have predicted the success of the path it has taken. For two decades now, Samsung has been grafting Western business practices onto its essentially Japanese system, combining its traditional low-cost manufacturing prowess with an ability to bring high-quality, high-margin branded products swiftly to market. Like Samsung, today's emerging giants—Haier in China, Infosys in India, and Koç in Turkey, for instance—face a paradox: their continued success requires turning away from what made them successful. The tightly integrated business systems that have worked in their home markets are unlikely to secure their future in global markets. Samsung has steadily navigated this paradox to transcend its initial success in its home markets and move onto the world stage. It is a story that holds many important lessons for the current generation of emerging giants seeking to do the same.

    Keywords: Organizational Design; Research and Development; Marketing; Business Processes; Brands and Branding; System; Globalized Markets and Industries; Transformation; Cost; Forecasting and Prediction; Production; Quality; China; India; Turkey;

    Citation:

    Khanna, Tarun, Jaeyong Song, and Kyungmook Lee. "The Paradox of Samsung's Rise." Harvard Business Review 89, nos. 7-8 (July–August 2011): 142–147. View Details
  9. Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry

    This study explores the importance of cross-border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and local entrepreneurs in India's software industry. We find that local entrepreneurs who have previously lived outside India rely significantly more on diaspora networks for business leads and financing. This is especially true for entrepreneurs who are based outside software hubs—where getting leads to new businesses and accessing finance is more difficult. Our results provide micro-evidence consistent with a view that cross-border social networks play an important role in helping entrepreneurs to circumvent the barriers arising from imperfect domestic institutions in developing countries.

    Keywords: Diasporas; Entrepreneurship; Software; Information Technology Industry; India;

    Citation:

    Nanda, Ramana, and Tarun Khanna. "Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry." Journal of Economics & Management Strategy 19, no. 4 (Winter 2010): 991–1012. View Details
  10. Synchronicity and Firm Interlocks in an Emerging Market

    Stock price synchronicity has been attributed to poor corporate governance and a lack of firm-level transparency. This paper investigates the association between different kinds of firm interlocks, control groups, and synchronicity in Chile. A unique data set containing equity cross holdings, common individual owners, and director interlocks is used to map out firm ties and control groups in the economy. While there is a correlation between synchronicity and shared ownership and equity ties, synchronicity is more strongly correlated with inter-locking directorates. The presence of shared directors is associated with either reduced firm-level transparency or increased correlation in firm fundamentals, for example, due to joint resource allocation within the group. In this way, the results are consistent with models where firm interlocks facilitate coordination across firms and are also consistent with models where relationships affect capital allocation.

    Keywords: Stocks; Price; Corporate Governance; Governance Controls; Governing and Advisory Boards; Resource Allocation; Emerging Markets; Ownership Stake; Chile;

    Citation:

    Khanna, Tarun, and Catherine Thomas. "Synchronicity and Firm Interlocks in an Emerging Market." Journal of Financial Economics 92, no. 2 (May 2009). View Details
  11. China + India: The Power of Two

    China and India are burying the hatchet after four-plus decades of hostility. A few companies from both nations have been quick to gain competitive advantages by viewing the two as symbiotic. If Western corporations fail to do the same, they will lose their competitive edge--and not just in China and India but globally. The trouble is, most companies and consultants refuse to believe that the planet's most populous nations can mend fences. Not only do the neighbors annoy each other with their foreign policies, but they're also vying to dominate Asia. Moreover, the world's fastest-growing economies are archrivals for raw materials, technologies, capital, and overseas markets. Still, China and India are learning to cooperate, for three reasons. First, these ancient civilizations may have been at odds since 1962, but for 2,000 years before that, they enjoyed close economic, cultural, and religious ties. Second, neighbors trade more than non-neighbors do, research suggests. Third, China and India have evolved in very different ways since their economies opened up, reducing the competitiveness between them and enhancing the complementarities. Some companies have already developed strategies that make use of both countries' capabilities. India's Mahindra & Mahindra developed a tractor domestically but manufactures it in China. China's Huawei has recruited 1,500 engineers in India to develop software for its telecommunications products. Even the countries' state-owned oil companies, including Sinopec and ONGC, have teamed up to hunt for oil together. Multinational companies usually find that tapping synergies across countries is difficult. At least two American corporations, GE and Microsoft, have effectively combined their China and India strategies, allowing them to stay ahead of global rivals.

    Keywords: Competency and Skills; Economic Growth; Cross-Cultural and Cross-Border Issues; Multinational Firms and Management; Business History; Competitive Strategy; Cooperation; China; India;

    Citation:

    Khanna, Tarun. "China + India: The Power of Two." Harvard Business Review 85, no. 12 (December 2007). View Details
  12. Business Groups in Emerging Markets: Paragons or Parasites?

    Keywords: Groups and Teams; Emerging Markets;

    Citation:

    Khanna, Tarun, and Yishay Yafeh. "Business Groups in Emerging Markets: Paragons or Parasites?" Journal of Economic Literature 45, no. 2 (June 2007): 331–372. (Reprinted and adapted as Chapter 20 in The Oxford Handbook of Business Groups, edited by Asli M. Colpan, Takashi Hikino, and James R. Lincoln. Oxford Handbooks in Business and Management Series. Oxford University Press, July 2010.) View Details
  13. Bringing History (Back) into International Business

    We argue that the field of international business should evolve its rhetoric from the relatively uncontroversial idea that 'history matters' to exploring how it matters. We discuss four conceptual channels through which history matters, illustrating each with a major example. First, historical variation is at least a worthy complement to contemporary cross-sectional variation in illuminating conceptual issues. As an example, we show that conclusions reached by the literature on contemporary emerging market business groups are remarkably similar to independently reached conclusions about a very similar organizational form that was ubiquitous in the age of empire. Second, historical evidence avoids spurious labeling of some phenomena as 'new', and by so doing may challenge current explanations of their determinants. Whereas some firm types today were also present earlier, some types have disappeared, some have appeared, and some have disappeared and reappeared later. Third, history can allow us to move beyond the oft-recognized importance of issues of path dependence to explore the roots of Penrosian resources. We argue that the choices made by Jardine's and Swire's in Asia today, for example, are an outgrowth of strategic choices first in evidence more than a century ago. These would remain obscured absent an historical analysis. Fourth, there are certain issues that are unaddressable, except in the really long (that is, historical) run. Exploring the causal relationship (if any) between foreign direct investment, a staple of the international business literature, and long-run economic development provides one important example. Throughout, we advocate embracing rigorous methods for analyzing small-sample and qualitative data when conventional regression techniques do not apply. That is, we suggest that re-embracing history in the mainstream is not tantamount to sacrificing methodological rigor.

    Citation:

    Jones, G., and Tarun Khanna. "Bringing History (Back) into International Business." Journal of International Business Studies 37, no. 4 (July 2006): 453–468. View Details
  14. Globalization and Convergence in Corporate Governance: Evidence from Infosys and the Indian Software Industry

    Keywords: Globalization; Corporate Governance; Computer Industry; India;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Globalization and Convergence in Corporate Governance: Evidence from Infosys and the Indian Software Industry." Journal of International Business Studies 35, no. 6 (November 2004): 484–507. View Details
  15. Disclosure Practices of Foreign Companies Interacting with U.S. Markets

    We analyze the disclosure practices of companies as a function of their interaction with the U.S. markets for a group of 794 firms from 24 countries in Asia-Pacific and Europe. Our analysis uses the Transparency and Disclosure scores developed recently by Standard & Poor's. These scores rate the disclosure of companies from around the world using U.S. disclosure practices as an implicit benchmark. Results show a positive association between these disclosure scores and a variety of market interaction measures, including US Listing, US investment flows, export to and operations in the US. Trade with US, however, has an insignificant relationship with the disclosure scores. Our empirical analysis controls for the previously documented association between disclosure and firm size, performance, and country legal origin. Our results are broadly consistent with the hypothesis that cross-border economic interactions are associated with similarities in disclosure and governance practices.

    Keywords: Management Practices and Processes; Markets; Investment; Size; Performance; Cross-Cultural and Cross-Border Issues; Corporate Governance; Corporate Disclosure; Trade; United States; Asia; Europe;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Suraj Srinivasan. "Disclosure Practices of Foreign Companies Interacting with U.S. Markets." Journal of Accounting Research 42, no. 2 (May 2004). View Details
  16. Can India Overtake China?

    What's the fastest route to economic development? Welcome foreign direct investment (FDI), says China, and most policy experts agree. But a comparison with long-time laggard India suggests that FDI is not the only path to prosperity. Indeed, India's homegrown entrepreneurs may give it a long-term advantage over a China hamstrung by inefficient banks and capital markets.

    Keywords: India; China;

    Citation:

    Huang, Yasheng, and Tarun Khanna. "Can India Overtake China?" Foreign Policy, no. 137 (July/August 2003): 74–81. View Details
  17. Estimating the Performance Effects of Business Groups in Emerging Markets

    Keywords: Performance; Groups and Teams; Emerging Markets;

    Citation:

    Khanna, Tarun, and J. Rivkin. "Estimating the Performance Effects of Business Groups in Emerging Markets." Strategic Management Journal 22, no. 1 (January 2001): 45–74. (Winner of Academy of Management. Business Policy and Strategy Division. Best Paper Award presented by Academy of Management.) View Details
  18. Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups

    Keywords: Groups and Teams; Profit; Emerging Markets; Theory; India;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups." Journal of Finance 55, no. 2 (April 2000): 867–891. View Details
  19. Policy Shocks, Market Intermediaries, and Corporate Strategy: Evidence from Chile and India

    Keywords: Markets; Business Ventures; Strategy; Chile; India;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Policy Shocks, Market Intermediaries, and Corporate Strategy: Evidence from Chile and India." Journal of Economics & Management Strategy 8, no. 2 (June 1999): 271–310. View Details
  20. The Dynamics of Learning Alliances: Competition, Cooperation, and Relative Scope

    Keywords: Alliances; Learning; Cooperation;

    Citation:

    Gulati, Ranjay, Tarun Khanna, and Nitin Nohria. "The Dynamics of Learning Alliances: Competition, Cooperation, and Relative Scope." Strategic Management Journal 19, no. 3 (March 1998). (A shorter version of this paper appeared in Academy of Management Best Papers Proceedings, 1994.) View Details

Book Chapters

  1. Business Groups in Emerging Markets: Paragons or Parasites?

    Keywords: Business Ventures; Groups and Teams; Emerging Markets; Developing Countries and Economies;

    Citation:

    Khanna, Tarun, and Yishay Yafeh. "Business Groups in Emerging Markets: Paragons or Parasites?" Chap. 20 in The Oxford Handbook of Business Groups, edited by Asli M. Colpan, Takashi Hikino, and James R. Lincoln.Oxford Handbooks in Business and Management. Oxford University Press, 2010. View Details
  2. Health Services for the Poor in Developing Countries: Private vs. Public vs. Private & Public

    Keywords: Health Care and Treatment; Poverty; Welfare or Wellbeing; Developing Countries and Economies; Public Sector; Private Sector; Health Industry;

    Citation:

    Khanna, Tarun, and David M. Bloom. "Health Services for the Poor in Developing Countries: Private vs. Public vs. Private & Public." In Business Solutions for the Global Poor: Creating Social and Economic Value, edited by V. Kasturi Rangan, John A. Quelch, Gustavo Herrero, and Brooke Barton. John Wiley & Sons, 2007. View Details
  3. The Evolution of Concentrated Ownership in India: Broad Patterns and a History of the Indian Software Industry

    Keywords: History; Ownership; Information Technology Industry; India;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "The Evolution of Concentrated Ownership in India: Broad Patterns and a History of the Indian Software Industry." In The History of Corporate Governance around the World: Family Business Groups to Professional Managers, edited by Randall Morck. University of Chicago Press, 2005. View Details
  4. Emerging Market Business Groups, Foreign Investors, and Corporate Governance

    Keywords: Emerging Markets; Business Ventures; Foreign Direct Investment; Corporate Governance; Globalized Economies and Regions;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Emerging Market Business Groups, Foreign Investors, and Corporate Governance." In Concentrated Corporate Ownership, edited by Randall Morck, 265–294. National Bureau of Economic Research Conference Report. University of Chicago Press, 2000. View Details
  5. Competitive Policy Shocks and Strategic Management

    Keywords: Competitive Strategy; Corporate Strategy; System Shocks; Globalization;

    Citation:

    Ghemawat, P., R. E. Kennedy, and Tarun Khanna. "Competitive Policy Shocks and Strategic Management." In Managing Strategically in an Interconnected World, edited by Michael A. Hitt, Joan E. Ricart i Costa, and Robert D. Nixon. Chichester: John Wiley & Sons, 1998. View Details
  6. On Technological Evolution within and of Industry Boundaries

    Keywords: Technological Innovation; Industry Structures; Boundaries;

    Citation:

    Khanna, T. "On Technological Evolution within and of Industry Boundaries." In Research on Technological Innovation, Management, and Policy. Vol. 4, edited by Richard S. Rosenbloom and Robert A. Burgelman. Greenwich, CT: JAI Press, 1989. View Details

Working Papers

  1. The Role of Firms in Fostering Within Country Migration: Evidence from a Natural Experiment in India

    High ability individuals can be constrained from commensurate employment opportunities due to their geographic location. In the face of physical, informational and social barriers to migration, firms with nation-wide hiring practices can benefit from facilitating the migration of high ability individuals from low employment districts to regions with better employment opportunities. We exploit a natural experiment within an Indian technology firm where the pre-existence of a computer-generated talent allocation protocol allows us to isolate the relation between an employee's prior home town/village and subsequent performance within the firm. Using unique personnel data for entry level undergraduates and leveraging the fact that the assignment of an employee to one of many technology centers within the firm is uncorrelated to observable characteristics of the employee, we find that employees hired from low employment districts (remote employees) outperform their non-remote counterparts in the short term. They continue to outperform their non-remote counterparts in the long term once we control for the distance of migration. As a possible explanation of our result, we test for selection and find that employees hired from low employment districts outperform their non-remote counterparts in standardized verbal and logical tests at the recruitment stage. To explain why the firm might be more likely to select high ability individuals from remote districts, we additionally conduct a survey of randomly selected urban and rural colleges and document statistically significant differences in employment opportunities for rural and urban graduates. Our survey results also indicate that not every firm follows the policy of hiring from low-employment districts.

    Keywords: Geographic Location; Selection and Staffing; Employment; Residency Characteristics; Technology Industry; India;

    Citation:

    Choudhury, Prithwiraj, and Tarun Khanna. "The Role of Firms in Fostering Within Country Migration: Evidence from a Natural Experiment in India." Harvard Business School Working Paper, No. 14-080, February 2014. View Details
  2. Bio-Piracy or Prospering Together? Fuzzy Set and Qualitative Analysis of Herbal Patenting by Firms

    Since the 1990s, several Western firms have filed patents based on medicinal herbs from emerging markets, evoking protests from local stakeholders against 'bio-piracy'. We explore conditions under which firms and local stakeholders share rents from such patents. Our theoretical model builds on two distinct strategy literatures: firms appropriating rents from new technologies and firms managing stakeholders. We predict that a win-win outcome emerges when the patent strength is moderate and when local stakeholders form a coalition with larger national stakeholders to initiate litigation against the focal firm. We test our predictions using a two-pronged empirical strategy. Our empirical context relates to herbal patents from emerging markets and given that we have a small sample (N=17), we employ a fuzzy set QCA methodology. In addition, we develop four in-depth qualitative case studies to support our predictions.

    Keywords: Rents from New Technology; Local Stakeholders; Herbal Patents; QCA; Fuzzy Set Analysis; Qualitative Case Studies; Plant-Based Agribusiness; Patents; Emerging Markets; Health Care and Treatment; Business and Stakeholder Relations; Cross-Cultural and Cross-Border Issues; Agriculture and Agribusiness Industry; Pharmaceutical Industry;

    Citation:

    Choudhury, Prithwiraj, and Tarun Khanna. "Bio-Piracy or Prospering Together? Fuzzy Set and Qualitative Analysis of Herbal Patenting by Firms." Harvard Business School Working Paper, No. 14-081, February 2014. View Details
  3. Codifying Prior Art and Patenting: Natural Experiment of Herbal Patent Prior Art Adoption at the EPO and USPTO

    In the patenting literature, economists and legal scholars have focused on the question of improving the quality of prior art available to patent examiners and mitigating the filing and granting of patents where prior art exists in common knowledge. In this paper, we create a unique dataset of Chinese and Indian herbal patents filed on the USPTO and EPO between 1977 and 2010 and exploit a natural experiment where the USPTO and EPO adopted a codified database of traditional herbal prior art at different points in time. This initiative was titled the 'Traditional Knowledge Depository Library' (TKDL) and was pioneered by Indian state-owned R&D labs and provided the EPO and USPTO with systematic evidence of prior art on herbal patents based on a translation of ancient Indian texts. We conduct additional analyses to establish that the time lag of the USPTO adopting the TKDL agreement compared to the EPO was related to idiosyncratic differences in how the agreements were structure and negotiated, not differences in policy towards herbal patents at the EPO and USPTO. We also find that the adoption of TKDL appears to shift patenting in the West from pure herbal remedies that can be contested in court, to new applications involving herbals and synthetics, which are less contestable. Further, we study the ethnic origins of the inventors of herbal patents filed on the USPTO. For this analysis, we use ethnic name matching for all patentees of herbal patents. We also exploit an exogenous reduction in H1B (visa) quotas and find that herbal patents filed by Western firms based in the U.S. are driven by scientists of ethnic Indian and Chinese origin.

    Keywords: Patents; Plant-Based Agribusiness; Ethnicity Characteristics; Health Care and Treatment; Pharmaceutical Industry; Agriculture and Agribusiness Industry; China; India;

    Citation:

    Choudhury, Prithwiraj, and Tarun Khanna. "Codifying Prior Art and Patenting: Natural Experiment of Herbal Patent Prior Art Adoption at the EPO and USPTO." Harvard Business School Working Paper, No. 14-079, February 2014. View Details
  4. Do Leaders Matter? Natural Experiment and Quantitative Case Study of Indian State Owned Laboratories

    Our study is one of the first natural experiments around the role of leaders in the context of firms. Also while most prior natural experiments around leadership in the policy world have exploited the death of the leader, we exploit an alternate exogenous shock—rigid bureaucratic rules that constrain the appointment of leaders to 42 Indian public R&D labs with 12,500 employees. The bureaucratic rules ensure that the timing of leadership change is uncorrelated with observable or unobservable firm level characteristics. This enables us to circumvent the issues related to the use of manager fixed effects in the prior empirical literature. Efforts to incentivize individual employees to file and license patents did not meet with immediate success. However, patenting and licensing both increased once leaders at individual labs were replaced.

    Keywords: Patents; Leadership; State Ownership; India;

    Citation:

    Choudhury, Prithwiraj, and Tarun Khanna. "Do Leaders Matter? Natural Experiment and Quantitative Case Study of Indian State Owned Laboratories." Harvard Business School Working Paper, No. 14-077, February 2014. View Details
  5. Toward Resource Independence—Why State-Owned Entities Become Multinationals: An Empirical Study of India’s Public R&D Laboratories

    In this paper, we build on the standard resource dependence theory and its departure suggested by Vernon to offer a novel explanation for why state-owned entities might seek a global footprint and global cash flows: to achieve resource independence from other state actors. In the context of state-owned entities, the power use hypothesis of standard resource dependence theory can be used to analyze the dependence of SOEs on other state actors, such as government ministries and government agencies that have ownership and control rights in the SOE. Building on Vernon, we argue that the SOE can break free from this power imbalance and establish resource independence from other state actors by becoming a multinational firm and/or by generating global cash flows. We leverage a natural experiment in India and outline both quantitative and qualitative evidence from 42 Indian state-owned laboratories to support this argument.

    Keywords: Multinational Firms and Management; Research and Development; State Ownership; Technology Industry; India;

    Citation:

    Choudhury, Prithwiraj, and Tarun Khanna. "Toward Resource Independence—Why State-Owned Entities Become Multinationals: An Empirical Study of India’s Public R&D Laboratories." Harvard Business School Working Paper, No. 14-076, February 2014. View Details
  6. Independent Directors' Dissent on Boards: Evidence from Listed Companies in China

    In this paper, we examine the circumstances under which so-called "independent" directors voice their independent views on public boards in a sample of Chinese firms. First, we ask why independent directors dissent, i.e. how they justify such dissent to public investors. We find that when independent directors dissent, they tend to offer mild, subjective justifications. Overt criticism of the management is rare. Next, we ask when an independent director is more likely to dissent and who is more likely to dissent. Controlling for firm and board characteristics, we find that dissent is significantly correlated with breakdown of social ties between the independent director and the board chair who locates at the center of the board bureaucracy in China. Dissent is more likely to occur when the board chair who appointed the independent director has left the board. Dissent also tends to occur at the end of board "games", defined as a 60-day window prior to departure of the board chair or departure of the independent director herself. The endgame effect is particularly strong, seeing 27% of the dissent issued at board "endgames" which represents only 4% of independent directors' average tenure. While directors with foreign experience are more likely to dissent, we do not find that academics, accountants and lawyers are significantly more active in voicing dissent. Lastly, we show that dissent is consequential to both the director and the firm. For directors, dissent significantly increases one's likelihood of exiting the director labor market, which translates to a more-than-10% estimated loss of annual income. For firms, we document an economically and statistically significant cumulative abnormal return of -0.97% around announcement of dissent. Although the literature has suggested that dissent might be reflective of diverse viewpoints, and perhaps beneficial in and of itself through reduction of firm variability, we do not find this offsetting beneficial effect to be strong.

    Keywords: corporate governance; independent directors; China; China; Asia;

    Citation:

    Ma, Juan, and Tarun Khanna. "Independent Directors' Dissent on Boards: Evidence from Listed Companies in China." Harvard Business School Working Paper, No. 13-089, April 2013. (Revised May 2013, October 2013.) View Details
  7. The Evolution of Concentrated Ownership in India Broad Patterns and a History of the Indian Software Industry

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "The Evolution of Concentrated Ownership in India Broad Patterns and a History of the Indian Software Industry." Harvard Business School Working Paper, No. 05-001, July 2004. (Also NBER Working Paper No. 10613, July 2004. Published as a chapter in The Rise and Fall of Business Families, edited by Randall Morck. University of Chicago Press, 2005.) View Details

Cases and Teaching Materials

  1. Health City Cayman Islands

    Narayana Health (NH) had been successfully delivering affordable high quality tertiary care to the masses in India through its chain of hospitals for over a decade. To encourage the adoption of the NH affordable care delivery model worldwide, Dr. Shetty, Chairman of NH, was keen to establish a hospital in the western hemisphere and believed that it was important to demonstrate the model to the US. Thus when the Cayman Islands Government was interested in developing the island as a medical tourism hub during 2008-09, Dr. Shetty agreed to develop the Health City Cayman Islands (HCCI), a 2,000 bed conglomeration of multiple super-specialty hospitals within a single campus located on Grand Cayman Island. The first phase of HCCI, a 104 bed hospital focused on cardiac care and orthopedics, was developed jointly by NH and Ascension, the largest non-profit hospital system in US. The hospital was inaugurated in February, 2014 but there were open questions related to pricing of the procedures and the related target patient segment and volumes. Also, HCCI senior management realized the need to adapt the NH model developed in and for India to fit the new environment at Cayman and was open to experimentation in the coming months.

    Keywords: healthcare; emerging economies; innovation; india; institutions; pricing; replication; adoption; adaptation; strategy; Narayana Health; Ascension; Health City Cayman Islands; Dr. Devi Shetty; global strategy; international business; Health Care and Treatment; Innovation Strategy; Innovation and Management; Disruptive Innovation; Cross-Cultural and Cross-Border Issues; Global Strategy; Knowledge Use and Leverage; Management Practices and Processes; Growth Management; Growth and Development Strategy; Market Entry and Exit; Adaptation; Adoption; India; Cayman Islands;

    Citation:

    Khanna, Tarun, and Budhaditya Gupta. "Health City Cayman Islands." Harvard Business School Case 714-510, May 2014. View Details
  2. India's Amul: Keeping Up with the Times

    Amul is an Indian dairy cooperative founded in 1947, eight months before India's independence from British rule, and owned by over three million farmers in the state of Gujarat. It is India's largest food product marketing organization, selling 46 products, including pouched milk, cheese, butter, ice cream and infant food through a million retailers across the country, and is the market leader in almost all the categories that it operates in. Amul is well known among Indian consumers for offering high-quality products at reasonable prices, and runs a highly popular advertising campaign that spoofs current events. It offers its farmers 80% of the consumer's dollar for milk, compared with 35%-40% typical in some Western markets. Amul's cooperative dairy model has been replicated across several Indian states, thereby helping increase the incomes of 80-100 million farmer families across the country. However, despite its success, Amul is beginning to come under increasing pressure. Multinationals like Nestlé and Unilever are increasing their presence in India, and competing fiercely with Amul in value-added products like yogurt. The entry of large multi-brand retailers like Walmart and Carrefour in the Indian market threatens to squeeze Amul's margins and undermine its low-cost distribution network. India's large young rural population is shying away from dairy farming in favor of urban jobs, leaving questions about future procurement. Finally, Amul's farmers form a large vote bank in the state of Gujarat, and its cooperative structure risks being compromised by vested political interests. Should Amul continue with the business model that has served it so well for decades, or should it change its strategy in order to keep up with India's changing social, political and economic landscape?

    Keywords: Organizational Change and Adaptation; Competition; Animal-Based Agribusiness; Multinational Firms and Management; Agriculture and Agribusiness Industry; Gujarat;

    Citation:

    Deshpandé, Rohit, Tarun Khanna, and Tanya Bijlani. "India's Amul: Keeping Up with the Times." Harvard Business School Case 514-067, October 2013. View Details
  3. Haier: Taking a Chinese Company Global in 2011

    In 2011, Haier, China's leading appliance manufacturer, had over $20 billion in worldwide sales and had just been named the leading refrigerator manufacturer worldwide. Describes Haier's rise over three decades from a defunct refrigerator factory in China's Qingdao province to an international player with $5.5 billion in overseas sales. Haier had followed a nontraditional expansion strategy of entering the developed markets of Europe and the United States as a niche player before venturing into Middle Eastern and neighboring Asian markets. Looking ahead to the next decade, Haier CEO Zhang Ruimin saw opportunities for Haier to grow through product diversification and additional market penetration in both developed and emerging markets. He and his colleagues would depend on their experience of acquiring numerous companies, entering and retaining new markets, restructuring the organization, and managing hundreds of subsidiaries around the world. They would need to determine which of the lessons learned from Haier's international operations should be implemented in China and which skills learned at home could best be applied abroad.

    Keywords: Business Growth and Maturation; Global Strategy; Expansion; Diversification; Emerging Markets; Consumer Products Industry; Manufacturing Industry; China;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Phillip Andrews. "Haier: Taking a Chinese Company Global in 2011." Harvard Business School Case 712-408, August 2011. (Revised May 2012.) View Details
  4. Genzyme's CSR Dilemma: How to Play its HAND

    Genzyme, a global biotechnology company, launches a program to develop therapies for neglected diseases (e.g., malaria, TB), giving away the intellectual property. This case focuses on the decision of which diseases, which partnerships, and which markets should management decide to fund. But the bigger issue is how this program, developed under the umbrella role Genzyme's corporate social responsibility, fits into its global competitive strategy.

    Keywords: Global Strategy; Health Care and Treatment; Intellectual Property; Corporate Social Responsibility and Impact; Partners and Partnerships; Research and Development; Biotechnology Industry;

    Citation:

    Bartlett, Christopher A., Tarun Khanna, and Prithwiraj Choudhury. "Genzyme's CSR Dilemma: How to Play its HAND." Harvard Business School Case 910-407, August 2009. (Revised April 2012.) View Details
  5. Jaipur Literature Festival — Beyond the Festival Template

    Jaipur Literature Festival (JLF), dubbed "the greatest literary show on earth" was an annual event held in late January at the Diggi Palace in Jaipur. JLF provided a platform for international authors and Indian language authors from the subcontinent to engage in a literary dialogue. By 2011, JLF attracted the largest festival audience in the Asian Pacific region with approximately 60,000 visitors from 24 countries. It featured 224 speakers in 140 sessions, and 100 musicians in 20 concerts. Success had already changed the character of the festival from the earlier more intimate days and had created a momentum that, if not managed correctly, could compromise goals such as the democratic ethos of the festival. While JLF had achieved explosive growth and critical success, its expenses still exceeded its revenue. Could JLF find an organizational and financial "template" which could sutain the festival into the future?

    Keywords: literature; literacy; festival; social entrepreneurship; economic development; social development; organizational structure; Literacy Characteristics; Development Economics; Social Entrepreneurship; Organizational Structure; Social Issues; India;

    Citation:

    Khanna, Tarun, Dennis A. Yao, Hillary Greene, and Amrita Chowdhury. "Jaipur Literature Festival — Beyond the Festival Template." Harvard Business School Case 712-401, November 2011. (Revised March 2014.) View Details
  6. Expansion at Narayana Hrudayalaya

    Narayana Hrudayalaya has expanded into a multi-specialty health city in Bangalore, with a 25-acre campus that offers complex tertiary care procedures ranging from orthopedics to cancer care. In 2008, NH raised private equity from JP Morgan and Pinebridge Investments to expand to multiple locations across India. The hospital is in the process of setting up health cities and smaller secondary-care hospitals across the country, in order to treat patients close to where they live. In the city of Mysore, NH is experimenting with a low-cost hospital, with a capital investment of $4 million. Management also plans to set up a hospital in the Cayman Islands, an hour's flight from Miami in the United States, where they will offer tertiary care procedures at a fraction of US prices, thereby bringing Dr. Shetty's model of compassionate care at affordable prices, to those in the developed world.

    Keywords: Investment; Price; Health Care and Treatment; Emerging Markets; Social Enterprise; Expansion; Health Industry; Bangalore; Cayman Islands; Miami;

    Citation:

    Khanna, Tarun, and Tanya Bijlani. "Expansion at Narayana Hrudayalaya." Harvard Business School Video Supplement 712-801, September 2011. View Details
  7. Narayana Hrudayalaya Heart Hospital

    Narayana Hrudayalaya (NH) is one of the world's busiest heart hospitals, where surgeons perform 30-35 complex cardiac surgeries daily. With an average cost of $1,800 per surgery, the hospital treats patients at affordable prices, and does not turn away even the poorest of the poor. The hospital's high volumes provide economies of scale that keep costs low, and offer surgeons greater experience, thereby resulting in high quality. NH utilizes its resources, including its equipment and infrastructure, as well as the time of its doctors and residents, optimally, further pushing costs down. The Yeshasvini insurance scheme, conceptualized by Dr. Devi Shetty, founder of NH, provides members of farming cooperatives access to cashless treatment in over 350 hospitals across the state of Karnataka.

    Keywords: Buildings and Facilities; Experience and Expertise; Cost Management; Insurance; Health Care and Treatment; Resource Allocation; Time Management; Emerging Markets; Infrastructure; Cooperative Ownership; Quality; Social Enterprise; Health Industry; Karnataka;

    Citation:

    Khanna, Tarun, and Tanya Bijlani. "Narayana Hrudayalaya Heart Hospital." Harvard Business School Video Supplement 712-802, September 2011. View Details
  8. Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A)

    Describes the mission, vision, and strategy of a team of entrepreneurs headed by a charismatic heart surgeon who founded a heart hospital in Bangalore, India. The purpose of the hospital was to offer health care for the masses. This tertiary care hospital performed over 4,000 surgeries a year (approximately half on pediatric patients), which is more than that performed by The Cleveland Clinic and the Mayo Clinic (ranked #1 and #2 in the United States) combined. The interesting aspect of its business formula was its ability to offer such complex surgeries as CABG (popularly known as bypass surgery) for about $2,000, which was substantially less than other similarly equipped hospitals in India. Its founder has already entered into other complementary activities, such as a statewide insurance scheme for rural farmers--Yeshaswini. The founder has ambitious plans for a comprehensive "Walmartization" of health care in India.

    Keywords: Social Entrepreneurship; Health Care and Treatment; Goals and Objectives; Social Marketing; Mission and Purpose; Strategic Planning; Social Enterprise; Welfare or Wellbeing; Health Industry; Service Industry; Bangalore;

    Citation:

    Khanna, Tarun, V. Kasturi Rangan, and Merlina Manocaran. "Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (A)." Harvard Business School Case 505-078, June 2005. (Revised August 2011.) View Details
  9. Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B)

    Narayana Hrudayalaya (NH) has expanded into a multi-specialty health city in Bangalore and has grown to twelve locations across India. The hospital plans to build 300-bed secondary-care hospitals in smaller cities across India, with a goal to operate 30,000 beds in seven years, which will make it comparable with the world's largest hospital chains. NH operates the world's largest tele-cardiology network, which provides consultations to people in 800 locations across the world, including 53 African countries. Management also plans to open a 2,000-bed hospital in the Cayman Islands to provide underinsured Americans with tertiary care procedures at 40% below U.S. prices, thereby bringing Dr. Shetty's model of compassionate care at affordable prices to the developed world.

    Keywords: Emerging Markets; Growth and Development Strategy; Goals and Objectives; Social Enterprise; Health Care and Treatment; Poverty; Welfare or Wellbeing; Health Industry; Bangalore; Cayman Islands; Africa;

    Citation:

    Khanna, Tarun, and Tanya Bijlani. "Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor (B)." Harvard Business School Supplement 712-402, August 2011. (Revised May 2012.) View Details
  10. Nokia: The Burning Platform

    Overview on the state of Nokia since the “Emerging Nokia?” case was written.

    Keywords: Business Strategy; Corporate Strategy; Competitive Advantage; Marketing Strategy; Emerging Markets; Network Effects; Telecommunications Industry; Computer Industry;

    Citation:

    Alcacer, Juan, Tarun Khanna, and Mary Furey. "Nokia: The Burning Platform." Harvard Business School Case 711-514, May 2011. (Revised May 2011.) View Details
  11. Emerging Nokia?

    By late 2009, Nokia was grappling with the decision of whether to recover its leading position in the high-profit developed markets, where they were losing market share to the likes of Apple and Samsung, or defend its market leadership in the low-margin, high-volume emerging markets. This case poses the following questions: Should Nokia stay the course, operating in both the developed and emerging markets, or should they forego one for the other? And what would this imply for the types of handsets and services they would need to offer?

    Keywords: Innovation and Invention; Emerging Markets; Industry Structures; Competitive Advantage; Corporate Strategy; Telecommunications Industry; Finland;

    Citation:

    Alcacer, Juan, Tarun Khanna, Mary Furey, and Rakeen Mabud. "Emerging Nokia?" Harvard Business School Case 710-429, April 2010. (Revised May 2011.) View Details
  12. Vale: Global Expansion in the Challenging World of Mining

    In 2009 the management of Vale, a Brazilian diversified mining company and the largest iron ore producer in the world, was under pressure from at least two fronts. First, the emergence of China as the most important consumer of iron ore in the last few years had changed the pricing system for iron ore from long-term contracts based on negotiated "benchmark prices" to contracts based on spot prices, usually forcing mining companies to pay for shipping. Second, for Brazil's charismatic president, Lula, a former union leader, Vale's layoffs during the global financial crisis and its perceived move away from Brazil (as Vale increased its exports to China and purchased Chinese vessels to ship iron ore to Asia) were reasons to start an open campaign to pressure Vale and Roger Agnelli to invest in integrated steel mills in Brazil. In October of 2009, the CEO of Vale, Agnelli was going to meet with Lula and had to decide what to do to attenuate these political pressures. What could Agnelli do to deal with political pressures at home? Was the purchase of large vessels to ship iron ore to Asia a good decision at a time when the shipping industry had spare capacity?

    Keywords: Financial Crisis; Investment; Global Strategy; Risk Management; Market Entry and Exit; Business and Government Relations; Competitive Strategy; Mining Industry; Brazil;

    Citation:

    Khanna, Tarun, Aldo Musacchio, and Ricardo Reisen de Pinho. "Vale: Global Expansion in the Challenging World of Mining." Harvard Business School Case 710-054, April 2010. (Revised October 2010.) View Details
  13. TeamLease: Putting India to Work (Il) Legally

    This case focuses on the growth dilemmas facing Manish Sabharwal, co-founder, TeamLease Services Pvt. Ltd. TeamLease is a human resource outsourcing and temp staffing company located in India, which has grown rapidly from 2002 to 2009. Set in the context of the highly regulated Indian labour market, the case raises the questions of how entrepreneurial leadership and strategy formulation can leverage the opportunities represented by the gaps between what the law says and what the market needs. It provides an opportunity to examine the concepts of power and influence and how they can be created and wielded to catalyze change and build a new industry that is technically illegal.

    Keywords: Entrepreneurship; Employment; Human Capital; Lawfulness; Leadership; Growth and Development Strategy; Demand and Consumers; Power and Influence; Employment Industry; India;

    Citation:

    Khanna, Tarun, and Anjali Raina. "TeamLease: Putting India to Work (Il) Legally." Harvard Business School Case 710-402, March 2010. (Revised September 2010.) View Details
  14. Dogus Group: Weighing Partners for Garanti Bank

    In August 2005, the leadership of Turkey's Dogus Group considered opportunities for its flagship enterprise, Garanti Bank, to partner with a foreign financial institution. The case describes the Turkish banking industry and Garanti Bank's position within it, and asks students to consider whether partnership makes sense for Garanti and, if so, which bidder it should select.

    Keywords: International Finance; Emerging Markets; Partners and Partnerships; Value; Banking Industry; Turkey;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Richard Bullock. "Dogus Group: Weighing Partners for Garanti Bank." Harvard Business School Case 709-401, September 2008. (Revised May 2010.) View Details
  15. METRO Cash & Carry in China, 2010

    International wholesaler METRO Cash & Carry in 2010 had little choice but to expand swiftly in Asia to facilitate growth beyond its increasingly mature markets in Western Europe. China was of particular note to MCC, but the company had broken even there only in 2008 after 14 years of operations. Were current approaches sufficient to reach METRO's growth goals in China? If not, what changes were necessary, and how would MCC managers implement them?

    Keywords: Expansion; Business Growth and Maturation; Business Strategy; Strategic Planning; Growth and Development Strategy; Organizational Change and Adaptation; Retail Industry; China;

    Citation:

    Khanna, Tarun, and David Lane. "METRO Cash & Carry in China, 2010." Harvard Business School Case 710-448, April 2010. View Details
  16. Teva Pharmaceutical Industries, Ltd

    How do companies develop a strategy that is both low-cost and differentiated without becoming squeezed in the middle? Describes how Teva, Israel's first and largest multinational, achieved its globally dominant position in generic pharmaceuticals, an industry that has undergone significant change over the last 20 years. Examines its strategies to defend itself against both low-cost competitors from India and other emerging markets as well as Big Pharma companies, which are adopting increasingly aggressive tactics in genetics.

    Keywords: Multinational Firms and Management; Emerging Markets; Rank and Position; Competitive Strategy; Pharmaceutical Industry; India; Israel;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Claudine Deborah Madras. "Teva Pharmaceutical Industries, Ltd." Harvard Business School Case 707-441, September 2006. (Revised March 2010.) View Details
  17. Two Ways to Fly South: Lan Airlines and Southwest Airlines

    To maximize their effectiveness, color cases should be printed in color. 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. Includes color exhibits.

    Keywords: Business Model; Service Operations; Competitive Advantage; Air Transportation Industry; United States; Chile;

    Citation:

    Casadesus-Masanell, Ramon, Tarun Khanna, Jorge Tarzijan, and Jordan Mitchell. "Two Ways to Fly South: Lan Airlines and Southwest Airlines." Harvard Business School Case 707-414, November 2006. (Revised March 2010.) View Details
  18. Mondragon Corporacion Cooperativa (MCC)

    Mondragon Corp. Cooperativa (MCC) is a conglomerate of more than 100 cooperatives in Basque Country, Spain. From 1996, MCC has pursued an internationalization strategy. As the company goes global, MCC's business model, based on trust and social involvement, seems to be threatened. Can MCC effectively become a global player while being truthful to the principles on which its past successes have been built?

    Keywords: Business Conglomerates; Business Model; Global Strategy; Cooperative Ownership; Trust; Spain; Basque Provinces;

    Citation:

    Casadesus-Masanell, Ramon, and Tarun Khanna. "Mondragon Corporacion Cooperativa (MCC)." Harvard Business School Case 702-457, February 2002. (Revised March 2010.) View Details
  19. Finland's S Group: Competing with a Cooperative Approach to Retail

    The case looks at the two dominant Finnish retailers: S Group and Kesko. S Group is a customer-owned cooperative, which has a unique holding structure whereby 1.7 million residents (or 70 percent of Finnish households) own 22 regional cooperatives. In turn, the regional cooperatives own SOK, a centralized company that provides services to the regional cooperatives. Throughout the 1980s and 1990s, S Group lagged far behind the market leader, Kesko. However, since 2005, S Group has held the leadership position; in 2007, it had captured 41 percent market while Kesko's was 33.9 percent. Kesko Plc is publicly traded and pursues a model whereby retailer entrepreneurs use their personal funds to invest in stores and operate them completely. The case requires that students consider sources of competitive advantage that arise from the companies' markedly different business models.

    Keywords: Business Model; Cooperative Ownership; Public Ownership; Competitive Advantage; Retail Industry; Finland;

    Citation:

    Casadesus-Masanell, Ramon, Tarun Khanna, Samuli Skurnik, and Jordan Mitchell. "Finland's S Group: Competing with a Cooperative Approach to Retail." Harvard Business School Case 709-409, August 2008. (Revised March 2010.) View Details
  20. In the Spotlight: The Market for Iron Ore

    This note discusses the structure and functioning of the market for iron ore. This market has traditionally functioned using a benchmark pricing mechanism, in which large steel mills in Japan (now in China) negotiate the benchmark price with the largest of the big three iron ore producers (Vale do Rio Doce). Yet this market is changing rapidly, with the rise of China as the main consumer of iron ore the rules seem to be changing. The note examines the increasing importance of the spot market for iron ore and the advantages and disadvantages of abandoning the benchmark price system for both consumers and miners.

    Keywords: Industry Structures; Mining; Price; Valuation; Business Strategy; Demand and Consumers; Business and Government Relations; Mining Industry; China;

    Citation:

    Musacchio, Aldo, Tarun Khanna, and Jenna Bernhardson. "In the Spotlight: The Market for Iron Ore." Harvard Business School Background Note 710-049, January 2010. View Details
  21. METRO Cash & Carry in China, 2008

    In April 2008, the country head for METRO AG's Cash & Carry wholesaling operations is considering the most appropriate model for expansion in China, where METRO has operated stores for small business professionals for eight years. In addition, METRO is actively developing local suppliers for fresh food, a mainstay of its sales, to differentiate its product quality from local competitors.

    Keywords: Developing Countries and Economies; Emerging Markets; Distribution Channels; Partners and Partnerships; Competitive Strategy; Expansion; Retail Industry; China;

    Citation:

    Khanna, Tarun. "METRO Cash & Carry in China, 2008." Harvard Business School Case 710-432, November 2009. View Details
  22. Crossing Borders: MTC's Journey through Africa

    This is the story of MTC, a Kuwaiti telecom company that has grown from a sleepy, state monopoly to become one of the fastest growing telecom companies in the world, with the largest regional footprint across the Middle East and Africa. The CEO of the company, Dr. Saad Al Barrak, had been successful in executing an aggressive growth plan that found its crown jewel in the acquisition of Celtel, one of the largest telecom companies in sub-Saharan Africa. However, this acquisition threw MTC into a dynamic new context and marked the beginning of a very different phase. If Dr. Saad was going to lead MTC into the topmost ranks of global telecom, his team would have to successfully grapple with all the growing pains of managing across borders, brand names, and cultures. All against the backdrop of an unpredictable African market with huge growth potential and rapidly increasing competition.

    Keywords: Mergers and Acquisitions; Cross-Cultural and Cross-Border Issues; Global Strategy; Globalized Firms and Management; Growth and Development Strategy; Emerging Markets; Telecommunications Industry; Africa; Kuwait;

    Citation:

    Khanna, Tarun, and Ayesha Khan. "Crossing Borders: MTC's Journey through Africa." Harvard Business School Case 708-477, March 2008. (Revised October 2009.) View Details
  23. Indian Railways: Building a Permanent Legacy?

    Keywords: Government and Politics; Managerial Roles; Size; State Ownership; Performance; Transportation Industry; India;

    Citation:

    Khanna, Tarun, Aldo Musacchio, and Rachna Tahilyani. "Indian Railways: Building a Permanent Legacy?" Harvard Business School Case 710-008, August 2009. (Revised October 2009.) View Details
  24. Sex, Drugs, and Rock 'n Roll: The MTV Approach to Tackling HIV/AIDS

    This case explores the role that MTV, with its heavy diet of music and general youth-oriented media content, plays in spreading public-service messaging to contain the scourge of HIV/AIDS worldwide. There is a focus especially on its efforts in several emerging markets, particularly the parts of Africa that have a heavy disease incidence. MTV has developed a DNA of public service announcements that it claims are of central relevance to its high-risk customer base. How core is this to the strategy of a for-profit firm like MTV? What role can a multinational play in helping develop the health care "soft" infrastructure in such emerging markets?

    Keywords: For-Profit Firms; Developing Countries and Economies; Multinational Firms and Management; Health Care and Treatment; Emerging Markets; Corporate Social Responsibility and Impact; Corporate Strategy; Health Industry; Africa;

    Citation:

    Khanna, Tarun, Sonali R. Bloom, and David E. Bloom. "Sex, Drugs, and Rock 'n Roll: The MTV Approach to Tackling HIV/AIDS." Harvard Business School Case 709-429, August 2008. (Revised September 2009.) View Details
  25. Your Strategy—A Strategy Formulation Exercise for the General Management Program (GMP)

    This exercise is meant to help students take strategy concepts learned and adapt/apply them to their organizations.

    Keywords: Learning; Business or Company Management; Practice; Strategy;

    Citation:

    Khanna, Tarun, Robyn C. Davis, and Stephanie R. Khurana. "Your Strategy—A Strategy Formulation Exercise for the General Management Program (GMP)." Harvard Business School Exercise 708-494, February 2008. (Revised August 2012.) View Details
  26. Tricon Restaurants International: Globalization Re-examined

    Describes a leading fast food operator/franchiser trying to consolidate and standardize its operations worldwide and focus its efforts on a few key markets. Lends itself to a discussion of how global the fast food industry is, whether Tricon's new international strategy is consistent with industry structure and its competitive position, and, if so, which country markets to focus on.

    Keywords: Business Ventures; Global Strategy; Markets; Operations; Competition; Consolidation; Food and Beverage Industry;

    Citation:

    Ghemawat, Pankaj, and Tarun Khanna. "Tricon Restaurants International: Globalization Re-examined." Harvard Business School Case 700-030, August 1999. (Revised July 2009.) View Details
  27. House of Tata: Acquiring a Global Footprint

    Chronicles the globalization of the Tata Group, one of India's largest business groups. Since 2000, many Tata Group operating companies have aggressively built international businesses, particularly through overseas acquisitions. After describing the globalization rationales and approaches of the major Tata Group companies, the case asks students to consider whether Tata Motors should pursue the acquisition of the Jaguar and Land Rover brands owned by US-based Ford Motor company.

    Keywords: Mergers and Acquisitions; Developing Countries and Economies; Globalized Firms and Management; Growth and Development Strategy; India; United States;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Richard Bullock. "House of Tata: Acquiring a Global Footprint." Harvard Business School Case 708-446, May 2008. (Revised June 2009.) View Details
  28. Dogus Group: Weighing Partners for Garanti Bank (TN)

    Teaching Note for [709401].

    Keywords: Opportunities; Partners and Partnerships; Bids and Bidding; Financial Institutions; Financial Services Industry; Construction Industry;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Dogus Group: Weighing Partners for Garanti Bank (TN)." Harvard Business School Teaching Note 709-490, March 2009. View Details
  29. Sex, Drugs, and Rock 'n Roll: The MTV Approach to Tackling HIV/AIDS (TN)

    Teaching Note for [709429].

    Keywords: Advertising; Emerging Markets; Health Pandemics; Announcements; Social Issues; Customers; For-Profit Firms; Business Strategy; Infrastructure; Multinational Firms and Management; Music Industry; Entertainment and Recreation Industry; Africa;

    Citation:

    Khanna, Tarun, Sonali R. Bloom, and David E. Bloom. "Sex, Drugs, and Rock 'n Roll: The MTV Approach to Tackling HIV/AIDS (TN)." Harvard Business School Teaching Note 709-454, March 2009. View Details
  30. Bunge: Food, Fuel, and World Markets (TN)

    Teaching Note for [708443].

    Keywords: Agribusiness; Sales; Integration; Globalized Markets and Industries; Developing Countries and Economies; Competition; Business Model; Trade; Performance Efficiency; Agriculture and Agribusiness Industry; New York (state, US); Brazil; India; China;

    Citation:

    Khanna, Tarun, Santiago Mingo, and Jonathan West. "Bunge: Food, Fuel, and World Markets (TN)." Harvard Business School Teaching Note 709-460, January 2009. View Details
  31. METRO Cash & Carry

    Analyzes the globalization of Metro Case & Carry, a German wholesaler, which has flourished in many foreign markets but struggled to gain traction in India. Considers Metro's experience in Russia and China to put the company's challenges in India in comparative perspective. Pays particular attention to the institutional obstacles for a multinational to tap into the opportunities offered by emerging markets.

    Keywords: Cross-Cultural and Cross-Border Issues; Global Strategy; Multinational Firms and Management; Emerging Markets; Market Entry and Exit; China; India; Russia; Germany;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, Carin-Isabel Knoop, and David Lane. "METRO Cash & Carry." Harvard Business School Case 707-505, December 2006. (Revised January 2009.) View Details
  32. Crossing Borders: MTC's Journey through Africa (TN)

    Teaching Note for [708477].

    Keywords: Growth and Development; Monopoly; Strategic Planning; Mergers and Acquisitions; Leadership; Cross-Cultural and Cross-Border Issues; Competition; Developing Countries and Economies; Brands and Branding; Culture; Telecommunications Industry; Kuwait; Africa;

    Citation:

    Khanna, Tarun. "Crossing Borders: MTC's Journey through Africa (TN)." Harvard Business School Teaching Note 709-453, November 2008. View Details
  33. Strategy: Building and Sustaining Competitive Advantage

    It's great to have a blockbuster quarter or a revolutionary product or service, but true business excellence demands sustainability. Maintaining your competitive advantage requires a strategy that makes your business unique and carries you forward as the world around you changes. What makes a winning, sustainable strategy? Strategy: Building and Sustaining Competitive Advantage is a multimedia resource developed by ten faculty members in the Strategy Department at Harvard Business School. Included in this resource are faculty presentation, animated frameworks, print- and video-based case studies, and workbooks to help business leaders formulate action plans specific to their own companies.

    Keywords: Competitive Advantage;

    Citation:

    Anand, Bharat N., Stephen P. Bradley, Pankaj Ghemawat, Tarun Khanna, Cynthia A. Montgomery, Michael E. Porter, Jan W. Rivkin, Michael G. Rukstad, John R. Wells, and David B. Yoffie. "Strategy: Building and Sustaining Competitive Advantage." Harvard Business School Class Lecture 705-509, June 2005. (Revised September 2008.) View Details
  34. HCL Technologies (A)

    When Vineet Nayar became president of HCL Technologies, a global IT services business, in April 2005, he knew the company needed drastic change. Since its founding as a hardware company in the 1970s, HCL had grown into an enterprise with $3.7 billion in revenues and a market capitalization of $5.1 billion. The company had 41,000 employees in 11 countries, but it was ill-prepared for the increasingly competitive market. With the shift from hardware to software and services, HCL had slipped behind its Indian competitors and multinational companies. Details the first phase of the transformation Nayar led in hopes of rejuvenating the industry pioneer. The tagline for this phase was "Employee First, Customer Second."

    Keywords: Customer Relationship Management; Multinational Firms and Management; Employee Relationship Management; Leading Change; Organizational Change and Adaptation; Competition; Information Technology Industry; Service Industry; India;

    Citation:

    Hill, Linda A., Tarun Khanna, and Emily Stecker. "HCL Technologies (A)." Harvard Business School Case 408-004, August 2007. (Revised July 2008.) View Details
  35. World Economic Forum (A)

    Covers strategy and leadership. World Economic Forum founder Klaus Schwab has created the world's most famous-and exclusive-global business conference, held annually in Davos, Switzerland, and backed by a formidable membership organization that includes many of the world's most prominent firms. He now must consider how to keep the event and the organization vibrant and valuable, as similar new organizations arise and as the challenges of globalization become more difficult. In the aspirational slogan of the Forum, Schwab remains "committed to improving the state of the world," and readers are invited to ponder how he can use the organization he has created to make good on this promise.

    Keywords: Conferences; Economics; Globalization; Leadership; Social Enterprise; Welfare or Wellbeing; Strategy; Davos;

    Citation:

    Khanna, Tarun, Rakesh Khurana, and Forest L. Reinhardt. "World Economic Forum (A)." Harvard Business School Case 708-025, October 2007. (Revised May 2008.) View Details
  36. Microsoft in China and India, 1993-2007

    Relates to Microsoft's expansion in China and India in the period 1993-2007 and the strategic issues faced by multinationals in emerging markets.

    Keywords: Expansion; Multinational Firms and Management; Information Technology; Software; Emerging Markets; Information Technology Industry; China; India;

    Citation:

    Khanna, Tarun, and Prithwiraj Choudhury. "Microsoft in China and India, 1993-2007." Harvard Business School Case 708-444, August 2007. (Revised December 2007.) View Details
  37. Bunge: Food, Fuel, and World Markets

    In 2007, Bunge, an agribusiness company, had over $26 billion in worldwide sales and was considered, along with Cargill and Archer Daniels Midland (ADM), one of three very integrated worldwide agribusiness companies. Headquartered in White Plains, NY, the company has traditionally possessed a strong presence in Brazil. Describes Bunge's tradeoff between efficiency of global operations and local responsiveness in an uncertain business environment. New world developments were effecting Bunge directly: high oil prices, a growing demand in emerging economies like China and India, and the possibility of agribusiness companies competing successfully in the production of biofuels. Bunge had traditionally followed an organizational model that was integrated but decentralized, trying to strike a balance between the efficiency of a global entity and the speed of local businesses. What would be the best strategy for Bunge to respond to the external changes imposed by high energy prices and increasing demand from emerging economies? How aggressively should Bunge invest in the rising biofuels markets?

    Keywords: Globalized Firms and Management; Operations; Organizational Design; Situation or Environment; Strategy; Agriculture and Agribusiness Industry; White Plains; Brazil;

    Citation:

    Khanna, Tarun, Santiago Mingo, and Jonathan West. "Bunge: Food, Fuel, and World Markets." Harvard Business School Case 708-443, September 2007. (Revised November 2007.) View Details
  38. Teva Pharmaceutical Industries, Ltd.

    How do companies develop a strategy that is both low-cost and differentiated without becoming squeezed in the middle? Describes how Teva, Israel's largest and first multinational, achieved its globally dominant position in generic pharmaceuticals, an industry that has undergone significant change over the last 20 years. Examines Teva's strategies to defend itself against both low-cost competitors from India and other emerging markets as well as Big Pharma companies, which are adopting increasingly aggressive tactics in generics.

    Keywords: Multinational Firms and Management; Emerging Markets; Rank and Position; Competitive Strategy; Pharmaceutical Industry; Israel; India;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Teva Pharmaceutical Industries, Ltd." Harvard Business School Video Supplement 708-806, November 2007. View Details
  39. Blue River Capital

    Examines the strategy and experience of Indian private equity firm Blue River Capital. Blue River was established in 2005 to invest primarily in middle market, particularly family-run, businesses in India. Blue River caters to this niche as an active investor, providing capital and working with portfolio companies to improve their corporate governance. Describes the challenges faced by Blue River in identifying investments, performing due diligence, and working with portfolio companies and asks how Blue River should build itself into a top-tier private equity fund, particularly as more and more foreign firms target the growing Indian market.

    Keywords: Private Equity; Investment Portfolio; Corporate Governance; Emerging Markets; Family Ownership; Competitive Strategy; Financial Services Industry; India;

    Citation:

    Palepu, Krishna G., Tarun Khanna, and Richard Bullock. "Blue River Capital." Harvard Business School Case 708-448, October 2007. View Details
  40. Metro International S.A.

    Explores the business model of Metro International, a company publishing 70 editions of its free newspaper in 20 countries. Metro had been a pioneer in the free newspaper market, fighting incumbent publishers distributing traditional paid-for newspapers. Looks at the decision facing top management of Metro International in 2007 regarding the future strategy of the company. The company had become profitable after years of losses, but other problems had surfaced; competition had increased heavily in many markets and advertising--the free newspapers only source of income--was quickly shifting from newspapers to the Internet. Spain was a particular case in point. What had Metro International learned from experiences elsewhere on the globe and would they allow the company to make the Spanish unit profitable? What strategy should the Spanish country manager adopt?

    Keywords: Business Model; Business Strategy; Competitive Strategy; Online Advertising; Advertising; Expansion; Globalized Firms and Management; Journalism and News Industry; Spain;

    Citation:

    Khanna, Tarun, Felix Oberholzer-Gee, Vincent Marie Dessain, Ane Damgaard Jensen, and Anders Sjoman. "Metro International S.A." Harvard Business School Case 708-429, September 2007. View Details
  41. Tetra Pak Argentina

    Deals with the hands-on management of a difficult situation facing the subsidiary of a multinational corporation (Tetra Pak) in a developing country (Argentina). The situation arises from a major economic, social, and institutional breakdown that jeopardizes the subsidiary's existence. Argentina defaulted on it sovereign debt and devalued the peso by over 200%, but it differentiated the treatment of the FX rate to be applied to various transactions, depending on the jurisdiction of creditors and debtors. Local dollar-denominated credits and liabilities were converted on a 1:1.40 ratio, while obligations held with foreign entities continued to be enforceable at the new rate of 1:3. The crisis led to the impoverishment of a large portion of the Argentine population, and to an institutional breakdown where the rule of law was shattered in the country, thus posing challenges not just related to the current situation, but also to the future of the operation. The crisis bore consequences for Tetra Pak Argentina on both ends of its value chain, involving suppliers and customers. Tetra Pak focuses its growth on developing nations where it feels there is room for a valuable business, and it attains leading market positions. Shows how the foreign firm must cope with difficult domestic situations where the levers of control are beyond its reach. The existence of value after the crisis turns out to be a relevant consideration.

    Keywords: Developing Countries and Economies; Financial Crisis; Currency Exchange Rate; Sovereign Finance; Multinational Firms and Management; Crisis Management; Business and Government Relations; Argentina;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Gustavo A. Herrero. "Tetra Pak Argentina." Harvard Business School Case 708-402, September 2007. View Details
  42. Ravi Venkatesan, Chairman, Microsoft India

    Ravi Venkatesan, chairman of Microsoft India, discusses market entry, localization, and intellectual property rights in emerging markets.

    Keywords: Multinational Firms and Management; Intellectual Property; Emerging Markets; Market Entry and Exit; Information Technology Industry; India;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Ravi Venkatesan, Chairman, Microsoft India." Harvard Business School Video Supplement 708-804, September 2007. View Details
  43. Why Study Emerging Markets

    Emerging markets have attracted considerable attention and are likely to become an increasingly important political and economic force. They represent an enormous opportunity for entrepreneurs, multinationals, and investors but also pose a threat for products, jobs, and resources. They have the potential to redefine the way business is done in many industries but remain shrouded by myths. Provides an overview of the importance of emerging markets. Discusses the opportunities in and threats posed by emerging markets. Shows how studying emerging markets can provide new insights into business conglomerates, industry profitability, and corporate governance and discusses common perceptions and misconceptions of emerging markets.

    Keywords: Profit; Multinational Firms and Management; Corporate Governance; Emerging Markets; Problems and Challenges; Opportunities;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Kjell Ke-Li Carlsson. "Why Study Emerging Markets." Harvard Business School Background Note 706-422, August 2005. (Revised August 2007.) View Details
  44. Teva Pharmaceutical Industries, Ltd (TN)

    Teaching note to 707441.

    Keywords: Growth and Development Strategy; Cost; Competitive Strategy; Adoption; Emerging Markets; Change; Multinational Firms and Management; Genetics; Pharmaceutical Industry; India;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Teva Pharmaceutical Industries, Ltd (TN)." Harvard Business School Teaching Note 708-419, August 2007. View Details
  45. Apollo Hospitals--First-World Health Care at Emerging-Market Prices

    The Apollo Hospitals Group, one of Asia's premier health care organizations, had come to rival the best health care organizations on the globe. Apollo offered advanced medical procedures, such as cardiac surgery using the beating heart technique, at very high levels of quality but at a fraction of the cost of hospitals in the West. Apollo's managers must decide how best to capitalize on the group's remarkable medical capabilities. One option was to bet on global medical tourism by trying to attract patients from Asia and worldwide needing advanced medical procedures. Thailand had set the example for medical tourism and attracted more than one million patients a year, most of them undergoing plastic surgery. Another option Apollo considered was to build and manage hospitals abroad.

    Keywords: Vertical Integration; Decision Choices and Conditions; Health Care and Treatment; Global Strategy; Developing Countries and Economies; Health Industry; Thailand; United States; India;

    Citation:

    Oberholzer-Gee, Felix, Tarun Khanna, and Carin-Isabel Knoop. "Apollo Hospitals--First-World Health Care at Emerging-Market Prices." Harvard Business School Case 706-440, October 2005. (Revised June 2007.) View Details
  46. General Electric Healthcare, 2006

    In January 2006, Joe Hogan, head of General Electric (GE) Healthcare Technologies, prepared to step into William Castell's shoes as CEO of GE Healthcare, the world's leading manufacturer of diagnostic imaging equipment. In 2004, former CEO Jeff Immelt acquired Amersham for $10 billion. The acquisition was part of Immelt's GE-wide move to reemphasize research and development. Hogan had run GE Healthcare's predecessor organization, GE Medical Systems (GEMS). A 20-year GE veteran, Hogan witnessed three distinct stages of the subsidiary's development as it evolved from the Global Product Co. (GPC) to the modified GPC and then to GE Healthcare. By 2005, the company had a 34% market share of the worldwide diagnostic imaging equipment business. GE executives designed the acquisitions to catalyze the firm's move from an engineering and physics-based diagnostic company to a life sciences-based health care solutions company that could better meet worldwide health care needs. Hogan wondered: What challenges did GEMS' previous quantum leaps portend for this new step-function change?

    Keywords: Corporate Entrepreneurship; Cost vs Benefits; Growth and Development Strategy; Mergers and Acquisitions; Machinery and Machining; Global Range; Multinational Firms and Management; Product Design; Technological Innovation; Expansion; Value Creation; Business Subsidiaries; Health Industry; Medical Devices and Supplies Industry;

    Citation:

    Khanna, Tarun, and Elizabeth Raabe. "General Electric Healthcare, 2006." Harvard Business School Case 706-478, January 2006. (Revised April 2007.) View Details
  47. Production I.G: Challenging the Status Quo

    In July 2006, Mitsuhisa Ishikawa wondered how he could further enhance the success and visibility of his animation production company headquartered in Tokyo, Production I.G. For the year ended May 2006, Production I.G. had sales of 5,439 million yen ($47.3 million), operating profit of 404 million yen ($3.5 million), and 184 employees. Its recent film Innocence: Ghost in the Shell 2 competed at Cannes Film Festival in 2004, and the company had gone public in December 2005. These were no small accomplishments for a Japanese animation production company. Indeed, despite the global success of Japanese animation, the industry was fragmented with about 430 animation production companies and dominated by distributors--TV stations, movie distributors, DVD distributors and advertising agencies, which held the lion's share of content copyrights. Distributors controlled the funding and contracted the production out to animation production companies. As a result, most of the latter were small companies laboring in obscurity. As such, no Japanese animation production company came even close to the size of Walt Disney Co.: in 2005 Disney had revenues of $32 billion, whereas Toei Animation, the largest animation production company in Japan, had revenue of only 21 billion yen ($175 million). To Ishikawa's mind, one of the key decisions concerned the mix of the "contents garden" that his company should aspire to. Should he increase the share of animation productions based on manga (comics and print cartoons) relative to original-productions (i.e. animation stories created entirely by Production I.G.)?

    Keywords: Business Growth and Maturation; Competitive Advantage; Markets; Animation Entertainment; Going Public; Growth and Development Strategy; Motion Pictures and Video Industry; Tokyo;

    Citation:

    Hagiu, Andrei, Tarun Khanna, Felix Oberholzer-Gee, Masako Egawa, and Chisato Toyama. "Production I.G: Challenging the Status Quo." Harvard Business School Case 707-454, October 2006. (Revised March 2007.) View Details
  48. Lifan Group - Automobile Production in China

    Lifan Group, one of China's premier motorcycle companies, considers entering automobile production. The company plans to assemble a midsize sedan, hoping it will be able to sell this car to affluent families in China and to export it. Domestic demand for cars is growing rapidly in China, but car prices have been falling, at times quite dramatically. Allows analysis and discussion of Lifan's decision.

    Keywords: Product Development; Decision Making; Demand and Consumers; Price; Auto Industry; Manufacturing Industry; China;

    Citation:

    Oberholzer-Gee, Felix, Tarun Khanna, and Elizabeth Raabe. "Lifan Group - Automobile Production in China." Harvard Business School Case 707-443, November 2006. (Revised March 2007.) View Details
  49. Instructor's Guide to Globalization of Emerging Markets (GEM)

    Outlines the conceptual approach, thematic focus, and course materials of Globalization of Emerging Markets, a second-year elective MBA course at Harvard Business School.

    Keywords: Globalization; Emerging Markets; Curriculum and Courses;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Instructor's Guide to Globalization of Emerging Markets (GEM)." Harvard Business School Course Overview Note 707-532, February 2007. View Details
  50. Red Flag Software Co.

    In 2005, just five years after its formal launch, Beijing-based Red Flag Software was the world's second-largest distributor of the Linux operating system and was expecting its first annual profit. On a unit basis, Red Flag led the world in desktops (PCs) shipped with Linux and was No. 4 in installed servers. On a revenue basis, Red Flag was fourth overall. Within China, Red Flag held just over half of the Linux market and ran key applications for the postal system, large state-owned enterprises, and more than a million PCs. The Chinese government supported Linux as an alternative to Microsoft's Windows operating system to avoid royalty payments to foreign firms and dependence on foreign technology. Even so, Red Flag President Chris Zhao felt the same pressure many start-ups faced: How could Red Flag compete against a giant like Microsoft? And what competitive advantages could Zhao bring to bear against an experienced Linux veteran like Red Hat, a U.S.-based software company that had just announced its plan to invest to capture market share in China? Zhao worried that government support would evaporate if Red Flag performed poorly.

    Keywords: Technology Platform; Competitive Advantage; Software; Business Startups; Globalized Markets and Industries; Information Technology Industry; Distribution Industry; Beijing; United States;

    Citation:

    Oberholzer-Gee, Felix, Tarun Khanna, David Lane, and Elizabeth Raabe. "Red Flag Software Co." Harvard Business School Case 706-428, October 2005. (Revised February 2007.) View Details
  51. ICICI's Global Expansion

    Follows the decision by ICICI (one of India's largest banks) to expand internationally in June 2001.

    Keywords: Emerging Markets; Global Strategy; Banks and Banking; Banking Industry; India;

    Citation:

    Khanna, Tarun, and Ramana Nanda. "ICICI's Global Expansion." Harvard Business School Case 706-426, September 2005. (Revised September 2006.) View Details
  52. House of Tata, 1995: The Next Generation (A)

    The Tata Group began the 1990s as a confederation of loosely coupled firms. This case considers the rise to prominence of the new CEO of Tata Group, Ratan Tata, and his attempts to strengthen the inter-relationships among the group companies at a time when critics claim he should be dismantling the alliance completely. Provides an opportunity to address the benefits and costs of conglomerates in emerging markets. In particular, it demonstrates the ways in which well-run conglomerates might ameliorate the costs that poorly functioning institutions impose through their effects on market efficiency.

    Keywords: Business or Company Management; Business Conglomerates; Organizations; Corporate Strategy; Consolidation; Business Strategy; Alignment; Consumer Products Industry; Service Industry;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Danielle Melito Wu. "House of Tata, 1995: The Next Generation (A)." Harvard Business School Case 798-037, February 1998. (Revised August 2006.) View Details
  53. House of Tata-2000: The Next Generation (B)

    Supplements the (A) case.

    Keywords: Alliances; Business Conglomerates; Emerging Markets; Cost; Management Teams; India;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, Catherine M. Conneely, and Kirsten O'Neil Massaro. "House of Tata-2000: The Next Generation (B)." Harvard Business School Case 704-408, July 2003. (Revised August 2006.) View Details
  54. Haier: Taking a Chinese Company Global

    In 2005, Haier, China's leading appliance manufacturer, had over $12 billion in worldwide sales and was the third-ranked global appliance brand behind Whirlpool and GE. Describes Haier's rise from a defunct refrigerator factory in China's Qingdao province to an international player with nearly $4 billion in overseas sales. Haier had followed a nontraditional expansion strategy of entering the developed markets of Europe and the United States as a niche player before venturing into neighboring Asian markets. Facing intense competition and price wars in the domestic market, in 2005 Haier was redoubling its efforts to build a globally recognized brand. Could Haier complete with the likes of Whirlpool and GE in their home market? Could Haier successfully defend against Chinese and multinational challengers in China while building a brand overseas?

    Keywords: Global Strategy; Brands and Branding; Manufacturing Industry; Consumer Products Industry; China;

    Citation:

    Palepu, Krishna G., Tarun Khanna, and Ingrid Vargas. "Haier: Taking a Chinese Company Global." Harvard Business School Case 706-401, October 2005. (Revised August 2006.) View Details
  55. Yamato Transport: Valuing and Pricing Network Services (A)

    Yamato Transport is the leading Japanese parcel delivery company and has dominated its industry for more than two decades. In response to new competitive challenges, Yamato must decide how to reposition itself in the industry and optimize the size of its network. The recently corporatized Japan Post is the only company that can deliver personal mail

    Keywords: Value Creation; Competition; Transportation Networks; Monopoly; Shipping Industry; Japan;

    Citation:

    Oberholzer-Gee, Felix, Tarun Khanna, and Masako Egawa. "Yamato Transport: Valuing and Pricing Network Services (A)." Harvard Business School Case 704-475, January 2004. (Revised May 2006.) View Details
  56. Yamato Transport: Valuing and Pricing Network Services (B)

    Supplements the (A) case.

    Keywords: Transportation Networks; Value; Price;

    Citation:

    Oberholzer-Gee, Felix, Tarun Khanna, and Masako Egawa. "Yamato Transport: Valuing and Pricing Network Services (B)." Harvard Business School Supplement 704-477, February 2004. (Revised May 2006.) View Details
  57. TCL Multimedia

    TCL considers the underlying logic behind the globalization of one of China's most prominent companies. TCL, and similarly prominent companies in China, are in the forefront of China's emergence as one of the world's preeminent economic powers. Allows a discussion of how TCL's approach to globalization compares with those of other Chinese companies and those of companies from other developing countries. A rewritten version of an earlier case.

    Keywords: Globalized Firms and Management; Success; Business Strategy; Developing Countries and Economies; China;

    Citation:

    Khanna, Tarun, Felix Oberholzer-Gee, and David Lane. "TCL Multimedia." Harvard Business School Case 705-502, June 2005. (Revised February 2006.) View Details
  58. General Electric Medical Systems 2002

    Discusses one of General Electric's flagship divisions--the world's leading provider of medical diagnostic imaging equipment. Provides an opportunity to examine a multinational confronting massive technological and demographic changes around the world. Genomics has created a global opportunity by making personalized medicine seem possible--medical intervention that caters to the genetic makeup of the individual and emphasizes prevention more than cure. Yet, the pursuit of this opportunity requires fundamental changes in the business model at a time when the model is being stressed by the idiosyncratic needs of catering to the large Chinese market and adapting to the needs of an aging population around the world. Demonstrates how multinationals can create value both by replicating their business models worldwide and by adroitly splitting the value chain across national boundaries.

    Keywords: Technology; Business Model; Change Management; Multinational Firms and Management; Genetics; Customer Value and Value Chain; Age Characteristics; Medical Devices and Supplies Industry; China; United States;

    Citation:

    Khanna, Tarun, and James Weber. "General Electric Medical Systems 2002." Harvard Business School Case 702-428, January 2002. (Revised October 2005.) View Details
  59. Agora SA

    Tells the story of Agora, the largest media company in Poland, describing its corporate strategy of diversification since its founding in 1989 by entrepreneurial journalists closely linked to the anti-communist movement Solidarity. Describes in detail Gazeta Wyborcza, the country's best-selling daily newspaper and Agora's main revenue contributor. In late 2003, Fakt, the new daily owned by a German publishing house, took the lead on the Polish newspaper market, harming Gazeta Wyborcza's sales and advertising revenues. Places students in the position of Wanda Rapaczynski, Agora's CEO, who, in mid-2005, explores ways to improve Agora's position in an increasingly competitive environment.

    Keywords: Diversification; Competition; Media; Corporate Strategy; Emerging Markets; Journalism and News Industry; Media and Broadcasting Industry; Germany; Poland;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, Vincent Dessain, and Monika Stachowiak. "Agora SA." Harvard Business School Case 706-425, September 2005. (Revised October 2005.) View Details
  60. Emerging Giants: Building World-Class Companies in Emerging Markets

    Presents a conceptual framework to examine successful companies in emerging markets and what enables them to avoid traditional emerging market obstacles. Examines those characteristics that allow these successful local companies to overcome market voids and become globally competitive.

    Keywords: Globalized Firms and Management; Emerging Markets; Success;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Emerging Giants: Building World-Class Companies in Emerging Markets." Harvard Business School Case 703-431, October 2002. (Revised September 2005.) View Details
  61. Spotting Institutional Voids in Emerging Markets

    With the demise of communism, many countries in the world are striving to build their economic activity around markets and to participate in free trade arrangements, such as the World Trade Organization (WTO), European Union (EU), and North American Free Trade Agreement (NAFTA). Addresses several issues critical to understanding the unique nature of emerging markets relative to their more mature counterparts. What is the fundamental challenge in building well-functioning markets? On which sets of institutions do advanced markets rely to resolve these challenges? What makes building these institutions complex? What happens when some of these institutions are either absent or underdeveloped in an economy? How does one spot these institutional voids?

    Keywords: Emerging Markets;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Spotting Institutional Voids in Emerging Markets." Harvard Business School Background Note 106-014, August 2005. (Revised August 2005.) View Details
  62. Harvard Business School and the Making of a New Profession

    Since its founding in 1908, Harvard Business School's mission has been to perform a much-needed service for American society by turning business management into a profession. One of the most important factors in the founding of HBS and the nation's other new business schools was the demand for managers created by the rise of the modern business corporation in the late 19th and early 20th centuries. Additionally, in the years just after the turn of the century business careers were becoming increasingly attractive to young men who would have previously entered one of the older, more traditional professions: law, medicine, education, and the ministry. The process of formulating "business principles" that would put the study of management on a scientific basis was a crucial part of what the founders had set out to achieve in creating the HBS curriculum and building a faculty. By discovering business principles, HBS would also help lay the foundation of the new profession of business. The HBS founders also believed there was another dimension to professionalism in business--one that involved not just the expertise that students acquired but also the attitudes they held and their contribution to society.

    Keywords: Business Education; Mission and Purpose; Alignment; Social Issues; Practice;

    Citation:

    Khurana, Rakesh, Tarun Khanna, and Daniel Penrice. "Harvard Business School and the Making of a New Profession." Harvard Business School Case 406-025, July 2005. View Details
  63. Math for Strategists

    Great strategists rely heavily on numbers as they go about their work. Offers an overview of the high- and low-brow quantitative tools that students encounter during the Strategy course. The class explores high-brow tools in detail; the focus here is on low-brow calculations. Such calculations come up often in class but because they seem so simple, they get little airtime or explanation. From past class experience, roughly 20% of the students in each section come into the course with the intuition and experience to do these simple calculations themselves. The other 80% understand the calculations after they see them and grasp their value, but don't spot the opportunities to do the math themselves, before class.

    Keywords: Mathematical Methods; Strategy;

    Citation:

    Khanna, Tarun, and Jan W. Rivkin. "Math for Strategists." Harvard Business School Background Note 705-433, November 2004. (Revised April 2005.) View Details
  64. Mahindra & Mahindra: Creating Scorpio

    Details the emergence of a private sector automobile manufacturer in India that has created globally competitive and cheap versions of an SUV commonly available worldwide. Asks us to think about the parent corporation's next steps in leveraging this success. In particular: To what extent does it make sense to expand overseas vs. entrenching itself within the home market--India?

    Keywords: Developing Countries and Economies; Global Range; Multinational Firms and Management; Emerging Markets; Commercialization; Expansion; Auto Industry; India;

    Citation:

    Khanna, Tarun, Rajiv Lal, and Merlina Manocaran. "Mahindra & Mahindra: Creating Scorpio." Harvard Business School Case 705-478, February 2005. View Details
  65. Nomura Holdings

    Nomura Holdings, Japan's largest investment bank, faced with intensifying competition in the global financial markets, was trying to decide how global its operations should be despite its Japan-centered business. Was the question of how global Nomura should be related to its choice of governance structure? Was the committee system adopted by Nomura the appropriate governance model for all leading Japanese companies?

    Keywords: Global Range; Corporate Governance; Governing Rules, Regulations, and Reforms; Corporate Strategy; Financial Services Industry; Japan;

    Citation:

    Khanna, Tarun, Masako Egawa, and Atsuko Nakajima. "Nomura Holdings." Harvard Business School Case 705-427, February 2005. View Details
  66. Globe Telecom

    The Ayala Group, one of the oldest and largest Filipino business groups, partnered with Singapore Telecommunications (SingTel) to launch a telecom venture following industry deregulation in the Philippines. The partners must decide whether to continue the venture in light of current poor performance but significant future potential. Addresses the complexity of newly deregulated industries, financing in emerging markets, and the role of business groups in economic development. A rewritten version of an earlier case.

    Keywords: Strategy; Development Economics; Partners and Partnerships; Emerging Markets; Business Startups; Telecommunications Industry; Singapore; Philippines;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Ingrid Vargas. "Globe Telecom." Harvard Business School Case 704-505, May 2004. (Revised October 2004.) View Details
  67. Globalization of HBS, The

    Sets the stage for a discussion on the globalization of the MBA degree and variations on the idea that Harvard Business School (HBS) can play a role in shaping business education around the world. Describes the forces leading to greater convergence around the MBA degree as an important indicator of managerial competence and HBS's response to these forces. Provides background information on the globalization of the MBA degree, a history of the founding of the school, a history of various HBS international initiatives over the past 75 years, and the current challenges perceived by HBS administration in responding effectively to the forces of globalization.

    Keywords: Business Education; Globalization; Education Industry; Boston;

    Citation:

    Khanna, Tarun, Rakesh Khurana, and David Lane. "Globalization of HBS, The." Harvard Business School Case 703-432, November 2002. (Revised August 2004.) View Details
  68. Bharti Tele-Ventures

    Following the liberalization of India's telecommunications service industry in the early 1990s, Bharti Tele-Ventures grew from a small entrepreneurial telephone equipment importer and manufacturer to become India's largest private-sector telecommunications service group in terms of numbers of customers. Attracting over $1.2 billion in foreign equity investments, more than any other Indian telecom firm, by 2001 Bharti had achieved the country's leading market position in mobile telecom service. By 2003, however, the nature of the game had changed. A spate of mergers and acquisitions had reduced the field to the most successful and best-financed contenders. At the same time, telecommunications regulatory changes let in new, lower priced competitors, significantly altering the rules of the game. Suddenly, in addition to government-owned BSNL and the stately Tata Group, India's oldest business house, Bharti was up against Reliance, the largest and most profitable of a new generation of business groups. Bharti's management and equity partners at Mittal and his partners at SingTel and Warburg Pincus had to determine what to do next.

    Keywords: Private Sector; Growth and Development; Customers; Foreign Direct Investment; Mergers and Acquisitions; Competition; Public Ownership; Profit; Partners and Partnerships; Rank and Position; Telecommunications Industry; India;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Ingrid Vargas. "Bharti Tele-Ventures." Harvard Business School Case 704-426, September 2003. (Revised March 2004.) View Details
  69. Argentina's Financial System: The Case of Banco de Galicia TN

    Teaching Note for (9-702-033).

    Keywords: Banking Industry; Argentina;

    Citation:

    Di Tella, Rafael M., Tarun Khanna, Huw R. Pill, and Ingrid Vogel. "Argentina's Financial System: The Case of Banco de Galicia TN." Harvard Business School Teaching Note 702-080, April 2002. (Revised February 2004.) View Details
  70. Diasporas: Causes and Effects

    Articulates a simple supply-demand framework to understand why people immigrate and focuses attention on the specialized cross-border intermediaries that facilitate such movement. Analyzes a series of important effects, primarily economic, of the diaspora communities that result from immigration over time and, again, focuses attention on the cross-border intermediaries that facilitate the realization of these economic effects.

    Keywords: Talent and Talent Management; Diasporas; Economics; Framework; Cross-Cultural and Cross-Border Issues; Business or Company Management;

    Citation:

    Khanna, Tarun, and Paula Campbell. "Diasporas: Causes and Effects." Harvard Business School Background Note 703-510, April 2003. (Revised October 2003.) View Details
  71. Competition in Japanese Financial Markets-2002; Competition in Japanese Financial Markets-2002 (Abridged); Morgan Stanley Japan-2002 (TN)

    Teaching Note to (9-702-455), (9-703-407), and (9-702-458).

    Keywords: Japan; United States;

  72. Multinationals as Global Intermediaries

    Presents a conceptual framework of the circumstances when multinationals attempt to create, or face difficulty creating, value in cross-border commerce. Particular attention is paid to the role of multinationals as intermediaries in international transactions where the existence of traditional market intermediaries is absent.

    Keywords: Framework; Cross-Cultural and Cross-Border Issues; Multinational Firms and Management; Marketing Channels; Market Transactions; Value Creation;

    Citation:

    Khanna, Tarun, and Krishna G. Palepu. "Multinationals as Global Intermediaries." Harvard Business School Background Note 703-428, September 2002. (Revised June 2003.) View Details
  73. NYSE vs. NASDAQ: International Competition

    Compares and contrasts the international strategies of the New York Stock Exchange and NASDAQ as they looked overseas for new sources of growth in the late 1990s.

    Keywords: Market Entry and Exit; Financial Markets; Globalization; United States;

    Citation:

    Cantillon, Estelle S., and Tarun Khanna. "NYSE vs. NASDAQ: International Competition." Harvard Business School Case 703-435, November 2002. (Revised June 2003.) View Details
  74. Formula One Motor Racing

    Documents the entrepreneurial efforts of a single individual to bring together car and engine manufacturers, local circuit owners and promoters, advertisers, drivers, and fans in the creation of one of the biggest markets for world sports.

    Keywords: Market Entry and Exit; Entrepreneurship; Sports; Globalized Markets and Industries; Sports Industry;

    Citation:

    Khanna, Tarun, Kartik Varma, and David Lane. "Formula One Motor Racing." Harvard Business School Case 703-412, September 2002. (Revised June 2003.) View Details
  75. New York Stock Exchange versus NASDAQ, The

    Reviews the competition between stock markets, specifically the New York Stock Exchange and NASDAQ, as it plays out both in the United States and internationally. The competition between the two exchanges is interesting because of technological developments and the globalization of capital markets.

    Keywords: Capital Markets; Globalization; Strategy; Competition; United States;

    Citation:

    Cantillon, Estelle S., and Tarun Khanna. "New York Stock Exchange versus NASDAQ, The." Harvard Business School Case 703-439, November 2002. (Revised April 2003.) View Details
  76. Argentina's Financial System: The Case of Banco de Galicia

    Describes the development of Argentina's financial system after the "Tequila Crisis" that came about as a result of the speculative attack on the Mexican peso's peg to the U.S. dollar in December 1994. Although Argentina's banking system was strengthened overall due to changes implemented to address the crisis, most of the country's domestic private banks were either taken over by foreign banks or failed. Focuses on how in the year 2000, in an effort to remain Argentine owned, the last remaining large domestic private bank adopts a share offer considered by some--particularly a vocal member of one of the bank's controlling families--to be unfair to minority shareholders.

    Keywords: Finance; Emerging Markets; Macroeconomics; Business Strategy; Banks and Banking; Financial Crisis; Family Business; Acquisition; Banking Industry; Argentina;

    Citation:

    Di Tella, Rafael M., Tarun Khanna, Huw R. Pill, Alexandra de Royere, and Ingrid Vogel. "Argentina's Financial System: The Case of Banco de Galicia." Harvard Business School Case 702-033, February 2002. (Revised February 2003.) View Details
  77. Must Zee TV

    Explores issues related to (1) the vertical boundaries of the firm in an emerging-economy context, especially the effects of lack of intellectual property rights and lack of contract enforcement on both industry structure and boundaries of the firm; and (2) the extent to which strategy and organizational structure must be localized to the country context, as illustrated by considering competition between multinationals and domestic firms and the sustainability of their respective positions.

    Keywords: Corporate Strategy; Multinational Firms and Management; Developing Countries and Economies; Copyright; Media and Broadcasting Industry; Entertainment and Recreation Industry;

    Citation:

    Anand, Bharat N., and Tarun Khanna. "Must Zee TV." Harvard Business School Case 700-122, June 2000. (Revised February 2003.) View Details
  78. Strategy in Emerging Markets (TN)

    Provides an overview of several cases on multinational and local companies (including business groups) operating in settings in Asia, Africa, Latin America, and worldwide. Also provides a conceptual framework for thinking about these cases and links to related academic literature.

    Keywords: Framework; Global Range; Local Range; Globalized Firms and Management; Body of Literature; Emerging Markets; Africa; Asia; Latin America;

    Citation:

    Khanna, Tarun. "Strategy in Emerging Markets (TN)." Harvard Business School Teaching Note 703-430, October 2002. View Details
  79. Competition in Japanese Financial Markets, 2002

    In early 2002, Japan, the world's largest economy, had been mired in a decade-long recession. A range of stimulus packages had failed to work their magic. The "Big Bang" financial deregulation reforms announced in 1998 had not quite produced the economic boom that the government had anticipated. Japan struggled to find its place in the increasingly global 21st century. Japan's commercial banks, once the largest in the world, struggled under the weight of their nonperforming loans. Japan's investment banks--the likes of Nomura--remained powerful behemoths. But they had scaled back their global ambitions and were in danger of being eclipsed in their own backyard by a range of foreign financial intermediaries. Meanwhile, the terrorist attack on the United States on September 11, 2001, accelerated a U.S. economic recession and raised the level of uncertainty in the global business environment across the board. It also contributed to the global investment banking industry's worst slowdown since the 1970s, with large firms recording worldwide slumps in revenues and profits of between 40% and 50%.

    Keywords: Risk and Uncertainty; Competition; Investment Banking; Financial Markets; Globalization; Financial Crisis; Commercial Banking; Banking Industry; Japan;

    Citation:

    Khanna, Tarun, and Louis P. DiLorenzo, Jr. "Competition in Japanese Financial Markets, 2002." Harvard Business School Case 702-455, February 2002. (Revised September 2002.) View Details
  80. Competition in Japanese Financial Markets, 2002 (Abridged)

    In early 2002, Japan, the world's largest economy, had been mired in a decade-long recession. A range of stimulus packages had failed to work their magic. The "Big Bang" financial deregulation reforms announced in 1998 had not quite produced the economic boom that the government had anticipated. Japan struggled to find its place in the increasingly global 21st century. Japan's commercial banks, once the largest in the world, struggled under the weight of their nonperforming loans. Japan's investment banks--the likes of Nomura--remained powerful behemoths. But they had scaled back their global ambitions and were in danger of being eclipsed in their own backyard by a range of foreign financial intermediaries. Meanwhile, the terrorist attack on the United States on September 11, 2001, accelerated a U.S. economic recession and raised the level of uncertainty in the global business environment across the board. It also contributed to the global investment banking industry's worst slowdown since the 1970s, with large firms recording worldwide slumps in revenues and profits of between 40% and 50%.

    Keywords: Competition; Financial Markets; Global Strategy; Financial Crisis; Banks and Banking; Banking Industry; Japan;

    Citation:

    Khanna, Tarun. "Competition in Japanese Financial Markets, 2002 (Abridged)." Harvard Business School Case 703-407, July 2002. (Revised September 2002.) View Details
  81. Nomura Securities, 2002

    In 2002, Nomura, though long the market leader in Japan, lacked global presence and was beset at home by strengthened local competitors, Wall Street firms that were taking the best deals, outdated systems, controls, and staff skills. Was Nomura still a player to fear? Could it be?

    Keywords: Competition; Local Range; Global Strategy; Financial Services Industry; Japan;

    Citation:

    Khanna, Tarun, and David Lane. "Nomura Securities, 2002." Harvard Business School Case 703-402, July 2002. (Revised August 2002.) View Details
  82. Local Institutions and Global Strategy

    Explores how location affects a firm's strategy and identifies the different ways location affects industry structure, choice of a firm's position, and the sustainability of that position. The intellectual foundations lie in an appreciation of institutional economics. Specifically, the starting premise is that specialized intermediaries resolve transaction costs between potential buyers and sellers and help make mutually advantageous deals occur. The absence of such specialized intermediaries gives rise to the institutional voids. Specifies how such voids constrain companies' choices. Specific questions addressed are (1) What are global industries? (2) What constitutes a global strategy? (3) When and how should strategy be tailored to particular locations? and, (4) How sustainable are strategies predicated on the existence of institutional voids?

    Keywords: Global Range; Global Strategy; Product Positioning; Market Transactions; Industry Structures; Negotiation Deal; Organizational Design; Outcome or Result; Strategic Planning;

    Citation:

    Khanna, Tarun. "Local Institutions and Global Strategy." Harvard Business School Background Note 702-475, April 2002. View Details
  83. Morgan Stanley Japan, 2002

    Thierry Porte, president of Morgan Stanley Japan, had spent the brisk November day in Tokyo with Eric Best, Morgan Stanley's head of scenario planning, outlining the exercise that all of the managing directors in Japan would participate in shortly. Japan remained mired in a recession and frustratingly unresponsive to attempts to stimulate economic activity. The U.S.-led worldwide economic slowdown, partly triggered by the post-September 2001 war against terrorism, complicated the situation and contributed to tough times within the investment banking industry. Porte had been at the helm of the Tokyo office since 1995 and had grown it to a revenue base of $1.2 billion and 1,500 employees--a point where it made a healthy contribution to the firm's bottom line and was its second target non-U.S. office (after London). He contemplated whether this was the time to invest further in Japan, to maintain course, or to actively steer resources out of Japan. Includes color exhibits.

    Keywords: Planning; Economic Slowdown and Stagnation; Investment Banking; Multinational Firms and Management; Banking Industry; Financial Services Industry; Japan; United States;

    Citation:

    Khanna, Tarun, and Louis P. DiLorenzo, Jr. "Morgan Stanley Japan, 2002." Harvard Business School Case 702-458, February 2002. (Revised February 2002.) View Details
  84. Mike Levett, CEO Old Mutual

    Discusses issues related to the transformation of Old Mutual from a mutual company to a stock corporation, and from a South African insurer to a global financial institution. Emphasis is on understanding effects of South African institutional context.

    Keywords: Financial Institutions; Organizational Change and Adaptation; Globalized Firms and Management; Financial Services Industry; South Africa;

    Citation:

    Khanna, Tarun. "Mike Levett, CEO Old Mutual." Harvard Business School Video Supplement 701-807, May 2001. View Details
  85. Korea Stock Exchange

    Features a presentation by In-Kie Hong of Korea Stock Exchange discussing the depth of the crisis, its origin, and its possible resolution in the end. In-Kie Hong addresses a class of MBA students at the Harvard Business School.

    Keywords: Financial Crisis; Financial Markets; Stocks; Financial Services Industry; Korean Peninsula;

    Citation:

    Khanna, Tarun. "Korea Stock Exchange." Harvard Business School Video Supplement 701-806, May 2001. View Details
  86. Asian Strategies: Ian Buchanan

    Ian Buchanan, senior VP of Booz-Allen & Hamilton, comments on Sime Darby and the Asian financial crisis. He also discusses the value propositions of different types of business groups in Malaysia.

    Keywords: Financial Crisis; Growth and Development Strategy; Industry Structures; Strategy; Competition; Competitive Strategy; Consulting Industry; Service Industry; Asia; Malaysia;

    Citation:

    Khanna, Tarun. "Asian Strategies: Ian Buchanan." Harvard Business School Video Supplement 701-805, May 2001. View Details
  87. Russell Reynolds Associates

    Features a presentation by Managing Directors Peter Drummond-Hay and Steve Scroggins of Russell Reynolds, to a class of MBA students at the Harvard Business School about the challenges of developing institutions of management and the labor market.

    Keywords: Management; Labor; Markets; Problems and Challenges;

    Citation:

    Khanna, Tarun. "Russell Reynolds Associates." Harvard Business School Video Supplement 701-804, April 2001. View Details
  88. Microsoft in the People's Republic of China: 1998 Update

    Provides an update to Microsoft in the People's Republic of China--1993.

    Keywords: Software; Globalized Markets and Industries; Information Technology Industry; China;

    Citation:

    Khanna, Tarun, and Danielle J. Melito. "Microsoft in the People's Republic of China: 1998 Update." Harvard Business School Supplement 797-107, March 1997. (Revised April 2001.) View Details
  89. House of Tata, 1995: The Next Generation (A) TN

    Teaching Note for (9-798-037).

    Keywords: Consumer Products Industry; Service Industry;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Catherine M. Conneely. "House of Tata, 1995: The Next Generation (A) TN." Harvard Business School Teaching Note 701-039, September 2000. (Revised March 2001.) View Details
  90. Sime Darby Berhad (A): 1995

    Sime Darby is one of South Asia's largest regional conglomerates. In 1995, it is contemplating entry into the fast-growing financial services sector in Malaysia through the acquisition of a Malaysian bank. This is in keeping with its activities mirroring those of the Malaysian economy. The case discusses whether to proceed with the acquisition. Exposes the underlying sources of value creation of the conglomerate in the institutional context, which affect the costs and benefits of broad corporate scope, especially the evolving capital market and the tight interrelationship between business and politics.

    Keywords: Acquisition; Business Conglomerates; Economy; Capital Markets; Emerging Markets; Business and Government Relations; Corporate Strategy; Value Creation; Financial Services Industry; Malaysia;

    Citation:

    Khanna, Tarun, Michael Y. Yoshino, and Danielle J. Melito. "Sime Darby Berhad (A): 1995." Harvard Business School Case 797-017, November 1996. (Revised March 2001.) View Details
  91. Korea Stock Exchange, 1998

    Following a major financial crisis, the South Korean government attempted to revive the Korea Stock Exchange to spur equity investment in Korean companies. This case describes the reforms undertaken so far and the challenges that lay ahead.

    Keywords: Equity; Stocks; Restructuring; Emerging Markets; Corporate Governance; Business and Government Relations; Accounting Industry; Financial Services Industry; South Korea;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and James Chang. "Korea Stock Exchange, 1998." Harvard Business School Case 199-033, December 1998. (Revised March 2001.) View Details
  92. Sime Darby Berhad (B): The Asian Crisis Begins

    Supplements the (A) case.

    Keywords: Acquisition; Business Conglomerates; Economy; Capital Markets; Emerging Markets; Business and Government Relations; Corporate Strategy; Value Creation; Financial Services Industry; Malaysia;

    Citation:

    Khanna, Tarun, and Danielle Melito Wu. "Sime Darby Berhad (B): The Asian Crisis Begins." Harvard Business School Case 701-117, March 2001. View Details
  93. Sime Darby Berhad (C): Responding to the Asian Crisis

    Supplements the (A) case.

    Keywords: Acquisition; Business Conglomerates; Economy; Capital Markets; Emerging Markets; Business and Government Relations; Corporate Strategy; Value Creation; Financial Services Industry; Malaysia;

    Citation:

    Khanna, Tarun, and Danielle Melito Wu. "Sime Darby Berhad (C): Responding to the Asian Crisis." Harvard Business School Case 701-118, March 2001. View Details
  94. Russell Reynolds Associates, 1999

    The president and CEO of Russell Reynolds examined the company's expansion strategy, especially in emerging markets. He evalulates how quickly the company should open new offices abroad and in which countries.

    Keywords: Global Strategy; Growth and Development Strategy; Emerging Markets; Expansion; Consulting Industry;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Rakesh Khurana. "Russell Reynolds Associates, 1999." Harvard Business School Case 100-039, November 1999. (Revised March 2001.) View Details
  95. Old Mutual

    Designed to explore the demutualization and listing overseas of one of Africa's largest financial institutions, Old Mutual, and the effects that these actions have on South Africa's domestic capital markets. Explores the particular difficulties that arise as a result of having to educate the historically disenfranchised part of South Africa's population about the change in organizational structure (from a mutual organization to a publicly owned corporate entity), capital markets, and globalization. The emphasis is on understanding the interaction between institutional context and corporate strategy. Includes color exhibits.

    Keywords: Financial Institutions; Growth and Development Strategy; Organizational Structure; Global Strategy; Corporate Strategy; Capital Markets; Corporate Social Responsibility and Impact; Business Education; Financial Strategy; Business or Company Management; Financial Services Industry; Banking Industry; South Africa;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Kirsty O'Neil-Massaro. "Old Mutual." Harvard Business School Case 701-026, September 2000. (Revised March 2001.) View Details
  96. Market Failures

    Examines the role of transaction costs in impeding the functioning of markets and shows how the concept of transaction costs sheds light on a broad range of issues in strategy.

    Keywords: Competitive Strategy; Competition; Corporate Strategy; Cost; Market Transactions; Industry Clusters; Failure; Internet;

    Citation:

    Anand, Bharat N., Tarun Khanna, and Jan W. Rivkin. "Market Failures." Harvard Business School Background Note 700-127, April 2000. View Details
  97. Empresas CAP, 1994

    Empresas CAP began as a private-sector steel company in 1946. Over the next 40 years, CAP's ownership structure moved from nationalization to reprivatization. Unrestricted by state ownership, CAP began to diversify its holdings. The case considers the viability of CAP's diversification into forestry, and the course of action that CEO Roberto de Andraca should take.

    Keywords: Ownership; Privatization; Diversification; Competitive Strategy; Growth and Development Strategy; Management; Planning; Steel Industry;

    Citation:

    Khanna, Tarun, and Danielle Melito Wu. "Empresas CAP, 1994." Harvard Business School Case 798-053, March 1998. (Revised November 1998.) View Details
  98. Microsoft--1995 (Abridged)

    Focuses on how Microsoft built one of the world's greatest franchises and poses questions about what, if anything, can stop the company. Teaching purpose: To teach building competitive advantage, the advantages of bundling, and the sustainability of competitive advantages over time.

    Keywords: Competitive Strategy; Competitive Advantage; Business Strategy; Corporate Strategy; Horizontal Integration; Information Technology Industry; Computer Industry;

    Citation:

    Khanna, Tarun, and David B. Yoffie. "Microsoft--1995 (Abridged)." Harvard Business School Case 799-003, July 1998. View Details
  99. Modern India

    Describes India's move from a controlled economy toward a more market-oriented one, commencing in 1991. Highlights the extent of changes in the product, capital, and labor markets, and the political situation at the central government, as these stood in 1995.

    Keywords: Developing Countries and Economies; Economic Systems; Economy; Macroeconomics; Government and Politics; Strategy; Financial Services Industry; India;

    Citation:

    Khanna, Tarun, and Danielle J. Melito. "Modern India." Harvard Business School Background Note 797-108, February 1997. (Revised May 1997.) View Details
  100. RPG Enterprises--1995

    As in most emerging markets, a significant portion of the Indian private sector is dominated by extensively diversified, often family-owned or controlled, business groups. This case examines the strategy and structure of one of the largest business groups in India, at a time when the economy is going through substantial transition. RPG Enterprises' restructuring in response to the policy reforms in India (1991-95) allow one to understand the underlying reasons for the existence of the business group in the first instance. Also permits a discussion of some of the difficulties of restructuring in an emerging market.

    Keywords: Emerging Markets; Restructuring; Corporate Strategy; Alignment; Policy; Problems and Challenges; India;

    Citation:

    Khanna, Tarun. "RPG Enterprises--1995." Harvard Business School Case 797-106, February 1997. View Details
  101. Microsoft, 1995

    Explores Microsoft's core desktop computing software business and its newer endeavors in 1995. Designed to explore the sustainability of its phenomenal success, and to examine the logic behind its renewed emphasis on some areas, particularly the home computing software market. Permits a discussion of the internal and external drivers and limitations of Microsoft's product scope expansion.

    Keywords: Corporate Entrepreneurship; Corporate Strategy; Expansion; Software; Computer Industry;

    Citation:

    Khanna, Tarun, David B. Yoffie, and Israel Yellen Ganot. "Microsoft, 1995." Harvard Business School Case 795-147, April 1995. (Revised July 1996.) View Details
  102. Choice Hotels International, 1995

    Illustrates the various ways in which Choice Hotels, the franchiser for seven mid-market hotel chains, can realize economies of scope across its multiple products. Also provides an opportunity to discuss the benefits and limitations of various organizational forms (particularly, the franchise form) as a means of realizing these economies of scope. In adapting to a maturing U.S. hotel market, Choice has to confront the realization that the competitive environment and its choice of organizational form impose restrictions on the ways in which it can realize these economies of scope.

    Keywords: Organizational Structure; Competition; Franchise Ownership; Accommodations Industry; United States;

    Citation:

    Khanna, Tarun, and Israel Yellen Ganot. "Choice Hotels International, 1995." Harvard Business School Case 795-165, April 1995. (Revised June 1996.) View Details
  103. Microsoft in the People's Republic of China, 1993

    Explores some of the economic and political tradeoffs that need to be negotiated by a firm seeking to influence industry structure. The setting is the nascent personal computer software industry in the People's Republic of China (PRC) in 1993. Microsoft has to localize its software products for use in the PRC. This localization can either be done in-house by Microsoft, or can be contracted to the local software vendors. Explores the costs and benefits of full integration and arm's-length market transaction. Also discusses the "holdup" problem that arises when assets specific to a particular partnership are created.

    Keywords: Cost vs Benefits; Product Marketing; Market Entry and Exit; Market Transactions; Industry Structures; Partners and Partnerships; Vertical Integration; Software; Information Technology Industry; China;

    Citation:

    Khanna, Tarun. "Microsoft in the People's Republic of China, 1993." Harvard Business School Case 795-115, February 1995. (Revised August 1995.) View Details

Other Publications and Materials

  1. God, Government and Outsiders: The Influence of Religious Beliefs on Depositor Behavior in an Emerging Market.

    This paper provides evidence that religious beliefs can have a significant impact on individual financial choices. Using proprietary panel data on the distribution of bank deposits across all commercial banks in Pakistan over a 33-month period, I find that Islamic banks enjoy substantially higher deposit growth rates than other banks and that this difference persists even after various other profit-maximizing determinants of bank demand are taken into account. I also find that while a recent financial crisis triggered a fall in deposit growth rates at all other types of banks, it had a positive impact on the religious banks despite the fact that these banks tend to have lower credit scores than other conventional banks. Together, these results reflect some of the complex factors influencing individual financial decisions and indicate that at least in the context of a religiously motivated population it makes economic sense to focus on the growth of institutional forms that reflect these preferences.

    Keywords: Decision Choices and Conditions; Commercial Banking; Cross-Cultural and Cross-Border Issues; Consumer Behavior; Emerging Markets; Religion; Banking Industry; Pakistan;

    Citation:

    Khan, Ayesha K., and Tarun Khanna. "God, Government and Outsiders: The Influence of Religious Beliefs on Depositor Behavior in an Emerging Market." February 2010. View Details
  2. When Does Industrial Policy Work? Evidence from the Brazilian Ethanol Fuel Industry

    What is the impact of a state-led industrial policy program on entrepreneurial activity, industry evolution, and firm competitiveness? How and when is industrial policy an effective tool to spur the development of an emerging industry? To address these questions, we use the Brazilian ethanol fuel industrial policy program as a research setting. We exploit the fact that the creation of this program was a consequence of the oil crisis of the 1970s. Using a novel data set containing detailed information about Brazilian ethanol producers, we show that industrial units founded during the industrial policy period are currently more productive than those founded before the protected period. We also find that, after the industrial policy program ended, a significant number of units that were built during the period of subsidies were acquired. Based on our theory, we infer that acquisitions played an important role in increasing the operational performance of these industrial units. High quality entrepreneurs should have selected out many low quality entrepreneurs that were in trouble after the "protected" period ended. We conclude that using industrial policy to create an industry can work, but this depends critically on the presence of a "post-industrial-policy" business landscape that allows the industry to adjust and evolve into a more competitive equilibrium.

    Keywords: Economic Growth; Entrepreneurship; Policy; Industry Growth; Business and Government Relations; Competition; Energy Industry; Brazil;

    Citation:

    Mingo, Santiago, and Tarun Khanna. "When Does Industrial Policy Work? Evidence from the Brazilian Ethanol Fuel Industry." 2009. View Details