Richard H.K. Vietor

Paul Whiton Cherington Professor of Business Administration

Professor Vietor is the Paul Whiton Cherington Professor of Business Administration at the Harvard Business School.  He teaches courses on the international political economy.  Before coming to the Business School in 1978, Professor Vietor held faculty appointments at Virginia Polytechnic Institute and the University of Missouri at Columbia.  He received a B.A. in economics from Union College (1967), an M.A. in history from Hofstra University (1971), and a Ph.D. in history from the University of Pittsburgh (1975).  He has been the recipient of a National Endowment for the Humanities Research Fellowship, the Harvard-Newcomen Postdoctoral Fellowship in Business History, and the Newcomen Award in Business History.

Professor Vietor's research on business and government policy has been published in numerous journals and books.   His books include Energy Policy in America Since 1945 (1984), Strategic Management in the Regulated Environment (1989), Contrived Competition: Regulation and Deregulation in America (1994), Business Management and the Natural Environment (1996), Globalization and Growth: Case Studies in National Economic Strategies (2004), Environmental Protection and the Social Responsibility of Firms (ed. with Bruce Hay and Robert Stavins; 2007), How Countries Compete: Strategy, Sturcture, and Government in the Global Economy (2007), and The Class Moves the World: How Business Elites Decipher the World Economy (available in Japanese only, 2010).

For his courses in business-government relations and environmental management, Professor Vietor has published more than eighty case studies on energy policy, the regulation of natural gas, nuclear power and hazardous wastes; on strategy and deregulation in airlines, railroads, telecommunications, and financial services; and on the national development strategies of a dozen countries.  He has been a consultant to the Energy Research and Development Administration, serves on the Advisory Boards of IPADE (in Mexico), IESE (in Spain), and INALDE (in Colombia), and is a panel member of the Universiti Teknologi Malaysia International Advisory Panel, the Advisory Council of the Australia China Business Council, and several firms.  He is a consultant to several corporations and to the Prime Minister of Malaysia.

Professor Vietor and his wife Cindy have three adult children -- Nicholas, Christopher, and Meredith.

Books

  1. Environmental Protection and the Social Responsibility of Firms: Perspectives from Law, Economics, and Business

    Bruce L. Hay, Robert Stavins and Richard Vietor

    Keywords: Environmental Sustainability; Corporate Social Responsibility and Impact; Business Ventures;

    Citation:

    Hay, Bruce L., Robert Stavins, and Richard Vietor, eds. Environmental Protection and the Social Responsibility of Firms: Perspectives from Law, Economics, and Business. Washington, D.C.: Resources for the Future, 2005. View Details
  2. Contrived Competition: Regulation and Deregulation in America

    Richard H. K. Vietor

    This book explains how four major firms--American Airlines, El Paso Natural Gas, AT&T, and Bank America--and their respective managements were challenged by the deregulation of markets starting in the late 1970s. The four stories illustrate the dynamic process of market restructuring and organizational adjustment, as well as the ways in which managers and regulators painfully learned to operate effectively as their economic and political environments shifted around them.

    Keywords: Governing Rules, Regulations, and Reforms; United States;

    Citation:

    Vietor, Richard H. K. Contrived Competition: Regulation and Deregulation in America. Cambridge, MA: Belknap Press of Harvard University Press, 1994. View Details
  3. Energy Policy in America Since 1945: A Study of Business-Government Relations

    Richard Vietor

    Follows the history of government intervention in U.S. energy markets from 1945 to the present and shows how shifting market conditions of surplus and shortage and above all, price have played a determining role in the political process and U.S. fuel policy administration.

    Keywords: energy; political economy; United States; postwar policy; Energy; Energy Sources; Policy; United States;

    Citation:

    Vietor, Richard. Energy Policy in America Since 1945: A Study of Business-Government Relations. Cambridge University Press, 1984. View Details

Journal Articles

  1. Macroeconomic Policy and U.S. Competitiveness

    Richard H.K. Vietor and Matthew Weinzierl

    The United States is on a glide path to fiscal disaster, with experts projecting that the federal government will take in far less money than it spends-indefinitely. Our current fiscal policy is eroding competitiveness in several ways, and business conditions in the U.S. will deteriorate if there's no change in direction. The authors examine how fiscal policy relates to the three drivers of productivity: improving human capital, increasing physical capital (equipment or software, for example), and using these forms of capital more efficiently. Government spending for many public goods, such as education and infrastructure, contributes directly to one or more of them, whereas spending on health care and entitlements does little to enhance competitiveness directly. Taxes are needed to fund public goods, but they sometimes distort the allocation of human and physical capital. And large government deficits put upward pressure on the cost of borrowing for companies. The authors propose a plan-they call it "20/21 by 2021"-to reduce the deficit from 3.8% of GDP (the Congressional Budget Office's most likely scenario) to just over 1%.

    Keywords: Macroeconomics; Government and Politics; Financial Crisis; Policy; Competition; Public Administration Industry; United States;

    Citation:

    Vietor, Richard H.K., and Matthew Weinzierl. "Macroeconomic Policy and U.S. Competitiveness." Harvard Business Review 90, no. 3 (March 2012). View Details
  2. Corporate Social Responsibility Through an Economic Lens

    Forest L. Reinhardt, Robert N. Stavins and Richard H.K. Vietor

    Business leaders, government officials, and academics are focusing considerable attention on the concept of "corporate social responsibility" (CSR), particularly in the realm of environmental protection. Beyond complete compliance with environmental regulations, do firms have additional moral or social responsibilities to commit resources to environmental protection? How should we think about the notion of firms sacrificing profits in the social interest? May they do so within the scope of their fiduciary responsibilities to their shareholders? Can they do so on a sustainable basis, or will the forces of a competitive marketplace render such efforts and their impacts transient at best? Do firms, in fact, frequently or at least sometimes behave this way, reducing their earnings by voluntarily engaging in environmental stewardship? And finally, should firms carry out such profit-sacrificing activities (i.e., is this an efficient use of social resources)? We address these questions through the lens of economics, including insights from legal analysis and business scholarship.

    Keywords: Profit; Governance Compliance; Governing Rules, Regulations, and Reforms; Corporate Social Responsibility and Impact; Business and Shareholder Relations; Environmental Sustainability;

    Citation:

    Reinhardt, Forest L., Robert N. Stavins, and Richard H.K. Vietor. "Corporate Social Responsibility Through an Economic Lens." Review of Environmental Economics and Policy 2, no. 2 (summer 2008). View Details

Book Chapters

  1. Foreign Firms in the Chinese Power Sector: Economic and Environmental Impacts

    F. L. Reinhardt, Fiona Murray and Richard Vietor

    Keywords: Multinational Firms and Management; Energy; Environmental Sustainability; Developing Countries and Economies; Energy Industry; China;

    Citation:

    Reinhardt, F. L., Fiona Murray, and Richard Vietor. "Foreign Firms in the Chinese Power Sector: Economic and Environmental Impacts." In Energizing China: Reconciling Environmental Protection and Economic Growth, edited by M. McElroy, C. Nielsen, and P. Lydon. Cambridge: Harvard University, Committee on Environment, 1998. View Details
  2. Bank of America and Deregulation: The Great Turnaround

    R. H.K. Vietor

    Keywords: Banks and Banking; Governing Rules, Regulations, and Reforms; Business and Government Relations; Banking Industry; United States;

    Citation:

    Vietor, R. H.K. "Bank of America and Deregulation: The Great Turnaround." In Financial Services: Perspectives and Challenges, edited by Samuel L. Hayes III. Boston, MA: Harvard Business School Press, 1993. View Details
  3. Telecommunications: Deregulation and Globalization

    R. H.K. Vietor and D. B. Yoffie

    Keywords: Globalized Markets and Industries; Governing Rules, Regulations, and Reforms; Government and Politics; Policy; Telecommunications Industry;

    Citation:

    Vietor, R. H.K., and D. B. Yoffie. "Telecommunications: Deregulation and Globalization." In Beyond Free Trade: Firms, Governments, and Global Competition, edited by D. B. Yoffie. Boston, MA: Harvard Business School Press, 1993. View Details
  4. Regulation and Competition in America, 1920s-80s

    R. H.K. Vietor

    Keywords: Competition; United States;

    Citation:

    Vietor, R. H.K. "Regulation and Competition in America, 1920s-80s." In Governments, Industries and Markets: Aspects of Government-Industry Relations in Great Britain, Japan, West Germany and the United States of America since 1945, edited by M. Chick. Aldershot: Edward Elgar Publishing, 1990. View Details

Cases and Teaching Materials

  1. NuScale Power—the Future of Small Modular Reactors

    Richard Vietor

    NuScale Power, an entrepreneurial venture in Portland, Oregon, has designed the leading modular nuclear reactor in the United States. This Reactor will be the safest and simplest ever built. Started in 2007 as an entrepreneurial venture, the company is now two years away from applying to the Nuclear Regulatory Commission for a License certification. While the NRC considers their application, the company will finish designing a nuclear plant to use 12 of their modular reactors. If the company can mitigate the substantial risks facing it, 2021 will see their first of several hundred planned sales.

    Keywords: nuclear; Power; technology; entrepreneurship; risk; energy; Energy; Technology; Entrepreneurship; Risk and Uncertainty; Energy Industry;

    Citation:

    Vietor, Richard. "NuScale Power—the Future of Small Modular Reactors." Harvard Business School Case 715-004, October 2014. View Details
  2. Sasol: U.S. Growth Program

    Richard H. K. Vietor

    Sasol, the world's largest producer of synthetic oil from coal and gas, has announced plans to build a huge Catalytic cracker and gas-to-liquids plant in Lake Charles, Louisiana. This $21 billion venture will be the single largest foreign direct investment in US manufacturing history. The plants, on 1,600 acres adjacent to the company's existing cracker, will liquefy 98,000 barrels daily, converting ethane to ethylene and then into various specialty chemicals. The entire project depends on low gas prices engendered by the shale revolution and relatively high oil prices. The risks are copious, as is the promise.

    Keywords: oil & gas; risk; risk and uncertainty; petroleum; strategy; foreign direct investment; synthesis; diesel; chemicals; Foreign Direct Investment; Chemicals; Strategy; Energy Industry; United States;

    Citation:

    Vietor, Richard H. K. "Sasol: U.S. Growth Program." Harvard Business School Case 714-034, May 2014. View Details
  3. Saudi Arabia: Finding Stability after the Arab Spring

    Richard H.K. Vietor and Hilary White

    In 2014, King Abdullah of Saudi Arabia was juggling several balls. At home, there were pressures for liberalization, from women and youth, and pressures for more conservative religious observance and policy from the Muslim "ulema." His domestic economic policy, which entailed diversification, infrastructure construction, education and a move towards a "knowledge economy," remained difficult to implement because of oil's immense role in the GDP, trade, and the budget. Internationally, Saudi Arabia's Middle East region was a mess; troubles as always with Israel and Palestine, but also with Syria, Egypt, Iraq, and Iran. In all of this, a central question loomed: could Saudi Arabia modernize without westernizing?

    Citation:

    Vietor, Richard H.K., and Hilary White. "Saudi Arabia: Finding Stability after the Arab Spring." Harvard Business School Case 714-053, April 2014. (Revised May 2014.) View Details
  4. Singapore’s 'Midlife Crisis'?

    Richard H.K. Vietor and Hilary White

    Since its expulsion from Malaysia in 1965, Singapore had transformed itself from a third world island nation into a vibrant city-state with one of the highest levels of GDP per capita in the world. However, sluggish demand among Singapore's major trade partners began testing the nation's export-driven growth model. It was also becoming clear that the Singaporean government could no longer focus single-mindedly on economic growth. Was Singapore facing a mid-life crisis? If so, how could the government revive optimism in the nation's future?

    Keywords: Singapore; savings; investment; productivity growth; productivity; trade; Asia; economic institutions; economic growth; economic development; economics; Research and Development; government and business; government policy; economic policy; country analysis; Investment and savings; institutions; Economic Growth; Macroeconomics; Development Economics; Investment; Asia; Singapore; Southeast Asia;

    Citation:

    Vietor, Richard H.K., and Hilary White. "Singapore’s 'Midlife Crisis'?" Harvard Business School Case 714-039, December 2013. (Revised December 2014.) View Details
  5. The U.S. Shale Revolution: Global Rebalancing?

    Laura Alfaro, Richard H.K. Vietor and Hilary White

    Beginning less than a decade ago, the U.S. shale revolution began transforming the nation's energy outlook. Technological advances in horizontal drilling and "fracking" facilitated access to substantial new reserves of natural gas and light oil, imbedded in shale formations thousands of feet beneath the earth's surface. With gas reserves up by more than 47%, natural gas prices fell from $12 to $3 per thousand cubic feet. Tight oil production in North Dakota and Texas soared to more than 500,000 barrels daily. Because government policy directly controlled gas exports (as LNG), oil exports, and pipeline imports, public policy became the object of intense disputes among oil and gas producers, manufacturing and petrochemical interests, utilities, and environmentalists. Exporting gas (or oil) could affect higher prices in the United States but yield significant revenues, jobs, and balance-of-payments benefits. Refraining from exporting, however, would help consumers, reduce coal combustion, and attract energy-intensive businesses to the United States. And by reducing imports, America's foreign policy interests in the Middle East could also change. It remained to be seen what U.S policy would ultimately imply for the world economy.

    Keywords: oil and gas; oil and gas production; Natural Gas; economics; macroeconomics; Trade policy; trade; manufacturing; obama; LNG; petroleum; Middle East; energy; Energy Industry; International macroeconomics; United States; Japan; foreign policy; Energy; Trade; Economics; Macroeconomics; Energy Industry; Manufacturing Industry; United States; Middle East;

    Citation:

    Alfaro, Laura, Richard H.K. Vietor, and Hilary White. "The U.S. Shale Revolution: Global Rebalancing?" Harvard Business School Case 714-008, September 2013. (Revised October 2014.) View Details
  6. Japan: Abe's Three Arrows?

    Richard H.K. Vietor

    After the Koizumi government ended in 2006, Japan continued to struggle with slow growth, deflation and, in 2011, a tsunami and nuclear disaster. Following a series of several more unsuccessful prime ministers, Shinzo Abe again became the prime minister in 2012 and announced a new strategy of "three arrows," rapid quantitative easing, fiscal stimulus and structural reform. It remains to be seen if these policies can be implemented and, moreover, if they will work.

    Keywords: economic development; quantitative easing; stagnation; national strategy; Development Economics; Economic Slowdown and Stagnation; Strategy; Japan;

    Citation:

    Vietor, Richard H.K. "Japan: Abe's Three Arrows?" Harvard Business School Case 714-017, October 2013. View Details
  7. The Republic of the Philippines: The Next Asian Tiger?

    Richard H.K. Vietor, Carol Dominguez and Tully Moss

    The Philippines, for long a laggard in Asia, is now growing fast in 2012, with a positive current account balance. While it still exports services, it is increasing its assembly of manufactured products and trying to increase mining. For these activities, however, it needs more foreign direct investment. And for that, it needs domestic tranquility and better infrastructure.

    Keywords: Country strategy; macroeconomics; Asia; outsourcing; foreign direct investment; Macroeconomics; Foreign Direct Investment; Country; Asia; Philippines;

    Citation:

    Vietor, Richard H.K., Carol Dominguez, and Tully Moss. "The Republic of the Philippines: The Next Asian Tiger?" Harvard Business School Case 714-004, August 2013. View Details
  8. Valero Energy Corporation and Tight Oil

    Richard H.K. Vietor, Eric Adamson, Aaron Byrd, Ned Chiverton, Mariko Meier and Rob Rain

    Valero Energy, an incredibly successful US refiner, needs to make some decisions about tight oil. As production of light tight oil increases—from Eagle Ford, Bakken and elsewhere—Valero considers whether to add topping capacity to handle it, on top of its recent investments for heavy oil. Political decisions, however, are pending on Keystone XL, on crude oil exports, and on LNG exports. Prices, therefore, are up in the air, especially as global capacity increases. Petrochemical companies and oil producers have conflicting views on the appropriate policy. Bill Klesse, the CEO, can either sit back and wait, or move to capture greater market share.

    Keywords: petroleum; oil & gas; energy; environment; refining; globalization; tight oil; strategy; Natural Environment; Demand and Consumers; Supply and Industry; Policy; Energy Sources; Energy Industry; United States;

    Citation:

    Vietor, Richard H.K., Eric Adamson, Aaron Byrd, Ned Chiverton, Mariko Meier, and Rob Rain. "Valero Energy Corporation and Tight Oil." Harvard Business School Case 713-083, June 2013. (Revised June 2014.) View Details
  9. America's Budget Impasse

    Richard H.K. Vietor

    In the spring of 2013, Barack Obama faced a difficult budgetary challenge—reducing fiscal deficits over ten years without dampening the weak economic recovery but soon enough to avoid another breach of the debt ceiling, with potential default. Finally, in April, he released his budget—calling for spending cuts and tax hikes adding to $1.8 trillion (over ten years). However, in the preceding two weeks, both the House Republicans and the Senate Democrats had approved budget resolutions that were exceedingly different. Now, amidst flurries over gun control and immigration reform came the time to bargain on the macroeconomy of the United States.

    Keywords: United States; competitiveness; stimulus; Budgeting; Competition; Government Legislation; Government Administration; Budgets and Budgeting; Macroeconomics; United States;

    Citation:

    Vietor, Richard H.K. "America's Budget Impasse." Harvard Business School Case 713-078, April 2013. (Revised October 2014.) View Details
  10. Keystone XL Pipeline

    Richard H. K. Vietor

    On January 18, 2012, President Obama rejected TransCanada's application for a "national interest" determination to approve construction of the Keystone XL Pipeline. Keystone XL was a 1,700 mile long, 36-inch diameter pipeline to transport 1.1 million barrels a day of Canadian heavy oil from Alberta (and shale oil from Montana) to the American Gulf Coast. But the American environmental community had focused all its resources on stopping Keystone XL—to them, a symbol of the nation's refusal to deal with climate change. Now the head of Keystone had to figure out what had gone wrong, and decide what to do next in order to get the project approved.

    Keywords: energy; petroleum; environmentalism; United States; oil prices; national security; United States;

    Citation:

    Vietor, Richard H. K. "Keystone XL Pipeline." Harvard Business School Case 713-039, October 2012. (Revised February 2014.) View Details
  11. Australia: Commodities and Competitiveness

    Laura Alfaro, Richard H.K. Vietor, Bill Russell and Hilary White

    For the past few decades, Australia has dealt with the benefits and costs of repeated mining booms—inflation, a housing bubble, a current account deficit and growing dependence on China. Between 1996 and 2007, however, Australia had most of these issues under control and grew at impressive rates, becoming one of the richest of developed countries. Yet competitiveness in its non-mining sectors declined. Since the financial crisis, additional challenges associated with climate change, minerals taxes, migration and an overvalued currency have complicated the issues facing Julia Gillard and her Labor Party, with a very thin majority.

    Keywords: commodities; competitiveness; carbon tax; environment; capital flows; current account; mining; Goods and Commodities; Australia;

    Citation:

    Alfaro, Laura, Richard H.K. Vietor, Bill Russell, and Hilary White. "Australia: Commodities and Competitiveness." Harvard Business School Case 713-015, August 2012. (Revised January 2014.) View Details
  12. Turkey—A Work in Progress?

    Richard H.K. Vietor

    For the past 10 years, Turkey has grown its real GDP at about 6% annually. This came after a huge debt crisis in 2001-02, wherein Turkey had to borrow $16 billion more from the IMF and comport with its difficult conditionality. Today, Turkey is a middle-income country, in search of an effective development strategy. It tends to run high inflation with a devalued currency, despite massive capital inflows and a huge current account deficit. At home, the government has carefully managed between Islamicization, democracy and secularism. And abroad, it deals with a difficult neighborhood—Syria, Iran, Iraq, Israel (not to mention Russia, Europe and the USA). Prime Minister Erdogan is trying to rewrite the Constitution before 2014 when the next election occurs.

    Keywords: Turkey; Economy; Macroeconomics; International Relations; Growth and Development Strategy; Turkey;

    Citation:

    Vietor, Richard H.K. "Turkey—A Work in Progress?" Harvard Business School Case 713-018, August 2012. (Revised April 2014.) View Details
  13. Low-Carbon, Indigenous Innovation in China

    Richard H.K. Vietor

    For the past seven years or so, the Chinese government has been powering ahead with industrial policies to promote low-carbon energy technologies—wind, solar, electric batteries and vehicles, nuclear power, and even carbon capture and sequestration. In 2009, the government focused broadly on "indigenous innovation," a policy to adopt and then develop technology in dozens of high-tech sectors. As with the earlier focus on renewables, explicit governmental policies and subsidies discriminate against foreign products and foreign companies invested in China. The net effects of these initiatives leave low-carbon energy industries in the United States in the dust.

    Keywords: energy; renewables; carbon; environment; industrial policy; competitiveness; Environmental Sustainability; Policy; Renewable Energy; Competition; Globalized Markets and Industries; Energy Industry; China;

    Citation:

    Vietor, Richard H.K. "Low-Carbon, Indigenous Innovation in China." Harvard Business School Case 712-061, June 2012. (Revised February 2014.) View Details
  14. South Africa (A): Stuck in the Middle?

    Richard H. K. Vietor and Diego Comin

    Fifteen years after ending apartheid, formal unemployment in South Africa was still at 24%. While the country had grown at 4 to 5% annually during the 2000s, the financial crisis set it back by 1 million more unemployed. Moreover, it seemed as if the nation were stuck between low wage and fully developed competitors. The government of Jacob Zuma has just adopted a "New Growth Path," hoping to create several million jobs over the next few years. Both the Finance Minister and the head of the Central Bank support the initiative, but worry how they can sustain fiscal discipline and control inflation, in light of these stimulative policies. Organized labor, meanwhile, has little sympathy for any sort of sacrifice.

    Keywords: Financial Crisis; Inflation and Deflation; Policy; Employment; Wages; Competition; South Africa;

    Citation:

    Vietor, Richard H. K., and Diego Comin. "South Africa (A): Stuck in the Middle?" Harvard Business School Case 711-084, April 2011. (Revised May 2013.) View Details
  15. India 2014: The Challenges of Governance

    Lakshmi Iyer and Richard H. K. Vietor

    In January 2012, the government of India faced significant challenges to achieving three key objectives of high growth, inclusive development, and improved governance. The economy was experiencing a growth slowdown, persistently high inflation, and infrastructure and energy deficits. Policy reforms were hampered by several recent corruption scandals, widespread citizen protests against corruption, and disagreements with coalition partners. Could India make the right decisions needed to lift hundreds of millions of citizens out of poverty?

    Keywords: Governance; Government and Politics; Problems and Challenges; Economic Growth; India;

    Citation:

    Iyer, Lakshmi, and Richard H. K. Vietor. "India 2014: The Challenges of Governance." Harvard Business School Case 712-038, January 2012. (Revised March 2014.) View Details
  16. China 'Unbalanced'

    Diego A. Comin and Richard H.K. Vietor

    In 2010, Wen Jiabao looked back at the financial crisis with some satisfaction. Using aggressive fiscal and monetary policy, China had weathered the crisis successfully, growing 8.7% annually in 2010. Most of the unemployed workers had returned to work, often demonstrating for higher wages or better working conditions. Wen, however, was really focused on his new development strategy—shifting away from export-led growth to ease domestic and international pressures. But many institutional challenges seemed to hamper domestic demand, and Wen was particularly concerned with pressures from America, on China's policies for trade, exchange rates, energy and investment.

    Keywords: Economic Growth; Financial Crisis; Trade; Currency Exchange Rate; Investment; Local Range; Growth and Development Strategy; Demand and Consumers; China;

    Citation:

    Comin, Diego A., and Richard H.K. Vietor. "China 'Unbalanced'." Harvard Business School Case 711-010, July 2010. (Revised March 2012.) View Details
  17. China "Unbalanced" (TN)

    Diego A. Comin and Richard H.K. Vietor

    Teaching Note for 711010.

    Keywords: Financial Crisis; Growth and Development Strategy; Demand and Consumers; Policy; Trade; Currency Exchange Rate; Energy; Investment; China; United States;

    Citation:

    Comin, Diego A., and Richard H.K. Vietor. China "Unbalanced" (TN). Harvard Business School Teaching Note 711-028, September 2010. (Revised March 2012.) View Details
  18. Suntech Power

    Richard H.K. Vietor

    Suntech, a Chinese manufacturer of photovoltaic cells and solar panels, is the third largest solar company in the world. About 90 percent of its sales have been in Europe - especially Germany and Spain. But with its new "pluto" technology, and with new governmental subsidies in China, Japan and the USA, Suntech is shifting its focus - first to the USA, and then to China and Japan. And it has recently moved down-stream in the USA, into systems integration and independent power. The case reviews the structure of competition in solar power, and evaluates Suntech's new strategy.

    Keywords: Renewable Energy; Globalized Markets and Industries; Market Entry and Exit; Industry Structures; Business and Government Relations; Competition; Expansion; Energy Industry; China;

    Citation:

    Vietor, Richard H.K. "Suntech Power." Harvard Business School Case 710-013, September 2009. (Revised January 2012.) View Details
  19. Duke Energy and the Nuclear Renaissance

    Richard H.K. Vietor and Forest L. Reinhardt

    Duke Energy, an American investor-owned electric utility, confronts multibillion dollar decisions about its future fuel mix. In particular, its leaders are considering building new nuclear capacity. Whether this is sensible depends, among other things, on demand growth, capital costs, fossil fuel prices, possible regulatory or other delays in constructing the reactors, and possible future restrictions on carbon dioxide. CEO Jim Rogers believes that nuclear power makes sense from a social standpoint but also must consider the perspectives of his ratepayers and his shareholders.

    Keywords: Energy Industry;

    Citation:

    Vietor, Richard H.K., and Forest L. Reinhardt. "Duke Energy and the Nuclear Renaissance." Harvard Business School Case 712-002, September 2011. (Revised February 2014.) View Details
  20. A123 Systems: Power. Safety. Life.

    Richard H.K. Vietor

    A123 Systems, the largest manufacturer of lithium ion batteries in North America, is producing and selling batteries for electric vehicles in China and electric buses in Europe and America. It just opened two plants in Michigan, partially funded by a grant from America's stimulus fund. At the same time, the company is expanding its business in large, grid stabilization systems, in California, Chile and New York. The simultaneous pressures of these two businesses, plus dozens of potential deals pending, are testing the company's management skills, cash reserves and abilities to execute.

    Keywords: Business or Company Management; Diversification; Machinery and Machining; Renewable Energy; Transportation; Management Skills; Corporate Finance; Auto Industry; Battery Industry;

    Citation:

    Vietor, Richard H.K. "A123 Systems: Power. Safety. Life." Harvard Business School Case 711-066, February 2011. (Revised July 2013.) View Details
  21. Mexico: Crisis and Competitiveness

    Aldo Musacchio, Richard H.K. Vietor and Regina Garcia-Cuellar

    In 2010, the bicentennial anniversary of Mexico's revolution against Spain, President Felipe Calderon hoped he could orchestrate several crucial reforms that Mexico needed. Mexico had not grown much over the course of the last decade, losing competitiveness to China and other Asian countries. Several of its institutions, including labor, education, healthcare, energy, and antitrust seemed uncompetitive. But with a weaker peso and greater governmental attention to infrastructure, Calderon hoped that Mexico's higher-tech exports could recapture U.S. market share and make headway in Europe and Latin America.

    Keywords: Economic Growth; Trade; Governing Rules, Regulations, and Reforms; Competitive Strategy; Competitive Advantage; Mexico;

    Citation:

    Musacchio, Aldo, Richard H.K. Vietor, and Regina Garcia-Cuellar. "Mexico: Crisis and Competitiveness." Harvard Business School Case 710-058, April 2010. (Revised May 2013.) View Details
  22. The Suzlon Edge (TN)

    Richard H.K. Vietor

    Teaching Note for 708051.

    Keywords: Price; Non-Renewable Energy; Investment; Problems and Challenges; Weather and Climate Change; Globalization; Renewable Energy; Inflation and Deflation; Production; Machinery and Machining; Family Ownership; Policy; Energy Industry;

    Citation:

    Vietor, Richard H.K. "The Suzlon Edge (TN)." Harvard Business School Teaching Note 711-100, June 2011. View Details
  23. South Africa (B): Getting Unstuck?

    Richard H. K. Vietor and Diego Comin

    15 years after ending apartheid, formal unemployment in South Africa was still at 24%. While the country had grown at 4 to 5% annually during the 2000s, the financial crisis set it back by 1 million more unemployed. Moreover, it seemed as if the nation were stuck between low wage and fully developed competitors. The government of Jacob Zuma has just adopted a "New Growth Path," hoping to create several million jobs over the next few years. Both the Finance Minister and the head of the Central Bank support the initiative, but worry how they can sustain fiscal discipline and control inflation, in light of these stimulative policies. Organized labor, meanwhile, has little sympathy for any sort of sacrifice.

    Keywords: Financial Crisis; Inflation and Deflation; Policy; Employment; Wages; Competition; South Africa;

    Citation:

    Vietor, Richard H. K., and Diego Comin. "South Africa (B): Getting Unstuck?" Harvard Business School Supplement 711-085, April 2011. (Revised December 2012.) View Details
  24. Enel: Power, Russia, and Global Markets

    Rawi E. Abdelal, Richard H.K. Vietor and Sogomon Tarontsi

    Although the global trend toward liberalization of electric utilities forced Enel, the largest power company in Italy, to give up some of its assets in its home base, it also opened up many opportunities abroad, including in Russia, one of the largest electricity markets in the world. The case outlines Enel's internationalization strategy and then focuses on one piece of the company's strategic puzzle of global expansion: acquisition of major power-generation assets in the course of the break-up of RAO UES, the Russian electricity monopoly. The case highlights the decision-making process by the company executives in the context of possible political risks to foreign investment in Russian strategic industries and economic risks to investment in the yet-to-be-formed liberalized and deregulated electricity market in Russia.

    Keywords: Mergers and Acquisitions; Energy Generation; Foreign Direct Investment; Global Strategy; Globalized Firms and Management; Globalized Markets and Industries; Business and Government Relations; Utilities Industry; Russia; Italy;

    Citation:

    Abdelal, Rawi E., Richard H.K. Vietor, and Sogomon Tarontsi. "Enel: Power, Russia, and Global Markets." Harvard Business School Case 709-046, May 2009. (Revised January 2011.) View Details
  25. Saudi Arabia: Modern Reform, Enduring Stability. Dubai: Global Economy (TN)

    Richard H.K. Vietor

    Teaching Note for 709042 and 709043.

    Keywords: Economy; Governing Rules, Regulations, and Reforms; Globalization; Balance and Stability; Saudi Arabia; Dubai;

    Citation:

    Vietor, Richard H.K. "Saudi Arabia: Modern Reform, Enduring Stability. Dubai: Global Economy (TN)." Harvard Business School Teaching Note 711-039, November 2010. View Details
  26. Mexico: Crisis and Competitiveness (TN)

    Richard H.K. Vietor and Aldo Musacchio

    Teaching Note for 710058.

    Keywords: Governing Rules, Regulations, and Reforms; Currency; Government and Politics; Trade; Infrastructure; Mexico; China; Europe; Latin America;

    Citation:

    Vietor, Richard H.K., and Aldo Musacchio. "Mexico: Crisis and Competitiveness (TN)." Harvard Business School Teaching Note 711-011, November 2010. View Details
  27. Colombia: Strong Fundamentals, Global Risk

    Aldo Musacchio, Richard H. K. Vietor, Jonathan Schlefer and Carolina Camacho

    By mid-2009 Colombian President Alvaro Uribe had ended decades of virtual civil war and strengthened the business climate, but he faced tough economic challenges. Though he had instituted prominent market reforms and brought inflation down sharply, Colombia seemed stuck in a middle ground, industrially behind Brazil or Chile but ahead of poorer Latin American countries. Traditional exports—coal, coffee, oil—still comprised more than half the total, while manufactured exports comprised only a fifth. Public investment in transport and other infrastructure—a perpetual obstacle to growth in mountainous Colombia—remained too low. A major ambition of Uribe or his possible like-minded successor was to secure U.S. Congressional approval of a free trade agreement signed in 2006. But would it really help Colombia diversify its economy? Colombia already had access to the U.S. market but still had a relatively closed economy compared with neighbors such as Mexico or Chile.

    Keywords: Developing Countries and Economies; Economic Growth; Macroeconomics; Trade; Global Strategy; Infrastructure; Business and Government Relations; Colombia;

    Citation:

    Musacchio, Aldo, Richard H. K. Vietor, Jonathan Schlefer, and Carolina Camacho. "Colombia: Strong Fundamentals, Global Risk." Harvard Business School Case 710-012, January 2010. (Revised October 2010.) View Details
  28. AEP: Carbon Capture and Storage

    Richard H.K. Vietor

    By October 2010, American Electric Power, the largest coal-fired, electric utility in the United States, had been operating a carbon capture and sequestration pilot plant for one year. Using a proprietary, Alstom chilled ammonia technology, AEP was capturing and sequestering 90% of the carbon dioxide in a small waste stream at its Mountaineer plant in West Virginia. As part of its larger carbon reduction strategy, AEP was launching construction of a $680 million demonstration plan, partially funded with DOE money. Mike Morris, AEP's chairman, was frustrated though, that Congress had not passed a cap-and-trade bill, and was worried how he would recover AEP's share of this huge investment. Could he find partners in this cutting-edge demonstration, or at least, add it to his utility rate base?

    Keywords: Energy Generation; Government Legislation; Technological Innovation; Partners and Partnerships; Projects; Decision Choices and Conditions; Environmental Sustainability; Problems and Challenges; Utilities Industry; United States;

    Citation:

    Vietor, Richard H.K. "AEP: Carbon Capture and Storage." Harvard Business School Case 711-036, October 2010. (Revised July 2013.) View Details
  29. Dubai: Global Economy

    Richard H. K. Vietor and Nicole Michele Forrest

    This case, along with Saudi Arabia: “Modern Reform, Enduring Stability” (709-042), provides an opportunity to discuss Saudi Arabia's efforts to modernize, without really Westernizing, in sharp contrast to Dubai, a nearby Arab Emirate. As Saudi Arabia's development strategy unfolds in the past six years, it is contrasted to social and political pressures within the country, volatility in global oil markets, and severe political problems in the Middle East.

    Keywords: Development Economics; Non-Renewable Energy; Globalized Markets and Industries; Government and Politics; Growth and Development Strategy; Saudi Arabia; Dubai; Middle East;

    Citation:

    Vietor, Richard H. K., and Nicole Michele Forrest. "Dubai: Global Economy." Harvard Business School Case 709-043, February 2009. (Revised August 2010.) View Details
  30. Saudi Arabia: Modern Reform, Enduring Stability

    Richard H. K. Vietor and Nicole Michele Forrest

    This case, along with “Dubai: Global Economy” (709-043), provides an opportunity to discuss Saudi Arabia's efforts to modernize, without really Westernizing, in sharp contrast to Dubai, a nearby Arab Emirate. As Saudi Arabia's development strategy unfolds in the past six years, it is contrasted to social and political pressures within the country, volatility in global oil markets, and severe political problems in the Middle East.

    Keywords: Development Economics; Non-Renewable Energy; Globalized Markets and Industries; Government and Politics; Growth and Development Strategy; Saudi Arabia; Dubai; Middle East;

    Citation:

    Vietor, Richard H. K., and Nicole Michele Forrest. "Saudi Arabia: Modern Reform, Enduring Stability." Harvard Business School Case 709-042, February 2009. (Revised August 2010.) View Details
  31. China: Getting Richer Still

    Diego A. Comin and Richard H. K. Vietor

    In the last quarter of 2009, China's GDP growth rate again approached 10%. While the global financial crisis had certainly hurt - causing layoffs of as many as 20 million factory workers - a huge stimulus package on top of continuing domestic demand had restored economic growth from its sharp, export-led stump. Now, Hu Jintao and Wen Jiabao could return their attention to job growth, income distribution, resource allocation, excessive reserve accumulation and the environment.

    Keywords: History; Resource Allocation; Corporate Social Responsibility and Impact; Social Issues; Policy; Business and Government Relations; Macroeconomics; Demand and Consumers; Leading Change; Economic Growth; China;

    Citation:

    Comin, Diego A., and Richard H. K. Vietor. "China: Getting Richer Still." Harvard Business School Case 710-050, February 2010. (Revised April 2010.) View Details
  32. Malaysia: Halfway to 2020

    Richard H.K. Vietor

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

    Keywords: Developing Countries and Economies; Growth and Development Strategy; Strategic Planning; Welfare or Wellbeing; Equality and Inequality; Malaysia;

    Citation:

    Vietor, Richard H.K. "Malaysia: Halfway to 2020." Harvard Business School Case 707-002, November 2006. (Revised August 2009.) View Details
  33. Sinopec: Refining its Strategy

    Richard H.K. Vietor and Julia Galef

    China's oil industry, with majority ownership vested in the government, had engaged in an "equity oil" strategy for the past few years-acquiring equity interests in oil producing nations including Sudan, Angola, and Iran. Outside critics, however, suggested that the Chinese companies could buy oil in the highly fungible global marketplace. But Sinopec, the nation's largest refiner, was one of the three companies (together with PetroChina and CNOOC) engaged in the equity oil play. With China's energy demands swelling-especially petroleum of which it had limited reserves-Sinopec was struggling to increase output rapidly enough to keep pace with the rapid growth of their automobile sector. And it had to make money soon.

    Keywords: Non-Renewable Energy; Equity; Foreign Direct Investment; Growth and Development Strategy; Demand and Consumers; State Ownership; Energy Industry; China;

    Citation:

    Vietor, Richard H.K., and Julia Galef. "Sinopec: Refining its Strategy." Harvard Business School Case 708-018, September 2007. (Revised November 2008.) View Details
  34. Supergrid

    Richard H.K. Vietor

    Supergrid is a mammoth wind-power development scheme for Europe, recently proposed by Airtricity. This firm, founded in 1997, is a fast-growing power-development company focused on wind. Already having built about 600 megawatts of wind turbines in Scotland and Ireland, Airtricity has now expanded to the United States. But its "Supergrid" proposal, to build offshore wind turbines with capacity of 30,000 megawatts of power, would change the face of European energy networks, use new technology, and help several European countries meet their Kyoto targets for reducing CO2. The issues are whether a small company like Airtricity has the human and capital resources to pull this off, and whether the U.K., Germany, the Netherlands, and the EU can be made to cooperate on such a project.

    Keywords: Energy Generation; Renewable Energy; Entrepreneurship; Performance Capacity; Business and Government Relations; Environmental Sustainability; Energy Industry; Europe; United States;

    Citation:

    Vietor, Richard H.K. "Supergrid." Harvard Business School Case 707-016, September 2006. (Revised November 2008.) View Details
  35. Note on the Global Wind Industry

    Richard H. K. Vietor and Juliana Seminerio

    This note provides background information on the global wind industry and is meant to accompany HBS cases "The Suzlon Edge" (708-051); "Cape Wind: Offshore Wind Energy in the USA" (708-022); and "Supergrid" (707-016).

    Keywords: Renewable Energy; Globalized Markets and Industries; Energy Industry;

    Citation:

    Vietor, Richard H. K., and Juliana Seminerio. "Note on the Global Wind Industry." Harvard Business School Background Note 709-005, October 2008. View Details
  36. The Suzlon Edge

    Richard H.K. Vietor and Juliana Seminerio

    With prices of oil, coal and gas at historically high levels, the wind industry had installed more than 20,000 MW of wind energy, representing a $37 billion investment in 2007. Besides high prices, wind energy represented a solution for consumers seeking an energy source that would not add to the problems associated with global climate change. Suzlon Energy Limited (Suzlon), India's largest manufacturer of wind turbines, had evolved from a small family-run business into a global enterprise spanning four continents in just over a decade. But would the costs associated with the aggressive growth policy be too much for a young company to handle?

    Keywords: Family Business; Cost vs Benefits; Renewable Energy; Globalized Firms and Management; Growth and Development Strategy; Integration; Weather and Climate Change; Environmental Sustainability; Energy Industry; India;

    Citation:

    Vietor, Richard H.K., and Juliana Seminerio. "The Suzlon Edge." Harvard Business School Case 708-051, June 2008. (Revised August 2008.) View Details
  37. Cape Wind: Offshore Wind Energy in the USA

    Richard Vietor

    Cape Wind is an extreme example of NIMBY--not in my backyard syndrome. This is the first offshore wind project planned for the United States, in Nantucket Sound, just south of Cape Cod, Massachusetts. Initially proposed six years ago, in 2001, the wind farm would be visible from Hyannis port and Osterville, two affluent communities. The coastal residents of those towns have led a campaign in Massachusetts and in Congress to thwart the efforts of Cape Wind. This case introduces the global wind industry, the rationale for wind, and then carefully reviews the various issues associated with the project.

    Keywords: Renewable Energy; Corporate Entrepreneurship; Business Startups; Projects; Government and Politics; Environmental Sustainability; Business and Community Relations; Public Opinion; Power and Influence; Energy Industry; Massachusetts;

    Citation:

    Vietor, Richard. "Cape Wind: Offshore Wind Energy in the USA." Harvard Business School Case 708-022, January 2008. (Revised May 2008.) View Details
  38. The Offshoring of America

    Richard H.K. Vietor, Jan W. Rivkin and Juliana Seminerio

    The movement from jobs in the United States to developing countries, in a process known as offshoring, has become quite a controversial topic. Managers not only need to decide which activities, if any, to move offshore, but where to move them. This case describes the nature of offshoring and its effect on developing countries.

    Keywords: Developing Countries and Economies; Job Cuts and Outsourcing; Operations; Business Processes; United States;

    Citation:

    Vietor, Richard H.K., Jan W. Rivkin, and Juliana Seminerio. "The Offshoring of America." Harvard Business School Case 708-030, February 2008. (Revised April 2008.) View Details
  39. China and the WTO: What Price Membership?

    Richard H.K. Vietor and Julia Galef

    China has been a member of the WTO for more than five years. Its implementation of requirements has been a mixed bag. While China's growth is still spectacular, many institutional problems remain. And there is a new problem--a spectacular trade asymmetry with the United States.

    Keywords: Trade; Governance Compliance; International Relations; Problems and Challenges; China; United States;

    Citation:

    Vietor, Richard H.K., and Julia Galef. "China and the WTO: What Price Membership?" Harvard Business School Case 707-032, December 2006. (Revised April 2008.) View Details
  40. Saudi Arabia: Getting the House in Order

    Richard H.K. Vietor and Rebecca Evans

    Provides a vehicle to explore Islamic development and political issues within BGIE (business, government, and international economy). Set in early 2002, the case focuses on Crown Prince Abdullah's efforts to liberalize a failing rentier state, that had been dependent on petroleum for too long. His efforts to liberalize, however, come at a politically and socially sensitive time--just after September 11, 2001, and in the midst of the Palestinian intifada. In a desperate effort to maintain oil prices, OPEC has recently reduced output by 1.5 million barrels daily, with Saudi Arabia bearing the largest cut.

    Keywords: Disruption; Development Economics; Non-Renewable Energy; Governing Rules, Regulations, and Reforms; International Relations; Leading Change; Saudi Arabia; Middle East;

    Citation:

    Vietor, Richard H.K., and Rebecca Evans. "Saudi Arabia: Getting the House in Order." Harvard Business School Case 702-031, March 2002. (Revised March 2008.) View Details
  41. India on the Move

    Richard H.K. Vietor and Emily Thompson

    By 2003, India had been growing at almost 6% annually since 1992, after it suffered a financial collapse, abandoned import substitution, and moved gradually to adopt the Washington Consensus. Now, financial controls and competition barriers are less burdensome, inflation is lower, and the current account is balanced. However, the finance minister faces difficulties with massive fiscal deficits and continuing disturbances with Pakistan that seem to deter foreign direct investment (FDI). The question facing him is whether India can reduce these deficits (in the face of a 2004 election) or whether to let them slide, hoping that India's entrepreneurs and high-tech southern states will carry the day.

    Keywords: Developing Countries and Economies; Economic Growth; Entrepreneurship; Foreign Direct Investment; Business and Government Relations; India;

    Citation:

    Vietor, Richard H.K., and Emily Thompson. "India on the Move." Harvard Business School Case 703-050, June 2003. (Revised March 2008.) View Details
  42. Singapore Inc.

    Richard H.K. Vietor and Emily Thompson

    In early 2003, Prime Minister Goh Chok Tong is assessing Singapore's development strategy--tax cutting combined with an industrial policy focused on six "clusters," including biomedical sciences. After 36 years of stupendous growth, Singapore has slowed down and faces intense competition in exports and foreign direct investment, especially from China. Is its new strategy the right choice? This case examines several key aspects of Singapore's growth, including organizational/cultural arrangements, the savings/investment balance, and total factor productivity growth.

    Keywords: Development Economics; Economic Growth; Growth and Development Strategy; Industry Clusters; Business and Government Relations; Competition; China; Singapore;

    Citation:

    Vietor, Richard H.K., and Emily Thompson. "Singapore Inc." Harvard Business School Case 703-040, February 2003. (Revised February 2008.) View Details
  43. Italy: If not now, when?

    Richard H.K. Vietor and Julia Galef

    Describes Italy's main macroeconomic problems: low productivity growth, stagnant GDP growth, and high public debt. As of early 2007, the country's global competitiveness has plummeted and its debt remains well above the level allowed by the EU's Maastricht treaty. Historical and structural reasons for the current situation are explored, and Italy's possible strategies are discussed in the context of the country's challenging political climate. A replacement of an earlier case done in 2003.

    Keywords: Economic Slowdown and Stagnation; Macroeconomics; Borrowing and Debt; International Relations; Competition; Italy;

    Citation:

    Vietor, Richard H.K., and Julia Galef. "Italy: If not now, when?" Harvard Business School Case 707-051, June 2007. (Revised November 2007.) View Details
  44. China: 'To Get Rich is Glorious'

    Richard H.K. Vietor and Julia Galef

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

    Keywords: History; Leadership; Privatization; Policy; Macroeconomics; Economic Systems; Development Economics; Government and Politics; Business Strategy; Growth and Development Strategy; China;

    Citation:

    Vietor, Richard H.K., and Julia Galef. "China: 'To Get Rich is Glorious'." Harvard Business School Case 707-022, November 2006. (Revised April 2013.) View Details
  45. American Outsourcing

    Richard H.K. Vietor and Alexander Veytsman

    Covers the phenomenon of outsourcing jobs from the United States. Reviews the evolution of Mexico's Maquiladoras, manufacturing special economic areas in China, and information technology and service-sourcing in India. Also reviews exports/imports, exchange rates, wages, and jobs. Considers major outsourcer General Electric's moves to these countries and its plans. Compares Mexico and China, and India and China, asking what the United States and GE should be doing.

    Keywords: Job Cuts and Outsourcing; Employment; Emerging Markets; Wages; Trade; United States; Mexico; China; India;

    Citation:

    Vietor, Richard H.K., and Alexander Veytsman. "American Outsourcing." Harvard Business School Case 705-037, April 2005. (Revised February 2007.) View Details
  46. Japan: Deficits, Demography, and Deflation

    Richard H.K. Vietor

    By 2005, Japan's debt had risen to 163% of GDP. For more than a decade, the government had run huge deficits, trying unsuccessfully to stimulate economic growth. Interest rates, meanwhile, had been zero for years. But with slow growth and banks in crisis, nothing had worked very well until some recovery in 2004. Now, the government is trying to repair its fiscal damage in the face of continuing slow growth and huge pension and health care obligations to a population that is aging fast. Hezio Takenaka, the minister for economy and postal privatization, faces a imposing agenda—to restart the economy while lowering the deficits and reforming social security. For a supplement to this material, please see "Japan: Abe's Three Arrows?" (714-017).

    Keywords: Economy; Economic Growth; Demographics; Financial Condition; Inflation and Deflation; Banks and Banking; Borrowing and Debt; Macroeconomics; Policy; Government and Politics; Welfare or Wellbeing; Health Care and Treatment; Japan;

    Citation:

    Vietor, Richard H.K. "Japan: Deficits, Demography, and Deflation." Harvard Business School Case 706-004, July 2005. (Revised December 2006.) View Details
  47. Yangcheng: AES in China

    Richard H.K. Vietor

    AES, an American electric power company with 141 plants worldwide, is just completing construction of a 2,100-MW plant in China--the largest ever. The project, a joint venture with five local companies, has several environmental, ownership, and operational issues as construction is completed. The decision point is whether AES should explore issues of foreign direct investment as they pertain to the environment. Do U.S. MNCs run operations abroad at the same level of environmental efficacy as in their home country? If not, why not? And what are the local barriers and competitive reasons for not doing so?

    Keywords: Energy Generation; Joint Ventures; Foreign Direct Investment; Environmental Sustainability; Problems and Challenges; Energy Industry; China;

    Citation:

    Vietor, Richard H.K. "Yangcheng: AES in China." Harvard Business School Case 702-006, May 2002. (Revised August 2006.) View Details
  48. Turkey: Securing Stability in a Rough Neighborhood

    Richard H.K. Vietor and Emily Thompson

    After suffering years of volatility and crises, Turkey desperately sought macroeconomic and political stability in an ever-worsening region of the world. In the short term, Turkey had to repay its debt, which amounted to more than 80% of GDP. By January 2004, Turkey had entered the final stages of the IMF's latest $17 billion loan program. Each review required that Turkey meet specific goals of monetary control (e.g., reducing inflation), restructuring the banking sector, reforming the public sector, and increasing privatization. The country's long-term goal, joining the European Union, would be reached only if the EU's required criteria were met. Elected in November 2002 and the first absolute majority in Parliament in 15 years, the AKP party promised to meet both IMF and EU requirements. Although his AKP party had Islamic roots, Prime Minister Erdogan planned to prove that Turkey was a stable, secular democracy. After Turkey met the EU's requirements, the question remained: Would the EU's "Christian club" accept a Muslim Turkey?

    Keywords: Public Sector; Inflation and Deflation; Macroeconomics; Borrowing and Debt; Banks and Banking; International Finance; Privatization; Religion; Turkey; European Union;

    Citation:

    Vietor, Richard H.K., and Emily Thompson. "Turkey: Securing Stability in a Rough Neighborhood." Harvard Business School Case 704-045, May 2004. (Revised November 2005.) View Details
  49. Japan: Beyond the Bubble

    Richard H.K. Vietor and Rebecca Evans

    By the summer of 2001, Japan's economy had been generally stagnant for nearly 10 years--since the collapse of the bubble economy in 1990-91. The development strategy that drove the nation during earlier decades was fulfilled, and by 1989 Japan's GDP per capita exceeded that of the United States. Facing another downturn, Prime Minister Koizumi seemed ready politically to undertake real change. A rewritten version of an earlier case.

    Keywords: History; Strategy; Development Economics; Economic Slowdown and Stagnation; Macroeconomics; Japan;

    Citation:

    Vietor, Richard H.K., and Rebecca Evans. "Japan: Beyond the Bubble." Harvard Business School Case 702-004, July 2001. (Revised June 2005.) View Details
  50. South Africa: Getting in GEAR

    Richard H.K. Vietor

    In 1997, Thabo Mbeki is contemplating South Africa's performance since the end of Apartheid in 1994. The economy has done fairly well, but the government's macroeconomic strategy calls for higher growth and employment creation. The case describes the country's history, especially Apartheid, and various social problems that persist: unemployment, inadequate infrastructure, AIDS, crime, and education. Tries to understand the interaction between these problems and the macroeconomic strategy, and considers whether another approach is necessary.

    Keywords: History; Strategy; Development Economics; Social Issues; Macroeconomics; South Africa;

    Citation:

    Vietor, Richard H.K. "South Africa: Getting in GEAR." Harvard Business School Case 798-012, August 1997. (Revised September 2004.) View Details
  51. European Monetary Union

    Richard H.K. Vietor and Sabina M. Ciminero

    On January 1, 1999, 11 European countries unified their currencies--48 years after their first integrative efforts. This marks a huge development in the structure of Europe and the world's economy. This case examines the integrative process, the Single Europe Act and its impact on market structure during the past 13 years, and monetary union. Provides data as of 1998 on European macroeconomics integration and data in the mid-1990s on integration of product markets, capital markets, and labor markets.

    Keywords: Money; Currency; Globalized Economies and Regions; Markets; International Relations; Alliances; System; Integration; Macroeconomics; Business and Government Relations; European Union;

    Citation:

    Vietor, Richard H.K., and Sabina M. Ciminero. "European Monetary Union." Harvard Business School Case 799-131, May 1999. (Revised December 2003.) View Details
  52. Mexico: The Unfinished Agenda

    Richard H.K. Vietor and Rebecca Evans

    President Vincente Fox takes over in Mexico on December 1, 2000--a political revolution ending 71 years of PRI rule. In the past five years, Mexico has solved a number of macroeconomic problems and had a good run of economic growth. But a host of microeconomic problems have been largely ignored for years--poverty, income distribution, education, labor reform, energy and the environment, crime, and drugs. The Fox administration is trying to lay out plans for mitigating all of these problems at once--a very ambitious strategy. Do they have the problems right, and will it work?

    Keywords: Economic Growth; Macroeconomics; Microeconomics; Policy; Government and Politics; Strategic Planning; Problems and Challenges; Mexico;

    Citation:

    Vietor, Richard H.K., and Rebecca Evans. "Mexico: The Unfinished Agenda." Harvard Business School Case 701-116, May 2001. (Revised December 2003.) View Details
  53. Italy: A New Commitment to Growth

    Richard H.K. Vietor and Rebecca Evans

    Examines Italy's efforts to comply with the Maastricht Treaty and become integrated with Europe in the European Union. By 2002, Italy has achieved macroeconomic stability, but slow growth threatens the country's future competitiveness. Prime Minister Silvio Berlusconi has proposed an aggressive reform package, including tax cuts, infrastructure projects, and labor and pension reform. If these economic reforms are passed, Italy may be in jeopardy of breaching the stability and growth pact. A rewritten version of an earlier case.

    Keywords: Macroeconomics; Economic Growth; Competitive Strategy; Integration; Governing Rules, Regulations, and Reforms; Policy; Government and Politics; Globalized Economies and Regions; International Relations; Alliances; Italy; European Union;

    Citation:

    Vietor, Richard H.K., and Rebecca Evans. "Italy: A New Commitment to Growth." Harvard Business School Case 703-007, August 2002. (Revised December 2003.) View Details
  54. World Oil Markets

    Richard H.K. Vietor and Rebecca Evans

    Summarizes world markets for oil and natural gas from 1980-2001. Examines the rise of OPEC, two oil shocks, Gulf War efforts, and recent pricing issues facing Saudi Arabia.

    Keywords: Energy Sources; Asset Pricing; Markets; Organizations; Saudi Arabia;

    Citation:

    Vietor, Richard H.K., and Rebecca Evans. "World Oil Markets." Harvard Business School Case 702-030, April 2002. (Revised November 2003.) View Details
  55. Singapore Inc. (TN)

    Richard H.K. Vietor

    Teaching Note for (9-703-040).

    Keywords: Developing Countries and Economies; Growth and Development Strategy; Taxation; Industry Clusters; Competitive Strategy; Foreign Direct Investment; Policy; Organizational Culture; Saving; Performance Productivity; Balance and Stability; China; Singapore;

    Citation:

    Vietor, Richard H.K. "Singapore Inc. (TN)." Harvard Business School Teaching Note 703-049, April 2003. (Revised July 2003.) View Details
  56. India on the Move (TN)

    Richard H.K. Vietor

    Teaching Note for (9-703-050).

    Keywords: Financial Crisis; Adoption; Foreign Direct Investment; Macroeconomics; Trade; Governance Controls; Competition; Inflation and Deflation; Entrepreneurship; India; Pakistan;

    Citation:

    Vietor, Richard H.K. "India on the Move (TN)." Harvard Business School Teaching Note 703-054, June 2003. (Revised July 2003.) View Details
  57. India (A)

    Richard H.K. Vietor, Waleed J. Iskandar and Max L. Weston

    Outlines India's import substitution strategy and its planned development process. The effects of the difficult political and social context on economic development are analyzed. The failure of the system to achieve sustainable growth and improvement leads to attempts at reforms which, along with worsening political and ethnic conflicts, lead to a crisis in 1991.

    Keywords: Strategy; Ethnicity Characteristics; Development Economics; Trade; Economic Growth; Policy; Government and Politics; India;

    Citation:

    Vietor, Richard H.K., Waleed J. Iskandar, and Max L. Weston. "India (A)." Harvard Business School Case 793-112, February 1993. (Revised March 2003.) View Details
  58. Freeport Indonesia

    Richard H.K. Vietor

    In 1996, PT Freeport Indonesia, the mining subsidiary of Freeport McMoRan, had just completed an expansion of its copper and gold mine in the western half of New Guinea. The mine, which had dealt with numerous environmental and sociocultural problems over the past couple of years, had recently proposed concrete plans for dealing with problems of acid drainage and spoils deposition. Now, although under widespread criticism and attack, the company is undergoing environmental and social audits and is again contemplating a major expansion.

    Keywords: Trade; Mining; Environmental Sustainability; Business Strategy; Expansion; Social Issues; Mining Industry; Indonesia;

    Citation:

    Vietor, Richard H.K. "Freeport Indonesia." Harvard Business School Case 796-124, March 1996. (Revised January 2002.) View Details
  59. Noranda Inc.: Mining, Smelting, and Sustainability?

    Richard H.K. Vietor

    Noranda is a $7 billion international mining and smelting company headquartered in Canada. It has been cited for its fine environmental record. This case explores the issue of sustainability--in this case, for a mining company. Over time, and under nongovernmental organization and governmental pressure, Norando moves gradually to goals approximating sustainability. At issue is the sustainability of Noranda's expenditures on environmental mitigation and the degree to which Noranda employs (or should employ) "best country" standards everywhere it operates.

    Keywords: Cost vs Benefits; Mining; Cost Management; Multinational Firms and Management; Governing Rules, Regulations, and Reforms; Policy; Environmental Sustainability; Mining Industry;

    Citation:

    Vietor, Richard H.K. "Noranda Inc.: Mining, Smelting, and Sustainability?" Harvard Business School Case 702-009, January 2002. View Details
  60. Mexico in Debt

    Richard H.K. Vietor and Eilene Zimmerman

    Describes Mexico's political and economic system in the 1960s and 1970s. Focuses on: 1) the causes of the debt crisis in 1982; 2) elements of President de la Madrid's restructuring efforts between 1982-88; President Salinas's attempts to complete restructuring and bring the macroeconomy into a period of high growth with low inflation; NAFTA; and the events leading up to Mexico's 1995 currency crisis.

    Keywords: Restructuring; Economic Systems; Financial Crisis; Inflation and Deflation; Macroeconomics; Borrowing and Debt; Government and Politics; Mexico;

    Citation:

    Vietor, Richard H.K., and Eilene Zimmerman. "Mexico in Debt." Harvard Business School Case 797-110, April 1997. (Revised February 2001.) View Details
  61. Shock Therapy in Eastern Europe: Supplement

    Richard H.K. Vietor and Rebecca Evans

    Supplements Shock Therapy in Eastern Europe: The Polish and Czechoslovakia Economic Reforms. Designed as an in-class handout.

    Keywords: Governing Rules, Regulations, and Reforms; Macroeconomics; Slovakia; Czech Republic; Poland;

    Citation:

    Vietor, Richard H.K., and Rebecca Evans. "Shock Therapy in Eastern Europe: Supplement." Harvard Business School Supplement 700-054, October 1999. (Revised June 2000.) View Details
  62. Japan: "Free, Fair, and Global?"

    Richard H.K. Vietor and Stephen E. Lynagh

    In April 1998, Prime Minister Hashimoto faced serious problems, both with his program of six systemic reforms and with his fiscal policy. Japan had been in effective recession for six years, unable to retain the miracle-growth achieved in earlier decades. Hashimoto has proposed to reform social security, fiscal policy, administration, regulation, education, and especially the financial system. But institutional rigidities--the bureaucracy, labor policies, corporate governance, and the aging population among others--has made change exceedingly difficult.

    Keywords: Sovereign Finance; Development Economics; Social Issues; Policy; Economy; Government Administration; Financial Crisis; Japan;

    Citation:

    Vietor, Richard H.K., and Stephen E. Lynagh. Japan: "Free, Fair, and Global?". Harvard Business School Case 798-083, May 1998. (Revised January 1999.) View Details
  63. China (A): Supplement

    Richard H.K. Vietor and Eilene Zimmerman

    Updates China (A): The Great Awakening. To be handed out in class following discussion of the case.

    Keywords: Government and Politics; Developing Countries and Economies; China;

    Citation:

    Vietor, Richard H.K., and Eilene Zimmerman. "China (A): Supplement." Harvard Business School Supplement 796-167, May 1996. (Revised September 1997.) View Details
  64. Reconstruction of Zambia

    Richard H.K. Vietor

    Examines the causes of decline--economic, social, and political--of the Zambian economy since 1974. It takes place at the time of the election of Frederick Chiluba, in October 1991. Examines the problems of economic development in Africa, and especially, of structural reform away from closed, statist systems of government. Also examines the problems of external debt and the reliance on commodity industries to produce foreign exchange.

    Keywords: Business Cycles; Development Economics; Developing Countries and Economies; Economic Slowdown and Stagnation; Borrowing and Debt; International Finance; Political Elections; Africa; Zambia;

    Citation:

    Vietor, Richard H.K. "Reconstruction of Zambia." Harvard Business School Case 792-089, April 1992. (Revised April 1997.) View Details
  65. Reconstruction of Zambia, Supplement--1992

    Richard H.K. Vietor

    Outlines new government economic plans and first actions after election. To be handed out in class after discussion of main case.

    Keywords: Developing Countries and Economies; Zambia;

    Citation:

    Vietor, Richard H.K. "Reconstruction of Zambia, Supplement--1992." Harvard Business School Supplement 792-092, April 1992. (Revised October 1996.) View Details
  66. Xerox: Design for the Environment

    Richard H.K. Vietor

    In 1990, Xerox undertook an "Environmental Leadership Program" designed to make Xerox an industry leader in non-polluting operations, recycling, and products actually designed for the environment. This effort flowed naturally out of the system of total quality management developed at Xerox in the 1980s. Under the new program, Xerox planned to design its products for complete reuse, remanufacturing, and recycling. This effort entailed a complete redesign of the company's product-delivery system, from initial designs, to materials acquisition, to manufacturing, marketing, and after-sales service.

    Keywords: Product Design; Production; Service Delivery; Service Operations; Organizational Design; Environmental Sustainability;

    Citation:

    Vietor, Richard H.K. "Xerox: Design for the Environment." Harvard Business School Case 794-022, January 1994. (Revised May 1995.) View Details
  67. Du Pont Freon Products Division (A)

    Richard H.K. Vietor and Forest L. Reinhardt

    In 1988, the Du Pont Co. is abruptly confronted with solid scientific evidence that chlorofluorocarbons are destroying the earth's ozone shield. Du Pont, with its Freon brand product line serving markets for foam insulation, electronics solvents, and especially refrigeration, was the world's leading producer of these chemicals. Although no substitutes were currently commercially available, or even proven, Du Pont had to decide what to do. The purpose of the case is to examine how changing science and environmental problems affect competitive conditions and corporate strategy. In particular, the case examines the criteria by which companies formulate policy.

    Keywords: Business Divisions; Policy; Management; Brands and Branding; Production; Service Operations; Natural Environment; Competition; Corporate Strategy; Environmental Sustainability;

    Citation:

    Vietor, Richard H.K., and Forest L. Reinhardt. "Du Pont Freon Products Division (A)." Harvard Business School Case 389-111, January 1989. (Revised March 1995.) View Details
  68. China (C): Energy and the Environment

    Richard H.K. Vietor

    Describes energy and environmental policy in China during the period 1980-1993. China has implemented ambitious plans for electrification and the substitution of fossil fuels (mostly coal) for biomass. The environmental consequences of these changes, at the local and regional levels, have been pronounced; the long-term global consequences of Chinese energy development are also thought to be significant. Chinese environmental policy has been aimed largely at mitigating the worst local and regional impacts. Raises several questions: the degree to which energy shortages or environmental problems will constrain China's future growth; the degree to which environmental quality is an important objective of Chinese policy; and the possible roles that Western governments and firms might play in developing and implementing sound energy strategies for China. Teaching Objective: To analyze the effects of governmental energy policies on local air pollution and on global atmospheric problems, to think about problems of environment and development, and to analyze the relationships between host governments and foreign firms in the energy sector.

    Keywords: Energy Generation; Environmental Sustainability; Policy; Pollution and Pollutants; Weather and Climate Change; Business and Government Relations; Globalization; Energy Industry; China;

    Citation:

    Vietor, Richard H.K. "China (C): Energy and the Environment." Harvard Business School Case 794-134, April 1994. (Revised March 1995.) View Details
  69. StarKist (A)

    Richard H.K. Vietor and Forest L. Reinhardt

    Set in April 1990, this case focuses on H.J. Heinz and its subsidiary, StarKist, the largest producer of canned tuna in the United States. During the 1980s, the public became increasingly concerned about tuna fishing practices that killed dolphins. StarKist was the target of a consumer boycott initiated by the environmental community. Worried that bad publicity from the boycott would threaten the StarKist brand name, as well as Heinz's other branded products, senior management at Heinz decided that StarKist would become the first tuna processor to no longer purchase tuna caught by methods that killed dolphins. In making the decision, Heinz executives were not sure how StarKist's two major competitors would react, or how the decision would impact the procurement of raw tuna, StarKist's single largest expense item. Discusses the harvesting (fishing) and processing (canning) sector of the tuna industry. Also discusses the Marine Mammal Protection Act, and U.S. trade sanctions against Mexico and other countries.

    Keywords: Business Subsidiaries; Decision Choices and Conditions; Laws and Statutes; Management Teams; Brands and Branding; Environmental Sustainability; Competition; Mexico; United States;

    Citation:

    Vietor, Richard H.K., and Forest L. Reinhardt. "StarKist (A)." Harvard Business School Case 794-128, April 1994. (Revised January 1995.) View Details
  70. Note on Contingent Environmental Liabilities

    Richard H.K. Vietor and Forest L. Reinhardt

    Addresses contingent environmental liabilities that are the result of unforeseen environmental risks where the dollar amount of such liabilities is unknown and depends on future events. In contrast, fines for violating environmental laws are liabilities, but are not considered contingent liabilities as such fines are relatively predictable. Covers liabilities under common law doctrines (including toxic torts), the Resource Conservation and Recovery Act (RCA), and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). In particular, discusses lender liability issues as of 1993 and briefly discusses financial reporting requirements. Concludes with a discussion of strategies for managing such liabilities.

    Keywords: Legal Liability; Risk Management; Natural Environment; Laws and Statutes; Pollution and Pollutants; Governance Compliance; United States;

    Citation:

    Vietor, Richard H.K., and Forest L. Reinhardt. "Note on Contingent Environmental Liabilities." Harvard Business School Background Note 794-098, February 1994. (Revised August 1994.) View Details
  71. Allied-Signal: Managing the Hazardous Waste Liability Risk

    Richard H.K. Vietor and Edward Prewitt

    Allied-Signal, Inc., one of the world's oldest chemical companies and today a diversified conglomerate, is liable for clean-up costs of old hazardous waste sites. These costs are substantial: reserves grew to nearly $500 million in 1991. Attempting to avoid further set-asides, and anticipating U.S.-style liability laws in Europe, environmental managers undertake a review of the company's three-part environmental control policy. With extensive programs for disposal-site inspection, auditing for compliance, and hazardous waste reduction, the managers try to optimize costs and liabilities by balancing waste disposal and reduction. The case recounts the formation of the control policy in response to legislation such as RCTA, Superfund, and the Toxics Release Inventory. Examines in detail the implementation of the three hazardous waste programs, analyzing the experiences of two plants. Exhibits include internal control documentation.

    Keywords: Wastes and Waste Processing; Environmental Sustainability; Programs; Cost Management; Policy; Government Legislation; Factories, Labs, and Plants; Governance Compliance; Legal Liability; Chemical Industry; United States; Europe;

    Citation:

    Vietor, Richard H.K., and Edward Prewitt. "Allied-Signal: Managing the Hazardous Waste Liability Risk." Harvard Business School Case 793-044, October 1992. (Revised August 1994.) View Details
  72. Ocean Spray Cranberries: Environmental Risk Management

    Richard H.K. Vietor

    Ocean Spray Cranberries, one of the nation's most successful agricultural cooperatives, faces some difficult environmental management problems associated with water usage and wetlands development. Because of federal and state wetlands laws, new bogs for expansion had become virtually impossible to develop. Moreover, to protect its valuable brand, Ocean Spray needs to make reasonably certain that its 800 grower-owners utilize the best possible environmental practices in water management and the use of agricultural chemicals. A single incident could cause the company significant harm. The case describes some of the innovative programs undertaken to facilitate best practices among the loose knit community of growers.

    Keywords: Agribusiness; Innovation and Invention; Risk Management; Cooperative Ownership; Environmental Sustainability; Agriculture and Agribusiness Industry;

    Citation:

    Vietor, Richard H.K. "Ocean Spray Cranberries: Environmental Risk Management." Harvard Business School Case 794-088, January 1994. (Revised August 1994.) View Details

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