Executive Education
in Asia-Pacific

Driving Corporate Performance - China

12-15 May 2015
(Harvard Center Shanghai)

Created for Chinese companies and multinationals, this new program shows you how to develop and implement winning competitive strategies. You will learn how to build stronger strategies through identification of your company's true competitive advantage and how to align your organization for strategy execution. The program is offered by HBS and Guanghua School of Management, Peking University.

Global CEO Program for China

12-17 April, 2015 - Module 1 (CEIBS, Shanghai, China);
17-22 May 2015 - Module 2 (IESE, Barcelona, Spain);
19-25 July 2015 - Module 3 (HBS, Boston, MA, USA)

Enhancing leadership skills and strategic vision, this program prepares Chinese CEOs to build world-class enterprises in a global environment. Jointly developed by Harvard Business School, China Europe International Business School, and IESE Business School, the curriculum explores factors influencing business performance and examines the CEO's role as it relates to strategic, governmental, investor, market, societal, and trade union issues.

Reinventing and Executing Strategy-China

1-5 June, 2015 (Harvard Center Shanghai)
Discover how to create strategic alignment by exploring the vital connections between company strategy, economics, and control systems. A collaboration between HBS and Guanghua School of Management, Peking University, this program helps executives design, implement, and manage systems that focus an organization on business goals and in turn, improve performance and enhance corporate value.

Growing and Leading a Professional Service Firm — China

July 12-17, 2014
(Harvard Center Shanghai)

To take advantage of opportunities in China, professional service firms must navigate many obstacles in a complex and unfamiliar environment. Offered jointly by the Harvard Business School and the School of Management, Fudan University in Shanghai, this program explores the difficult balancing act required for company leaders who must consistently maintain fiscal discipline while exceeding client expectations, motivating staff, and formulating and executing long-term strategy.

Marketing Strategies for Profitable Growth-China

16-19 August , 2015 (Harvard Center Shanghai)
Offering the latest thinking on China and the global marketplace, this leadership development program helps you build competitive advantage. Jointly developed by Harvard Business School; the School of Economics and Management, Tsinghua University; and China Europe International Business School, the program helps executives renew their perspectives, rethink their role, and manage more effectively.

Senior Executive Program for China

16-22 August, 2015
Module 1 (Tsinghua-SEM, Beijing, China);
18-24 October, 2015
Module 2 (CEIBS, Shanghai, China);
6-18 December, 2015
Module 3 (HBS, Boston, MA, USA)

Offering the latest thinking on China and the global marketplace, this leadership development program helps you build competitive advantage. Jointly developed by Harvard Business School; the School of Economics and Management, Tsinghua University; and China Europe International Business School, the program helps executives renew their perspectives, rethink their role, and manage more effectively.

All Global Executive Education Programs

Asia-Pacific

2014

CLP: Powering Asia HBS Teaching Plan

Serafeim, George, Robert G. Eccles, and Noah Fisher
March 2014

No abstract available

Viva Macau (A)

Roscini, Dante, and G.A. Donovan
March 2014

A fast-growing Macau-based airline backed by private U.S. investors faces a dramatic expropriation in the wake of the first change of head of government since the former Portuguese colony became a Special Administrative Region of China. The case allows students to explore what Foreign Direct Investors can do to foresee a possible expropriation event and what options they might consider to protect themselves ex-ante or fight the outcome ex-post.

The Not-So-Common-Wealth of Australia: Evidence for a Cross-Cultural Desire for a More Equal Distribution of Wealth

Norton, Michael I., David T. Neal, Cassandra L. Govan, Dan Ariely, and Elise Holland
March 2014

Recent evidence suggests that Americans underestimate wealth inequality in the United States and favor a more equal wealth distribution (Norton & Ariely, 2011). Does this pattern reflect ideological dynamics unique to the United States, or is the phenomenon evident in other developed economies-such as Australia? We assessed Australians' perceived and ideal wealth distributions and compared them to the actual wealth distribution. Although the United States and Australia differ in the degree of actual wealth inequality and in cultural narratives around economic mobility, the Australian data closely replicated the United States findings. Misperceptions of wealth inequality as well as preferences for more equal distributions may be common across developed economies. In addition, beliefs about wealth distribution only weakly predicted support for raising the minimum wage, suggesting that attitudes toward inequality may not translate into preferences for redistributive policies.

Analyses of Social Issues and Public Policy

The LEGO Group: Envisioning Risks in Asia (A) & (B) HBS Note

Mikes, Anette
February 2014

No abstract available

Donfeng Nissan's Venucia (A)

Reinhardt, Forest, Mayuka Yamazaki, and G.A. Donovan
February 2014

The (A) case describes the launch of a new passenger vehicle in China, produced jointly by Nissan of Japan and by Chinese automaker Dongfeng. Early sales results following the April 2012 launch were disappointing, and the joint venture's managers had to decide how to respond. The case includes information on the structure of the industry, on government regulation, and on the preferences of Chinese purchasers of automobiles, including information about environmental considerations.

Donfeng Nissan's Venucia (B)

Reinhardt, Forest, Mayuka Yamazaki, and G.A. Donovan
February 2014

The short (B) case, designed for distribution in class, describes further complications, as an international dispute between the Japanese and Chinese governments created further uncertainties for Chinese consumers and hence for the carmakers.

Donfeng Nissan's Venucia (C)

Reinhardt, Forest, Mayuka Yamazaki, and G.A. Donovan
February 2014

The (C) case concludes the story; it too can be distributed in class.

Advantage Partners: Dia Kanri (A)

Gompers, Paul A., Nobuo Sato, and Akiko Kanno
February 2014

This case explores the opportunity to purchase the condominium management business of a distressed real estate developer by Advantage Partners, a leading Japanese private equity firm. The case explores investment structuring, bidding strategy, and the ability of private equity firms to add value. The role of private equity in Japan is also explored and allows students to compare the Japanese merger and acquisition market to that of the U.S. and Europe.

Advantage Partners: Dia Kanri (B)

Gompers, Paul A., Nobuo Sato, and Akiko Kanno
February 2014

This case presents the final decision and outcomes for the (A) case.

TaKaDu

Ofek, Elie and Matthew Preble
February 2014

No abstract available.

Value Retail (B) China: Opportunities for Expansion

Segel, Arthur I. and John H. Vogel, Jr.
February 2014

After spending two years evaluating China as a potential market for expansion, in 2012, Scott Malkin, chief executive of Value Retail, identifies a highly desirable site in Suzhou. Now Malkin must decide if it is the right opportunity to open a village in China.

Vodafone in Japan (A)

Alcácer, Juan, Mary Furey, and Mayuka Yamazaki
February 2014

Despite a rough start in the Japanese telecom market, by late 2003, Vodafone seemed to have weathered the storm, largely based on the strength of their mobile phone unit. But was it simply the calm before the storm?

Vodafone in Japan (B)

Alcácer, Juan, Mary Furey, and Mayuka Yamazaki
February 2014

By 2005, Vodafone Group was losing its footing in the sophisticated Japanese telecom market. What were they doing wrong? Should they cut their losses and leave Japan, or could they learn from mistakes and turn things around?

Vodafone in Japan (C)

Alcácer, Juan, Mary Furey, and Mayuka Yamazaki
February 2014

An update to Vodafone cases (A) and (B), describing Softbank's acquisition of Vodafone and its performance in Japan.

Vodafone Japan (A), (B), & (C) HBS Note

Alcácer, Juan
February 2014

The series of three cases is used in Harvard Business School's (HBS) elective course "Competing Globally" as the second case in the first module (Why?: Strategies to create value globally) (See "Competing Globally: Course Note for Instructors," HBS No. 713-422). The module identifies three general strategies that create value through global operations: deploying, developing, and deepening. The Vodafone Japan cases illustrate the second strategy type: developing a new source of competitive advantage through arbitrage of technological and market conditions between Japan and the rest of the world. Specifically, the cases allow instructors to illustrate how developing strategies can create value globally and therefore motivate global expansion, emphasize the tension that exists when firms try to deploy and develop strategies simultaneously, illustrate that a global strategy based on developing competitive advantages relies on differences across countries, and explore under what circumstances firms can benefit from arbitrage opportunities.

Note on Wind Energy HBS Background Note

Maurer, Noel and Richard H.K. Vietor
February 2014

No abstract available

The LEGO Group: Envisioning Risks in Asia (B)

Mikes, Anette, and Amram Migdal
January 2014

This brief follow-up complements the case, "The LEGO Group: Stepping Up in Asia" (HBS No. 113-054), and discusses the aftermath of the scenario planning session in which LEGO managers contemplated the risks of their new Asian strategy. The scenario planning exercise played a role in managers' realization that the Group could not simply "copy-paste" its existing operating model across the diversity of Asian markets. LEGO invested significantly in Asia throughout 2012-2013 in order to adapt its playbook to the anticipated challenges. The case also describes how, in 2013, scenario planning became part of the business-planning process at the LEGO Group. It allows students to understand the difference between a tailored scenario planning exercise and the tenuous future-gazing processes that generally fail to get traction among business managers.

Urbanizing China

Iyer, Lakshmi
January 2014

No abstract avilable

Microsoft in Korea

Siegel, Jordan, and Lynn Pyun
January 2014

Microsoft Korea sees a potential opportunity to dramatically improve its subsidiary's performance by actively recruiting and promoting female senior managers in South Korea. The question is to what extent multinationals can gain competitive advantage by actively hiring talented members from the so-called excluded group in a society. Related questions include which initiatives are most effective at implementing change in the organization.

Olam: Building a Sustainable Supply Chain in Cote d'Ivoire

Rangan, V. Kasturi, and Nina Ann George
January 2014

Describes Olam's development of a sustainable cotton supply chain in Cote d'Ivoire, West Africa. Key dilemma for its managers: feasibility of introducing tractor technology for improving yield.

2013

Rainmakers: Why Bad Weather Means Good Productivity

Lee, Jooa Julia, Francesca Gino, and Bradley R. Staats
December 2013

People believe that weather conditions influence their everyday work life, but to date, little is known about how weather affects individual productivity. Contrary to conventional wisdom, we predict and find that bad weather increases individual productivity and that it does so by eliminating potential cognitive distractions resulting from good weather. When the weather is bad, individuals appear to focus more on their work than on alternate outdoor activities. We investigate the proposed relationship between worse weather and higher productivity through four studies: (1) field data on employees' productivity from a bank in Japan, (2) two studies from an online labor market in the United States, and (3) a laboratory experiment. Our findings suggest that worker productivity is higher on bad rather than good weather days and that cognitive distractions associated with good weather may explain the relationship. We discuss the theoretical and practical implications of our research.

Journal of Applied Psychology (forthcoming)

PadFone vs. FonePad

Shih, Willy, and Sen Chai
December 2013

To Jonney Shih, Chairman of ASUSTek Computer, the introduction of Apple's iPad made clear the need to transition his company to a new cloud-computing era. But the company's roots in the manufacture of Windows-powered desktop and notebook PCs bounded the creativity of his design and engineering teams. The case examines the ASUS's efforts to get into the smartphone business, leveraging experimentation it has done in tablets and a range of hybrid devices. Will its experimentation and recombination of features lead it to market success or simply confuse consumers?

Schneider Electric: Becoming the Global Specialist in Energy Management

Macomber, John D., and Rachna Tahilyani
December 2013

Global electrical products company assesses growth and market demands in India. Company must decide between a product acquisition or developing a service business. Students need to be aware of different country conditions, demands on implementation of different strategies, and impact on culture. Also discusses energy performance contracting in the context of making India's energy generation capability more efficient.

Remaking Singapore HBS Note

Porter, Michael E., and Christian H.M. Ketels
December 2013

No abstract available

Hubei Lantian (A)

Hawkins, David F., Michael Shih-ta Chen, and Nancy Hua Dai
November 2013

No abstract available

Hubei Lantian (B)

Hawkins, David F., Michael Shih-ta Chen, and Nancy Hua Dai
November 2013

No abstract available

Kvadrat: Leading for Innovation

Groysberg, Boris, and Sarah L. Abbott
November 2013

In 2013, Anders Byriel, CEO of the family-owned Danish textiles company, Kvadrat, considered the firm's strategic plan. In 2000, Byriel and Mette Bendix, Kvadrat's Product Director, had taken over management of the company from their fathers, who had founded Kvadrat in the 1960s. Byriel and Bendix had joined Kvadrat in 1992, and since that time, Kvadrat had grown from €19 million in annual sales to over €86 million. It had expanded its focus on selling textiles to European architects and furniture manufactures, becoming a global company with a wide product range and a broad customer base. Kvadrat's internal organization had grown and transformed to support this larger business. Now Kvadrat's management team was focused on a number of key initiatives: expansion into Asia, improved sales trends in its curtain and Soft Cells businesses, development of Kvadrat's retail sales operations, the implementation of new Human Resources practices, and the execution of a new organizational design. Was such an extensive growth, turnaround, and internal development agenda feasible? And, were the initiatives being considered the right ones for Kvadrat?

Carl Zeiss and Free-Form Production: Can We See Clearly Yet?

Shih, Willy
October 2013

The prescription eyeglass lens industry was complicated and highly fragmented, and even though many of the tools and techniques employed have been relatively unchanged over the last century, there was still a surprising pace of innovation. An aging population around the world meant the demand for progressive lenses was increasing rapidly, and innovations in production technology meant an evolving competitive dynamic with potentially quite different patterns of manufacturing and distribution. Are there theories that Zeiss managers can use to see clearly how industry evolution might portend shifts in the value network?

Talent Recruitment at frog design Shanghai (B)

Eccles, Robert G., and Nancy Hua Dai
October 2013

No abstract available

TaKaDu

Ofek, Elie, and Matthew Preble
October 2013

In December 2012, Amir Peleg, founder and CEO of TaKaDu, reflected on how to position his young firm for the next fiscal year and beyond. The small Israeli startup had developed an innovative software system that used patented algorithms and statistical analysis to detect problems such as leaks, bursts, and faulty equipment within a water utility's infrastructure. Such problems caused significant water and energy loss at many utilities, led to service interruptions for consumers, and were only getting worse as the existing infrastructure aged. Since its founding in 2009, TaKaDu had attracted nine customers from around the world. However, as Peleg and his executive team debated how to allocate funding for the upcoming year, he needed to decide whether to focus on R&D to improve and add to TaKaDu's existing software and become the clear technology leader or move ahead with its current offering and focus on getting new customers to penetrate the market as quickly as possible before competition intensified. Some in the company called for devoting the bulk of TaKaDu's resources to making the system more easily deployable, as TaKaDu engineers were spending up to two months implementing the system per client. Peleg also wondered if the company should continue to pursue sales leads from anywhere in the world or focus on one geographic market (and if so, what region should he choose)? An Australian water utility had made a public announcement it was accepting bids to implement a smart water network monitoring system, and Peleg wanted to discuss if and how aggressively TaKaDu should bid on the contract with his management team. TaKaDu already had one Australian customer; was this the region to focus on?

Shanghai Pharmaceuticals

Herzlinger, Regina E., and Natalie Kindred
September 2013

Shanghai Pharmaceuticals (SPH), a vertically integrated Chinese pharmaceutical conglomerate, was considering its strategic options in the context of a rapidly evolving industry, policy, and economic environment. The company-essentially a collection of subsidiaries operating under a unified management structure-was formed through the 2009 merger of several state-owned enterprises, part of a broad policy effort in China to streamline state assets, consolidate the fragmented pharmaceutical sector, and enhance the global competitiveness of domestic firms. As it competed with other large domestic firms to become one of the few national champions that the government hoped to create, SPH was also considering an acquisition in the U.S. or Europe. This case allows students to consider the broad trends sweeping China's pharmaceutical industry and health care sector and assess future opportunities there for domestic and foreign businesses.

Pret A Manger

Frei, Frances X., Rick Goldberg, and Stephanie van Sice
September 2013

Pret A Manger, a London-based chain of sandwich shops, was known for its fast, genuine service and pre-packaged sandwiches prepared on-site daily. Instructed by its board to grow at 15% per year, Pret considered opening "twin" shops in locations too small to contain kitchens; these shops would receive sandwich deliveries throughout the day from a nearby "parent" shop. Would Pret's employees and customers accept twin shops or view them as counter to the Pret culture? Through this decision point, the case frames a discussion about how companies build service models to reliably deliver customer service excellence. The case also helps students understand the role of employee management systems in creating consistent service experiences and introduces a set of innovative employee management practices.

Novozymes: Establishing the Cellulosic Ethanol Value Chain

Shih, Willy, and Sen Chai
September 2013

As the world's largest producer of industrial enzymes, Novozymes had invested heavily for many years to bio-engineer enzymes that could break down cellulose into fermentable sugar. In 2010, the company had launched what it thought would become a breakthrough product for the conversion of crop residues from corn into fermentable sugars for the production of motor fuels. But the problem was that the company only controlled one piece of the value chain. To succeed in this nascent sector, should the company insert itself into an existing ecosystem? If so, how much coordination effort would be required to integrate the many pieces, including equipment and yeast suppliers? Or should Novozymes build its own ecosystem? And if so, how much control should it retain at each level of the value chain? The case seeks to expose students to the challenges of putting together value chain participation strategies in a setting where they can also learn about industrial biotechnology, including some cutting edge methods in directed evolution.

Strategy and Governance at Yahoo! Inc

Palepu, Krishna, and Suraj Srinivasan
September 2013

Yahoo! faces a number of governance and strategic challenges in late 2011 as it tries to compete with rivals such as Google and find ways to monetize its shareholding and business links with Alibaba Group in China and Yahoo! Japan. The company is now valued at almost half the offer that Microsoft had made in its acquisition offer in 2008. The depth of the challenge is underscored by the frequent CEO changes the company has had, culminating in the recent firing of the latest CEO, Carol Bartz. The case examines the successes and failures at Yahoo! and the decisions now facing its board as it encounters investor pressure to improve performance.

Beijing's Terminal 3: Building a New Gateway to China

Fearing, Douglas, Ananth Raman, and G.A. Donovan
September 2013

No abstract available

AVA.ph: Growing a Filipino E-Commerce Company

Kerr, William R., and Henry Motte-Munoz
September 2013

AVA is a three-year old e-commerce company in the Philippines. From its early start mimicking the Gilt Groupe concept of online flash sales, the company has grown into a broader e-commerce platform for local fashion commerce. Oliver Segovia needs to evaluate where AVA should go next and answer some complicated personal questions. The case considers issues related to e-commerce platforms, diaspora-based international exchanges, business location choice, and global entrepreneurship broadly.

TATCHA: Marketing the Beauty Secrets of Japanese Geisha

Jones, Geoffrey G., and Veronica Tong
September 2013

This case considers the creation and early growth of California-based TATCHA, a Japanese-themed luxury beauty brand. It explores how Vicky Tsai developed the concept, assembled financial and management resources, and launched the first product of Japanese blotting paper in 2009 using a grassroots marketing campaign. Identifying a 200-year-old book employed by Japanese geisha, Tsai started to diversify her product line into skin and other cosmetic products. The case ends in December 2010 with Tsai receiving an acquisition offer and debating the merits of exiting or continuing to build her business.

Singapore Metals Limited

Gourville, John
August 2013

Singapore Metals Limited (SML) has declining sales but has developed a new product (curled metal pile driver pads) that, in field tests, delivers customer benefits that are many times SML's manufacturing costs. Jonathan Lee and Alex Tan of SML's Engineered Products Division are responsible for formulating a strategy for the new product. A key issue is the price to charge for the pads. The case raises issues of analyzing market potential, aligning price with business strategy, and determining the implications of price on the development and execution of integrated strategic options.

Vietnam: Sustaining the Growth of an Asian Tiger

Porter, Michael E., and Christian H.M. Ketels
August 2013

The case tracks Vietnam's economic policy choices and performance from the end of the Vietnam War to the Doi Moi economic reforms and the economic transformation that followed. Throughout this period, the country had become a darling of the international aid community. As the country was preparing for the 2011 Party Congress, however, signs of growing economic frictions were becoming increasingly visible. The case closes by setting the scene for the challenges the new leadership was going to face.

The Great East Japan Earthquake (A)

Takeuchi, Hirotaka, and Victor Stone
August 2013

At 2:46 p.m. on March 11, 2011, a 9.0m earthquake shook the Tohoku (Northeastern) region of Japan. The epicenter of the earthquake was in the coastal waters of Tohoku and reverberations from the quake triggered a tsunami that ravaged the coastal shores of Eastern Japan. The tsunami was the greatest recorded wave in history, with its highest peak at 38.9m and waves higher than 10m hitting 530km of coastal Japan.

The Great East Japan Earthquake (B): Fast Retailing Group's Response

Takeuchi, Hirotaka, Kenichi Nonomura, Dena Neuenschwander, Meghan Ricci, David Roth, Kate Schoch, and Sergey Vartanov
August 2013

Few hours after the earthquake hit on March 11, 2011, CEO Tadashi Yanai of Fast Retailing was eating sushi at a restaurant near his office. He was confident that his store managers would be able to decide for themselves the best action to take in midst of this crisis. Some of the pending decisions were whether or not to reopen the UNIQLO stores that were wiped out by the tsunami, to follow government orders to turn off the store lights, and to distribute warm clothing in the devastated areas.

The Great East Japan Earthquake (C): Ishinomaki Kouwan Hospital's Response

Takeuchi, Hirotaka, Kenichi Nonomura, Dena Neuenschwander, Meghan Ricci, David Roth, Kate Schoch, and Sergey Vartanov
August 2013

On the evening of March 11, 2011, Mayama Fumihiro, the Managing Director of Ishinomaki Kouwan Hospital knew that it would be a long, cold night. The 103 staff members and 162 patients and families were huddled on the top two floors of the four-story hospital, where they had gone to escape three tsunami waves that had destroyed the first floor and part of the second floor.

The Great East Japan Earthquake (D): Lawson's Response

Takeuchi, Hirotaka, Victor Stone, Samer Abughannam, Sebastien D'Incau, Jonathan Driscoll, Katharine Hill, and Jeffrey Reynolds
August 2013

CEO Niinami Takeshi (HBS '91) stared out his corner office window as the Tokyo skyscrapers swayed and the concrete trembled. He was in the midst of the largest seismic event to hit Japan in recorded history. Lawson's managers understood earthquake response. They had prior experience from the earthquakes in Kobe (1995) and Chuetsu (2007).

The Great East Japan Earthquake (E): Yamato Transport's Response

Takeuchi, Hirotaka, Leonard Kosinski, Christina Royce, Anna Stetsovskaya, and Evgeny Vasilyev
August 2013

CEO Kikawa of Yamato Transport gave orders to his managers right after the triple disaster hit the Tohoku region of Japan to do whatever it takes to save lives and not to worry about costs. He also felt that he had to confront the government to make donations to the affected district tax-free. He also wanted to donate 10 yen per Takkyubin package the company was delivering as relief money for Tohoku but was wondering how the shareholders would react to this proposal.

Indonesia's OJK: Building Financial Stability

Iyer, Lakshmi, and David Lane
August 2013

In 2013, a new financial services authority, the Otoritas Jasa Keuangan (OJK), took over responsibility for regulating capital markets and non-bank financial institutions in Indonesia. OJK was scheduled to take over bank regulation and supervision from the central bank, Bank Indonesia, in 2014. At a time when there was no global consensus on the optimality of separating monetary policy from bank supervision, the creation of the OJK raised many questions. Would the OJK better prepare Indonesia to deal with financial crises? Could an organization whose leaders came from Indonesia's existing economic bureaucracies remain independent of those organizations and from political pressures? Was the creation of the OJK the correct response to public dissatisfaction with Bank Indonesia's handling of the Asian financial crisis and subsequent corruption scandals?

Kinyuseisaku: Monetary Policy in Japan (C)

Alfaro, Laura, and Hilary White
August 2013

Assuming office in December 2012, Prime Minister Shinzo Abe was determined to revive Japan's stagnating economy through an ambitious plan known as "Abenomics." Under the guidance of the newly appointed governor of the central bank, Haruhiko Kuroda, the Bank of Japan adopted quantitative easing as its new monetary policy, pledging to double the nation's monetary base in two years through the purchase of long-term government bonds. While Kuroda insisted that Japan needed to "use every means available" to combat deflation, critics wondered whether inflation would increase the nation's public-sector debt to unsustainable levels or outpace growth in wages. Furthermore, skeptics debated whether Prime Minister Abe was wise to make the Bank of Japan the key player in moving the nation toward economic growth. Others questioned whether, unlike in the past, the Bank of Japan would take the necessary steps to carry through with the policy.

Chorus and Telecom: Building the Boards

Groysberg, Boris, and Sarah L. Abbott
July 2013

In 2011, Sarah Naudé and Matt Stanley sat down with the chairman of Telecom New Zealand, Wayne Boyd. Telecom, a publicly listed company and the largest telecom provider in New Zealand, was being divided into two publicly traded companies, Chorus, a telecom infrastructure company, and new Telecom, a telecom retail services provider. In connection with this split, Naudé and Stanley were charged with overseeing the process of creating two new boards of directors for these companies. As part of this process, the team reviews the roles and responsibilities of a board, defines what capabilities the new boards need, and reduces a preliminary list of candidates to a short list. They must now use this short list to create two strong boards.

Chorus and Telecom: Building the Boards (B)

Groysberg, Boris, and Sarah L. Abbott
July 2013

This follow up to "Chorus and Telecom: Building the Boards" provides a one-page description of the new boards that were created at Telecom and Chorus.

Value Partners and the Evergrande Situation

Healy, Paul M. , and Keith Chi-ho Wong
July 2013

In June 2012, Cheah Cheng-Hye and his colleagues at Value Partners, a Hong Kong-based investment firm, received a copy of a short-seller report alleging that Evergrande, one of China's largest property developers, was using fraudulent accounting and paying bribes to secure business. Evergrande's stock plummeted, and Value Partners, which had a sizable holding of Evergrande stock, had to determine how to respond to the allegations. The case provides an opportunity to review Value Partners' research approach to investing in Chinese companies and to assess the merits of the Evergrande allegations.

ASUSTeK and the Google Nexus 7 Tablet

Shih, Willy, and Jyun-Cheng Wang
July 2013

Days after Jerry Shen introduced a new tablet computer at the Consumer Electronics Show, a Google meeting convinced him to go with a lower price point and co-branding as the Nexus 7. While his company would have a premier position at launch, companies like Samsung posed a large competitive threat. He also knew he would sell more of the Android-powered tablets at the lower price, but how would he make money? The case explores the challenges of innovating in the Android value network in which firms specialized in only one part of the value chain, yet collectively they had to compete with a more vertically integrated Apple and its iPad. The case is intended to be part of a discussion on modularity and industry structure.

Kunshan, Incorporated: The Making of China's Richest Town

Kirby, William C., Nora Bynum, Tracy Yuen Manty, and Erica M. Zendell
July 2013

In 1980, the city of Kunshan was mere countryside, registering neither on the Chinese government's nor the international business community's radar. By 2010, Kunshan had become the richest city per capita in China and a global technology powerhouse, home to companies such as Foxconn, Compal Electronics, and Wistron. Kunshan's entrepreneurial, self-starting development combined with strategic location and high levels of local government support had been responsible for Kunshan's tremendous growth and success. How could it continue to grow at a rate to maintain its leadership among Chinese entrepreneurial cities? And would the founding of an international, joint-venture campus with Duke and Wuhan University keep the city of Kunshan innovative and ahead of the curve?

From Little Things Big Things Grow: The Clontarf Foundation Program for Aboriginal Boys (B)

McFarlan, F. Warren, and Michael Vitale
July 2013

This case focuses on the growth of an innovative non-profit institution that motivates aboriginal children to attend school by harnessing their love of football.

Iz-Lynn Chan at Far East Organization

Hill, Linda A., Anthony J. Mayo, and Dana M. Teppert
June 2013

Iz-Lynn Chan, assistant director of retail business group and service quality and vice president of Far East retail consultancy for Far East Organization, a private real estate developer group in Singapore, raises service standards in the company's hospitality portfolio, Far East Hospitality. Chan and her small team in the Service Quality and Standards Department (SQSD) for Far East Organization apply to the Singapore government for the National Customer Centric Initiative (CCI) for Far East Hospitality. After being awarded the CCI, Chan must make some tough decisions about how to carry out the CCI. Despite Far East Hospitality's leading market share in mid-tier hotels and serviced residences, there had been a number of new entrants into the market, and competition is fierce in Singapore's hospitality industry.

A Politician in a Leather Suit and the Paradox of Japanese Capitalism

Ramanna, Karthik
June 2013

No abstract available.

Transitions Asia: Managing Across Cultures

Chua, Roy Y.J., and Dawn Lau
May 2013

The director of an interim executive search firm, Chee Lung Tham, faced a clash of culture and management styles when his mainland Chinese client threatened to fire the American interim manager that Tham had assigned. The client, Wong Lung, ran a family-owned garment manufacturing business along with his younger brother, as well as his two overseas-educated children. While Wong needed the American manager's technology expertise, his own brother and his team of middle managers were showing resistance to the new changes. Meanwhile, the American manager found himself caught in the web of family and company politics, and completing his assignment without the cooperation of the middle management was impossible. How should Tham approach the conflict and bring all sides into a productive working relationship?

Investindustrial Exits Ducati

Brochet, Francois, and Karol Misztal
May 2013

In early 2012, Investindustrial, a European private equity group, publicly announced their intention to sell their 76.7% stake in Ducati Motor Holding S.p.A., an iconic Italian producer of sport performance motorcycles. The decision followed a six-year turnaround during which Ducati returned to profitability and significantly expanded its product line. Investindustrial's team had the following exit alternatives: 1) a trade sale to an automotive buyer; 2) a secondary buyout, partial or complete, by a financial investor; 3) a relisting in Hong Kong. Each option had its pros and cons, but all required a careful valuation of Ducati to maximize the investors' return on their flagship investment.

Omar Ishrak: Building Medtronic Globally

George, Bill, and Natalie Kindred
May 2013

Omar Ishrak, Medtronic's first non-American CEO, aims to reinvigorate the medical device maker's growth by focusing on emerging markets, therapy innovation, and creative business models. In 2012, budget constraints in mature economies, the lack of new medical therapies coming to market, and the decline in growth of Medtronic's core businesses has reduced the company's once dynamic growth close to zero. As the newly appointed CEO, Ishrak faces the formidable challenge of restoring the company's growth. In his first 18 months as CEO, he has laid the groundwork for future growth by ramping up R&D investment in breakthrough therapy innovations. To bolster Medtronic's near-term prospects, he has supported creative product and business model innovations aimed at overcoming adoption barriers in emerging economies. Ishrak restructured his executive team and their responsibilities: the heads of Medtronic's global operating regions and major countries, who previously reported to the head of international, now report directly to the CEO, putting seven non-Americans on the executive committee. In another important milestone, Medtronic acquired a Chinese orthopedics company, which became its first fully integrated business unit outside the U.S. Ishrak is trying to decide whether these steps are sufficient to transform Medtronic from a multinational into a truly global company and restore its growth.

Domaines Barons de Rothschild (Lafite): Plus ça change...

Goldberg, Ray A., Arthur I. Segel, Elie Ofek and Carin-Isabel Knoop
May 2013

No abstract available.

GREE, Inc.

Hagiu, Andrei, and Masahiro Kotosaka
May 2013

No abstract available.

Recorded Future: Analyzing Internet Ideas About What Comes Next

Davenport, Thomas H.
April 2013

Recorded Future is a "big data" startup company that uses Internet data to make predictions about events, people, and entities. The company primarily serves government intelligence agencies, but has some private sector clients and is considering taking on more. The CEO, Christopher Ahlberg, is wrestling with several key decisions about where to take the company in the future.

Fonterra

Bell, David E., Mary Shelman, and Annelena Lobb
April 2013

No abstract available.

Société Internationale de Plantations et de Finance (SIPEF)

Hawkins, David F.
April 2013

Management of a company with extensive palm oil tree plantations questions the usefulness to management and investors of IAS41's requirement to value palm oil trees at their fair value.

Austal, Ltd. (A)

Shih, Willy, Margaret Pierson, and Dawn Lau
April 2013

Austal, Ltd. was an Australian builder of high-speed passenger ferries. It had translated that expertise into a foothold in the defense market on the U.S. Navy Littoral Combat Ship (LCS) program with an Alabama assembly facility. In January 2009 it had just completed the construction of its first LCS, but the global economic crisis put the company in a difficult position. Its commercial order book had dried up, yet it needed to preserve capabilities in its Australian workforce in now underutilized facilities near where its design capabilities were centered. Was this a short-term problem, or had the commercial market changed forever? The (A) case examines possibilities that company might pursue to bridge the presumed gap until market conditions improve and the (B) case recounts some of those choices. The case focuses on the question of the importance in Austal's maintaining manufacturing close to its design center and how it will do this as its center of gravity increasingly shifts to other regions?

Austal, Ltd. (B)

Shih, Willy, Margaret Pierson, and Dawn Lau
April 2013

No abstract available

Introducing iSnack 2.0: The New Vegemite

Keinan, Anat, Francis Farrelly, and Michael Beverland
April 2013

No abstract available

The IPO of Agricultural Bank of China (ABC) (A) & (B)

Musacchio, Aldo
April 2013

No abstract available

SOHO China: Design, Development, and Social Harmony

Segel, Arthur I.
April 2013

No abstract available

Barnes & Noble: Managing the E-Book Revolution

MacCormack, Alan, Brian Kimball Dunn, and Chris F. Kemerer
April 2013

The case describes competition in the market for E-Books and Barnes & Noble's strategy in this industry. As a traditional retailer, B&N was challenged by the introduction of digital technologies that allow books to be published, distributed, and sold to consumers electronically. New competitors like Amazon and Apple attacked the traditional industry structure, creating many uncertainties over the long-term viability of traditional retailers. Amid this uncertainty, B&N must decide how to compete, in terms of both devices that can read E-Books, as well as standards for their distribution. Should they create a separate digital business, centered around their "Nook" E-Book reader, or maintain an integrated strategy? And how should they think about the fragmented standards for distributing E-Books? The case allows students to probe the dynamics of platform-based industries, as well as what happens in traditional industries when attacked by new competitors adopting new digital technologies. It is developed using public source material.

Videogames: Clouds on the Horizon?

Hagiu, Andrei, and Kerry Herman
March 2013

Since the creation of the first videogame systems in the 1970s, the videogame industry has undergone numerous transformations as new technologies and market entrants fundamentally changed the gaming experience of customers. In the early 21st century, customers began accessing games without the use of a physical gaming console, either through their mobile devices, or increasingly, through the "cloud" where customers could play videogames through specially enabled devices without the need for a physical game console or game disk. How might the cloud impact the dynamics of the industry?

Talking Strategy at Greighton Partners

Groysberg, Boris, and Kerry Herman
March 2013

Since its inception, London-based private equity firm Greighton Partners had managed over $15 billion in investor capital. The firm employed about 150 professionals around the globe and had completed over 175 company acquisitions since its founding. Started with a small intimate team in London, the firm had merged with a continental PE firm and was successful, with an increased focus on Asia deals. After a long day of global partner meetings behind them, a group of Greighton partners, eager to unwind, gathered to discuss the firm's success in terms of executing on its recently refined strategy. Opinions ranged across the following strategic issues: growing the firm's Asian footprint versus remaining focused in Europe; aiming to be a top performing mid-market firm or focusing on moving up a tier to compete for bigger deals against larger firms; growth and expansion through organic growth, merger/acquisition, or through lateral hires; and finally, sector mix and client mix/client focus.

China Life: Micro Insurance for the Poor

Cole, Shawn
March 2013

No abstract available

Lawson: Becoming the Community Store of 9,000 Japanese Communities

Hill, Linda A., Francisco de Asís Martínez-Jerez, Masako Egawa, Emily Stecker, and Mayuka Yamazaki
March 2013

No abstract available

CLP: Powering Asia

Serafeim, George, Robert G. Eccles, and Dawn Lau
March 2013

No abstract available

AmTran Technology Ltd

Shih, Willy, Jyun-Cheng Wang, and Karen Robinson
March 2013

As an original design manufacturer (ODM) of television sets and a leading supplier to Vizio, a market leader in the U.S. for LCD flat panel TVs, AmTran Technology Ltd. uses what founder Alpha Wu describes as a "WE" model in which western companies perform sales, marketing, and product definition work, while eastern companies in Asia like his perform the engineering and manufacturing work. Confronted with commoditization pressure, Wu is presented with the opportunity to license a major TV brand. Is this consistent with his model? The case explores the changes that have taken place in the consumer television receiver market and the challenges faced by leaders of the analog market, like Sony. It is intended for use with the technical note, "Competency-destroying Technology Transitions: Why the Transition to Digital Is Particularly Challenging," HBS No. 613-024.

AmTran Technology Ltd

Shih, Willy
March 2013

No abstract available

Diamond Foods, Inc.

Srinivasan, Suraj, and Tim Gray
March 2013

The Diamond Foods, Inc. case describes the major accounting blowup at the company in late 2011 that was triggered by a report by Off Wall Street (OWS), a prominent short selling research firm. Diamond Foods, a high flying growth company in 2011, grew from a walnut farmers' cooperative in 2005 into a branded snack foods manufacturer on the strength of a series of acquisitions. The accounting scandal that involved improper accounting for walnut purchases led to Diamond dropping its high profile acquisition of Pringles, an SEC and DOJ investigation, departure of the CEO and CFO, and the grounding of a high flying growth company. The case describes the history and growth of the company, the investigative and analytical work conducted by OWS, and allows students to understand implications of the growth strategy for financial performance and valuation. Additionally, the case highlights the role of corporate boards and audit committees in managing strategic and financial reporting risks.

Australia: Commodities and Competitiveness

Alfaro, Laura, Richard H.K. Vietor, and Hilary White
March 2013

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.

Mutti Spa

Alvarez, Jose B., Mary L. Shelman, and Carin-Isabel Knoop
March 2013

Francesco Mutti, owner, CEO, and great-grandson of the founder of Mutti Spa, ran the 113-year old Parma, Italy-based tomato-processing company. Mutti sales grew from €11 million in 1995 to €185 million in 2011, without producing for store brands in a market in which these offerings were steadily gaining share. The company's leaders wanted to make sure Mutti maintained its position in Italy and further, to move into a leadership position in several countries around the world. What was next for the family firm and brand leader from northern Italy's Emilia-Romagna region? How would the singularly focused, consensus-driven firm fare in an increasingly competitive, globalizing retail landscape?

SANY: Going Global

Lal, Rajiv, Stefan Lippert, Nancy Hua Dai, and Di Deng
February 2013

April 17, 2012, was a special day for SANY Group and for its founder Liang Wen'gen. Headquartered in Changsha, SANY Group had transformed itself in two decades from a small welding material factory in 1989 to a leading global construction equipment manufacturer with 5 industrial parks in China; 5 R&D and manufacturing bases in America, Germany, India, Brazil, and Indonesia; and 21 sales companies worldwide. SANY Heavy Industry Co., Ltd. (SANY), SANY Group's major subsidiary, engaged in the construction equipment business and was number six on International Construction's 2012 Yellow Table, a ranking of the world's largest construction equipment manufacturers.

Home Essentials: Building a Global Service Business with Local Operations.

Applegate, Lynda M., William R. Kerr, and David Lane
February 2013

Chris Exline founded Home Essentials, a furniture rental business targeted toward expatriates, in Singapore but rapidly moved the base of operations to Hong Kong. The company was highly successful in Singapore and Hong Kong and then pursued rapid global expansion. Lacking frameworks for deciding upon countries to enter and services to deliver in each country, Exline used gut instinct. Lacking control systems and information, he failed to identify problems early and had trouble understanding the root cause of failures. The global financial crisis intensified the problems. The case ends by describing how Exline was able to turn around the troubled company and develop necessary governance systems. The question of whether to once more attempt to grow beyond Hong Kong and, if so, the approach to take in selecting countries, is a central issue Exline faced at the time of the case.

OSI in China

Bell, David E., and Mary Shelman
February 2013

OSI, one of the world's largest suppliers of processed meats to McDonald's and other QSRs, was in the middle of a $400 million expansion in China that included backward integration into poultry production. However, its current customers took only a portion of each bird produced and OSI had to develop a go-to-market strategy for the rest. The case describes the opportunities and challenges of operating in China and raises questions involving vertical integration, competitive positioning, corporate strategy, organizational design, marketing and branding, and the management of business and political risk.

Sino-Ocean Land: Responding to Change

Retsinas, Nicolas P., Jeffrey Hu, and Runjiao Xu
February 2013

In 2010, Sino-Ocean Land Holdings Limited was a highly successful, large real estate developer based in Beijing, China. Sino-Ocean Land had three main business segments-property development, property investment/management, and other real estate related businesses. From 2005 to 2009, the company focused on becoming a leading regional developer with a multiproduct offering. That strategy was successful, riding the wave of spectacular growth in the Chinese real estate sector from 1998 to 2008, following a loosening of Chinese state real estate regulations. Although Sino-Ocean Land had gone public in 2007, its key shareholders were still state owned enterprises. The state maintained significant influence on the company and the real estate market, in general. The case explores the interactions between the company and the state, examining land acquisition, financing, and corporate governance. Following the global financial crisis of 2008, Sino-Ocean Land must devise a new five-year strategic plan. CEO Li Ming must grapple with the changing market dynamics and regulatory environment to decide the best course for the company. Key issues that he must determine include whether the focus should be local or national; whether to continue with multiproduct offerings, or specialize in one product type; and whether to continue to pursue primarily development, or to shift to property investment and holding.

ReSource Pro

Kerr, William R., and David Lane
February 2013

No abstract available

Longtop Financial Technologies (D)

Hawkins, David F.,
February 2013

No abstract available

Domaines Barons de Rothschild (Lafite): Plus ça change….

Goldberg, Ray A., Arthur I. Segel, Elie Ofek, and Carin-Isabel Knoop
February 2013

For centuries Lafite has been the most admired wine Estate in the world. How does Baron Eric de Rothschild protect this crown jewel in a conservative manner while DBR develops other Chateaux blending wine programs, reaches out to new areas such as China, and begins to take a more active interest in the world's number one market-the United States.

GREE, Inc.

Hagiu, Andrei, and Masahiro Kotosaka
February 2013

In 2012, GREE was one of the world's most profitable mobile social gaming companies. Its success in Japan was due both to its in-house games and to the development platform that it offered to third-party game developers. Its biggest challenge was to replicate the success of this two-pronged strategy in international markets, where it had to contend not just with many other game developers (e.g., Zynga), but also with the mobile platform providers themselves (e.g., Apple's iOS and Google's Android).

SOHO China: Design, Development, and Social Harmony

Segel, Arthur I, and Mukti Khaire
February 2013

Founded in 1995 by Zhang Xin and her husband, Mr. Pan Shiyi, SOHO China has developed into a world-class real estate development firm that has consistently delivered high-quality projects known for their cutting-edge designs and investment potential. Despite the tremendous success of the firm, Zhang Xin still looks at the future with great uncertainty. Average residential pricing in China has dropped, as government continues to put downward pressure on residential housing prices through restrictions on the number of apartments a resident is allowed to purchase and aggressive promotion of affordable housing on the low-end of the market. Zhang Xin wonders what opportunities and threats such market conditions present to SOHO. On the sales and marketing front, SOHO China has historically been geographically focused only on high-end, design-driven projects in Shanghai and Beijing. As the market became more competitive, Zhang Xin wondered what key strategic decisions in regards to design, financing, and sales the company would need to make in order to maintain its competitive advantage in China.

Luotang Power: Variances Explained

Simons, Robert, and Craig Chapman
February 2013

The general manager of Luotang Power, a coal-fired power plant located in central China, reviews annual results before a meeting with the board of directors. He thought the company performed well during the year, and both plant availability and fuel economy had improved over the previous year. However, the positive performance does not show in the financial results, and he must investigate before presenting to the board. He considers performing a variance analysis to better understand plant performance compared to the previous year. He also examines the contractual arrangement the plant has with the provincial power company for a minimum purchase of electricity to supplement regional demand. The company had been successful at selling excess electricity to the power plant, but over the past 12 months, demand has decreased. Students must complete a quantitative analysis of the plant's performance and prepare recommendations to improve reporting and evaluation of the plant's performance. This case can be used in an introductory managerial accounting course to explore variance analysis and incentives in contracts.

Building a Community at Semiconductor Manufacturing International Corporation

Marquis, Christopher, Zucheng Zhou, Mo Chen, and Heng Fan
January 2013

Over the past decade, Semiconductor Manufacturing International Corporation (SMIC) had developed a unique set of benefits and cultural amenities for its employees, including a beautiful residential campus, known as the Living Quarters (LQ), and an award winning international school from pre-kindergarten through twelfth grade that by 2012 enrolled over 2,000 students. These amenities allowed the company to attract and retain high-quality employees at modest pay; however, the company had recently experienced some financial difficulties, a shrinking number of new available living spaces, and questions about how relevant it was for a semiconductor firm to be operating a school. Thus, these benefits now presented significant dilemmas for the SMIC management team, including how the company can justify the costs of these benefits to investors in the face of the company's other financial challenges.

Russia and China: Energy Relations and International Politics

Abdelal, Rawi, and Sogomon Tarontsi
January 2013

Russia and China are neighbors with complementary needs: Russia has an abundance of energy resources, which China needs to fuel its industry. The case analyzes the evolution of the China-Russia energy relations in the post-Cold War period, with an emphasis on the political factors, external and domestic, impeding and contributing to the full realization of the potential of energy ties between Russia and China.

The 'Chongqing Model' and the Future of China

Rithmire, Meg
January 2013

Since opening to the global economy in 1979, but especially since entering the WTO in 2001, China's economy grew at rates around 10% annually by attracting FDI and promoting exports. After the financial crisis that began in 2008 and depressed demand in the United States and Europe, China's growth began to slow, and vulnerabilities in its economy came to light. It became clear to many in China that the growth strategy that got China from 1978 to the present was unsustainable and that the country needed a new strategy to resolve the country's regional inequalities, stimulate domestic consumption, and create growth less vulnerable to global contractions in demand. At exactly this time, between 2007 and 2012, the provincial municipality of Chongqing in China's mountainous southwest became the fastest growing city in China with GDP growth averaging over 15%. Chongqing's growth was the result of a suite of economic and social policies that had been dubbed the "Chongqing Model," a controversial bundle of reforms that promised public and private sector growth with benefits more equitably shared by all citizens. Yet critics found the model politically suspect and over reliant on state-owned enterprises and debt-driven investment. When the city's preeminent leader was publicly fired following a sensational murder scandal, the region's new leaders-and indeed China's new leaders-had to weigh in on the "Chongqing Model." Would it signal a new path to prosperity for post-WTO China?

A Politician in a Leather Suit and the Paradox of Japanese Capitalism

Ramanna, Karthik, and Matthew Shaffer
January 2013

Two lost decades later, capitalism in Japan embodies peculiar contradictions-preserving wealth and social stability in the face of declining economic power. Scant transparency in Japanese corporate practices plays an important role in this phenomenon. Sometimes justified as an embodiment of Japanese culture, the opacity of Japanese corporations is credited with empowering managers to make long-term business decisions that preserve employment and business relationships and maintain social harmony. But opacity also facilitates fraud and corruption, which erode investor confidence and stifle risk-taking. A flamboyant politician Kotaro Tamura attempts to raise public awareness around these tensions, but his provocative style earns him few friends in Japan's conservative political establishment.

Doing Deals and Leading Teams at XAF Partners

Groysberg, Boris, and Kerry Herman
January 2013

No abstract available

ABB: In China, for China

Trumbull, Gunnar, Elena Corsi, and Elisa Farri
January 2013

ABB, a power and automation Swiss engineering company had to decide if they wanted to be even more integrated into the Chinese economy, ABB's biggest market, or if they should instead increase their presence in other emerging markets such as India and Brazil.

ABB: In China, for China

Trumbull, J. Gunnar
January 2013

No abstract available

Building a Community at Semiconductor Manufacturing International Corporation

Marquis, Christopher, Zucheng Zhou, Mo Chen, and Heng Fan
January 2013

Over the past decade, Semiconductor Manufacturing International Corporation (SMIC) had developed a unique set of benefits and cultural amenities for its employees, including a beautiful residential campus, known as the Living Quarters (LQ), and an award winning international school from pre-kindergarten through twelfth grade that by 2012 enrolled over 2,000 students. These amenities allowed the company to attract and retain high-quality employees at modest pay; however, the company had recently experienced some financial difficulties, a shrinking number of new available living spaces, and questions about how relevant it was for a semiconductor firm to be operating a school. Thus, these benefits now presented significant dilemmas for the SMIC management team, including how the company can justify the costs of these benefits to investors in the face of the company's other financial challenges.

A Politician in a Leather Suit and the Paradox of Japanese Capitalism

Ramanna, Karthik, and Matthew Shaffer
January 2013

Two lost decades later, capitalism in Japan embodies peculiar contradictions-preserving wealth and social stability in the face of declining economic power. Scant transparency in Japanese corporate practices plays an important role in this phenomenon. Sometimes justified as an embodiment of Japanese culture, the opacity of Japanese corporations is credited with empowering managers to make long-term business decisions that preserve employment and business relationships and maintain social harmony. But opacity also facilitates fraud and corruption, which erode investor confidence and stifle risk-taking. A flamboyant politician Kotaro Tamura attempts to raise public awareness around these tensions, but his provocative style earns him few friends in Japan's conservative political establishment.

CSIRO: The Light Metals Flagship Decision

Shih, Willy, Margaret P. Pierson, and Dawn Lau
January 2013

This case explores the challenge of investing in basic research as a public good. CSIRO was Australia's leading science and research agency, and it was chartered to enhance national prosperity through R&D. Its Flagships program was designed to align research interests with national priorities, with a strong focus on the adoption of research outputs. The Light Metals Flagship (LMF) was one of six flagships established in 2003, and its goal was to help the nation capture more of the added value of its resources by developing and commercializing downstream technologies in the processing and fabrication of products made from aluminum, magnesium, and titanium. While the LMF met with technical successes, Australian industry was reticent to co-invest. This lack of industry enthusiasm was in many ways unsurprising, as governments often found it important to fund long-term basic research that was outside of the horizon of firms. But what kind of a signal would stopping the program send? Was CSIRO prepared to let short-term thinking in light metals firms drive its agenda? The case examines the technical decision-making process.

Nippon Steel Corporation (B): Significance of the Usiminas Project

McFarlan, F. Warren, and Akiko Kanno
January 2013

No abstract available

The LEGO Group: Envisioning Risks in Asia

Mikes, Anette, and Dominique Hamel
January 2013

On January 1, 2012, the LEGO Group announced a major new initiative to enhance its market penetration in Asia. Later in the year, a cross-functional group of senior managers gathered at company headquarters to discuss the status of the Asian initiative and the risks associated with it. The aim of the meeting was to outline four scenarios for the future that could help managers assess what key success factors and actions were required for coping with the challenges presented by each scenario and to prioritize them. Students will have an opportunity to enact the scenario exercise themselves, devising their own scenarios, and deciding whether the LEGO Group should build a factory in an Asian location in the next five to seven years. In order to facilitate a discussion about the challenges of designing a "winning organization," the case also presents difficult choices that executives had to make about the LEGO Group's strategy, choice of primary customers, core capabilities, and organizational structure.

Global Unichip Corporation (B)

Shih, Willy, and Chen-Fu Chien
January 2013

Jim Lai, President of Global Unichip Corporation (GUC), mapped out the changes he saw coming to the global semiconductor industry. The big question was how many system developers would start coming directly to GUC.

Global Unichip Corporation (A)

Shih, Willy, and Chen-Fu Chien
January 2013

Global Unichip Corporation (GUC) is a design services company that acts as a front-end to TSMC, the world's largest semiconductor foundry. In so doing, it masked the complexity of the latest process technologies and reduced the entry barriers for small firms to utilize the latest technology. In acting as an aggregator, it was also able to capture scale benefits. But it saw a change in the market coming as a major systems house customer came to GUC directly. Did this mean that it was enabling competition with TSMC's most important customers? Was it fostering disintermediation, and what did this portend for the future shape of the industry?

2012

Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A)

Alcácer, Juan and Kerry Herman
December 2012

In mid-2005, Intel is examining its options for where to locate its next assembly and test plant. On its short list of potential sites include locations in China, India, Thailand, and Vietnam. Each country has its own unique benefits and risks related to infrastructure, governance, education, business culture, intellectual property protection, labor markets, experience working with Western firms, and tax breaks and other incentives. Intel's General Manager for Assembly and Test, Brian Krzanich, has to consider all of these factors as well as Intel's criteria for its new facility's location and make his recommendation to the company's board of directors. Which country and location should Intel choose?

Intel: Strategic Decisions in Locating a New Assembly and Test Plant (B)

Alcácer, Juan , Kerry Herman
December 2012

In February 2006, Intel has selected the location for its new assembly and test plant. This case discusses why this location was chosen from the list of possibilities introduced in "Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A)."

Low-carbon, Indigenous Innovation in China

Vietor, Richard H.K.
December 2012

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.

Intel: Strategic Decision in Locating a New Assembly and Test Plant (A) & (B)

Alcácer, Juan
December 2012

The case is used in Harvard Business School's (HBS) elective course "Competing Globally" as the first case in the third module (see "Competing Globally: Course Note for Instructors," HBS No. 713-422). As the first case in the module, it introduces the framework to analyze individual location choices that weave into a location strategy that ultimately creates and sustains value globally. Specifically, Intel allows instructors to introduce a comprehensive framework to analyze location decisions, illustrate how to evaluate, rank and aggregate location traits to make a location choice that contributes to create and sustain value globally, identify the difference between location choice and location strategy, and explore the benefits and drawbacks of agglomeration economies that emerge from locating in clusters.

Cialis Lifecycle Management: Lilly's BPH Dilemma

Ofek, Elie, and Natalie Kindred
December 2012

How should Eli Lilly further develop and market a new indication of its highly successful erectile-dysfunction (ED) drug, Cialis, without confusing Cialis's hard-won brand equity with physicians and patients? With the final stages of clinical trials for the new indication, benign prostatic hyperplasia (BPH), soon to be carried out, the team had to make a decision soon. On its face, the market opportunity for a BPH indication, and its synergies with an ED drug, seemed enormous: both ED and BPH were age-related conditions, and data showed that half of men with ED had BPH symptoms. Moreover, the BPH indication would be taken in the same frequency and dosing as the once-a-day version of Cialis. However, market research had revealed significant challenges in introducing the BPH indication under the Cialis name. For example, although ED and BPH often co-existed, men perceived them quite differently. Some physicians also reacted negatively to the BPH indication. Impending competition from low-price ED generics, given that Viagra would soon be going off patent, underscored the importance of the BPH opportunity.

Australia: Commodities and Competitiveness

Alfaro, Laura , Richard H.K. Vietor, Bill Russell, and Hilary White
December 2012

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.

Digital Microscopy at Carl Zeiss: Managing Disruption

Shih, Willy
December 2012

Ulrich Simon, the head of the microscopy business group at Carl Zeiss AG, knew that his unit was facing a disruptive threat, so he chartered a special team to tackle the industrial segment. Given a high degree of autonomy, the project team developed an understanding of the marketplace challenge and proceeded to develop and execute on a new business plan. Simon gave the team ample freedom to develop new processes and priorities appropriate to the market segment needs, but he couldn't help but wonder whether it would continue as a stand-alone unit or he would need to reintegrate it into the mainline business. He also was nervous about the plan itself. The team had established timelines and milestones, but now they had to execute and deliver their first product next year.

Natural Gas

Abdelal, Rawi , and Sogomon Tarontsi
December 2012

An overview of natural gas as a fossil fuel and traded commodity, the case describes various regional markets of natural gas, highlighting diversity of price formation mechanisms across and within those markets. Recent changes in the economics of unconventional natural gas extraction-"the shale revolution"-could potentially remake those markets, steering the world toward the "golden age" of natural gas.

Creating the First Public Law Firm: The IPO of Slater & Gordon Limited

Esty, Benjamin C., and E. Scott Mayfield
December 2012

Slater & Gordon (S&G), a midsized Australian law firm with a high-growth consolidation strategy, had an initial public offering (IPO) scheduled for May 2007. Due to a series of regulatory changes in Australia in recent years, the IPO provided an opportunity for S&G to become the first publicly traded law firm in the world. The firm and its underwriters had just issued a prospectus and were now in the process of lining up investors for the offering. Gloria Rosen, a portfolio manager at Freemantle Securities, was trying to decide whether to buy the stock for her small-cap growth fund. With only a few days left to place an order for the offering, she had to decide whether to invest and, if so, how much to invest. To make her investment decision, Rosen had to understand the value implications of the firm's business model and its growth strategy, as well as the relevant risks

Monocle

Soltes, Eugene , and Sara Hess
December 2012

Monocle, a magazine on global affairs, culture, and business, was founded by Tyler Brûlé to counter a perceived deterioration in the quality of print publications available at the newsstand. Monocle differentiates itself from other publications through its diverse international coverage and related newspaper, radio, and shop offerings. The case investigates the growth of Monocle and how the publication has developed its unique relationship with readers and advertisers.

Olympus (A)

Lorsch, Jay W., Suraj Srinivasan, and Kathleen Durante
November 2012

As 2012 approached, the woes of the financial crisis seemed to be fading, companies were resuming business as usual, and some of the scrutiny on corporate governance practices began to recede as well. That is until another major financial scandal emerged in Japan in the fall of 2011. It was slowly revealed that the 92-year-old camera and medical photo-imaging company, Olympus, had been hiding its losses for more than a decade-to the tune of $1.7 billion-long before the current economic pressures, slow job growth, and poor investor confidence plagued the global economy. The fraud renewed the focus on corporate governance policies worldwide, but especially in Japan, where the lack of board independence and a deep-rooted corporate culture entrenched in personal loyalties fostered an environment that made it difficult for scandals such as this to be unveiled, let alone for whistleblowers to come forward about them.

Olympus (B)

Lorsch, Jay W., Suraj Srinivasan, and Kathleen Durante
November 2012

This case outlines Michael Woodford's awards and honors, after having been fired from Olympus in October 2011. It discusses the repercussions following an investigation into the fraud and the report that was released thereafter. It also discusses the lawsuit that followed (filed by Woodford against Olympus), its settlement, and the new Olympus board and the fate of the Olympus executives who were at Olympus while the scandal occurred.

Viterra

Goldberg, Ray A., and Matthew Preble
November 2012

As Mayo Schmidt's tenure as CEO of the Canadian-based agribusiness Viterra wound down before its sale to the Swiss-based commodity company Glencore, he reflected on his tenure, which had seen the firm grow from a Canadian-focused agricultural cooperative to an international agribusiness with operations across the globe, including significant operations in Australia. Now he wondered: What would the future hold for agriculture?

Ringier-Building a Digital-Age Media Company

Oberholzer-Gee, Felix
October 2012

Overview of the strategic re-orientation and diversification of Ringier, a Swiss media company, as it confronts the challenges of staying competitive and profitable in the new and increasingly digital media landscape.

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

Koll, Elisabeth
October 2012

No abstract available

JWT China: Advertising for the New Chinese Consumer

Koll, Elisabeth
October 2012

No abstract available

Logoplaste: Global Growing Challenges

Alcácer, Juan
October 2012

No abstract available

L'Occitane en Provence

Becker, Bo, and Scott Mayfield
October 2012

No abstract available

HTC Corp. in 2012

Alcácer, Juan
October 2012

No abstract available

CNBM: Rolling Up China's Cement Industry

Bower, Joseph L., and G.A. Donovan
September 2012

The Chinese government has charged Song Zhiping with the job of rationalizing China's cement industry. He has acquired 200 plus companies, but the industry is still fractured. Can he succeed?

The Kaesong Industrial Complex (A) & (B)

Werker, Eric, and Dante Roscini
September 2012

No Abstract

Foxconn Technology Group (A) & (B)

Eccles, Robert G., and George Serafeim
September 2012

No Abstract

HP Labs in Singapore

Shih, Willy, Pankaj Agarwal, and Christine Chi
August 2012

When HP established a branch of its corporate research lab in Singapore, the government played a key role through its Economic Development Board (EDB). Chris Whitney, the lab's director, sought to generate revenue from the lab's innovations, making it financially independent from corporate funding. The case explores HP's history in Singapore and the role of the EDB in encouraging the growth of local R&D capabilities. The case poses questions on the sustainability of the funding model.

China Risk Finance: Riding the Wave of China's Financial Services Industry

Abrami, Regina M., Matthew Shaffer, and Weiqi Zhang
August 2012

With China shifting toward a consumer-led growth model, non-bank lending has a critical role to play, but how easy is it to do business in this sector? What are the promises and pitfalls of the industry, and how well is Zane Wang, the case protagonist, navigating them?

ATR KimEng Financial Corporation

Jin, Li, Michael Shih-ta Chen, and Dawn Lau
August 2012

ATR KimEng is a Philippino asset management business. It is making an important decision on its own strategy going forward: should it stay independent or be taken over by a large bank in the region. Through this case, we discuss the financial service industry in Southeast Asia and study the opportunities and challenges presented by the changing global market dynamics.

Shanghai Diligence Law Firm (B)

Eccles, Robert G., and Catherine Zhang
August 2012

Shanghai Diligence Law Firm continued with its approach to grow through a merger, rather than organically, and was eventually merged into a bigger law firm in China. After the merger, a refined A-B-C-D model is still in use as compensation system, although the challenge remains as for how to enhance both willingness and capabilities of associates to improve team performance at the firm.

Taikang Insurance: Standing Out In China's Crowded Insurance Market

Kirby, William C., and Tracy Yuen Manty
August 2012

As a joint-stock insurance company in China, with both state-owned enterprises and foreign firms as investors, Taikang Insurance was becoming a force in the industry. It not only competed with well-entrenched state-owned rivals, but it was also seen as an entrepreneurial upstart. With the insurance landscape in China growing increasingly competitive, Taikang has had to be innovative and strategic in its ability to maintain its place as the fourth largest insurer in China. Chairman Chen Dongsheng laid a strong foundation when he launched Taikang in 2006; what will he do going forward to enable Taikang to continue to stand out in a crowded field?

Ctrip: Scientifically Managing Travel Services

Garvin, David A.
August 2012

No abstract available

The Kaesong Industrial Complex (B)

Roscini, Dante, Eric D. Werker, and Han-koo Yeo
August 2012

No abstract available

Sound Group China: Urban Waste Entrepreneurs

Macomber, John D.,, and Phillip Andrews
August 2012

No abstract available

Introducing iSnack 2.0: The New Vegemite

Keinan, Anat, Francis Farrelly, and Michael Beverland
July 2012

Vegemite is an iconic Australian breakfast spread and is often seen as a quintessential Australian product. This case focuses on Kraft's decision to revitalize brand performance through the introduction of a brand extension. Drawing on extensive social media analysis of brand image, the brand team led by Simon Talbot identified a gap in the market for a line extension involving a blend of Vegemite and Kraft's other iconic brand, Philadelphia Cream Cheese. Following a high profile campaign involving a competition to name the new extension Talbot's team chose the name iSnack 2.0 for the new product. The case starts two days after the public unveiling of this name and subsequent nationwide backlash against it. Talbot needs to consider whether to continue with the brand name or change it in light of the public outcry.

Quietly Brilliant: Transformational Change at HTC

Tushman, Michael L., and Kerry Herman
July 2012

The case examines smartphone maker HTC's 2006 decision to become a branded company. The case focuses on the cultural and organizational shifts HTC underwent to successfully make the transition from an ODM, founded in 1997, to a leading branded manufacturer (7% market share of smartphones in 2010), with the adoption of the tagline: "Quietly Brilliant." Significant challenges considered in the case include: transitioning HTC from a Taiwanese to a global firm, developing and maintaining a functioning global structure, building a sales and marketing force, and finding the right cultural balance between eastern and western capabilities.

Renesas Electronics and the Automotive Microcontroller Supply Chain (A)

Shih, Willy, and Margaret Pierson
July 2012

The magnitude 9.0 earthquake that struck Japan in March 2011 caused extensive damage to Renesas Electronics wafer fabrication facility, a critical link in the global automotive supply chain. Many OEMs sole-sourced customized microprocessors from the fab, so its shutdown forced the "Big Three" of Detroit and Japan to shut down production as well. Data from two automotive customers in particular, allowing the instructor to look at issues of delayed differentiation, sole-sourcing decisions, and/or Renesas' market position as a producer of low-volume customized components, in the context of supply chain disaster recovery. The two OEM's had different strategies with respect to cross-utilization of components between product lines. Therefore, a simple numerical assignment will show students the power of delayed differentiation in components. The OEM with higher cross-utilization (lower customization of components between product lines) had more flexibility in which vehicles they stopped producing during the shortage. Similarly, students can look at the impact of delayed differentiation at the product level by looking at the production process within the fab itself. Here Renesas's customization causes early differentiation. Again numbers are provided to work examples. Finally, broader questions around the viability of Renesas's market position can be discussed. How should they respond to the disaster in the short-term? How can they assure customers they can handle future disruptions differently? And from the OEMs' perspective, do they need to change their product design to allow for the incorporation of alternative parts? Such parts have downsides of their own. The findings in the two numerical examples can be used to drive this discussion, or a general strategy framework may be applied.

Man Group (A)

Pozen, Robert C., and Thomas M. Clay
July 2012

The Man Group was a huge and successful UK-based hedge fund and fund of funds manager. Through acquisitions, the company had consciously diversified its portfolio of investment products. In 2007 Man had to decide whether or not to spin off its brokerage business. Man was also evaluating several new business opportunities with varying strategic and financial rationales. After the financial crisis, Man had to decide what to do in the fund of funds space.

Goldwind USA: Chinese Wind in the Americas

Abrami, Regina M., and Iacob Koch-Weser
July 2012

Many Chinese firms have struggled in the United States. Renewable energy is a fledgling, high-risk market. Can Goldwind USA, a leading producer of wind turbines, overcome the odds? The case examines the many strategic choices Goldwind faced as it established its first major overseas subsidiary in Chicago: building a local team around a U.S. CEO, bridging cross-cultural differences among management, overcoming regulatory hurdles, sourcing from local suppliers, and facilitating turbine sales through innovative deal structures.

Deferred Tax Assets in Basel III: Lessons from Japan

Hawkins, David, and Karthik Ramanna
July 2012

No abstract available

Peace, Non-Aligned: The Pragmatic Optimism of Lakhdar Brahimi

Sebenius, James K., and Laurence A. Green
June 2012

Describes the background and career of Lakhdar Brahimi in numerous roles ranging from Algeria's ambassador to Indonesia and the Arab League, to serving as that country's foreign minister, and to his many years at the United Nations, with special emphasis on his actions as a mediator in Lebanese and Afghan conflicts.

China or the World? A Financial Reporting Strategy for Hong Kong's Capital Markets

Ramanna, Karthik
June 2012

No abstract available

Against the Grain: Jim Teague in Tanzania

Ramanna, Karthik
June 2012

No abstract available

Caijing Magazine

Ramanna, Karthik
June 2012

No abstract available

The China Entrepreneurs Forum

Kirby, William C., G.A. Donovan, and Tracy Yuen Manty
May 2012

Some of China's most successful entrepreneurs and founders of private enterprises naturally came together to share the insights and tactics that helped them and their businesses survive and thrive in China's rapidly changing business environment. Soon, the group's mandate expanded to include improving the environment for private business in China and conducting outreach to help spread the word about the important role entrepreneurs played in a modern market economy. How has the China Entrepreneurs Forum been an innovative business and social organization in modern China? What lies in the future for them?

Shanghai Zhangjiang Hi-Tech Park Development Co., Ltd

Eccles, Robert G., Catherine Zhang, Cheng-hua Tzeng, Liang Cheng, and Penelope Rossano
May 2012

This case is about the establishment, growth, and direction of the Shanghai Zhangjiang Hi-Tech Park (Zhangjiang Park), which is located in the Pudong New Area of Shanghai. Considered to be one of the most competitive hi-tech industry clusters in China, the combined business strategy of Shanghai Zhangjiang Hi-Tech Park Development Co., Ltd. (Zhangjiang Hi-Tech), a key operator of Zhangjiang Park, included real estate development, hi-tech investment, and integrated services. As of the time of the case, members of the board of directors of Zhangjiang Hi-Tech were faced with open questions such as how Zhangjiang Park would be able to maintain its sustainable competitiveness in comparison with other hi-tech and industrial parks in China. Board members were also concerned with how Zhangjiang Hi-Tech would be able to meet the needs of both capital market and regional development.

OpenIDEO

Lakhani, Karim R., Anne-Laure Fayard, Natalia Levina, and Stephanie Healy Pokrywa
May 2012

The case describes OpenIDEO, an online offshoot of IDEO, one of the world's leading product design firms. OpenIDEO leverages IDEO's innovative design process and an online community to create solutions for social issues. Emphasis is placed on comparing the IDEO and OpenlDEO processes using real-world project examples. For IDEO this includes the redesign of Air New Zealand's long haul flights. For OpenIDEO this includes increasing bone marrow donor registrations and improving personal sanitation in Ghana. In addition, the importance of fostering a collaborative online environment is explored.

COSCO: Implementing Sustainability

Marquis, Christopher, Lynn Yin, and Dongning Yang
May 2012

In January 2005, China Ocean Shipping (Group) Company (COSCO) announced it would join the United Nations Global Compact (UNGC). At that time, COSCO initiated sustainability reporting practices in line with the UNGC, and over the next six years these efforts evolved into an information technology platform integrating all the company's sustainability processes and indicators. In fall 2011, the company's leadership considered the following strategic questions: To what extent should COSCO refer to international and domestic sustainability standards in the platform framework? How far should COSCO go in promoting the sustainability system as a stand-alone product? What were the next steps in sustainability reporting, and should COSCO try to attain even higher reporting standards in the future? Moreover, related issues facing the company included: What would be the value in reaching higher sustainability and reporting standards, and how would internal and external stakeholders react? What challenges lay ahead for the consistent implementation of higher standards across COSCO's subsidiaries?

Caijing Magazine (A)

Ramanna, Karthik, and G.A. Donovan
May 2012

In late 2009, Wang Boming, publisher of Caijing Magazine, widely regarded as China's most independent newsmagazine, gathered his core team for an urgent meeting. His pioneering editor Hu Shuli, described for her fiercely independent journalism as "the most dangerous woman in China" had quit with two-thirds of Caijing's staff, allegedly over a conflict on editorial independence. Wang, known for his ability to navigate the country's carefully controlled propaganda apparatus, considered how to rebuild the magazine without its star editor.

Caijing Magazine (B)

Karthik Ramanna, and G.A. Donovan
May 2012

In late 2009, Wang Boming, publisher of Caijing Magazine, widely regarded as China's most independent newsmagazine, gathered his core team for an urgent meeting. His pioneering editor Hu Shuli, described for her fiercely independent journalism as "the most dangerous woman in China" had quit with two-thirds of Caijing's staff, allegedly over a conflict on editorial independence. Wang, known for his ability to navigate the country's carefully controlled propaganda apparatus, considered how to rebuild the magazine without its star editor.

Journey to the East: Natcore Technology in China

Abrami, Regina, Matthew Shaffer, and Weiqi Zhang
May 2012

Why is a U.S. solar technology firm manufacturing in China instead of the U.S.? Chuck Provini faces this question not just from the market, but also from the U.S. government. This case examines the making of a new joint venture in China at a time when both the U.S. and Chinese governments are eager to expand and develop their clean tech sectors.

Novozymes: Cracking the Emerging Markets Code

Palepu, Krishna G., and Karol Misztal
May 2012

In 2011, the management of Novozymes, the industrial enzymes leader, reflected on the viability of their positioning in the fast growing, yet increasingly competitive Chinese market. Novozymes, a technological innovation pioneer, was prominent in China's premium enzyme markets but felt pressure from local low-cost rivals in volume-driven, commoditized segments. How should Novozymes relate to local competitors? By competing on technological innovation only in high-margin verticals? Or through a separate subsidiary with a new low-cost business model for commoditized verticals?

Heavy Metal (A): Baosteel Enters Brazil

Abrami, Regina M., and Iacob Koch-Weser
May 2012

What is Baosteel, a top Chinese steelmaker, doing in Brazil? The company is responding to the Chinese government's "go global" policy and to the possible rise in iron ore input costs. But steel mills are complex, capital-intensive projects, and Brazil is an emerging market that poses manifold risks to foreign investors. Vale do Rio Doce, Baosteel's prospective partner, is an iron miner with little experience in steelmaking. Baosteel must evaluate whether it is choosing the right country, partner, and site for its first overseas greenfield investment.

Heavier Metal (B): Baosteel Struggles in Brazil

Abrami, Regina M., and Iacob Koch-Weser
May 2012

This case begins with Baosteel's decision to build a steel mill in Brazil with Vale do Rio Doce, the world's leading iron mining company. Regulatory obstacles and unexpected costs have placed the project in jeopardy. Outside Brazil, however, Baosteel has been growing rapidly, and market trends favor an overseas plant. Baosteel must decide whether or not to continue its efforts to build a steel plant in Brazil.

The Comeback (C): Baosteel Stays in Brazil

Abrami, Regina M., and Iacob Koch-Weser
May 2012

The case begins with Baosteel's renewed effort at building a steel mill in Brazil with Vale do Rio Doce. But again, the company runs into problems with obtaining regulatory approvals. This is compounded by the global financial crisis that seriously impacts the global steel industry. How will Baosteel react to this adverse situation?

Hayman Capital Management

Greenwood, Robin , Julie Messina, and Jared Dourdeville
April 2012

In late December 2011, Hayman Capital founder and portfolio manager Kyle Bass was reviewing Japanese government budget projections for 2012. The projections appeared contrary to Hayman Capital's views on Japan, where the fund had built a bearish position. Japan had the world's highest debt burden, whether expressed as a percentage of GDP or government revenue. Guided by recent global events, Bass forecast that Japan would soon experience increases in interest rates, a devaluation of the currency, and, eventually, a restructuring of the country's debt.

China Magic Going Home

Jin, Li, Zhihong Yi, and Jun Jiang
April 2012

The largest Chinese energy company is thinking about a cross-listing back into the mainland stock exchange after seeing the valuation of comparable companies on the so-called A share market skyrocketing. We discuss the cause and the consequence of investor sentiment on the cross-listing decision of firms and the responsibilities of corporate managers to maximize existing shareholder interests through catering to such investor sentiment.

A Note on Water

Eccles, Robert G., Amy C. Edmondson, George Serafeim, and Sarah E. Farrell
April 2012

This note provides background on the complex issues regarding the supply and consumption of water and how this natural resource is at increasing risk, resulting in significant economic, political, and environmental issues.

Shangri-La Hotels

Campbell, Dennis
April 2012

No abstract available

Alibaba's Taobao (A) & (B)

Oberholzer-Gee, Felix, and Julie M. Wulf
April 2012

No abstract available

Fiji versus FIJI: Negotiating Over Water

Gino, Francesca, Michael W. Toffel, and Stephanie van Sice
March 2012

This case examines negotiations between a company and government over natural resources. The Fijian government proposed a substantial increase in its water extraction tax that would only apply to large extractors, and thus to FIJI Water and not to its competitors. FIJI Water responded by calling the increase "discriminatory" and threatening to shut down its operations, but in the end its negotiations resulted in its agreeing to pay the tax increase.

Chairman Zhang and Broad Group: Growth Dilemmas

Marquis, Christopher, Nancy Hua Dai, and Lynn Yin
March 2012

Zhang Yue, founder and chairman of Broad Group, had developed a series of innovative products aimed at solving China's environmental problems. Broad Group's products, services, and management were guided by values that prioritized morals, responsibility, environmental protection, and energy conservation over company growth and profit. Zhang's current focus was Broad Sustainable Building (BSB), a unique prefabricated building technology that was significantly more environmentally friendly than traditional building methods, as well as much less expensive. In order to obtain the capital and talent that BSB's development required, Zhang realized he may need to publicly list the company, despite publicly saying he never would do so. Would scaling the new businesses result in compromises to the mission and values that guided the company? If so, was the overall environmental impact from the new building technology worth the cost?

China Greentech Initiative (CGTI)

Marquis, Christopher, Laura Velez Villa, and Lynn Yin
March 2012

At the end of 2011, the founders of the China Greentech Initiative (CGTI) wanted to grow the company while respecting its unique hybrid business model that combined a collaborative open source community with more traditional strategic research services. The case follows CGTI from its initial goal of establishing a road map for the Chinese green technology market, to further catalyzing the sector through a combination of collaborative network building and customized advisory services. CGTI's hybrid business model and dual mission of profit and social value creation complicated the founders' decisions as they considered different expansion options, including new product and service offerings, and potentially expanding geographical coverage.

Fonterra

Bell, David E., Mary Shelman
March 2012

In 2011, Fonterra, the world's largest processor and exporter of dairy products, needed to reposition its business to take advantage of rising demand in emerging markets in Asia.

Hengdeli: The Art of Co-existence

Deshpandé, Rohit, and Nancy Hua Dai
March 2012

In October 2011, Zhang Yuping, founder and chairman of Hengdeli, the largest Swiss watch retailer in the world, wondered how to work more closely with its key suppliers-Swatch Group, Richemont Group, LVMH Group, and Rolex Group-to maintain strong growth in the Greater China region. Specifically, how could Hengdeli manage the relationship with these suppliers to ensure getting more supply in a market where demand outgrew supply? How could Hengdeli balance the needs of these competing suppliers without being overreliant on one or two suppliers? How could it continue to expand its retail network to enhance its value and position? How could Hengdeli rationalize the portfolio management to maximize the return in the long-term?

Brasil Foods

Bell, David E., and Natalie Kindred
March 2012

In mid-2011, the management of Brasil Foods, a leading Brazilian branded foods producer and protein exporter, is evaluating strategies for international and domestic growth. The team has just received approval from Brazil's antitrust authorities to complete the merger of Perdigao and Sadia, the two massive food producers that had combined to form Brasil Foods in 2009. Now, the team is free to focus on their ambitious plan to double revenues by 2015. Domestically, the plan calls for Brasil Foods to maintain its allowed retail market share and expand its presence in the fast-growing food service sector. Internationally, the plan sets out a vision of Brasil Foods evolving from an exporter to a true multinational. The team believes their operational expertise and scale combined with Brazil's booming economy and vast agricultural resources form the ideal platform for achieving their vision. Yet, amid a wealth of possibilities, they face tough choices, such as which emerging markets to pursue first. They also face serious personnel issues, including integrating employees from Perdigao and Sadia-longtime industry rivals-and developing an international team that understands foreign markets.

Ctrip: Scientifically Managing Travel Services

Garvin, David A., and Nancy Hua Dai
March 2012

Ctrip is a $437 million Chinese online travel services company with a scientific, data driven approach to management. The case explores Ctrip's founding and early growth; its expansion into multiple market segments including hotel reservations, air ticketing, leisure travel, and corporate travel; and the sources of its competitive advantage. The firm's culture, organization, and call center operations are described in detail, as are its decision-making and business processes. At the end of the case, executives are considering whether Ctrip should actively pursue either the budget or luxury travel segments, which would mean shifting attention from the company's core customer base of Frequent Independent Travelers.

PAREXEL International Corp. (B)

Herzlinger, Regina E., and Natalie Kindred
March 2012

This case, the denouement to "PAREXEL International Corp. (A)," describes developments at PAREXEL and the biopharmaceutical industry from 2002 to 2011. Through an investment of $365 million over 10 years, PAREXEL has built a strong technology services business that is its key differentiator, although clinical trials remain its most lucrative segment. Additionally, PAREXEL, like others in the industry, has expanded its presence in lower-cost locations, especially the strategically important Asia-Pacific region. Another key change is the growing number of long-term strategic partnerships between CROs and their biopharmaceutical clients, reflecting the strengthened, more equal relationship between the two players. These developments have occurred against a backdrop of a persistent lull in R&D productivity and serious profitability concerns among large drug companies as some of their top-selling products face generic competition. With some observers forecasting an overhaul of the biopharmaceutical R&D structure, students are left to consider what the future holds for PAREXEL.

China Development Bank

Jin, Li, Matthew Preble, and Aldo Sesia
March 2012

In May 2011, Chairman Chen Yuan of the China Development Bank (CDB) was thinking back on CDB's financing of a major project between Petroleo Brasileiro SA (Petrobras), Brazil's state-owned oil and gas producer, and China Petroleum & Chemical Corporation (Sinopec), one of China's largest oil companies. Signed two years earlier, the deal was an oil-for-loan agreement in which Petrobras committed to a 10-year oil supply to Sinopec in exchange for a $10 billion loan from CDB. The case study describes the deal and its importance to both countries. The case also discusses CDB's evolution from a policy bank to more of a commercial enterprise.

Japan: The Miracle Years

Wells, Louis T.
March 2012

No abstract available

FIJI Water: Carbon Negative?

Toffel, Michael W., and Francesca Gino,
March 2012

No abstract available

SMA: Micro-Electronic Products Division (A), (B), & (C)

Beer, Michael
March 2012

No abstract available

Longtop Financial Technologies (A), (B), & (C).

Hawkins, David F.
March 2012

No abstract available

Associated British Foods, Plc

Goldberg, Ray A., Carin-Isabel Knoop, and Matthew Preble
February 2012

George Weston, CEO of Associated British Foods, and his top executives are deciding how to position the company, a major agribusiness involved in a range of food and processed food categories, ingredients, consumer brands, sugar, and also clothing, in the constantly evolving global food system.

China Novartis Institute for Biomedical Research: Building a Sustainable, Globally Integrated Research Enterprise

Sato, Vicki, Christoph Jaeker, and Pooja Mehta Solanki
February 2012

As the head of the Novartis Institute for Biomedical Research in China, En Li was shepherding a $1 billion R&D investment in China. So far he had been able to attract a large number of Chinese-born but U.S.-trained scientists to play a critical role in establishing the site. How sustainable was this strategy, and what were the key things he had to do right to establish a globally integrated R&D unit in China?

L'Occitane en Provence

Becker, Bo, Daniela Beyersdorfer, Scott Mayfield, and Mayuka Yamazaki
February 2012

Cosmetics company L'Occitane en Provence must decide if it is the right time to go public, and, if so, where to list. The firm could list on Euronext in Paris, close to the firm's headquarters in southern France, on one of the large exchanges in the U.S., or perhaps in Asia, where much of the firm's future growth is expected. The case provides opportunities to discuss the benefits and costs of going public, including valuation implications, and illustrates the choices faced by a prospective IPO firm that operates in a global setting.

PerkinElmer-Developing Products in China for China

Sato, Vicki L., Christoph Jaeker, and Kareem Reda
February 2012

Sym-Bio, an entrepreneurial Chinese diagnostic company with a product line in infectious disease testing, has agreed to be acquired by PerkinElmer, an international corporation with businesses in neonatal testing, life science services, and environmental health. Sym-Bio wants to accelerate its growth and competitive position in China through this strategic move, and PerkinElmer seeks to broaden its access to the Chinese marketplace, leverage the cost advantages of operating in China, and tap into the talent pool of young Chinese scientists. Strategic and operational integration of Sym-Bio into PerkinElmer is explored through the lens of the founder and CEO of Sym-Bio and that of the acquiring company.

ReSource Pro

Applegate, Lynda M., William R. Kerr, Elisabeth Koll, and David Lane
February 2012

Matt Bruno, founder and general manager of ReSource Pro, left his job working for a New York City-based insurance program shortly after the World Trade Center bombing and arrived in China. Initially he planned to teach English, but soon the entrepreneurial spirit of the country caused him to begin exploring opportunities. He returned to New York and talked his former boss into allowing him to start a back-office services firm for their insurance company clients, which grew into ReSource Pro. By year-end 2007, ReSource Pro employed 250 people, of whom only four were U.S. based. With aggressive growth plans, Bruno began examining potential cities in China for expansion. After narrowing his list of potential expansion sites to the five Chinese cities of Chengdu (the capital of Sichuan Province), Jinan (capital of Shandong Province), Nanjing (capital of Jiangsu Province), Suzhou (Jiangsu), and Wuhan (capital of Hubei Province), he now had to make a final choice.

China Life: Micro Insurance for the Poor

Cole, Shawn, and Lilei Xu
February 2012

China Life must decide whether to accept the government's "invitation" to develop a micro-insurance product for the rural poor. Can it be done profitably?

Li & Fung 2012

McFarlan, F. Warren, Michael Shih-ta Chen, and Keith Chi-ho Wong
February 2012

Midway through its current three-year plan, Li & Fung stop to assess the path it is taking in extending its distribution network business in Asia.

Novo Nordisk: A Commitment to Sustainability

Eccles, Robert G., and Michael P. Krzus
February 2012

The case describes the early commitment of a European pharmaceutical company, Novo Nordisk, to integrated reporting. Novo Nordisk is one of the pioneers of integrated reporting, which emerged out of its commitment to a "triple bottom line approach to managing the company." The case describes the company's "Blueprint or Change Programme" designed to facilitate stakeholder engagement and communicate how the company delivered value to business and society. The case also provides an investor perspective on the company's integrated reporting efforts and its plans for how to improve it in the future.

The IPO of Agricultural Bank of China (ABC) (A)

Jin, Li, Aldo Musacchio, and Hania Dawood
February 2012

No abstract available

The IPO of Agricultural Bank of China (ABC) (B)

Jin, Li, Aldo Musacchio, and Huw Edwards
February 2012

No abstract available.

Foxconn Technology Group (B)

Eccles, Robert G., George Serafeim, and Beiting Cheng
January 2012

The case describes the challenges that Foxconn faced after a series of suicides took place at its plants. The response of Foxconn's management is presented and the associated implications for Foxconn's stock price are discussed.

Strategy and Governance at Yahoo! Inc.

Palepu, Krishna G., Suraj Srinivasan, David Lane, and Ian McKown Cornell
January 2012

Yahoo! faces a number of governance and strategic challenges in late 2011 as it tries to compete with rivals such as Google and find ways to monetize its shareholding and business links with Alibaba Group in China and Yahoo! Japan. The company is now valued at almost half the offer that Microsoft had made in its acquisition offer in 2008. The depth of the challenge is underscored by the frequent CEO changes the company has had, culminating in the recent firing of the latest CEO, Carol Bartz. The case examines the successes and failures at Yahoo! and the decisions now facing its board as it encounters investor pressure to improve performance.

CARD Group: Mutually Reinforcing Institutions

Montgomery, Cynthia A., Michael Shih-ta Chen, and Dawn Lau
January 2012

CARD (Center for Agricultural and Rural Development) is a Philippines-based microfinance organization that began as an NGO and has since expanded into eight related entities providing services to the poor. Under founding director Dr. Aristotle Alip's leadership, CARD has become one of the top microfinance institutions in the world. More recently, larger commercial and financial institutions are seeking a slice of the microfinance market. The main dilemma Dr. Alip faces is as follows: Should he partner with commercial institutions to reap benefits from their larger sources of capital and technology expertise? Would that mean compromising his original mission of elevating people from the base of the pyramid?

2011

Haier: Taking a Chinese Company Global in 2011

Khanna, Tarun, Krishna G. Palepu, and Phillip Andrews
December 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.

Language and Globalization: 'Englishnization' at Rakuten

Neeley, Tsedal
December 2011

Hiroshi Mikitani, the CEO of Rakuten, (Japan's largest online retailer), is at the helm of an organization that is rapidly expanding into global markets. In a critical stride toward becoming the world's No. 1 Internet services company, Mikitani announces Englishnization - a highly publicized aggressive two-year English proficiency mandate for all 7,100 of Rakuten's Japanese employees. Mikitani's goal is not only to ensure the success of the organization, but also to break down linguistic and cultural boundaries in Japanese society. At the time, only an estimated 10% of the Japanese staff could function in English. The stakes are high: those who do not reach their target score by the deadline risk being demoted. As Englishnization progresses, loss of productivity, lack of time to study, and conflicted views among managers impede staff success. Some employees even question the relevance of Englishnization, particularly for staff working exclusively in Japan. Fifteen months since the announcement, the vast majority had not yet reached their target English proficiency scores. With the deadline rapidly approaching, Mikitani must decide how to proceed to ensure the success of Englishnization, the continued global rise of his organization, and even the future of Japan.

A123 Systems: Power. Safety. Life

Vietor, Richard H.K.
December 2011

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.

Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market

Lerner, Josh
December 2011

The private equity group Hony Capital considers what to do with their investment in Zoomlion, which has been successful to date. The question is whether to take their money off the table, or to invest in their acquisition of a large Italian competitor.

Longtop Financial Technologies (A)

Hawkins, David F., Annelena Lobb, and Aldo Sesia
November 2011

No abstract available

Longtop Financial Technologies (B)

Hawkins, David F., Annelena Lobb, and Aldo Sesia
November 2011

No abstract available

Longtop Financial Technologies (C)

Hawkins, David F., Annelena Lobb, and Aldo Sesia
November 2011

Chinese government raises barriers to U.S. Public Company Accounting Oversight Board auditing Deloitte's Chinese auditing firms.

The Wen Group

Davis, John A., and Matthew G. Pillar
November 2011

Three brothers who own and lead a second-generation family business in Hong Kong encounter problems of nepotism and governance and endure considerable conflict. The case asks how to resolve these family and business issues.

Two Key Decisions for China's Sovereign Fund

Pozen, Robert C, and Xiaoyu Gu
October 2011

The China Investment Corporation (CIC) was China's sovereign wealth fund (SWF), established with $200 billion of registered capital in September 2007 to diversify China's foreign exchange holdings and increase risk-adjusted returns on those assets. CIC was unusual in that it had a strictly commercial orientation and market-driven investment mandate to invest in foreign assets but also served as the parent company of a 100%-owned subsidiary, Huijin, which invested solely in key state-owned financial institutions in China. Moreover, the fact that CIC was a SWF presented broader political challenges for it, its shareholder the Chinese government, its direct investments and their governments, and the world economy generally. This case involved two decisions CIC faced in early 2011. The first was how to best and accurately articulate the relationship between CIC, Huijin, and Industrial and Commercial Bank of China (ICBC) to the Federal Reserve Board (the Fed) so that ICBC could expand its business in the United States while exempting CIC and Huijin from certain types of Fed oversight. The second was whether to appoint a board director to Morgan Stanley, a company in which CIC had directly invested close to $6 billion and held 9.9% ownership. Additionally, the case discussed SWFs generally and their rights and responsibilities to the global community.

China or the World? A Financial Reporting Strategy for Hong Kong's Capital Markets

Ramanna, Karthik, Gwen Yu, and G.A. Donovan
October 2011

Set in 2010, the case discusses the strategic directions Hong Kong could pursue, particularly vis-a-vis China, as it seeks to preserve its preeminence in the region. In 2010, the Hong Kong Exchange announced that it would allow listed Chinese companies to report using Chinese GAAP without reconciliation to IFRS. The exchange was responding to the demands of its largely Chinese clientele and also coping with increased global competition to attract listings from Chinese companies. However, there were concerns around whether this change would undermine Hong Kong's position as a financial center in the long-term. Hong Kong's position as a global financial powerhouse was due in part to its rigorous emphasis on compliance and enforcement-allowing companies to report under Chinese GAAP, the practice of which was highly variable, could compromise Hong Kong's high corporate governance standards.

CP Group: Balancing the Needs of a Family Business with the Needs of a Family of Businesses

Kirby, William C., and Tracy Yuen Manty
October 2011

As a second generation business leader, Chairman Dhanin Chearavanont took over the family agribusiness company and built it to become a major diversified conglomerate in Thailand and expanded the business in Southeast Asia and China. While growing the business, he and his brothers created a holding company to both maintain and separate the interests of the family from the growing business units. As a third and possibly fourth generation of Chearavanonts enter the company, how has Chairman Dhanin created a business culture that maintains the closeness of a family business with the strategic vision, innovations, and transparency of a professionally run company-especially given the fact that many business units are public companies? This case seeks to outline the balance of a family business with the needs of a growing and competitive international conglomerate.

Dongfeng Passenger Vehicle Company: Marketing Challenges for the 'Underprivileged Latecomer'

Shih, Willy, and Nancy Hua Dai
October 2011

As Mr. Li Chunrong visited the new assembly line for the Dongfeng Passenger Vehicle Company in Wuhan, China, he contemplated the position his business unit found itself in: a latecomer. As a state-owned enterprise, Dongfeng had entered into numerous joint ventures to produce automobiles under foreign brands, but its foray into selling vehicles under its own brand had only started recently, and now the unit faced a crowded market filled with fierce competition. As he walked back to the office, he reflected on the time it was taking to establish the Dongfeng brand. Would his business unit grow strong enough in its five-province geographic focus before other hungry competitors looking for growth piled into these market areas? Or should it go more aggressively to attack the coastal areas with its new 2000 cc model to be launched in late 2011?

CNOOC: Building a World-class Energy Company

Bower, Joseph L.
October 2011

Fu Chengyu is the fifth CEO to lead China National Offshore Oil Company - an SOE founded in 1982 to exploit Chinese offshore deposits. In 2010 he is trying to decide how to drive further growth in a company that has grown 556 times in less than 30 years, with profits grown 2600 times. He believes that the way CNOOC has been managed, a blend of market orientation and concern for employees and the nation has contributed importantly to the success. His challenge is to allocate resources among new areas to explore for petroleum and new sources of energy, and to develop managers with the capability of leading those businesses in the face of world class competitors. Both technical talent and the ability to integrate the efforts of non-Chinese leaders are involved.

Global Business School Network

Marquis, Christopher, and Rwitwika Bhattacharya
September 2011

The mission of the Global Business School Network (GBSN) is to strengthen business education for the developing world. The organization was transitioning out of its start-up phase and wants to shift its focus from capacity building activities driven by the organization to empowering the network to carry out GBSN's mission. The case asks, what is the best way to accomplish this objective?

China and the Yuan-Dollar Exchange Rate

Musacchio, Aldo
September 2011

This note explains how the People's Bank of China (PBOC) manages (some say manipulates) the dollar-yuan exchange rate. It discusses briefly the process of sterilization in China and the possible costs for the PBOC. Therefore, the note summarizes some of the main challenges the PBOC faces to contain inflation in China and to keep Chinese exports competitive.

The Expansion of Ping An

Pozen, Robert C., and Nina J. Yang
September 2011

In June 2010, Mingzhe Ma, chairman and chief executive officer of Ping An Insurance (Group) Company of China ("Ping An" or "the Company"), sat down with Sun Jianyi, vice chief executive officer and executive vice president at Ping An, to discuss the future direction of the Company. They would have to answer questions at the upcoming shareholder meeting about Ping An's financial strategy for diversification within China and globally. Ping An had been founded by Ma in 1988 and had since grown into China's second largest life insurer. While Ping An had achieved past success in insurance, it looked to expand its business going forward. Ping An's ambition was to transform itself into a global financial conglomerate, with banking and investment, as well as insurance operations. Ping An's recent efforts at globalization and diversification had been challenging. In a highly publicized transaction, Ping An made an untimely investment in Fortis, a large European bank, which failed in the global financial crisis in 2008. Ping An spent close to 24 billion Chinese yuan (RMB) or 3.4 billion U.S. dollars ($) on Fortis. In the aftermath of the Fortis acquisition, Ping An had halted overseas expansion and focused on opportunities at home in mainland China.

FIJI Water: Carbon Negative?

Gino, Francesca, Michael W. Toffel, and Stephanie van Sice
September 2011

Seeking to go beyond global best practices in reducing environmental impacts, FIJI Water, a premium artesian bottled water company in the United States, launched a Carbon Negative campaign that would offset more greenhouse gas emissions than were released by the company's operations and products. The case examines the controversies surrounding this program as well as the program's impacts on the environment and FIJI Water's brand image. The company also faced decisions regarding how to best manage its relationship with the Fijian government, which recently dramatically raised imposed export taxes and could limit FIJI Water's access to water, its primary raw material. The case enables students to better understand the challenges of implementing an environmental strategy and of negotiating with parties that control raw materials and invites discussion of the effectiveness of various approaches and the general lessons for the management of companies seeking to operate in an environmentally responsible manner.

Language and Globalization: 'Englishnization' at Rakuten

Neeley, Tsedal
September 2011

Hiroshi Mikitani, the CEO of Rakuten (Japan's largest online retailer), is at the helm of an organization that is rapidly expanding into global markets. In a critical stride toward becoming the world's No. 1 Internet services company, Mikitani announces Englishnization-a highly publicized aggressive two-year English proficiency mandate for all 7,100 of Rakuten's Japanese employees. At the time, only an estimated 10% of the Japanese staff could function in English. The stakes are high: those who do not reach their target score by the deadline risk being demoted. As Englishnization progresses, loss of productivity, lack of time to study, and conflicted views among managers impede staff success. Some employees even question the relevance of Englishnization, particularly for staff working exclusively in Japan. Fifteen months since the announcement, the vast majority had not yet reached their target English proficiency scores. With the deadline rapidly approaching, Mikitani must decide how to proceed to ensure the success of Englishnization and the continued global rise of his organization.

Kanebo Ltd. (A), (B), and (C)

Hawkins, David, and Suraj Srinivasan
September 2011

Speculation as to how Japanese companies might implement IFRS with particular emphasis on consolidation accounting.

Knowledge Creation at Eisai Co., Ltd.

Takeuchi, Hirotaka, Ikujiro Nonaka, and Mayuka Yamazaki
August 2011

Eisai has used knowledge creation as the engine of growth for its operation in Japan and was wondering if it can be utilized on a global scale.

Ultimate Fighting Championship: License to Operate

Serafeim, George , and Kyle Welch
August 2011

The case describes the challenges that Ultimate Fighting Championship (UFC) faced as a result of regulatory opposition and loss of the license to operate. The genesis of the business idea, the subsequent growth, and the fall of the UFC are described. The case concludes with Lorenzo Fertitta deciding whether to invest in the company.

Kanebo Ltd. (A)

Hawkins, David F., Suraj Srinivasan, Akiko Kanno, and Lizzie Gomez
August 2011

Speculation as to how Japanese companies might implement IFRS with particular emphasis on consolidation accounting.

Kanebo Ltd. (B)

Hawkins, David F., Suraj Srinivasan, Akiko Kanno, and Lizzie Gomez
August 2011

Financial statements before and after restatement following revelation of fraud.

Kanebo Ltd. (C)

Hawkins, David F., Suraj Srinivasan, Akiko Kanno, and Lizzie Gomez
August 2011

The exposure of the Kanebo Ltd. fraud raises questions of Japan's preparedness to adopt International Financial Reporting Standards.

Perception and Readiness of Japanese Companies for IFRS Implementation: The Tokyo Stock Exchange Survey

Hawkins, David F., and Jin Yamamoto
August 2011

Tokyo Stock Exchange survey raises questions about Japan's readiness to adopt IFRS in 2016.

Aman Resorts and Aman Resorts (B)

Soltes, Eugene
August 2011

Aman Resorts (B) describes how employees are rewarded and compensated which is used to supplement Aman Resorts (A).

Zespri

Alvarez, Jose B., and Mary Shelman
July 2011

Grower-owned Zespri is the sole exporter of New Zealand-grown kiwifruit outside of Australia and New Zealand. Facing growing international competition, Zespri invested in consumer branding and innovation, which has led to new types of kiwifruit that taste better and are protected with patents. Consumer response has been positive and Zespri has begun to grow kiwifruit outside of New Zealand in order to have the product on retail shelves year round. Is this the right strategy for the future?

Oriental Fortune Capital: Building a Better Stock Exchange

Lerner, Josh, and Keith Chi-ho Wong
July 2011

When ChiNext opened in October 2009 as the second tier market of the Shenzhen Stock Exchange (SZSE), it aimed to provide Chinese entrepreneurs with equity capital and to facilitate the exits of venture capital firms and other investors that had previously relied on the New York, London, and Hong Kong markets for public offerings. A year into ChiNext's operation, Dr. Wei Chen, chairman and founder of Oriental Fortune Capital, one of the fastest-growing venture capital firms in China, met with an SZSE research fellow to discuss how the rules governing the market might be adjusted to allow more firms to list and, more importantly, to improve efficiency and transparency in order to make ChiNext a better stock exchange.

Asian Agri and the Future of Palm Oil

Bell, David E., and Natalie Kindred
July 2011

For Asian Agri and other Indonesian palm oil producers, the future promised rising demand from fast-growing Asian populations, but also intensifying criticism from environmental groups. With the highest yield and lowest production cost of any edible oil, palm oil constituted an abundant, inexpensive source of food for Asian and, to a lesser extent, international markets. Its production had soared from 1970 to 2010, sparking concern from environmentalists over the conversion of high-value conservation land in Malaysia and Indonesia (where nearly 90% of palm oil was produced) into palm oil plantations. Critics had intensified their campaigns in recent years, urging-at times successfully-packaged food makers and investors to boycott palm oil suppliers accused of environmental mismanagement. While noting that some accusations were unjustified, palm oil producers argued the industry was making strides towards greater sustainability and cited the unique advantages of palm oil: it was free of unhealthy trans fats, for example, and required less land to produce more oil than any known substitute. Asian Agri, an established Indonesian palm oil grower and exporter, had thus far avoided public scrutiny. The company was a key source of employment in many rural communities, had extensive experience negotiating the complex Indonesian regulatory environment, and was moving to certify its operations according to industry-set sustainability guidelines. In 2010, Asian Agri appeared well positioned to capitalize on the growing palm oil market, but the broad-strokes vilification of the palm oil industry was a source of serious concern. In the face of great uncertainty, the management team needed to devise a strategy for the future.

Suntech Power

Vietor, Richard H.K.
July 2011

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.

The Dutch Flower Cluster

Porter, Michael E., Jorge Ramirez-Vallejo, and Fred van Eenennaam
June 2011

Describes the Dutch flower cluster, or the group of interconnected growers, suppliers, service providers, and flower-related institutions located in The Netherlands. Examines the role of the FloraHolland auction in the value chain. Also describes the flower clusters in China, Colombia, Ecuador, and Kenya, the four other major international competitors.

The Dutch Flower Cluster (Teaching Note)

Porter, Michael E. and Jorge Ramirez-Vallejo
June 2011

No abstract available

Aman Resorts

Soltes, Eugene, and Aldo Sesia
June 2011

Aman Resorts describes the operating model and philosophy of this high-end set of global properties. Aman relies on employees taking considerable initiative to deliver the highest quality personalized service in the hospitality industry. The case also highlights Aman's strategy and operations which differ in many ways from industry standards.

Aman Resorts (B)

Soltes, Eugene, and Aldo Sesia
June 2011

This case describes how employees are rewarded and compensated and is a supplement to "Aman Resorts."

Nanda Home: Preparing for Life after Clocky

Ofek, Elie, and Jill Avery
June 2011

Gauri Nanda, the inventor of Clocky, the alarm clock that rolls off the bed stand and forces its owner to find it, has to make critical decisions regarding the future of her nascent company. As sales of Clocky show signs of declining, she must decide whether to continue her focus on the alarm clock category or to branch out into new categories. If the former, the question is which segments to pursue and what features to develop, and, if the latter, the question is whether the concept of "humanizing technology" is something consumers would value in other domains. In addition, Nanda must decide how to continue marketing Clocky and its successors, given the potential for cannibalization. Clocky's success was largely attributable to the media's intense interest and coverage, and it is not clear such attention would carry over to other new product endeavors. Students are presented with a number of new product concepts and the findings from both qualitative and quantitative market research. This allows for a rich discussion of how managers can think creatively about consumer experiences to inform their innovation strategies.

Semiconductor Manufacturing International Company in 2011

Shih, Willy, and Jia Cheng
June 2011

When David Wang took over as the CEO of Semiconductor Manufacturing International Company (SMIC), he knew that if he were to capitalize on the company's strategic location in the China market, he would have to transform the company mindset and its operating structure from its roots in the manufacturing of DRAMs to the service orientation that was necessary to support the customer promise of being a foundry. This meant transforming from a high volume continuous flow manufacturer of commodities chips to a job shop structure that focused on custom manufacturing services. This entailed more than rearranging the manufacturing lines; it meant a dramatic shift in the company culture. Wang also had to ensure the firm's ability to offer the most advanced process technologies. Having fallen behind in previous generations, his predecessor had chosen to license process technology from IBM. Now he faced the question of whether his rapidly changing and maturing organization had the ability to go it alone on future process technology development, or whether it still had to depend on IBM, at least for the time being.

Kumon India in 2007

Takeuchi, Hirotaka, and Yoshinori Fujikawa
June 2011

Kumon is wondering how to expand its student base in India.

LG Display

Campbell, Dennis, and Rui Lu
June 2011

No abstract available

1366 Technologies: Scaling the Venture

Lassiter, Joseph B., III, Ramana Nanda, David Kiron, and Evan Richardson
June 2011

For some time, 1366's co-founders, Frank van Mierlo and Ely Sachs, had faced a choice, which was now made all the more stark: 1366 could expand to produce silicon wafers itself, raising the required capital from "friendly" investors and building shipment volume slowly, or 1366 could accelerate its market entry dramatically by partnering with the Asian manufacturers that had begun to dominate the worldwide solar industry. While accelerated growth was attractive to 1366 and its current investors, the company believed that it would face considerable risks if it were to expose its intellectual property to the "wrong" partners. 1366 had no intention of losing control of its technology, but given the pace of innovation and the active role of governments in the solar industry, van Mierlo and Sachs feared this might not be a race that could be won by the cautious.

Stock Reform of Shenzhen Development Bank

Jin, Li, Li Liao, Aldo Sesia, and Jianyi Wu
June 2011

Shenzhen Development Bank, China's first publicly traded company, was undergoing the non-tradable share reform. Its current controlling shareholder, private equity firm Newbridge Capital LLC, needs to negotiate with its diverse minority shareholders to find a compromise on the terms of the conversion of the non-tradable shares held by Newbridge into tradable shares. Further delay in implementing this reform will put Shenzhen Development Bank into jeopardy as the bank will not be allowed to raise the additional capital it very much needed, but the negotiation between Newbridge and other shareholders was breaking down. The case discussed the non-tradable share reform in China, its causes and its implications, and from the perspective of one private equity play, discussed the issues of corporate governance, conflicts of interest, and the fiduciary duty of corporate managers in an emerging market.

ASAHI Net: Bringing Innovation to Education

Takeuchi, Hirotaka
May 2011

ASAHI Net developed a cloud-based platform for higher education institutions to use in Japan and was wondering if that platform can be accepted in the U.S. as well.

Aman Resorts

Soltes, Eugene, and Aldo Sesia
May 2011

This case describes the operating model and philosophy of this high-end set of global properties. Aman relies on employees taking considerable initiative to deliver the highest quality personalized service in the hospitality industry. The case also highlights Aman's strategy and operations, which differ in many ways from industry standards.

Aman Resorts (B)

Soltes, Eugene, and Aldo Sesia
May 2011

The (B) case describes how employees are rewarded and compensated and is used to supplement the (A) case.

ABICI

Khaire, Mukti, Elena Corsi, and Elisa Farri
May 2011

The co-founder of an Italian design based bicycle manufacturer evaluates if reducing costs by outsourcing would impact its brand. The company was founded in 2005 in Italy by three friends, and in its first five years it had enjoyed steady growth and built a strong reputation for producing high-quality city bicycles, appreciated for their retro look and style. Its country of origin had probably helped them exporting their products as their bicycles were 100% made in Italy, and the Made in Italy label had a reputation for high quality, craftsmanship, and creativity. Yet profit margins were relatively low as manufacturing costs were very high. Should they outsource their production? If so, to China or to Eastern Europe? Was there some other way to improve the profitability of the company?

Office of Technology Transfer -Shanghai Institutes for Biological Sciences

Shih, Willy, Sen Chai, Kamen Bliznashki, and Courtney Hyland
May 2011

Gordon Zong is trying to teach Chinese universities and research institutes how to do effective technology transfer and IP licensing, but he is trying to do it in an environment with weak property rights and an underdeveloped support infrastructure. As the managing director of the Office of Technology Transfer at the Shanghai Institutes for Biological Sciences, he works with researchers at the forefront of biology and biotech, yet he faces seemingly insurmountable obstacles to getting the technology commercialized within domestic Chinese companies, so he has turned to global multinational pharma companies, for now. The purpose of the case is to help present and future managers at global multinationals who have responsibility for R&D strategy to understand some of the complexities of the Chinese intellectual property environment so that they can build effective participation strategies for their organizations. Understanding the misaligned incentives that result in the production of junk patents and the challenges of patent enforcement, as well as the direction of change, is vital, because as the Chinese system evolves quickly, the implications of those changes will have important commercial consequences.

China Environment Fund: Doing Well by Doing Good

Marquis, Christopher,and Nancy Dai
May 2011

In early 2010, cleantech investment pioneer Tsing Capital was planning for the China Environment Fund IV and considering how to maintain its commitment to social and environmental practices. Tsing Capital embraced its philosophy of "Doing Well by Doing Good" and developed a proprietary system to manage social and environmental functions throughout the investment process. Some of the specific questions examined in the case are as follows: With a more diversified investor base, how could the firm balance the different expectations of investors and continue to achieve "Doing Well by Doing Good"? Despite the increasing importance of social and environmental practices, they also had a cost for the firm and its portfolio companies. How could the firm most effectively motivate its portfolio companies to actively integrate social and environmental practices with their strategies?

Sound Group China: Urban Waste Entrepreneurs

Macomber, John D.,Chad M. Carr, and Fan Zhao
May 2011

Private sector entrepreneur in China with advanced solid waste management capability competes with state owned enterprises and also government policies supporting a rival technology. Wen Yibo has used engineering expertise and political savvy to build a major privately held company providing the entire supply chain of water treatment, waste water, and integrated municipal solid waste capabilities. The company's services include engineering, manufacturing, consulting, "engineer, procure construct," "build operate transfer," and other forms of public-private partnership. The handling of municipal solid waste takes up to 50% of the annual budget of many urban areas in the developing world. The ability to use private sector funds and expertise could be critical to urban development. However, state owned enterprises can observe the success of private business and can enter and compete using their own skills, contacts, and inexpensive capital. The government may also be interested in subsidizing incineration over composting as a part of "waste to energy" strategy, even though this is less efficient than generating electricity from a coal or gas plant. The company has to decide whether to stick to its waste management roots or expand into an opportunistic incineration technology with minimal and nominal waste-to-energy benefits.

Deferred Tax Assets in Basel III: Lessons from Japan

Hawkins, David F., Karthik Ramanna, Nobuo Sato, and Mayuka Yamazaki
April 2011

In a controversial decision, the Bank for International Settlements includes deferred tax assets as part of a bank's core capital.

Suntech Power

Vietor, Richard H.K.
April 2011

Suntech, a Chinese manufacturer of photovoltaic cells and solar panels, is the third largest solar company in the world. About 90% 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 U.S., Suntech is shifting its focus-first to the U.S., and then to China and Japan. And it has recently moved downstream in the U.S., into systems integration and independent power. The case reviews the structure of competition in solar power and evaluates Suntech's new strategy.

ALAC International

Ruback, Richard S., and Royce Yudkoff
April 2011

ALAC was a small importer of specialty industrial chemicals. The case explores the different financing alternatives to facilitate the company's explosive growth in working capital. At the end of 2009, the company was awarded the United States distributorship for the specialty chemical di-isononyl phthalate (DINP) from a large Taiwanese producer and had almost tripled its sales in 2010. It expected to double its sales in 2011 and to dramatically increase its profits. ALAC critically needed to obtain financing for the explosive growth in its inventory and accounts receivable balances.

mixi (B)

Piskorski, Mikolaj Jan and Mayuka Yamazaki
April 2011

Supplements case 709-413

International Agribusiness in China: Charoen Pokphand Group

Kirby, William C., Michael Shih-ta Chen, Tracy Yuen Manty, and Yi Kwan Chu
April 2011

The world's leading Thai agribusiness corporation and largest agribusiness investor in China, CP Group, is facing another crossroads in China as the country starts to undergo rural reform. The issues at hand for Chairman Dhanin Chearavanont is how CP can balance its place as a key investor in China's burgeoning agriculture market with its unstated obligation to provide guidance and expertise in food safety, technology, and jobs for rural farmers while still competing against the growing cadre of international and domestic companies vying to grab share from its operations in China. Was rural reform going to help or hinder CP's position in China, and was CP doing all it could to take advantage of these changes?

CNOOC: Building a World-class Energy Company

Bower, Joseph L., Nancy Hua Dai, and Michael Shih-ta Chen
March 2011

Fu Chengyu is the fifth CEO to lead China National Offshore Oil Company-an SOE founded in 1982 to exploit Chinese offshore deposits. In 2010 he is trying to decide how to drive further growth in a company that has grown 556 times in less than 30 years, with profits grown 2,600 times. He believes that the way CNOOC has been managed, a blend of market orientation and concern for employees and the nation has contributed importantly to the success. His challenge is to allocate resources among new areas to explore for petroleum and new sources of energy and to develop managers with the capability of leading those businesses in the face of world-class competitors. Both technical talent and the ability to integrate the efforts of non-Chinese leaders are involved.

Herborist

Deighton, John, Leora Kornfeld, Yanqun He, and Qingyun Jiang
March 2011

Global brands such as L'Oreal and Oil of Olay dominate China's skin care market. A Chinese domestic brand, after some success in partnership with Sephora in Europe, aspires to challenge the French and U.S. brands' hold on the China market. It must decide how to segment the market, how to position against global assurances of quality and purity, and how to balance its Chinese heritage claims with claims of modernity. The China skin care market is growing extraordinarily fast. Is that an asset or a liability?

Rebranding Gallagher

Deshpande, Rohit, and Keith Chi-ho Wong
March 2011

Steve Tucker, the Deputy CEO of Gallagher Group Limited (GGL), the world's largest electric fence company, was about to present a new branding strategy to the company's senior managers and Bill Gallagher, Jr., CEO. After spending more than 18 months with brand consultants, Tucker devised an umbrella brand strategy that would instill a uniform brand across all three business units: Animal Management Systems, Security Management Systems, and Fuel Pumps, which marketed themselves under the respective brand names of Gallagher, Cardax, Powerfence, and PEC. However, Tucker knew that the unit heads believed the differences in their clienteles, product categories, and distributor relationships made it impractical to adopt one single brand. GGL's overseas distributors had also raised concerns about a uniform brand. In many cases, GGL only owned minority interests in these distributors and retained limited control over their activities.

PureCircle

Bell, David E., and Aldo Sesia
March 2011

In December 2008, the U.S. Food and Drug Administration (FDA) determined that high-purity Rebaudioside A (Reb A), a natural and calorie-free product that a young company named PureCircie manufactured from the Stevia plant, could be used in beverages, foods, and as a table top sweetener in the U.S.-the largest market for sugar and sweeteners in the world. While the FDA's determination was the breakthrough the company had hoped for, much remained uncertain-most obvious, would consumers accept Reb A as a substitute for sugar or the myriad sweeteners already established in the marketplace? The potential seemed high given consumers' growing concerns about obesity and diabetes. Yet, nothing was certain. What worried the company's leadership was the prospect of Reb A taking off-that is, being widely accepted by consumers and used by food and beverage (F&B) companies in mainstream mass-market products such as carbonated soft drinks-and the timing of the take off. If Reb A did go mainstream, PureCircle would need to at least double its capacity to secure its position in the industry. If leadership overbuilt the company's capacity and Reb A ultimately remained a niche product, they would severely jeopardize PureCircle's viability. Yet if leadership waited too long, the opportunity to create substantial wealth for the company's shareholders would be lost. As it was, the company's founder and CEO had already gambled by investing in enough production capacity for acceptance in the niche beverage market-before a market for Reb A had been established.

TripAdvisor

Gupta, Sunil, and Kerry Herman
March 2011

By 2010, TripAdvisor (TA) was the largest travel site in the world operating in 24 countries and 16 languages, with listings for 455,000 hotels, 92,000 attractions, and 564,000 restaurants in over 71,000 destinations worldwide. It had over 40 million reviews from 35 million unique monthly visitors who were contributing 21 new reviews every minute. Known for its hotel reviews, TA expanded into flights, vacation rentals, and international markets like China. Each of these expansion paths provided unique opportunities as well as new challenges. In August 2010, Stephen Kaufer, CEO, was debating how to prioritize his growth plans for the company.

China Construction America (A): The Road Ahead

Abrami, Regina M., and Weiqi Zhang
March 2011

How did a Chinese state-owned construction company strike one deal after another in South Carolina despite political backlash and in New York where well-established competitors dominate? The case examines the U.S. market entry strategy of the CSCEC, China's leading state-owned construction company. It does so by way of the CEO of its U.S. subsidiary and his challenge to sustain the company's exceptional growth in the face of an unprecedented slowdown in the U.S. construction industry. The case also offers a window into the processes and related issues associated with the accelerated overseas expansion of Chinese state-owned businesses.

GLOBIS

Khaire, Mukti, Akiko Kanno, and Nobuo Sato
March 2011

Yoshito Hori, dean of the Graduate School of Management, GLOBIS University, was planning to launch a full-time English MBA program in September 2012. GLOBIS University was already offering successful part-time MBA programs in English and Japanese. The full-time English program was a necessary step to fulfill Hori's ambition to make GLOBIS the number one business school in Asia; however, it remained to be seen whether the school could attract international students who needed to relocate to Japan and compete with other world-class international business schools.

Recruiting Andrew Yard (A)

Hall, Brian J., Nicole S. Bennett, and Sara del Nido
March 2011

This case describes a compensation negotiation between a global HR director and a candidate for a high-level executive position. The situation becomes awkward when the candidate feels insulted because he is given a monetary incentive to join the company more quickly than originally planned. The case provides an opportunity to analyze negotiation strategy and the importance of emotional intelligence and effective interpersonal communication during a negotiation.

Recruiting Andrew Yard (B)

Hall, Brian J., Nicole S. Bennett, and Sara del Nido
March 2011

Supplements the (A) case

Recruiting Andrew Yard (C)

Hall, Brian J., Nicole S. Bennett, and Sara del Nido
March 2011

Supplements the (A) case

Assembling Smartphones: Takt Time =/= Cycle Time?

Shih, Willy, and Ethan S. Bernstein
March 2011

The case was prepared to be used as part of a process review in the first year Technology and Operations Management course at HBS. It offers students an opportunity to discuss the context of a manufacturing process choice, and then examine actual production numbers that resulted from a series of choices. While there isn't a traditional case issue, the discussion should focus on the gap between theoretical process designs and the reality of practical implementations, with the impact of operator variability in pace and the complex intertwining with work scope. The case only meant for one discussion pasture to review the Hayes-Wheelwright product-process matrix and the impact of variability on line performance. While comparative numbers for the process choices are provided, the hope would be to develop students' intuition around why the numbers change so much.

Assembling Smartphones: Takt Time =/= Cycle Time?

Shih, Willy C.
March 2011

The case was prepared to be used as part of a process review in the first year Technology and Operations Management course at HBS. It offers students an opportunity to discuss the context of a manufacturing process choice, and then examine actual production numbers that resulted from a series of choices. While there isn't a traditional case issue, the discussion should focus on the gap between theoretical process designs and the reality of practical implementations, with the impact of operator variability in pace and the complex intertwining with work scope. The case only meant for one discussion pasture to review the Hayes-Wheelwright product-process matrix, and the impact of variability on line performance. While comparative numbers for the process choices are provided, the hope would be to develop students' intuition around why the numbers change so much.

China Construction America (B): The Baha Mar Resort Deal

Abrami, Regina M., Malcolm Riddell, and Weiqi Zhang
March 2011

Why is a Chinese state-owned construction company building the largest mega-resort and casino in the Caribbean? This case examines the intricate dealmaking by which CSCEC, China's leading global engineering and construction contractor, emerged as a key market player. Having beat out Harrah's and other contenders for a stake in the Baha Mar Project, CSCEC now also has an equity stake in the Bahamas' gaming and resort industry. The case explores the growing role of project financing by way of China's Export-Import Bank and its implications for business dealmaking and the competitiveness of China's increasingly globalizing businesses.

Yum! China

Bell, David E., and Mary Shelman
February 2011

Since the first KFC opened in China in 1987, Yum-under Sam Su's leadership-had built the largest restaurant company by far in mainland China. Averaging one new restaurant opening a day for the past five years, in 2010 Yum ran over 3,600 restaurants in 650 cities and employed over 250,000 people, many of them college students in their first jobs. In the third quarter of 2010, Yum China's revenues surpassed U.S. revenues for the first time, and many analysts expected that Yum's China business-driven by a rapidly growing middle class-would be twice as large as its U.S. business within five years. But before rushing out to open thousands more stores, Su wondered what the company should do to forestall some of the problems plaguing the fast food industry in the West.

China 'Unbalanced'

Comin, Diego A., and Richard H. K. Vietor
February 2011

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.

The Tzu Chi Foundation's China Relief Mission

Leonard, Herman B., and Yi Kwan Chu
February 2011

A faith-based organization from Taiwan has made considerable inroads in being able to operate effectively in mainland China. Is further expansion too risky?

Australian Vintage Ltd

Hawkins, David F.
February 2011

Following International Financial Reporting Standards guidance, company records a number of significant losses and a related deferred tax asset.

Founder-CEO Succession at Acer

Wasserman, Noam, Michael Shih-ta Chen, and Keith Chi-ho Wong
February 2011

Stan Shih, founder-CEO of Acer, Inc., had proactively chosen and transitioned the "perfect" successor as CEO but was now faced with major problems. Over the last two years, his heir apparent, Leonard Liu, had made the changes he had been hired to make, including revamping the organization structure and instilling a new corporate culture that emphasized accountability. However, such changes had caused numerous clashes between him and other cofounders of the company, in particular Shih's wife, Carolyn. Liu had now suggested that "Carolyn should retire into her kitchen." Faced with office infighting and increasing clashes between the markedly different Western and Chinese styles of management, Shih needed Liu to manage the increasing complexity of global competition. However, Shih was now wondering if he had made the right decision to appoint Liu as his successor.

Financing Higher Education in Australia

Moss, David A., and Stephanie Lo
February 2011

Even before Australian lawmakers abolished university tuition in 1973, students in Australia had long benefited from low tuition and large government subsidies. By the early 1980s, however, the nation's universities faced growing budget challenges and an apparent shortage of capacity as demand for higher education surged. Policymakers, cognizant of a growing budget deficit as well as a hard-hitting recession, hesitated to provide increased funding to higher education. The debate over how best to finance Australian higher education finally came to a head in the late 1980s, following publication of the Report of the Committee on Higher Education Funding (commonly known as the Wran Report). Although the Wran Committee had considered several potential funding schemes, it ultimately proposed a radical system in which students would pay tuition financed through income-contingent loans provided by the government. The Wran Report proved to be of particular interest to the Australian prime minister, Robert Hawke. The government's fiscal position seemed to demand that educational financing be overhauled, but there was no consensus on how best to do this. Could the prime minister convince his Australian Labor Party to abandon the free education plank in its platform? And even if he could, how could he be sure that the Wran Committee's strategy was the right one and that its recommendations were workable? Would following an American model of full tuition for higher education and government-guaranteed student loans make more sense? These were just a few of the questions that the prime minister confronted as he contemplated new approaches for financing higher education in Australia.

Zespri

Alvarez, Jose B., and Mary Shelman
January 2011

Grower-owned Zespri is the sole exporter of New Zealand grown kiwifruit outside of Australia and New Zealand. Facing growing international competition, Zespri invested in consumer branding and innovation, which has led to new types of kiwifruit that taste better and are protected with patents. Consumer response has been positive and Zespri has begun to grow kiwifruit outside of New Zealand in order to have the product on retail shelves year round. Is this the right strategy for the future?

Asian Agri and the Future of Palm Oil

Bell, David E., and Natalie Kindred
January 2011

For Asian Agri and other Indonesian palm oil producers, the future promised rising demand from fast-growing Asian populations, but also intensifying criticism from environmental groups. With the highest yield and lowest production cost of any edible oil, palm oil constituted an abundant, inexpensive source of food for Asian and, to a lesser extent, international markets. Its production had soared from 1970 to 2010, sparking concern from environmentalists over the conversion of high-value conservation land in Malaysia and Indonesia (where nearly 90% of palm oil was produced) into palm oil plantations. Critics had intensified their campaigns in recent years, urging-at times successfully-packaged food makers and investors to boycott palm oil suppliers accused of environmental mismanagement. While noting that some accusations were unjustified, palm oil producers argued the industry was making strides towards greater sustainability and cited the unique advantages of palm oil: it was free of unhealthy trans fats, for example, and required less land to produce more oil than any known substitute. Asian Agri, an established Indonesian palm oil grower and exporter, had thus far avoided public scrutiny. The company was a key source of employment in many rural communities, had extensive experience negotiating the complex Indonesian regulatory environment, and was moving to certify its operations according to industry-set sustainability guidelines. In 2010, Asian Agri appeared well positioned to capitalize on the growing palm oil market, but the broad-strokes vilification of the palm oil industry was a source of serious concern. In the face of great uncertainty, the management team needed to devise a strategy for the future.

Malaysia: People First?

Comin, Diego, and John Abraham
January 2011

On March 30, 2010, Prime Minister Najib Razak presented his new economic model (NEM) for Malaysia. With the goal of raising per capita income to over $15,000 by 2020 from the current level of $6,634, the plan included measures to improve human capital, reduce migration, and privatize inefficient government linked corporations (GLCs). However, the most controversial part of the NEM was the dismantling of the new economic policy (NEP), an affirmative action program for native Malays that had alleviated racial tensions and reduced inter-racial income inequality over the previous 40 years though, some argued, at the cost of fostering corruption.

Formosa Plastics Group: Business Continuity Forever

Jin, Li, Joseph P.H. Fan, and Winnie S.C. Leung
January 2011

Wang Yung-ching, legendary Taiwanese businessman and philanthropist, passed away in 2008. He left behind an estate worth U.S. $5.5 billion but did not leave a will. The case discusses the potential motivation for Wang and uses it to study succession planning for family businesses.

China 'Unbalanced'

Comin, Diego, and Richard H.K. Vietor
January 2011

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.

Toyota Recalls (A): Hitting the Skids

Quelch, John A., Carin-Isabel Knoop, and Ryan Johnson
January 2011

In the fall of 2009, Toyota Motor Corporation, once revered for its commitment to quality and reliability, faced a highly publicized series of recalls in the U.S. representing approximately a year's worth of sales in one of its most important markets. While the first Toyota recall was met with widespread disbelief but continuing support for the brand, subsequent revelations and recalls tested the brand's resilience in the U.S. The firm's initial public response to the problems-a mixture of silence from top executives and vague, misleading public statements-frustrated U.S. government officials and the public. Not until weeks after the news first broke did Toyota organize a clear message around its commitment to return to quality. In late February 2010 Toyota President Akio Toyoda reluctantly accepts an invitation to testify to the U.S. Congress, 148 days after the first recall announcement. He has to decide what to say.

Toyota Recalls (B): Mr. Toyoda Goes to Washington

Quelch, John A., Carin-Isabel Knoop, and Ryan Johnson
January 2011

Case describes the testimony to the U.S. Congress of the Toyota CEO and the head of its U.S. motor sales.

Toyota Recalls (C): Bumpy Road Ahead

Quelch, John A., Carin-Isabel Knoop, and Ryan Johnson
January 2011

Between February and July 2010, Toyota sales recover thanks to the use of extensive PR and sales incentives. Yet recalls continue. Can Toyota stem the tide and correct its organizational flaws to address the underlying issues?

Talent Recruitment at frog design Shanghai

Eccles, Robert G., Amy C. Edmondson, and Yi Kwan Chu
January 2011

This case illustrates the complexity and importance of hiring decisions in the Chinese operation of a global design and innovation firm.

Angola and the Resource Curse

Musacchio, Aldo, Eric Werker, and Jonathan Schlefer
January 2011

Since emerging from decades of conflict in 2002, Angola has been growing at a scorching double-digit rate, led by its oil industry. But the nation remains beset with seemingly intractable problems: immense inequality, low life expectancy, a non-diversified economy, and constant grumblings of corruption. The global financial crisis and subsequent fall in state oil revenue drives a loan-seeking Angola toward either the IMF, that demands extensive reforms, or the Chinese, who seek to take a direct stake in the nation's recovery. The case explores the dynamics of post-conflict recovery as well as the challenges associated with a reliance on oil wealth, including the resource curse and Dutch disease.

2010

VeeV on the Rocks?

Marquis, Christopher, Joshua D. Margolis, and Bobbi Thomason
December 2010

Three pressing challenges (equity split, extent of commitment to social responsibility, and product discoloration) confront VeeV, the world's first alcoholic beverage infused with acai berries. Brothers Courtney and Carter Reum founded VeeV in 2007 and the firm has experienced rapid growth since then. The case documents the backgrounds of the young founders, details the launch and early phase of the company, and presents three challenges the founders must address: how to split the equity of the new company, how far to go in their efforts to be a "green" and socially responsible brand; and an unexpected potential product quality issue.

Farmland Investing: A Technical Note

Goldberg, Ray A., Arthur I Segel, Gustavo A. Herrero, and Andrew Terris
December 2010

This note seeks to provide an overview of farmland investing, the investment thesis behind investing in agriculture, how and why investors would choose farmland, and the general risks and return characteristics of this asset class. In recent years, a growing number of individual and institutional investors have allocated a portion of their capital into agricultural farmland. Private investors, public companies, and sovereign wealth funds are now all currently purchasing and selling large amounts of farmland for profit.

Global Expansion at Sanford C. Bernstein

Hill, Linda A., and Dana M. Teppert
December 2010

Sanford C. Bernstein, a premier sell-side research firm, is expanding globally and has recently opened an office in Hong Kong. Global Director of Research Robert van Brugge must consider how best to organize the firm's research department to enhance cross-sector and cross-geography collaboration among the senior research analysts in order to adapt to the challenging realities of global expansion in the financial services industry.

Toni Sacconaghi at Sanford C. Bernstein

Hill, Linda A., and Dana M. Teppert
December 2010

Toni Sacconaghi, a senior sell-side equity research analyst at Sanford C. Bernstein covering U.S. IT hardware companies, thinks about the challenges and opportunities presented by the firm's new office in Hong Kong. Sacconaghi was previously the only analyst covering IT hardware companies for Bernstein. However, the firm has recently hired an analyst to cover Asian IT hardware companies in Hong Kong. Sacconaghi thinks about the best way to work collaboratively with the new Asian analyst.

AdMob (A)

Piskorski, Mikolaj Jan, Samuel Cohen Mobily-Guitta, and Nithya Vaduganathan
December 2010

AdMob's CEO is deciding between international expansion and increasing the number of publishers to strengthen the company's advantage in the mobile advertising industry. AdMob displayed advertising on global devices, powered 6,000 websites and 1,000 applications, and served over 6 billion advertising impressions a month to 25 million unique visitors. AdMob's success attracted numerous competitors, such as Millennial Media and Quattro Wireless, both of which were expanding quickly and had raised considerable capital. The company now needs to allocate its limited resources wisely to position it for long-term success.

Reverse Engineering, Learning, and Innovation

Shih, Willy
December 2010

This background reading looks at reverse engineering in the context of piracy and knock-offs in emerging markets like China. It first considers legal aspects of reverse engineering in strong property rights regimes like the United States as a way of unpacking the legal issues. It considers the importance of tacit or unexposed knowledge, and whether modularizing a system facilitates the recovery of design intent. Finally we look at the role of reverse engineering in the development of capabilities and how it enhances a firm's absorptive capabilities. It is intended to be used as a background reading for the case "From Imitation to Innovation: Zongshen Industrial Group," HBS No. 610-057.

Rupert Murdoch: The Last Tycoon

Jones, Geoffrey G., and Hari Balkrishna
December 2010

The case examines the entrepreneurial career of Rupert Murdoch and the growth of News Corporation from a small Australian newspaper to a global media giant. It shows how he expanded geographically to Europe, the United States, and Asia and from newspapers to the film and television industries. The case identifies the personal role of Murdoch in this growth and the role of his family in its management. The case considers the political impact of News Corporation's newspapers and other media and their alleged role in shaping political opinion.

Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market

Lerner, Josh, and Yiwen Jin
December 2010

The private equity group Hony Capital considers what to do with their investment in Zoomlion, which has been successful to date. The question is whether to take their money off the table or to invest in their acquisition of a large Italian competitor.

Esquel Group: Building a Sustainable Partnership with Cotton Farmers in Xinjiang (A)

Sebenius, James K., and Cheng (Jason) Qian
December 2010

Esquel Group, leading manufacturer of quality shirts, sought to negotiate long-term partnerships with often-exploited farmers in Xinjiang (western China) to procure a superior cotton variety. Seeking to secure a large supply of specialty cotton in an ethical and socially responsible fashion, Esquel undertook a major 2002 initiative to negotiate value-creating contracts among itself, local Xinjiang municipal governments, and cotton farmers. Aware that contract enforcement in China can be challenging, Esquel offered the region's poor, often-suspicious farmers attractive advanced financing, guaranteed minimum pricing, and other generous terms in return for an agreement to sell their crop exclusively to Esquel. The case concludes with the specialty cotton harvest shaping up as very good while demand for the premium cotton fiber appears to be stronger than ever.

Esquel Group: Building a Sustainable Partnership with Cotton Farmers in Xinjiang (B)

Sebenius, James K., and Cheng (Jason) Qian
December 2010

Details and evaluates results in Esquel's 2002 initiative to negotiate long-term partnerships with often-exploited farmers in Xinjiang (western China) to procure a superior cotton variety.

Quanta Research Institute: Rainforest or Hothouse?

Shih, Willy, Jyun-Cheng Wang, and Ho Howard Yu
December 2010

Barry Lam, the CEO and founder of Quanta Computer (the largest notebook computer manufacturer worldwide), has recognized for many years that he had to transform the company to decrease its dependence on producing commodity hardware for other global brands and move the firm into areas of higher value-added products and services. But how could he transform an organization that was rooted in low cost manufacturing and supply chain management into one that creates innovative new products and commands premium prices? The existing organization was built to operate in a highly constrained innovation space, and the internal resistance to change often seemed insurmountable. Meanwhile, the firm had to continue delivering predictable revenues. Lam launched the Quanta Research Institute (QRI), a targeted effort to foster industrial research, as a vehicle for organizational transformation and to build differentiation in a commodity world. The case examines how QRI sources ideas and discusses how Quanta will use China as a test market for new products and services.

Alibaba Group

Wulf, Julie M.
December 2010

Discusses how Alibaba Group successfully managed new business ventures to become a leader in China's online marketplaces. Students follow Alibaba Group's transition from a startup to a multibusiness firm with over 15,000 employees in just over a decade. They analyze the evolving dynamics of internal competition and cooperation among Alibaba Group's subsidiaries. Students are also asked to address Alibaba Group's strategy, the role of its corporate center and how to incentivize subsidiary executives.

CDG: Managing in China's Economic Transformation

Chua, Roy Y.J., Shaohui Chen, and Lisa B. Kwan
December 2010

China Data Group (CDG) is a leading business processes outsourcing company based in Beijing, China. Roc Yang, chairman of CDG, had to confront a dilemma when he discovered that one of his senior managers gave a gift to a potential client in an effort to win a large business deal. Although this practice was pervasive in the China business context characterized by heavy reliance on personal relationships or guanxi, it went against the founding principles of CDG-professionalism and service quality. Yang had to decide where to draw the line between adherence to principles of professionalism and local norms in a country caught in the midst of rapid economic transformation.

Shenzhen Capital Group: A Pioneer in China's VC Industry

Gompers, Paul A., Shaohui Chen, Jessie Lin, and Shelley Ling
December 2010

Haitao Jin, chairman of Shenzhen Capital Group Co., Ltd. (SCGC), and Wanshou Li, president of SCGC, must decide how to continue to grow their venture capital/private equity firm in China. SCGC is a premier VC/PE fund in China and a pioneer of the Government Sponsored Fund (GBF) structure. The firm had grown to RMB 20 billion in just 10 years and had funds in 29 different cities across China. As competition for investments becomes more intense, Jin and Li must decide the growth and strategic direction that SCGC should pursue. The case highlights the important success factors for VC/PE investing in China as well as the important role that the Chinese government plays in the financing landscape.

Crisis and Reform in Japan's Banking System (A)

Porte, Thierry, Rawi E. Abdelal, Laura Alfaro, and Jonathan Schlefer
November 2010

In 1997, amidst Japan's ongoing financial problems, Prime Minister Ryutaro Hashimoto sought to restructure the financial sector to make it more transparent and globally competitive. He hoped that this effort, dubbed the "Big Bang" after the British financial restructuring a decade earlier, would prove as successful. But the financial problems, which seemed to have abated, looked as if they might be worsening. Thus, Hashimoto had to weigh priorities. Should he focus on long-term restructuring, immediate financial rescue, or both? Might an over-emphasis on long-term restructuring increase the chances that major banks could collapse? And what were the best economic and political strategies in these arenas? As a major developed economy, Japan offers an analog to the problems that faced the United States in its 2008-2009 financial crisis.

Crisis and Reform in Japan's Banking System (B)

Porte, Thierry, Rawi E. Abdelal, Laura Alfaro, and Jonathan Schlefer
November 2010

In 1997, amidst Japan's ongoing financial problems, Prime Minister Ryutaro Hashimoto sought to restructure the financial sector to make it more transparent and globally competitive. He hoped that this effort, dubbed the "Big Bang" after the British financial restructuring of a decade earlier, would prove as successful. But the financial problems, which seemed to have abated, looked as if they might be worsening. Thus, Hashimoto had to weigh priorities. Should he focus on long-term restructuring, immediate financial rescue, or both? Might an over-emphasis on long-term restructuring increase the chances that major banks could collapse? And what were the best economic and political strategies in these arenas? As a major developed economy, Japan offers an analog to the problems that faced the United States in its 2008-09 financial crisis.

WildChina: Taking the Road Less Traveled

Khaire, Mukti Daniel J. Isenberg, Victoria Song, and Shirley M. Spence
November 2010

This case deals with supplier difficulties faced by WildChina-a travel service provider in China. WildChina is a classic case of a company that is trying to bring a local, within-country product to a market outside the country (in this case, travelers to China from around the world). In doing so, start-ups have to build competences to deal with local suppliers and global customers. The case describes the operations of WildChina providing detailed information on how they evaluated suppliers to determine their appropriateness, given WildChina's customers. The decision in the case revolves around what the founder should do when faced with a supplier who is trying to bypass WildChina to reach customers directly-a common problem faced by intermediaries.

Hang Lung Properties and the Chengdu Decision (A)

Macomber, John D., Michael Shih-Ta Chen, and Keith Chi-Ho Wong
October 2010

A residential real estate developer competes in a heated auction for a prime retail development site in the interior of China during the 2009 boom. Total project cost might be in excess of $1 billion U.S. for over 4,000,000 square feet of building. Hang Lung Properties has enjoyed success in residential building in Hong Kong but has focused on very limited projects in China, notably two retail properties in Shanghai. After a decade in Shanghai the firm decides to enter second-tier Chinese cities including Chengdu, a city of 11 million in interior China. The case covers Hang Lung Properties' due diligence and thought process with respect to anticipated rental income, construction costs, and land costs. The auction includes many other well-capitalized firms and the price escalates. Hang Lung's team must decide whether to participate or withdraw. Students need to use judgment with respect to estimates of key variables including stabilized income, construction cost, and minimum expectations for return on investment in order to prepare their bids.

Hang Lung Properties and the Chengdu Decision (B)

Macomber, John D., Michael Shih-Ta Chen, and Keith Chi-Ho Wong
October 2010

Second phase of auction for a prime retail development parcel in Chengdu, China. Competition forces the firm to revisit all of its land purchase criteria. Hang Lung Properties is known for rigorous due diligence, for discipline in buying property, and for good understanding of market cycles. The (B) case reveals the firms assumptions in the Chengdu situation, as compared to what students had to derive on their own in the (A) case. The (B) case also reviews strategic focus with respect to asset classes and geography, as well as best practices for what to look for in cities that will be attractive for superblock mixed-use projects.

Hiring Professionals in China: A Practitioner's Guide

Gardner, Heidi K.
October 2010

This note outlines how leading professional service firms operating in China revise their standard hiring practices to fit local challenges and customs. Based on interviews with professionals in a number of established accounting, strategy consulting, and executive search firms presently operating in China, it explores best practices they use to hire exceptional professionals who will succeed in building high quality client relationships, delivering appropriately innovative thinking, and helping their firms grow and improve performance-all within China's unique political and cultural context.

HOYA Corporation (A)

Kester, W. Carl, and Masako Egawa
October 2010

In 2007, HOYA of Japan must decide whether to change its friendly exchange offer for Pentax into a hostile cash tender offer. A surprising sequence of events had caused a friendly merger agreement to fall apart, resulting in a boardroom coup at Pentax and the intervention of the Sparx Group, an indigenous activist Japanese hedge fund. The case raises issues about corporate valuation, corporate governance, shareholder activism, takeover deal tactics, and the Japanese market for corporate control.

HOYA Corporation (B)

Kester, W. Carl, and Masako Egawa
October 2010

HOYA Corporation (B) provides details on the decisions made and the outcome of the situations described in the HOYA Corporation (A) case.

Controlling Hot Money

Pozen, Robert C.
September 2010

The manager of the Japan Equities Fund is faced with an increase in "hot money" moving quickly in and out of the Fund. This short-term trading is an attempt to take advantage of the difference between the closing times of the Tokyo and New York Stock Exchanges. The CFO of the fund manager considers the various strategies available to limit such short-term trading, which will be presented soon to the Fund's board of directors.

Emerging Nokia?

Alcacer, Juan, Tarun Khanna, Mary Furey, Rakeen Mabud
September 2010

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?

Heidrick & Struggles and Standard Chartered Bank: Managing Global Key Accounts

Eccles, Robert G., and Kerry Herman
August 2010

Daren Kemp, a partner at leadership consultancy and executive search firm Heidrick & Struggles, is responsible for the firm's relationship with Standard Chartered Bank (Standard Chartered). Standard Chartered is one of 94 companies in Heidrick's strategic partners program (SPP). The purpose of the SPP is to build strategic, value-based relationships with clients. Kemp joined Heidrick in 2008 and by 2010 has successfully built a strong relationship with Standard Chartered. The case describes how Kemp and his team grew this relationship and raises questions about what can be learned from this experience and applied to the other accounts in the SPP.

Google in China (C)

Quelch, John A.
August 2010

Supplements the (A) case.

Delta Electronics Hybrid Power Train

Shih, Willy, and Jyun-Cheng Wang
August 2010

Delta Electronics, the world's largest manufacturer of switching power supplies, hoped to enter the market for gasoline-electric hybrid power trains for automobiles by being a major component and subsystem supplier. While most public awareness of hybrid vehicles fell to the tier one integrated vehicle manufacturers, Delta felt it had an opportunity to enter the market via new automotive market entrants in China that had comparatively fewer capabilities and were willing to purchase major subsystems. Yet the company faced a dilemma-a major customer wanted Delta to transfer ownership of key intellectual property as a condition of doing business. The case affords students an opportunity to consider whether a technological shift will enable what seems traditionally to be a highly integrated product.

Mekong Capital: Building a Culture of Leadership in Vietnam

Marquis, Christopher, Vinay Ganti, Kevin Smith, and Doug Guthrie
August 2010

Mekong Capital, a private equity firm specializing in investing in Vietnam, had grown dramatically since its inception in 2002 and faced numerous organizational issues in 2007. There was a shortage of qualified middle managers, an overall lack of leadership, and a culture of making excuses for performance shortfalls. These issues not only plagued Mekong, but also the portfolio companies that they took positions in. The case recounts how the founder and managing partner of Mekong undertook a process to profoundly change the culture, leadership, and accountability within the company to try to transform it so that its people would align and come together as a team, holding themselves responsible to deliver results and committed to the long-term future.

Vale: Global Expansion in the Challenging World of Mining

Khanna, Tarun, Aldo Musacchio, and Ricardo Reisen de Pinho
July 2010

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?

Globalization at Komatsu

Yoshino, Michael Y.
July 2010

The case captures the challenges Komatsu, the second largest manufacturer of earth-moving equipment, faced during the past five decades as it sought to globalize its operations. By 2007, it had become the second largest manufacturer of earth-moving equipment with more than 80% of its sales coming from outside of Japan. It has built a network of plants, distributors, and service centers around the world. Senior management is convinced that a major reason for its success is its culture, recently articulated as the Komatsu Way. The central issue in the case is how to transmit and embed it to its far flung operations throughout the world.

In the Spotlight: The Market for Iron Ore

Musacchio, Aldo, Tarun Khanna, and Jenna Bernhardson
July 2010

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.

A Giant Among Women

Shih, Willy, Ethan S. Bernstein, Maly Hout Bernstein, Jyun-Cheng Wang, and Yi-Ling Wei
July 2010

Few CEOs successfully manage the evolution of their companies from OEM outsourcer to branded manufacturer to expert consumer marketer as well as Tony Lo, CEO of Giant Manufacturing Co. Ltd., now the largest bicycle manufacturer in the world. In the mid-1980s, Giant produced over a million bikes per year with the Giant brand on fewer than 15% of them; by 2008, Giant was producing 6.4 million bicycles with 70% carrying the Giant brand. And in 2010, the transition was still in-process as CEO Lo experimented with a new business model for women cyclists in Taiwan and globally-leveraging some of Giant's lessons learned and challenging others. The case explores Giant's historical evolution from OEM outsourcer to branded manufacturer, which relied heavily on Giant's forward integration into the construction of a world-class, global retail organization. Giant's ability to understand the customer and move him/her up-market has driven both sales growth and profitability (e.g., average sales prices in 2006, 2007, and 2008 were $325, $345, and $360 respectively). That sets the stage for Lo's latest challenge: a realization that his products were not meeting the needs of women customers (including particularly his wife). As a result, Lo commissioned his CFO Bonnie Tu to open the first all-women's bicycle store in Taipei (owned by corporate, not the traditional retail organization) and charged her not only with figuring out the needs of women customers, but also mandating that she turn a profit. "Because your only customers are women, if you don't know how to sell to them, you're out of business-period. So you experiment for survival," explained Lo. The case concludes by examining the company's continuing integration into retail stores, looking closely at the Liv/giant pilot and the surprising business model that it developed.

Looking for Opportunity in Adversity: Iqbal Quadir and Grameenphone (A)

Chakravorti, Bhaskar, and David Lane
July 2010

Iqbal Quadir, a former New York investment banker, set about to bring universal telecommunications to his native Bangladesh. He was convinced that GSM, the same advanced wireless technology that penetrated developed countries in Europe, was also the right solution for Bangladesh. He assembled a critical group of partners in a venture, GrameenPhone, which included Scandinavian telecom operators; Grameen Bank, the microfinance pioneer; Bangladesh Railways; as well as a Japanese investment firm. Each partner brought a different capability to the venture, but the coalition was fundamentally unstable. Quadir was facing roadblocks no matter which way he turned in his quest to assemble the venture. He came to a point where the rational decision seemed to be to abandon the venture and return to his secure investment banking job. This case highlights the role of bottlenecks and constraints in sparking innovations in business models by the creative entrepreneur.

Looking for Opportunity in Adversity: Iqbal Quadir and Grameenphone (B)

Chakravorti, Bhaskar, and David Lane
July 2010

Supplements the (A) case.

Jiamei Dental: Private Health Care in China

Kirby, William C., and G.A. Donovan
July 2010

With the recent announcement from the Chinese government that the country's healthcare system was about to undergo reform, Jiamei Dental Chairman Liu Jia wondered what that meant for his 15-year-old dental clinic business. Founded in 1993, Jiamei Dental Medical Management Group ("Jiamei") rode the wave of China's rapid economic development and had become China's largest private dental chain with 84 clinics in Beijing and seven other major cities. But China was changing fast, and Liu acknowledged that Jiamei's ongoing expansion depended on many factors beyond its control, notwithstanding government reform, Jiamei was also faced with pressures from its private equity general partners. The year 2009 was shaping up to be a pivotal one for Jiamei. It had planned to open dozens of more clinics during the year. At the same time, Liu was facing stiff competition from regional and international private dental clinic competitors, high-end private hospitals, and now possibly the government. These factors offered new complexities into the expansion plans of this entrepreneurial firm.

From Imitation to Innovation: Zongshen Industrial Group

Shih, Willy, and Nancy Dai
July 2010

As Zuo Zongshen drove the transformation of the Zongshen Industrial Group from an early imitator in the motorcycle business to a company that increasingly focused on innovation as a way to get out of the hyper-competitive commodity business, he continually faced new challenges. The company had become a leader in gasoline powered motorcycles and small gas engines, but increasing taxes and restrictions on the use of motorcycles in congested urban areas had spawned a new industry, electric motorbikes, which posed a threat to the company's core business. Sourcing the technology for these e-bikes, and hiring and retaining the management and creative talent the company needed, were continuing challenges. The case traces the development of capabilities in the Zongshen Industrial Group, how it used the early imitation phase to foster rapid technological learning and upgrading, and how it used a unique corporate structure and listing strategy to finance the acquisition of important technologies.

Mirae Asset: Korea's Mutual Fund Pioneer

Khaire, Mukti, Michael Shih-Ta Chen, and G.A. Donovan
June 2010

Park Hyeon-Joo, the founder and chairman of Korea's earliest and largest mutual fund company, plans to expand internationally. After first offering emerging market funds to its Korean customers, the company then began selling local-currency funds in India and Brazil. Now Hyeon-Joo has to decide his next steps. Should he build on his emerging market expertise and focus his business expansion in developing countries? If so, where should he concentrate his efforts-India, Brazil, China, or other countries? Or should he instead focus on expanding into developed markets through operations in New York and London?

CEIBS: A Global Business School Made in China

Quelch, John A., S. Rama Velamuri, and Shengjun Liu
June 2010

President Zhu Xiaoming, Executive President Pedro Nueno, Dean Rolf D. Cremer, and Co-Dean Zhang Weijiong, of the China Europe International Business School (CEIBS), were sitting in the boardroom of the Shanghai campus in February 2009. They made up the management committee (MC) of the school and were preparing for a press conference to announce that the CEIBS MBA program had been ranked 8th in the world and 1st in Asia in the 2009 Financial Times Global MBA Rankings. This was the first time the program had been ranked in the world's top 10, a remarkable achievement considering that CEIBS had been founded just 15 years ago.

Shanzhai! MediaTek and the 'White Box' Handset Market

Shih, Willy, Chen-Fu Chien, and Jyun-Cheng Wang
June 2010

The term "white box" is often used to describe products without a brand name. Such products are assembled from standardized parts, and they became a very popular category of desktop PCs. Hsinchu, Taiwan based MediaTek is a fabless semiconductor company that unleashed a white-box market in mobile phone handsets by offering an innovative "complete solution" for 2.5G and 2.7G handset manufacturers, dramatically lowering the barriers to entry into the business. Besides enabling many Chinese branded manufacturers to enter the business, the grey market in components unleashed a complementary market of "Shanzhai" makers. Together these firms captured a significant fraction of the Chinese market, as well as exports (both legal and grey) to 102 countries. CEO Ming-Kai Tsai is faced with the question of the best growth path. While multiple tier one handset makers are dismissive of MediaTek, perhaps because of its role in enabling the Shanzhai, the company's offerings have enabled an "army of ants" to challenge the leaders. Can MediaTek move up-market to sell its chipsets to the likes of Nokia? Under what terms?

Nestlé's Milk Districts: Case Supplement

Goldberg, Ray A., and Kerry Herman
May 2010

Nestlé, as the largest milk company in the world, has a history of economic development, nutrition, health, and food safety in all the major countries of the world. Each milk model is tailor-made to the needs of each country's political, social, and economic priorities. Supplements the case "Nestlé's Milk District Model: Economic Development for a Value-Added Food Chain and Improved Nutrition."

Alibaba Group

Wulf, Julie M.
May 2010

Discusses how Alibaba Group successfully managed new business ventures to become a leader in China's online marketplaces. Students follow Alibaba Group's transition from a startup to a multibusiness firm with over 15,000 employees in just over a decade. They analyze the evolving dynamics of internal competition and cooperation among Alibaba Group's subsidiaries. Students are also asked to address Alibaba Group's strategy, the role of its corporate center and how to incentivize subsidiary executives.

Toward Golden Pond (A)

Retsinas, Nicolas P., G.A. Donovan, Nancy Dai, and Justin Ginsburgh
May 2010

The Rong-D companies must decide whether to build a luxury senior housing development in Chengdu, China. Demographics are very encouraging for this new product type, but there are numerous cultural, market, financial, and political risks that they must assess before moving forward.

Toward Golden Pond (B)

Retsinas, Nicolas P., G.A. Donovan, Nancy Dai, and Justin Ginsburgh
May 2010

Supplements the A case. Provides an additional dilemma for the Rong-D companies with regard to building luxury senior housing in China.

Digital Media Group: The Shanghai Bid

Hardymon, G. Felda, and Ann Leamon
May 2010

In December 2008, Thomas G. Tsao, acting CEO of Digital Media Group (DMG), a venture-backed provider of technology and media used primarily in subways, must decide how to structure the company's bid for the advertising concession in Shanghai's 13 existing and planned subway lines. This is complicated by the fact that he is also a general partner in Gobi Partners, one of DMG's largest investors. The company is bidding against its largest competitor, which also investigated acquiring DMG a few months before. DMG has very little cash, and the publicly traded competitor knows it. How does Tom structure the bid? How does he get the money for it? How does he manage the company, given its inability to attract a CEO and his firm's need to have an exit? Lastly, how does he manage his responsibilities-to his firm, his limited partners, his coinvestors, and the company?

Gobi Partners and DMG

Hardymon, G. Felda, Josh Lerner, and Ann Leamon
May 2010

Thomas G. Tsao, founding general partner of Gobi Partners, an early stage venture capital firm in China, must decide how to manage his firm's largest investment after the departure of the CEO. Tom has temporarily stepped in as CEO, but finding a replacement with the necessary technical and language skills is difficult. Moreover, the company is facing significant challenges in winning business and restructuring its own operations. Should Tom stay on as CEO? Revisit one of the candidates who had withdrawn? Try harder to sell the company? At what price? The case provides an opportunity to discuss the issue of active investment management in an emerging market from the perspectives of the many stakeholders involved.

Ricoh Company, Ltd.

Eccles, Robert G, Amy C. Edmondson, Marco Iansiti, and Akiko Kanno
April 2010

Ricoh, the Japanese copier manufacturer, is committed to reducing its environmental impact to one-eighth of its 2000 levels by 2050. It has already introduced three stages of environmental awareness to its operations, and its recycled copier business broke even in 2006. The company developed environmental accounting methods and produces annual environmental and sustainability reports, but Ricoh is concerned that investors may not take these efforts into account.

Transforming ASUSTeK: Breaking from the Past

Shih, Willy, Ho Howard Yu, and Hung-Chang Chiu
April 2010

What happens when an original design manufacturer (ODM) firm tries to transform itself into a branded goods seller? The case traces the evolution of ASUSTeK from a motherboard supplier, to an ODM of desktop and notebook PCs, through its split into three companies that separately pursue the branded business, ODM, and contract manufacturing. Chairman Jonney Shih has to not only confront the challenges of brand building, but he must also build new organizational capabilities in ASUSTeK, while Pegatron struggles to win business from ASUSTeK's former customers and now competitors. The case offers an opportunity to apply the lens of disruptive innovations to a discussion of outsourcing, examining the consequences for firms like HP and Dell that have outsourced most of their computer product design to ODM firms like ASUSTeK, only to watch them morph into competitors. Students can also examine how organizational resources, processes, and values can shape or limit its ability to move into new areas.

Real Blue? Viagra and Intellectual Property Rights Law in China

Abrami, Regina, and Tracy Yuen Manty
April 2010

On July 5, 2004, Pfizer's China team received disappointing news. China's patent review board just invalidated the company's existing patent on one of its most successful drugs, Viagra. Making matters worse, a Guangdong-based pharmaceutical company laid claim to Viagra's street name "Wei Ge" (Great Brother), arguing that the term was not a well-known trademark in China. With two lawsuits related to intellectual property rights now pending in China, Pfizer wondered whether trade politics or the rule of law would prevail.

IFP, Indonesia

Shapiro, Roy D.
April 2010

IFP, Ltd. is a Europe-based multinational mining and minerals company contemplating an investment to produce forest products in Indonesia. The primary case decisions are 1) how to assess political and operating risk, 2) how to integrate economic and political risk analysis in order to select among the alternative spatial and operating configurations, and 3) how to manage operations in order to minimize risk. This case is an effective vehicle for discussing the complex issues involved in operating in the difficult, uncertain political environment of a developing country.

Koo Foundation Sun Yat-Sen Cancer Center: Breast Cancer Care in Taiwan

Porter, Michael E., Jennifer F. Baron, and C. Jason Wang
February 2010

Taiwan's Koo Foundation Sun Yat-Sen Cancer Center has developed an integrated, team-based care delivery model for breast cancer care that is being expanded to other cancer types in 2009. A decade earlier, President and CEO Dr. Andrew Huang and the Center had worked with the Taiwan National Health Insurance system to create a pay-for-performance reimbursement program for breast cancer care that has since been adopted by five other providers. The program issues capitated, per patient base payments for breast cancer care, with bonus payments based upon provider reporting and performance on a set of quality measures. This case allows readers to examine health care provider strategy, development and implementation of bundled reimbursement, integrated care delivery, quality measurement, and Taiwan's universal health care system.

IFRS in China

Ramanna, Karthik, G.A. Donovan, and Nancy Dai
January 2010

In 2005, China announced plans to "converge with," but not completely adopt, IFRS. China also began to lobby for changes to specific IFRS provisions, such as for related party disclosures by state-owned firms, to bring them more into line with Chinese interests. China's accounting system had already undergone significant reforms during the two decades when its economy had grown to become the fourth largest in the world. However, enforcement of accounting standards remained weak, the financial system was relatively immature, and large state-owned firms still dominated many sectors of the economy.

A Giant Among Women

Shih, Willy C., Ethan S. Bernstein, Maly Hout Bernstein, Jyun-Cheng Wang, and Yi-Ling Wei
January 2010

Tony Lo, the CEO of Giant Manufacturing, the largest bicycle manufacturer in the world, finally realized that his products were not meeting the needs of women customers when even his wife complained to him that the equipment did not fit her needs. Lo commissioned his CFO Bonnie Tu to open the first all-women's bicycle store in Taipei and charged her not only with figuring out the needs of women customers, but also mandating that she turn a profit. "Because your only customers are women, if you don't know how to sell to them, you're out of business-period. So you experiment for survival," explained Lo. The case examines the company's integration into retail stores and looks closely at the Liv/giant pilot and the surprising business model that it developed.

Philips versus Matsushita: The Competitive Battle Continues

Bartlett, Christopher A.
January 2010

Describes the development of the global strategies and organizations of two major competitors in the consumer electronics industry. Over four decades, both companies adapt their strategic intent and organizational capability to match and counter the competitive advantage of the other. The case shows how each is faced to restructure as its competitive advantage erodes.

2009

VF Brands: Global Supply Chain Strategy

Pisano, Gary P., and Pamela Adams
December 2009

This case examines VF Brands global supply chain strategy. Historically, VF has used a combination of in-house manufacturing and traditional arms-length sourcing arrangements. At the time of the case, the company is considering a third approach to supplier relations that involves much closer cooperation and partnerships. The goal of this "third way" approach is to create a sourcing relationship that combines some of the virtues of vertical integration with the flexibility of sourcing. Such arrangements are increasingly discussed in the operations literature and in practice. This case provides students an opportunity to do an in-depth analysis of such an arrangement and develop an understanding of the trade-offs involved.

VIZIO, Inc.

Palepu, Krishna G., and Liz Kind
November 2009

William Wang, CEO of VIZIO, Inc., was proud of his company's success in providing affordable flat screen TVs. Since its founding in 2002, VIZIO had grown to over $2 billion in revenue and was one of the top three flat panel TV brands, along with Samsung and Sony. Faced with intensifying price pressure from the industry leaders and an unprecedented economic recession, Wang wondered how VIZIO could best sustain its growth and finance its business.

ZINK Imaging: "Zero Ink™"

Sahlman, William A., and Sarah Greene Flaherty
November 2009

ZINK Imaging describes the issues confronting CEO Wendy Caswell as she uses a partnership model to commercialize ZINK's disruptive printing technology platform, ZINK Paper. The case focuses on the frameworks ZINK has used to decide which markets to target and which business partners to choose. Caswell contemplates changes to the partnership model in an effort to speed product introduction to manage the company's burn rate and reach profitability. The context for the case is the company's imminent need to raise an additional $25 million.

Kim Park (A): Long-lived Nonmonetary Assets

Hawkins, David F.
November 2009

A series of caselets exploring the accounting for long-lived nonmonetary assets.

Intellectual Ventures

Hagiu, Andrei, David B. Yoffie, and Alison Berkley Wagonfeld.
November 2009

Intellectual Ventures (IV) creates and acquires intellectual property (IP), which it then seeks to monetize through non-exclusive licensing. In early 2009, as an increasing number of companies were trying to position themselves as leading intermediaries in the market for intellectual property, IV was looking for the best business model to become such a leading intermediary. Its model was predicated on making it easy for small inventors to monetize their inventions and IP (by selling it to IV) and then using its scale and aggregate IP portfolio to extract revenues from potential licensees (usually technology companies).

Noble Group

Foley, C. Fritz, Michael Shih-Ta Chen, Matthew Johnson, and Linnea Meyer
November 2009

What role does trade finance play in facilitating global supply chain management? Richard S. Elman, founder and CEO of Noble Group Ltd., a global commodities trading company based in Hong Kong, must raise capital to support the firm's working capital and investment needs. In evaluating by which means Elman should raise capital, students must consider issues relating to the payment terms and financing arrangements used in world trade, as well as the risk management and operating decisions of a trade intermediary.

Daqi

Pozen, Robert C., Rick Armbrust, and Tony Zhang
October 2009

In 2008, Daqi was one of the largest Internet portals for user-generated content and the leading word-of-mouth marketing provider in China. Grace Zhou, Daqi's CEO, was contemplating the risks and benefits of expanding Daqi's services into three new content areas-news, music, and popular bloggers. Each potential area of Daqi's expansion offered extensive benefits, such as major growth opportunity, as well as risks, including private lawsuits, government censorship, and significant capital investments. The case focuses on how Zhou must weigh the pros and cons of expansion in each of these three areas, as well as the potential of a merger.

Tenova: Mining for Growth in an Economic Crisis

Pisano, Gary P., Elena Corsi, and Elisa Farri
October 2009

In December 2008, Gianluigi Nova, CEO of Tenova SpA, a technology and equipment supplier to the metals and mining industry, had to choose between two options. The first was to continue growing in the company's core business: equipment for the steel production. The second option offered growth in a related, but nearly new business for Tenova: the equipment for mining, mineral processing, and extractive metallurgy. They only had a small presence in this market. Yet, Nova had to cope with the worldwide economic crisis whose destructive power hit every area of the metals and mining industry. Nova had to decide which option offered the best opportunity to grow in the worst economic crisis since 1929.

Transworld Auto Parts (A)

Narayanan, V.G., and Lisa Brem
October 2009

Transworld Auto Parts had to implement its new strategy flawlessly to survive the auto industry upheaval. The new CEO asked her leadership team to craft strategy maps and balanced scorecards to help each division implement its strategies.

Transworld Auto Parts (B)

Narayanan, V.G., and Lisa Brem
October 2009

Supplements the (A) case

Consumer Lending in Japan: Citi CFJ (B)

Trumbull, Gunnar, and Akiko Kanno
October 2009

As the regulatory environment for consumer lending evolves, CFJ has to decide how to respond.

Procter & Gamble in the 21st Century (A): Becoming Truly Global

Kanter, Rosabeth Moss, and Matthew Bird
October 2009

Since the 1980s, Procter & Gamble had leveraged its purpose, values, and principles (PVP) to create a global company. When P&G faced difficult times in 2000, the new CEO, A.G. Lafley, leveraged the PVP to drive P&G's turnaround, integrate global operations, and guide decision making in all facets of the business. But the Gillette acquisition posed a new challenge.

Procter & Gamble in the 21st Century (C): Integrating Gillette

Kanter, Rosabeth Moss, and Matthew Bird
October 2009

P&G had used its purpose, values, and principles (PVP) to prepare for the physical integration of Gillette prior to the change of control. The execution of these plans posed numerous challenges in global business units as well as in individual country organizations. While managers sought to maintain business momentum during the transition, corporate leaders were intent on continuing to use Gillette as a catalyst of change.

Western Union: Our World, Our Family®

Marquis, Christopher
October 2009

In 2006, Western Union spun-off from its former parent, First Data Corporation, and began the process of defining itself as a stand-alone organization. Part of that effort was the creation of a strategic corporate social responsibility program called Our World, Our Family. The case tracks Western Union's earlier CSR initiatives and how they resulted in the creation Our World, Our Family. Key elements of the case focus on understanding the Western Union business model focused on financial remittances, and how its corporate citizenship efforts bring value to the company by satisfying the diverse needs of Western Union's stakeholders.

CapitaLand Ltd: CEO Selection

DeLong, Thomas J., Michael Shih-ta Chen, and G.A. Donovan
October 2009

In September 2007, the Group President of CapitaLand has to select a new CEO for a key subsidiary. The case presents the profiles of three candidates-two internal and one external-and ends with the senior management team debating the candidates' merits.

Managing Creativity at Shanghai Tang

Chua, Roy Y.J., and Robert G. Eccles
September 2009

Shanghai Tang is a luxury brand that focuses on Chinese-inspired fashion, accessories, and home decoration products. In fall 2008, amidst a growing global economic crisis, Raphael Ie Masne, executive chairman of Shanghai Tang, had to decide what to do with the recently vacant creative director position. Did Shanghai Tang need to hire a new creative director at this uncertain economic time? Or could he take on the role of the creative director himself? In addition, Ie Masne had to grapple with balancing the perennial tensions between business imperatives and the creative aspirations of his designers. How could he better manage employees who see themselves as artists?

Radiant Cosmetics: What's in a Pout?

Pozen, Robert C., and Mary Ellen Hammond
September 2009

In 2006, Radiant Cosmetics president and CEO, Margaret Clark, was contemplating the launch of a new, lip-plumping product called "Four Carat Pout." Clark faced many decisions concerning the launch: marketing the product as a luxury brand or a retail item; how to position the product as a possible starting point for an expanded anti-aging line; and how to market and distribute the product internationally, particularly in France. Issues of intellectual property were also essential to the launch-in the past, Radiant had faced problems with cosmetic counterfeits. With the launch of the new product, Four Carat Pout, Clark needed to decide whether to pursue patents, copyrights, and/or trademarks for various aspects of the new product. The case focuses on the interplay between marketing strategies and intellectual property issues in international fashion products.

SK Telecom: Pursuing Happiness through Corporate Social Responsibility

Marquis, Christopher, Kwang Y. Ryu, Philip Mirvis, and Bobbi Thomason
September 2009

Since 2006, SK Telecom has worked to develop strategic corporate social responsibility (CSR) programs that are aligned with its business operations and corporate mission. The case tracks the original assessment process the company went through and successive organizational design efforts to align its CSR strategy and implementation architecture. In 2009, the company is going through reorganization, and the protagonist is considering how well the existing structure of SK Telecom's CSR efforts supports its strategy. The key dilemma he is faced with is whether to change the design of the CSR organization, or perhaps revise the CSR strategy to better match the existing organizational architecture.

The TSMC Way: Meeting Customer Needs at Taiwan Semiconductor Manufacturing Co.

Shih, Willy, Chen-Fu Chien, Chintay Shih, and Jack Chang

September 2009

When L.C. Tu receives an emergency order, he is confronted with a range of production scheduling choices, each of which has unique costs and trade-offs. The case was designed to help students understand job-shop style production and the impact of disruptions and reactive scheduling. Students use two of Taiwan Semiconductor Manufacturing Company's mainstream processes as a vehicle for analysis. The case describes a real situation in which upper management accepts an emergency order. By working through the impact on the production system, students should develop a feel for how shifting demand in a large factory that is structured as a job shop alters the demands on, and utilization rates of, expensive capital equipment in a complex way. As bottlenecks shift, students can explore several alternatives, each with different costs and trade-offs. Students may also reflect on the true cost of providing the extraordinary service, and whether management properly takes the impact on operations into account when it makes customer commitments.

Shenzhen Development Bank

Jin, Li, Yuhai Xuan, and X.B. (Xiao-Bing) Bai

September 2009

Weijian Shan, Managing Partner of Newbridge Capital, faces a tough call in regard to his firm's investment in Shenzhen Development Bank, China's fifteenth-largest commercial bank listed on the Shenzhen Stock Exchange. Due to the aggressive lobby of the existing management at the bank, the Shenzhen government didn't receive central government's support on Newbridge's investment and had to back out of the deal with Newbridge. Weijian Shan has to make a choice between two alternatives: 1) Give up pursuing the deal given huge political risk out of his control; 2) Work out an action plan and re-negotiate the deal.

Nomura's Global Growth: Picking Up Pieces of Lehman

Foley, C. Fritz, and Linnea Meyer

September 2009

What issues commonly arise in international financial management? Kenichi Watanabe and Takumi Shibata, CEO and COO of Nomura Holdings Inc., one of the leading investment banks in Asia, have the opportunity to expand their firm internationally through the acquisition of various parts of Lehman Brothers, an insolvent global investment bank. In evaluating this opportunity, students must consider the complexities of such expansion, including the challenges posed by a multinational insolvency, the difficulties of post-merger integration in a cross-border acquisition, and more general issues related to currency hedging and international taxation.

A Chinese Start-up's Midlife Crisis: 99Sushe.com

Kirby, William C., F. Warren McFarlan, and Tracy Yuen Manty
August 2009

Now into their third year at the helm of an Internet start-up in China, Ken Pao and Bill Li were managing a totally different company (with a new name) from the one they first founded in 2006. Having changed their business model from a social networking site to an online gaming business came with new challenges. They hired almost an entirely new staff, cultivated new partnerships, and most urgently sought new funding. However, with three years of experience, they were no longer a "start-up" and now faced the ramifications of mid-life. What would it take to remain a viable competitor in China in a new industry?

iZumi

Higgins, Robert F., Jacob Ian Broder-Fingert, Eliot Sherman, and Sidhartha Palani
August 2009

Presents the issues faced while building an innovative company in an emerging space with new intellectual property from the perspective of a venture capitalist. Beth Seidenberg, a partner at the venture capital firm Kleiner Perkins Caufield & Byers (KPCB), had helped create iZumi Bio, a company with ambitious prospects that she believed had the potential to become "the" definitive stem cell company. iZumi sought to bring under its banner key intellectual property (IP) from the nascent field of stem cell technology. As such, iZumi would need to acquire the rights to several groundbreaking scientific developments that had recently occurred in labs around the world. Seidenberg needed to decide whether to commit to the next major tranche of the investment. Charged with finalizing her decision in less than 24 hours, Seidenberg weighed the pros and cons of the next round of financing. Was it really possible to pull together such a broad range of IP under one umbrella? Was the international mix of IP going to be too difficult to manage? Was it too early for stem cell technology to be successfully commercialized?

VeeV on the Rocks?

Margolis, Joshua D, Christopher Marquis, and Laura Winig
August 2009

Three pressing challenges (equity split, extent of commitment to social responsibility, and product discoloration) confront VeeV, the world's first alcoholic beverage infused with acai berries. Brothers Courtney and Carter Reum founded VeeV in 2007 and the firm has experienced rapid growth since then. The case documents the backgrounds of the young founders, details the launch and early phase of the company, and presents three challenges the founders must address: how to split the equity of the new company, how far to go in their efforts to be a "green" and socially responsible brand, and an unexpected potential product quality issue.

From Little Things Big Things Grow: The Clontarf Foundation Program for Aboriginal Boys

McFarlan, F. Warren, and Michael R. Vitale

August 2009

This case focuses on the growth of an innovative non-profit institution that motivates aboriginal children to attend school by harnessing their love of football.

Philips versus Matsushita: Competing Strategic and Organizational Choices

Bartlett, Christopher A
July 2009

Traces the evolving competition between two major multinationals over 40 years. Different strategic postures are reflected-and embedded-in different organizational postures. In 2009 the CEOs of both companies face new global strategic and organizational choices.

Australia: The Riches and Challenges of Commodities

Alfaro, Laura, and Renee Kim
July 2009

Australia's Prime Minister Kevin Rudd faced a daunting task that he never imagined he would have to face when he was elected two years ago. Australia at that time was poised to enter its 17th year of uninterrupted growth. Commodity exports were booming, largely driven by China's insatiable appetite for raw materials. Then the global financial crisis erupted in 2008, brewing challenges for the world's biggest exporter of coal and iron ore. Prime Minister Rudd pushed for massive stimulus packages to revive domestic consumption and demand. Yet as an economy heavily dependent on trade, tumbling commodity prices brewed difficult times for Australia's trade deficit and its persistent large current account deficit. What was in hold for Australia's deficit, which had been in the red all but four years since 1950? In addition, how should policymakers address the intense concerns regarding China's growing interest in Australia's prized natural resources sector?

Tokyo Electron Ltd.

Shih, Willy and> Andrew King
July 2009

Tokyo Electron Ltd. operates in a constrained innovation environment, defined by modular boundaries that are long standing in the industry that it serves, the global semiconductor manufacturing industry. While the original motivation for these boundaries was division of labor and partitioning of a complex problem into manageable pieces, the company is now faced with a new innovation that crosses these boundaries and offers the opportunity to significantly improve the yield and performance of the manufacturing process. While the technical solution is straightforward, it is not clear that the company's customers are prepared to accept such a change because it would cross organizational lines that manufacturers have established for control purposes. The case frames the technical question and poses the organizational question.

Geographical Indications: I Say 'Kalamata,' the EU Says 'Black Olive' (A)

Pozen, Robert C., and Ani Satchcroft
July 2009

In April 2005, Alexandra was the owner of an Australian farm that produced olives, including Kalamata table olives. Alexandra had invested in the expansion of her farm in anticipation of the evolution of her market from domestic trade in Australia to international export. There was, however, a disruptive dispute before a WTO tribunal between Australia and the EU regarding the protection of Geographical Indications (GIs), which identify a product's origins and are treated as trademarks in some respects by international trade rules. Though Alexandra prepared her Kalamata olives in the traditional Kalamata technique, her use of the regionally specific name was threatened by the intellectual property rights provided by GIs. The case focuses on what should be the legal outcome of the WTO dispute, as well as possible business strategies by Alexandra in the event of an adverse outcome to Australia.

Geographical Indications: I Say 'Kalamata,' the EU Says 'Black Olive' (B)

Pozen, Robert C., and Ani Satchcroft
July 2009

Supplements the (A) case

HTC Corp. in 2009

Yoffie, David B., and Renee Kim
July 2009

Taiwan-based HTC Corp. had emerged as the world's fourth largest smartphone manufacturer by 2009. CEO Peter Chou was extremely proud of the remarkable achievements his company had made over the last 12 years since starting off as an unknown manufacturer of PDAs for other companies. Yet Chou faced several decisions in order to move his company forward. Competition for high-end, sophisticated mobile devices was intensifying as HTC faced big name players such as Nokia, Apple, and Samsung Electronics. Many companies were offering their own application stores. What did HTC have to do to become a more powerful global brand? Where should HTC participate in the value chain in one of the most exciting, innovative product categories in the technology world?

China Rising: An Economic Snapshot

Abrami, Regina, and Weiqi Zhang
May 2009

China Rising: An Economic Snapshot provides readers with an overview of China's economic transformation, relying on economic data from a variety of sources. It is organized into three sections: (1) "The Big Picture" explores macroeconomic indicators, as well as those associated with the opportunities and constraints of the business environment; (2) "Regional Variation" makes a strong case for situating any analysis of China's economy in context; and finally (3) "China and the Global Economy" shows how China's engagement with the global economy has changed over time. These materials should be of interest to observers and participants of Chinese business and as a means to consider the bigger picture shaping the environment in which they must operate. In addition, they may be used as a basis for class discussion and lecture or as a complement to cases focused on companies doing business in China.

Appellation Shanxi: Grace Vineyard

Kirby, William C., Michael Shih-ta Chen, and Keith Chi-ho Wong
May 2009

Grace Vineyard was a rare family-owned, private winery in China that was set on establishing itself as a world-renowned, quality vintner. Judy Leissner, the second-generation company leader, was at a crossroads in how she wanted to grow the business that her father founded in 1997. Their wines were rapidly growing a strong following and had won international awards. How could the company capitalize on this success? Should Grace expand its operations to multiple Chinese provinces? Should Grace continue as a premium boutique winery serving a growing but ultimately limited niche market in China, or should it seek to make a mark internationally? Or should Grace respond to buy-out offers?

Note: Restructuring Distressed Companies-Cross National Comparisons

Fruhan, William E. Jr.
May 2009

This note briefly describes bankruptcy regimes and out-of-court restructuring in five countries: the U.S., the U.K., Germany, France, and Japan.

Sanctuary Soft, Inc.

Groysberg, Boris, Geoff Eckman Marietta, Tim Marshal, and Adam Hartley
May 2009

A U.S.-based security software company considers its options to expand. Different labor-market and labor-law situations are analyzed for the U.S., U.K., Germany, China, and India.

Xi'an International University: The Growth of Private Universities in China

Kirby, William C., Michael Shih-Ta Chen, Keith Chi-ho Wong, and Tracy Yuen Manty
May 2009

Huang Teng founded Xi'an International University (XAIU) as a private institute of higher education in 1992. Throughout its ensuing years, the school filled a niche and met the demand of students who did not test into one of China's public institutions. In 2008, it was seeking to grow by aggressively pursuing opportunities in other provinces and municipalities. Huang's plan was to franchise his university throughout China. However, in pursuing this strategy in Beijing, Shanghai, and Guangzhou, China's largest cities, Huang was not receiving warm responses. Local officials feared XAIU would jeopardize the survival of locally run private universities, and competition among private universities was heating up as institutions from the United Kingdom and Hong Kong partnered with public universities to form joint-ventured "independent colleges." Buoyed by the success of XAIU, Huang was confident that despite these setbacks, his franchise model would work. But was an alternative plan of expanding into second- or third-tier cities compromising too much of the groundwork that had already been laid, would it jeopardize XAIU's funding opportunities, and finally, would it hurt the academic quality and integrity XAIU had built up at home?

From xiaonei to hainei: The Quest for the Social Networking Service Market in China

Lassiter, Joseph B., Michael Shih-Ta Chen, and Keith Chi-Ho Wong
May 2009

Wang Xing, the founder of Hainei.com, one of the fastest growing social networking service (SNS) providers in China, was preparing to raise funds from venture capitalists. Since late 2003, Wang had established several Internet startups in China. Xiaonei.com, which he founded in December 2005, had been the most notable in China and around the globe for its resemblance in website design and marketing strategies to those of Facebook. The market landscape of SNSs in China had changed drastically since Wang founded Xiaonei.com, with domestic and local competitors flocking into the market. With all his experience and knowledge in the SNS market, Wang had to convince the potential investors that his new venture could warrant sustainable growth and profitable returns.

China's Energy Industry

McFarlan, F. Warren, George Baroutas, and Tracy Yuen Manty
May 2009

China is ranked the world's second-largest consumer of energy. This note provides background on China's energy industry and provides details on China's leading state-owned energy companies, production and consumption statistics, and government policies in support of the industry domestically and internationally. In addition, we provide details on the leading sources of energy in China as well as information on the rise of alternative energy.

Yataro Iwasaki: Founding Mitsubishi (A)

Jones, Geoffrey G., Masako Egawa and Mayuka Yamazaki
May 2009

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

Yataro Iwasaki: Founding Mitsubishi (B)

Jones, Geoffrey G., Masako Egawa and Mayuka Yakazaki
May 2009

This brief (B) case documents the fate of Mitsubishi and the shipping company NYK after the death of Yataro Iwasaki in 1885. The case supplements case 808-158, "Yataro Iwaski: Founding Mitsubishi (A)."

CalPERS' Emerging Equity Markets Principles

Eccles, Robert G., Aldo Sesia, Jr.
May 2009

The California Public Employees' Retirement System (CaIPERS)-the largest public pension fund in the U.S.-had adopted a new principles-based approach to investing in emerging market equities in November 2007. Previously, CalPERS internal and external money managers were prohibited from investing in certain developing countries because the countries failed to meet certain standards for political stability, human rights, market regulation, etc. The new principles-based approach would allow CalPERS money managers to invest in companies that were financially attractive and competitively positioned provided their business practices were sound from an environmental, social, and governance (ESG) perspective regardless of where they were located. By allowing investment in these types of companies regardless of where they operated, CalPERS had hoped to improve its investment returns. The case is set in January 2009, a little more than a year from the time the principles-based approach had been adopted. It is a good time to review the implementation process and how the new principles-based approach changed CaIPERS' emerging market equities portfolios and their returns. The case focuses on one of CalPERS' external fund managers, Dimensional Fund Advisors (DFA), and a service provider to DFA and CalPERS, KLD Research & Analytics. One question facing CalPERS with this new approach is whether to invest in PetroChina, which had been off-limits previously due to the screening criteria that were used to identify which countries qualified for emerging markets investments. The case also raises the issue of the difference between "value" and "values" investing and the future importance of ESG investing.

Arcadia Biosciences: Seeds of Change

Daemmrich, Arthur A., Forest Reinhardt, Mary Shelman
May 2009

Arcadia Biosciences is an entrepreneurial California agricultural biotech company seeking to earn carbon credits by modifying commodity crops for use in China and India. Eric Rey, Arcadia's CEO, faced a strategic inflection point in early September 2008. The company had a plan to share carbon credits allocated by the United Nations Clean Development Mechanism Executive Board to China, for use of Arcadia's rice varieties, since they enabled farmers to reduce nitrogen fertilizer use, in turn lowering greenhouse gas emissions. But the company's proprietary traits for nitrogen use efficiency, salt tolerance, and water use efficiency also had more conventional paths to market based on licensing deals to large seed companies. Alternatively, Arcadia could acquire a seed company and develop and market its seed directly. A different near-term growth area involved commercializing enriched safflower oil, which had undergone several proof-of-concept tests and for which Rey foresaw a clear market in nutritional supplements and functional foods. The case provides context on the company; describes advances in crops genetics focused to climate change and associated resource issues of fertilizer use, water use, and soil salinity; and poses strategic choices for a start-up company operating at the intersection of business, agriculture, and climate change.

Appellation Shanxi: Grace Vineyard

Kirby, William C., Michael Shih-ta Chen, and Keith Chi-ho Wong
May 2009

Grace Vineyard was a rare family-owned, private winery in China that was set on establishing itself as a world-renowned, quality vintner. Judy Leissner, the second-generation company leader, was at a crossroads in how she wanted to grow the business that her father founded in 1997. Their wines were rapidly growing a strong following and had won international awards. How could the company capitalize on this success? Should Grace expand its operations to multiple Chinese provinces? Should Grace continue as a premium boutique winery serving a growing but ultimately limited niche market in China, or should it seek to make a mark internationally? Or should Grace respond to buy-out offers?

Upgrading the Economy: Industrial Policy and Taiwan's Semiconductor Industry

Shih, Willy, Jyun-Cheng Wang
April 2009

The government-led creation and incubation of the semiconductor industry in Taiwan is a striking success for advocates of strong industrial policy. It has led to the island nation's domination of the global "foundry" business in which firms like Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) manufacture the designs of "fabless" design companies. The two have a combined global market share of close to 70% of this global business segment. This success was all the more striking because when the initiative began, the country had few of the large-scale firms that could support the R&D and scale necessary to enter such sophisticated capital-intensive industries. There were no firms with the deep technological roots or the skill base to even begin. Yet government planners recognized the challenges of upgrading the nation's technology base and formulated a strategy that entailed the creation of "pilot agencies" that would serve as vehicles to bridge between sources of leading-edge technology (predominantly sourced from overseas) and the commercialization to be carried out by local firms.

Tokyo AFM

Brochet, Francois
April 2009

This case was written as the financial accounting portion of the final exam for a first-year MBA course at Harvard Business School. The goal was to test students' ability to apply major concepts taught during the course to an industry which they had not covered, but which shared similarities in terms of economics with issues addressed in the curriculum. The company, Tokyo Auto Fire & Marine (hereafter Tokyo AFM), is a fictitious insurance company based in Japan. The new CEO is revisiting the accounting choices of his predecessors in light of changes in the economic environment of the firm. The case can also be taught as a review session.

Cherrypicks

Kerr, William
April 2009

Cherrypicks is a Hong Kong communications start-up approaching a large Korean mobile operator for a partnership to take the operator's products to markets outside of Korea. SK Telecom's (SKT) Ring Back Tones (RBT) product is a spectacular success in South Korea, but the partnership will require major changes in Cherrypick's business model. Further complicating matters, SKT is also a strategic investor in Cherrypicks, a very large service provider focused on South Korea and China, and typically partners with Korean entrepreneurial firms. The Cherrypicks management team must decide how they should pitch the partnership opportunity to SKT and what their preferred deal structure would be.

Baosteel Group: Governance with Chinese Characteristics

Paine, Lynn S. and G.A. Donovan
April 2009

The new outsider-dominated board of directors of China's state-owned Baosteel Group must decide whether to modify the Group's structure. With the completion of a pending acquisition, the Group will control four publicly listed steel-producing subsidiaries, and board members are concerned about competition among the subsidiaries and about the subsidiaries' public shareholders. Selected by the Chinese government as the first company to take part in a pilot project on corporate governance in state-owned enterprises, Baosteel and its board are under intense scrutiny by Chinese and overseas investors in the listed subsidiaries as well as by China's political leadership and the media. The case provides background on Baosteel, China's SOE reform, the Chinese government's pilot project on corporate governance, and the functioning of Baosteel's newly constituted board of directors.

Chronology of the Asian Financial Crisis

Alfaro, Laura, Rafael M. Di Tella, Renee Kim
April 2009

In July 1997, Thailand became the first Asian "tiger" economy to abandon its fixed exchange rate system in response to speculative attacks on its currency. Investors started to flee Asia, and the crisis rapidly spread to other countries. Central banks spent billions of dollars to try and defend their currencies, only to seek emergency bailouts from the International Monetary Fund. This case presents a chronology of events that unraveled during the Asian financial crisis from 1997 to the end of 1998.

Financial Management of Family and Closely Held Firms: Overview of the Course

Villalonga, Belen
April 2009

Most companies around the world are controlled by their founding families, including more than half of all public corporations in the U.S. and Europe and more than two thirds of those in Asia. These companies are the subject of the Financial Management of Family and Closely Held Firms course, an elective MBA course at Harvard Business School. The course introduces students to the unique finance, governance, and management issues faced by family firms and to the ways in which these issues can be addressed. The course provides students with a framework for analyzing how family ownership, control, and management affect value and whether and how more value can be created for the various stakeholders in family firms. The course is designed for students who may be involved with these companies in a variety of roles, including those of founders, shareholders, or managers of their own family's firm, as well as those of non-family managers and employees, investors or business partners (e.g., private equity investors), and advisors of various kinds (e.g., investment bankers, board members, or consultants).

Yahoo! in China (A)

Sucher, Sandra J., Daniel Baer
April 2009

In 2007 Jerry Yang, CEO of Yahoo!, was lambasted by U.S. Representative Tom Lantos, chairman of the U.S. House Committee on Foreign Affairs, for Yahoo's role in the arrest and imprisonment of Chinese journalist and democracy advocate Shi Tao. The case describes the actions that Yahoo! had taken to grow its business in China, its handling of a government request for the identity of a Yahoo! user, and subsequent actions by the firm to respond to negative publicity and congressional inquiry. The case raises broad questions about the challenge of complying with domestic law when operating in states that do not consistently respect human rights, and satisfying stakeholders across national boundaries. It allows students to consider the practical steps that a firm can take to protect itself and its stakeholders in states where the law is not always a reliable safeguard.

Yahoo! in China (B)

Sucher, Sandra J., Baer, Daniel
April 2009

Describes the actions that Jerry Yang took to manage the aftermath of the Shi Tao incident following the 2007 Congressional hearing.

Powerchip Semiconductor Corporation

Shih, Willy C., Chen-Fu Chien, Venkat Kuppuswamy, Yen-Liang Koai
April 2009

Powerchip Semiconductor Corporation has a horizontal firm structure in an industry that is predominantly organized vertically. While it has been successful in up markets, in the current down market its strategic rationale was being tested. As a capital-intensive manufacturer of DRAMs that had to license its designs from abroad, was it able to compete with large vertically integrated firms that controlled the whole value chain? How did its approach compare to that of its partner Elpida? Can Powerchip and Elpida together make up a "virtual integrated device manufacturer"? The case examines some of the unique characteristics of the DRAM industry, in which manufacturers employ large scale to compete on cost in the production of standardized commodities.

JWT China: Advertising for the New Chinese Consumer

Koll, Elisabeth
April 2009

This case analyzes the business strategy and expansion of JWT China from the late 1990s to 2008. As part of the world's fourth largest marketing communications network, JWT China grew into one of the largest integrated communications companies in China operating from offices in various parts of the country. The case provides students with a comprehensive history of and insights into China's advertising industry and the challenges for foreign and domestic firms operating within a highly regulated media environment controlled by the Chinese government. At the same time, this case offers insights into the structure of the highly fragmented Chinese consumers market, exploring the socio-economic disparities in income and media access as well as culturally determined consumer behavior across different regions and urban and rural areas. The case lets students explore how these trends might impact JWT's advertising and marketing strategies in the future and how to evaluate JWT's business expansion in China dealing with local and foreign competition.

Aderans

Greenwood, Robin, Rakesh Khurana, Masako Egawa
April 2009

Steel Partners is a U.S.-based hedge fund that has made a large investment in Japan-based wigmaker Aderans. The case is set at the close of the annual meeting in May 2008, when shareholders have voted against all incumbent board members. Steel Partners must act quickly. The case serves as an overview of corporate governance issues in Japan, as well as describing the costs and benefits of the "stakeholder" view of corporate governance.

Kinyuseisaku: Monetary Policy in Japan (B)

Alfaro, Laura, Akiko Kanno
April 2009

Toshihiko Fukui, who works for the Government of the Bank of Japan, faced a complex situation in the fall of 2007. An economic recovery had allowed the central bank to abandon its zero interest rate policy, which had been in place for years, and raise rates to 0.5%. The Bank of Japan was eager to increase them to more "normal" levels to exert effective monetary policy. Yet the appropriate timing and approach was a controversial issue, especially as the government did not want a rate hike that could potentially hinder economic growth and increase its already large fiscal debt burden.

Shanghai Diligence Law Firm

Eccles, Robert G., and Catherine Zhang
March 2009

Shanghai Diligence Law Firm, started in January 2006, is a rapidly growing law firm in China's burgeoning legal services market. In addition to the usual challenges facing all professional service firms (picking and retaining talent and building a desired client portfolio), the firm faces some challenges and opportunities that are unique to its setting in China and the fact that the firm is not yet three years old. The legal profession in China is a new and rapidly growing one with a large number of small firms all trying to carve out a distinctive niche for themselves. One of the partners in the firm, Joseph Shang, has created an innovative compensation system he calls the "A-B-C-D Model" which enables even the most junior associates to earn compensation for bringing in new business. This model is a kind of hybrid between the typical compensation system found in a Chinese law firm and those found in UK and U.S. law firms. The goal of this approach to compensation is to enable the firm to get and keep promising lawyers while also giving them an incentive to help grow the business. Somewhat unusual for a typical law firm, or any type of professional service firm, this compensation model is only used in Shang's practice. The founder and CEO, Chenyao Wu, has his own version of an "A-B-C-D Model," and discussions are taking place about what the firm should be doing about compensation. In addition to compensation, the firm is grappling with issues regarding divergent views amongst the partners, building a brand in a very competitive marketplace, and the stability of the core team. Finally, the firm has been presented with an opportunity to join two other firms in a three-way merger and the partners are debating the risks and opportunities in going forward with this.

Solvay Group: International Mobility and Managing Expatriates

Groysberg, Boris, Nitin Nohria, and Kerry Herman
March 2009

Marcel Lorent, head of International Mobility at Brussels-based Solvay Group, faces decisions on the expatriation status of four of his firm's talented executives. Each decision will impact the candidate's professional and personal life and will have implications for effective management and growth in Solvay's global markets. The case explores these issues, with a close look at Solvay's attempts to develop talent management and mobility processes that allow the firm to align its strategic needs with the complexities of its individual employees' needs and lives.

Lawrence Trinh: Venturing to Vietnam

Margolis, Joshua D., and Rachel Gordon
March 2009

Should Lawrence Trinh pursue his aspiration of working in Vietnam-and if so, what set of principles and practices should he adopt if he encounters corruption? These are questions that reverberate for many students who wish to work in emerging markets and other contexts that pose stiff ethical challenges. Trinh seeks to combine his background in financial services with his desire to contribute to Vietnam's economic development, and he has to decide among four job offers with investment firms. But it is a complicated decision. First, none of the job offers fit his selection criteria perfectly. Second, despite growing reforms, Vietnam is still ranked poorly on indices of corruption. Third, Trinh's father (who fled Vietnam following the war) frowns upon doing anything that could contribute to the communist regime. Fourth, Trinh's girlfriend is about to start her next stage of medical training in the United States, which means that pursuing his aspiration now will separate them. All of these considerations raise three questions: (1) Is the timing right for Trinh to embark on his personal mission of contributing to the well-being of Vietnam? (2) Which job offer should he accept? (3) What set of principles and practices should he adopt that will enable him to remain true to his values and sustain his capacity to be a true agent of change, yet not undermine his ability to succeed as an investor?

Political and Economic History of the People's Republic of China: An Annotated Timeline

Abrami, Regina, William C. Kirby, Elisabeth Köll, and F. Warren McFarlan
March 2009

Brief political, economic, and social timeline of China from 1949 to present to give context on and provide overview of modern Chinese history.

Alibaba's Taobao (A)

Oberholzer-Gee, Felix and Julie Wulf
March 2009

Examines the decision of Alibaba Group to diversify from an international business-to-business (B2B) exchange (Alibaba.com) into a B2C and C2C exchange (Taobao.com) for Chinese retailers and consumers. In China, Taobao had managed to displace the once dominant eBay, the world's largest consumer marketplace. However, the company had little revenue because it offered services free of charge.

Alibaba's Taobao (B)

Oberholzer-Gee, Felix and Julie Wulf
March 2009

Examines the decision of Alibaba Group to diversify from an international business-to-business (B2B) exchange (Alibaba.com) into a B2C and C2C exchange (Taobao.com) for Chinese retailers and consumers. In China, Taobao had managed to displace the once dominant eBay, the world's largest consumer marketplace. However, the company had little revenue because it offered services free of charge.

Daewoo Shipbuilding and Marine Engineering

Upton, David M., and Bowon Kim
March 2009

Explores the journey of aggressive learning and capability building in the operations of a major Korean shipbuilder. While Daewoo Shipbuilding and Marine Engineering (DSHM) had once used its superior learning capability to topple its Japanese competition, it now faced the potential for a similar attack from new Chinese competitors. Without outsourcing some of its work to China, DSHM would become uncompetitive. However, in outsourcing the work, some skills would necessarily have to be transferred, potentially teaching the future competition and providing them with a platform to attack DSHM's core markets.

Responding to the Wii?

Hagiu, Andrei, and Hanna Halaburda
February 2009

After years of gaming console industry leadership, how should Sony respond to the overwhelming success of competitor Nintendo's user-friendly Wii over Sony's high-tech PlayStation 3? It was August 2008 and Kazuo Hirai, chief executive of Sony Computer Entertainment Inc. (SCEI), was contemplating questions from reporters about how Sony planned to respond to Nintendo's Wii console, which was dramatically leading Sony's PlayStation 3 and Microsoft's Xbox 360 consoles in sales. The Wii's supremacy was especially disconcerting to Hirai, given that Sony had dominated the video game industry, and largely defined its course, since 1995. But the tables had turned dramatically in the current generation. Though the Wii was technologically much less advanced than PS3 and Xbox 360, the Wii's ease of use, innovative motion-sensitive controller, and simple but fun games had made the console a hit with all demographics: 9 to 65 years old, male and female. As a result, Nintendo had stolen a march on its two larger rivals by appealing to people who were traditionally not avid video game users. Microsoft's and Sony's more powerful machines remained targeted at the traditional "core gamer" audience: 18 to 34 year old males. Hirai was determined to restore that supremacy, in the current generation or the next. He knew that, whether or not he publicly defined SCEI's strategy as a response to Wii, he had to find a way for his company to deal with the new order of the video game industry that Nintendo had created. In seeking to do so, Hirai might find guidance in the history of the industry, which had been marked by rapid and frequent changes of fortune.

Semiconductor Manufacturing International Corporation: 'Reverse BOT'

Shih, Willy
February 2009

Semiconductor Manufacturing International Corporation (SMIC) is executing a strategy that leverages the desires of municipalities in China to build clusters of high technology companies. By partnering with those cities to build new semiconductor fabs that SMIC would then operate under contract, the company could build scale without necessarily confronting immediate large capital outlays. Unlike the Build-Operate-Transfer model that some municipalities were using to build infrastructure like the new subway in Shenzhen, in the SMIC "Reverse BOT model" a municipality would build a capital-intensive fab and SMIC would operate it, sharply lowering its capital costs. This model gave the company a unique level of flexibility in an industry where capital costs were the major driver of product costs.

Columbus Tubing: Steel Is Real

Snow, Daniel C., Gary P. Pisano, Elena Corsi, and Gudrun Urfalino Kristinsdottir.
February 2009

Columbus Tubing must choose to improve an old technology (steel) or to develop a new material (carbon fiber). The decision must take into account a complicated context: increased demand for the "old" steel products made in Italy, increasing power of carbon fiber manufacturing partners in Asia, growing wage rates in Asia, and high wage rates in Italy. Two plans have been presented to the CEO, Antonio Colombo. The first is to push development of all of the company's technologies, perhaps even seeking new markets for them. The second is to rationalize operations and to redirect R&D resources to marketing of stylish, lower-tech bicycles. The company's future hangs in the balance.

The Restructuring of Daiei

Ruback, Richard S
February 2009

In 2004, the Industrial Revitalization Corporation of Japan (IRCJ) was given the task of restructuring Daiei, one of the largest Japanese retailers and the country's most prominent zombie companies. The IRCJ was a government-sponsored organization that was funded with 50 billion yen in equity capital and 10 trillion yen of government-guaranteed funds. Daiei presented the IRCJ with a unique opportunity to demonstrate the effectiveness of its restructuring strategy which would require a significant write-down of Daiei's bank debts, substantial store closures and workforce reductions, and sufficient new private equity capital to help reposition and revitalize Daiei's retail operations. Overcoming these hurdles in a large and visible company like Daiei would be an important accomplishment for the IRCJ. But, failure, too, would have far reaching consequences.

Yoshiko Shinohara and Tempstaff

Mayo, Anthony J., Masako Egawa, and Mayuka Yamazaki
February 2009

The case presents a biographical portrait of Yoshiko Shinohara who founded Tempstaff in 1973, one of the largest temporary staffing agencies in Japan. In addition to chronicling Shinohara's entrepreneurial activities, the case provides contextual background about the role of women in business in Japan in the last few decades of the 20th century.

The Dojima Rice Market and the Origins of Futures Trading

Moss, David A., and Eugene Kintgen
February 2009

In 1730, Japanese merchants petitioned shogun Tokugawa Yoshimune to officially authorize trade in rice futures at the Dojima Exchange, the world's first organized (but unsanctioned) futures market. For many years, the Japanese government had prohibited the trade of futures bills because it was widely regarded as a form of gambling that caused rice prices to rise. However, when the price of rice fell to record lows in the late 1720s, the samurai (whose income was tied to the value of rice) saw their economic position fall relative to the merchant class, whose growing economic power worried the nation's elites. The shogun responded by easing restrictions on futures trading, but without officially sanctioning a futures market at Dojima. The question now was whether he should heed the merchants' petition and take the next step.

Sydney IVF: Stem Cell Research

Simons, Robert L., Kathryn Rosenberg, and Natalie Kindred
February 2009

This case examines the strategy implementation and risk management decisions at Sydney IVF, a research-based in vitro fertilization and stem cell company based in Australia. Drs. Robert Jansen and Jock Anderson, who co-founded Sydney IVF in 1986, developed novel technologies which they leveraged to carve a leadership role in the inherently risky artificial fertilization business. As the company grew, its executives grappled with managing the political, ethical, and business risks associated with the contentious lab-based fertility field, instituting sophisticated safeguards such as an independent ethics committee and a "whistle blower" system for employees concerned with the company's practices. In less than two decades, Sydney IVF grew from just four employees to over 200, expanded internationally, and broadened its services to include prenatal screening for genetic diseases and DNA tests to determine lineage and paternity. In addition, the company launched a wholly-owned subsidiary, the Stem Cell Company. CEO Robert Jansen hoped to grow the Stem Cell Company but faced many challenges, including the significant ethical risks, challenging regulatory environment, and uncertain future of the stem cell field. The case describes how Jansen safeguards against risk without stifling the innovative spirit necessary to commercialize stem cells.

Olam International

Bell, David E., and Mary Shelman
January 2009

In 20 years, Sunny Verghese had built Singapore-based Olam International from a small Nigerian export company into a $5 billion global leader in agricultural commodities with a core competence in Africa. Olam's growth had come by pursuing product and geographic adjacencies, and its "farm gate to factory gate" approach had been extended to 14 agricultural products, including cashews, sesame, cocoa, and coffee. In mid-October 2008, Olam's stock price declined to $1 a share from a high of $3.71 in early 2007 as part of the global economic crisis. Verghese had to decide whether to change the firm's strategy based on the new economic environment.

Consumer Lending in Japan: Citi CFJ (A)

Trumbull, J. Gunnar, and Akiko Kanno
January 2009

Despite a tradition of high household savings, Japan has supported a dynamic and technically sophisticated consumer-lending sector. The high profitability of the sector has periodically attracted interest from domestic banks as well as international investors. Most recently, in 1998 and 2000 respectively, GE Capital and Citi Financial both acquired Japanese consumer-lending companies. In 2006, when the Japanese Supreme Court rules that one of the big Japanese consumer lenders must repay a borrower for "excess interest payments," the U.S. firms must decide how to respond.

Omron: Sensing Society

Kanter, Rosabeth Moss, and Ethan S. Bernstein
January 2009

Leading profitable growth is only part of the goal. We cannot live without breathing, but we do not live in order to take a breath, said Omron's President and CEO, Hisao Sakuta, in 2008. Omron, a $7 billion global supplier of sensors, control system components, advanced electronics, and related services, had thrived on its ability to spot social needs and innovate. By May 10, 2008 (Omron's 75th Anniversary), Sakuta had led Omron out of a difficult time and into six years of consistently strong results, on the foundation of Omron's unique, socially-focused values: "At work for a better life, a better world for all." His goal now was "continuing to lead profitable, globally-distributed growth" in spite of major shifts in Omron's markets: from components to systems; from products to solutions; from standardized to 'mass customized' products; from longer-cycle to shorter-cycle technologies; from home country-dominated innovation to distributed innovation mediated by the center; and from 'quality' meaning producing a quality input for the next step of the value chain to being held responsible for the quality of the final product (end-to-end responsibility). In each case, management believed customers no longer felt that they were just buying a product. Rather, they were buying expectations of Omron's commitment to solving their problems. In part, they were buying Omron's philosophy. And, Sakuta reflected, "As the company grows larger with a larger number of employees on a global scale, people tend to have more tenuous recognition of who Omron is or why Omron exists." On Omron's 75th anniversary, Sakuta celebrated Omron's past but also recognized that successfully addressing Omron's next challenges involved a further journey along Omron's current path of change. How could Omron maintain the core principles of the past while making them applicable to the global present and borderless future?

Note on Medical Travel

Herzlinger, Regina E., and Sara Green
January 2009

Background notes for MedVal and Fortis case studies.

Cola Wars: Going Global

Cespedes, Frank V
January 2009

This case is meant to be used in conjunction with the extant "Cola Wars" case studies. It outlines the global positions of Pepsi and Coca-Cola as of 2008 in the soft drink market, and then provides an overview of their competitive situations in three markets: Mexico, China, and India. The case raises the issue of whether any or all of these markets are a) structurally attractive for soft drink firms, and b) if so, how can Pepsi best "catch-up" with Coca-Cola in a given market.

The Globalization of East Asian Pop Music

Siegel, Jordan, and Yi Kwan Chu
January 2009

This case on the globalization of East Asian pop music is useful for teaching concepts of regional business strategy and also of cultural arbitrage. Music companies in the case must examine why certain markets are clearly more profitable than others. They must also decide whether to expand internationally with a regional focus on East Asia or, alternatively, a focus on the U.S. and other Western markets.

HNA Group: Moving China's Air Transport Industry in a New Direction

Kirby, William C., F. Warren McFarlan, and Tracy Yuen Manty
January 2009

HNA Group, the parent company of Hainan Airlines, was positioning itself to go global and make a mark for itself as the largest private airline in China. Positioned squarely behind the "Big Three" state-owned carriers, Hainan Airlines sought to create a world-class business. Following modern management practices, keeping sharp attention to cost control and capital operations, making aggressive entries into international markets, and maintaining a special corporate culture, Chairman Chen Feng was confident these factors were the engine that would drive HNA's continued growth.

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2008

Cyworld: Creating and Capturing Value in a Social Network

Gupta, Sunil, and Sangman Han
December 2008

In May 2008, the new CEO of Cyworld, a social network company in Korea, had to decide how to create and capture value from his rapidly growing user base. Cyworld was founded in 1999, and in 2003 it was acquired by SK Telecom, a leading mobile service provider in Korea. By 2007, Cyworld had 21 million users and $95 million revenue-$65 million from paid items (music, virtual gifts, etc.), $15 million from mobile networking, and $15 million from advertising. The new CEO had to decide which of these three revenue sources he should focus on in the future and how this choice would influence the target customers, the service offerings, and the required capabilities.

Malaysia Airlines (A)

El-Hage, Nabil N., and Leslie S. Pierson
December 2008

In the first six weeks on the job, the new CEO of Malaysia Airlines (MAS) has developed an ambitious turnaround plan, including aggressive job cuts and route eliminations, but MAS's largest shareholder, Khazanah Nacional, the sovereign wealth fund, is tasked with helping to grow the Malaysian economy. Should Khazanah encourage job and route cuts at MAS, and how would the government react to them? Moreover, should MAS's new CEO pre-announce publicly his intentions?

Malaysia Airlines (B)

El-Hage, Nabil N., and Leslie S. Pierson
December 2008

Supplements the (A) case

The Hong Kong & China Gas Company Ltd.: Negotiating Joint Ventures in China

Sebenius, James K., Michael Shih-ta Chen, and Medha Samant
December 2008

To deliver 5-6 major new Chinese joint ventures annually, Hong Kong China Gas executives began extracting cross-border negotiating lessons from their 80 existing Chinese JVs. Chairman Alfred Chan and CEO Peter Wong knew that HKGC's growth strategy required significant mainland expansion through negotiating joint ventures to run gas and water distribution systems in diverse urban and rural locations throughout mainland China-often in the face of entrenched local interests who could have blocking power. Discussions with HKGC's negotiation teams revealed an increasingly sophisticated negotiating approach from target identification and party mapping, to "social mapping" and building guanxi, to creative deal design and tactics, in order to most effectively work out issues of equity, management control, territory, and exclusivity.

International Enforcement of U.S. Patents

Pozen, Robert C., and Jordan Hirsch
December 2008

A company that owns a U.S. patent can enforce its patent protections in three ways: by filing a lawsuit in U.S. federal district court, by bringing action in the International Trade Commission, or through the World Trade Organization. This note discusses the pros and cons of pursuing either of the latter two avenues for recourse.

The Chubb Corporation in China

Jin, Li, Michael Shih-ta Chen, and Aldo Sesia Jr
December 2008

The Chubb Corporation, headquartered in the U.S., was the holding company for a number of property and casualty insurance companies which operated in 29 countries. In 1979, the Chinese government, as part of its "reform and open" policy invited a delegation of Chubb executives to discuss insurance issues. In the mid-1990s, Chubb opened representative offices in Beijing, Shanghai, and Shenzhen to do market research and assess the potential of the Chinese insurance market. In 2000, China authorized Chubb (one of only three foreign insurers) to sell insurance in the country. During the next five years China's non-life insurance industry grew from $8.3 billion in 2001 to $15.9 billion in 2005. Yet in 2007, domestic insurers continued to dominate market share and, Chubb had not realized the profits it had anticipated. The case provides an overview of property and casualty insurance, the Chinese insurance market and the challenges that foreign-based insurers have in entering an emerging market. Students are asked to decide what Chubb's China strategy should be moving forward.

China's Evolving Labor Laws (A)

Paine, Lynn S.
December 2008

The (A) case describes key provisions of the new labor contract law proposed by China's National People's Congress in 2006. The case invites students to consider how domestic and multinational companies should respond to the Chinese government's invitation to comment on the proposal. The case also describes the impetus for the new legislation and initial reaction to the draft by key business groups, legal scholars, and others.

China's Evolving Labor Laws (B)

Paine, Lynn S., and Aldo Sesia Jr.
December 2008

The (B) case describes how the various business groups responded to the Chinese government's invitation to submit comments on its draft labor contract law and details the ensuing global controversy. The (B) case also describes changes made to the working draft and provides an overview of the law as finally enacted in June 2007.

China's Financial Markets: 2007

Jin, Li, and Bingxing Huo
December 2008

Provides an overview of capital markets in mainland China in 2007, evaluating the up-to-date performance of key components of the markets, highlighting concerns as China strives to modernize its financial system to meet global competition and support its fast growing economy.

ASUSTek Computer Inc. Eee PC (A)

Shih, Willy, Chintay Shih, Hung-Chang Chiu, Yi-Ching Hsieh, and Ho Howard Yu
December 2008

ASUSTek Computer was the world's largest manufacture of PC motherboards, yet when it tried to launch its new sub-notebook Eee PC, the organization faced challenges in doing things outside of its established processes. Though many of the team members had worked together for years, they had to find new ways of working as they tried to launch the new mobile Internet device category without undermining its existing notebook PC business.

ASUSTek Computer Inc. Eee PC (B)

Shih, Willy and Ho Howard Yu
December 2008

Supplements the (A) case

Consumer Payment Systems-Japan

Edelman, Benjamin, and Andrei Hagiu
November 2008

In 2008, the Japanese consumer payments landscape featured ongoing widespread use of cash, limited use of credit cards and rapid rise of e-money systems based on contactless technology embedded in cards and especially mobile phones. The case details the alliances that created new products, as well as the regulations that sometimes stood in the way. Throughout, the case identifies incentives for both consumers and merchants, including direct costs, efficiency benefits, rebates, and treatment in case of loss or fraud.

Chi Mei Optoelectronics

Shih, Willy, Chintay Shih, Jyun-Cheng Wang, and Ho Howard Yu
October 2008

Chi Mei is a Taiwanese industrial group that makes a major diversification into the technology intensive TFT-LCD flat panel display industry. Because the diversification is far away from its core competence in petrochemicals, it is an opportunity to examine how the firm was able to become a global leader in the relatively short span of ten years. Such organic diversifications are relatively unusual by Western standards, especially into technologies and markets that have relatively high entry barriers and where there is no deep-rooted national technological or scientific foundation. As such Chi Mei is an interesting vehicle to examine the rise of a major Asian industrial cluster with global scope which has no participants or competitors in the West. The case can also be used to expose students to the global supply chain for key information technology components. Taiwan and Korea are today the major world centers for the manufacture of semiconductors (in particular DRAMs and FLASH memory) and flat panel displays. Taiwan is also the center for notebook computer manufacturing, and Taiwanese companies, through their China-based manufacturing and assembly operations, drive 60% of the IT exports from China. Yet few students even know the identity of these major global players. Taiwan- and Korea-based TFT-LCD flat panels are the critical components in notebook computers, computer monitors, and flat panel televisions from essentially all well known global brands.

Wyoff and China-LuQuan: Negotiating a Joint Venture (B)

Sebenius, James K., and Jason Cheng Qian
October 2008

Through stalled joint venture talks between Pennsylvania-based Wyoff Corp. and Jinan-based China-LuQuan, strategic and cross-cultural negotiation challenges are explored both from American and Chinese perspectives. Wyoff, a leading U.S. chemical company, has been seeking ways to secure the company's foothold in China's emerging market since the late 90s. When approached by China-LuQuan, a major Chinese state-owned chemical producer, in 2000 for a joint-venture opportunity to make a popular chemical catalyst in China, Wyoff, leveraging its superior technology, demanded one-sided terms and played hardball, ruining both the deal and the relationship with China-LuQuan. Seven years later in 2007, Wyoff faced market pressure to again seek a joint venture with China-LuQuan on two other types of products. Both parties had to overcome past distrust to work things out on a series of strategic issues: investment, product slate, marketing, technology, management organization, staffing, etc. In the negotiations, cross-cultural themes (e.g., trust, relationships, communication, time, autonomy, face, etc.) and different negotiation styles created challenges along with the business and strategic issues. The (A) case sets up the negotiations, highlights issue impasses, explores cross-cultural frictions, and poses tactical challenges. The (B) case describes the strategies, tactics, and results of these negotiations.

Tong Lung Metal Industry Co., Ltd.

Shih, Willy, Chintay Shih, Chen-Fu Chien, Ho Howard Yu, and Yu-Shian Chiang
October 2008

Develop its own branded line, or continue as an original design manufacturer (ODM)? Tung Lung Metal Industries Co. Ltd. is a Taiwanese maker of door lock hardware that is faced with the question of whether to continue to focus on its ODM business or start placing more emphasis on its own brand development and growth in global markets. The case explores the bumpy history of the company and raises questions around the downstream consequences of global outsourcing strategies.

System on a Chip 2008: Ardentec Corporation

Shih, Willy C., Chen-Fu Chien, Chintay Shih, and Ting-Chen Chen.
October 2008

Ardentec Corporation is a specialist in "wafer probing," a highly specialized niche sandwiched between the "front-end" and the "back-end" of semiconductor manufacturing. Because the semiconductor industry uses modular processes and has standard containers for the interchange of work-in-progress, it has evolved to a highly horizontal structure where specialists like Ardentec can carve out unique market opportunities that are less attractive to integrated manufacturers. The company has grown rapidly, but as it starts to occupy a significant percentage of the total available market, its founders are faced with the challenge of how to maintain growth. Do they vertically integrate more into the back-end, or should they try to do acquisitions in adjacent markets? The case is intended to be used in conjunction with the Technical Note, "Horizontal Specialization and Modularity in the Semiconductor Industry" (608-001)

Global Talent Management at Novartis

Siegel, Jordan
September 2008

This case tackles the topic of global talent management. It can be used to analyze the performance measurement, incentive, and talent development system used at a major multinational company. This case can also be used to analyze the extent to which this system should or should not be adapted for China and other emerging economies.

World Wildlife Fund US

Wei-Skillern, Jane, and Kerry Herman
September 2008

World Wildlife Fund US is a leading international conservation nonprofit that operates within a global network of WWF organizations. This case examines WWF US's strategy to achieve its mission of protecting natural wildlife and resources. In contrast to traditional approaches in which WWF country programs operated relatively independently, the new strategy involves integrating WWF US more fully within the global WWF network, and fostering longer-term, trust-based relationships among all partner organizations toward their shared conservation goals. The case highlights the Tesso Nilo conservation project, which brought together various WWF partners to stop illegal logging in Sumatra and revive its wildlife environment to illustrate a network approach within a global multisite nonprofit.

Leading Citigroup (A)

Paine, Lynn Sharp, Aldo Sesia Jr., and Carin-Isabel Knoop
September 2008

The (A) case describes a series of controversial events and alleged misdeeds that placed Citigroup in the public spotlight and launched investigations into the company's business practices by regulators in Japan and Europe in the fall of 2004. CEO Chuck Prince must decide what to do to right the company and restore its reputation.

Leading Citigroup (B)

Paine, Lynn Sharp, Aldo Sesia Jr., and Carin-Isabel Knoop
September 2008

The (B) case describes the actions taken by Citigroup CEO Chuck Prince and his management team to right the company in the wake of the controversies and alleged misdeeds described in the (A) case.

Mattel's Long Hot Summer

Wei-Skillern, Jane, Sonia Marciano, and Barbara Passy
September 2008

In the summer of 2007, Mattel performed three major recalls of toys, mostly due to lead paint and other manufacturing issues in China. This case examines specifically how those recalls were perceived by consumers and responded to by Mattel, as well as what effect they had on the toy industry, consumer safety, and manufacturing in China in general.

mixi

Piskorski, Mikolaj Jan, Masaru Nomura, and Kanako Miyoshi
September 2008

Kasahara, the founder and CEO of mixi, the most successful Japanese on-line social network, is deciding between two strategic options: (i) B2C or (ii) C2C to leverage the power of the social network. In the B2C option, mixi would become a portal for on-line shopping for both digital content and tangible goods and charge the business sellers a fee. In the C2C option, mixi would facilitate exchanges between mixi's members through on-line flea markets or auctions and charge the members for successful transactions. In choosing between the two options he has to consider other upstart networks, particularly in the field of mobile social networking.

Given Imaging Ltd. - First We Take Manhattan, Then We Take Berlin?

Isenberg, Daniel J
August 2008

GI has developed a revolutionary video pill for imaging the small bowel in the gastro-intestinal tract. The development has required the integration of a wide variety of technologies. GI founder and CEO Gabriel Meron must determine GI's marketing strategy and prioritize GI's initial target markets: either the United States, Europe, or Japan, or any combination. He is also faced with the immediate decision if to make offers to U.S. and European regional managers. Cash resources are scarce, and GI hopes to raise additional capital soon.

Carlyle Japan (A)

Godes, David, Masako Egawa, and Mayuka Yamazaki
August 2008

Tamotsu Adachi, Managing Director of Carlyle Japan, wants to formulate a strategy to improve his firm's ability to source high-quality deals at competitive valuations, or prices. Buyout funds like Carlyle typically have two deal phases: sourcing and monitoring. These correspond to (i) "selling" the benefits to a business owner of going with Carlyle as a buyout partner, and then (ii) increasing the value of that business following the buyout. Since the profitability of a buyout depends on finding high-quality deals, the firm has focused to date on leveraging its contacts in the banking business, which has been a powerful institution in Japan for many years. These contacts have brought to Carlyle a number of good quality companies, but the volume of buyouts done by Carlyle in Japan has not been what they hoped it would be. Students are asked how the firm can improve on this deal sourcing approach.

Carlyle Japan (B)

Godes, David, Masako Egawa, and Mayuka Yamazaki
August 2008

Supplements the (A) case

Carlyle Japan (C)

Godes, David, Masako Egawa, and Mayuka Yamazaki
August 2008

Supplements the (A) case

PCCW now

Hagiu, Andrei, and Waishun Lo
August 2008

In 2007, PCCW had to formulate a strategy for growth of its successful NOW TV platform and its quadruple play implementation outside of Hong Kong. Launched in September 2003 by PCCW (Hong Kong's largest telecommunications operator), NOW TV had swiftly become the world's most successful commercial IPTV deployment. By the end of June 2007, the service had an installed subscriber base of almost 820,000 and offered a choice of 143 TV channels, 71 of which were exclusive. However, opportunities for growth were inherently limited to Hong Kong (7 million inhabitants), which meant PCCW had to find ways to expand its NOW platform or seek to license parts of it internationally.

Chunghwa Telecom Co., Ltd. (A)

Marshall, Paul W., Michael Shih-ta Chen, and Keith Chi-ho Wong
August 2008

In late November 2000, Chunghwa Telecom Co., Ltd., the once-monopolized telecom operator owned by the Taiwanese government, was on its way to privatization. Mr. C.K. Mao, Chairman of the company, who headed the job only three months earlier, after its prior chairman resigned unexpectedly in the midst of chaos brought by the resistance of its staff who feared losing their civil servant status after privatization. Also facing Mao was the forthcoming deregulation of the telecommunication industry on the island which would bring about new competitors on fixed-line services, in addition to the already competitive mobile communication segment where the company's once dominant market share was heavily eroded. Mao had to decide on the pricing strategies for the company's various product lines, including fixed line, mobile services, as well as data communication. He also needed to ponder on how to revise the company's compensation system to better motivate its staff in a deregulated market and communicate all these changes to the unionized labor force.

Glass Egg Digital Media

Godes, David B.
July 2008

Glass Egg is an outsource games development firm in Vietnam. They are able to offer brand-name publishers-Microsoft EA, Atari-significant cost savings in the development of art assets for their video games. However, the firm's management find themselves at a point at which they feel they need to make a strategic decision that will enable Glass Egg to grow more substantially and more quickly. They are evaluating three possible directions including expanding the sales force, expanding the scope of art development services they offer and, more radically, going into the games publishing business themselves. Besides offering a picture of an interesting firm in a growing, dynamic country and business, the case allows for an exploration of two important general themes: (1) Assessing alternative growth strategies. When should one pursue "more of the same" business vs. offering another product vs. looking for new customers? When is it better to develop an entirely different line of business with different customers and different products? (2) What are the differences between marketing to businesses vs. marketing to consumers? Since one of the options the firm is considering involves a consumer product-online game development-the case supports a discussion about the important differences, not only in terms of the nature of the buying process and buying center but also in terms of the vastly different organizational resources and structures that are needed in each.

Vignettes on Governance of Private Equity Firms

Hardymon, G. Felda, Ann Leamon, and Eugenia Adofo
July 2008

In a series of vignettes, Nigella Hardy-Smyth of an international development agency that invests partners in emerging markets private equity firms must decide how to handle various situations that arise. As a member of the Limited Partner Advisory Board of each of the five firms, she must contend with a fund manager with an indistinct mandate, a manager who wants to exceed the concentration limit in an investment, tension between a star investor and her other partners, a founding partner who wants to fire the rest of his senior team, and a limited partner seeking preferential treatment that might benefit his fund to the detriment of the other limited partners. The process of discussing these helps the class explore the nuanced role of a limited partner in a private equity firm.

Malaysia: Halfway to 2020

Vietor, Richard H.K.
July 2008

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.

Peoplepower, Inc.: The Republic of the Philippines

Maurer, Noel
July 2008

In 2006, the Philippines faces a difficult choice. Japan has offered the country a trade agreement that includes access to the Japanese labor market for Philippine nurses and other professionals. The same trade agreement, however, means opening the country's manufacturing enterprises to Japanese exports, which is bitterly opposed by some of the nation's largest foreign investors. President Gloria Arroyo-embattled by coup attempts and political scandals-must decide whether to advance the nation's three-decade-old strategy of encouraging the export of its labor resources or whether to attenuate that strategy to meet the demands of large foreign investors.

System on a Chip 2008: Global Unichip Corp

Shih, Willy C., Chintay Shih, Chen-Fu Chien, and Yuan-Chieh Chang
July 2008

Though much of the semiconductor industry has shifted to a horizontal model, complexity driven by technological evolution is driving a shift in the perceived boundaries in the value chain. Global Unichip sees itself as a "virtual integrated device manufacturer," a throwback to the vertically integrated model that fell out of favor for most chips. The case offers an opportunity to examine a highly modular industry and the impact of technology shifts on those boundaries, with significant implications for the incumbents.

The Offshoring of America

Vietor, Richard H.K., Jan W. Rivkin, and Juliana Seminerio
July 2008

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.

The Xiamen PX Project: The Rule of Contract or Citizens in China Today

Abrami, Regina, and Richard Zhang
July 2008

This case examines the effect of environmental activism on China's investment climate, focusing on the petrochemical sector. It shows how tensions between a country's national economic development goals and political constraints make for a more unpredictable investment climate, despite considerable improvements in the rule of law within China. This case is suitable for courses in international business, business and society, and doing business in China and/or the developing world.

Myths and Lessons of Modern Chinese History

Kirby, William C., and Brittany Crow
June 2008

China is an ancient civilization, but it is really a very young country. How we understand modern China is rooted in our understanding of history. Thus, the authors examine several myths surrounding important historical themes, including unity, economic and political isolation, the growth and development of capitalism, internationalization, and governance. Following the dispelling of these myths, the authors then examine several lessons of more recent Chinese history, exploring where this young country has been in its first century.

Taiwan Semiconductor Manufacturing Company Limited: A Global Company's China Strategy

Kirby, William C., Michael Shih-Ta Chen, and Keith Wong
June 2008

After fifty-five years in the semiconductor industry, Morris Chang, founder and Chairman of Taiwan Semiconductor Manufacturing Company (TSMC), was seeing a change. After four decades of regular double-digit growth the industry was still growing-but now at a much slower pace. In 2004, TSMC entered the China market, the world's second largest for semiconductors, by building a fabrication plant in Shanghai. Was China the market opportunity in which TSMC could bet on for expansion, or should its strategy be to focus on new product development and innovation?

Wanxiang Group: A Chinese Company's Global Strategy

Abrami, Regina, William C. Kirby, F. Warren McFarlan, Keith Chi-ho Wong and Tracy Yuen Manty
June 2008

With an almost forty-year history as a business in China, the Wanxiang Group has navigated through the significantly different political and economic changes in China to succeed as a global leader in the auto parts industry and to develop into a broad business conglomerate. Beginning in 1994, when it first began its operations in the United States, Wanxiang started to expand its role as a parts supplier into a discerning acquirer of distressed companies in the U.S. While it saw acquisition as an exciting means for growth, company strategy at its Hangzhou, China headquarters also included vertical integration with a goal of developing a full-on electric car. Were these two goals divergent or complementary: mutually supportive or exclusive?

Note on the Bus Industry

Casadesus-Masanell, Ramon, and Jordan Mitchell
June 2008

Supplements the "Irizar in 2005" case. Briefly documents key points in the motor coach industry such as market size, categories of buses, reasons for purchasing, and the basis for competition amongst motor coach manufacturers.

Heidrick & Struggles International, Inc

Eccles, Robert G., and David Lane
June 2008

As CEO of leading executive search firm Heidrick & Struggles for the past 18 months, Kevin Kelly was pleased with his accomplishments so far but concerned about threats he perceived to Heidrick's position at the highest levels of the executive search business. In response, Kelly had begun making strategic investments in firms offering technology-based solutions, but had not yet made significant progress convincing Heidrick's search consultants about the significance of the threats, or the risks and opportunities being created by information technology and the Internet. The increased emphasis Kelly placed on building leadership consulting services was itself a big change. The case asks what levers Kelly can use, from culture to compensation, to make the challenges to Heidrick's traditional business model understood and how to implement the strategic initiatives he has launched.

The Blackstone Group's IPO

Hardymon, G. Felda, Josh Lerner, and Ann Leamon
June 2008

Steven Schwarzman, Chairman of the Blackstone Group, has just learned that an investment group associated with the government of China wants to buy the majority of Blackstone's leveraged IPO. As he considers how to respond to this offer, Schwarzman reviews the firm's proposed structure as a public entity and assesses how he might retain the delicate balance among stakeholders while still maintaining liquidity in the market.

Quanta Computer and the One Laptop Per Child Initiative

Shih, Willy, Chintay Shih, and Jyun-Chen Wang
May 2008

When Quanta Computer, Inc., the world's largest manufacturer of laptop computers, first joined the One Laptop Per Child (OLPC) initiative, it faced a challenge trying to balance the cost objectives of a laptop computer targeted at children of the developing world with the escalating content demands from the marketplace and the non-profit OLPC Foundation. It also had to fit the project into its company business model which served global lead PC brands like Apple as a high volume, low cost ODM provider. The case is a vehicle for discussing new market disruption and the impact of modularity and the evolution of the value network in the global PC supply chain.

China in Africa: The Case of Sudan

Abrami, Regina, and Eunice Ajambo
May 2008

This case examines the relation between China's demand for resources and political risk.

Inner Mongolia Yili Group: China's Pioneering Dairy Brand

Abrami, Regina, William C. Kirby, F. Warren McFarlan, and Tracy Yuen Manty
May 2008

Setting up the goal to become one of the top 20 enterprises in the world dairy industry by 2010, the Inner Mongolia Yili Group had ambitious plans. As one of China's biggest national dairy companies, its main challenge was competing as a local company against joint-venture rivals who benefited from perks granted to "foreign" companies. To set itself apart, Yili focused on research and development and innovative ways to improve the industry. Proving that it could shift industry standards and lead a country not accustomed to dairy consumption, to a point where demand is outpacing supply, the Yili Group is making its mark to go global. As an Official Sponsor of the 2008 Olympic Games in Beijing and the Official dairy supplier of the games, it is betting that the brand can go further beyond China. Will the day that tykes from Topeka have a bottle of Yili milk in their hands be coming soon?

Sony PlayStation 3: Game Over?

Ofek, Elie
May 2008

Outlines the challenges faced by Sony with the launch of its PlayStation 3. Information based on the 2006 and 2007 holiday seasons and the success of rival consoles is outlined. In addition, the case allows examining the costs and revenues associated with a business model based on the sale of the hardware and game titles. Can be used with "Home Video Games: Generation Seven" (505-072), which provides supplementary information on the industry.

Monitor's Opportunities in India (B): Grail Research

Alcacer, Juan, and Jan W. Rivkin
May 2008

Supplements the (A) case. Describes the decision by leaders of a strategy consulting firm to build a business research subsidiary in India. Permits a discussion of how high-end knowledge production can be conducted in an emerging economy, at a distance from buyers of the knowledge.

China Resources Corporation (B): China Resources Microelectronics

Campbell, Dennis, David Lane
May 2008

Supplements the (A) case.

Sinopec: Refining Its Strategy

Vietor, Richard, and Julia Galef
May 2008

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.

Sony Digital Entertainment, Japan

Elberse, Anita
April 2008

It is late 2007. So-called cell phone ("keitai") novels have turned into an extremely popular form of entertainment-on-the-go in Japan, in particular among young, female readers. In fact, consisting mostly of love stories written by amateurs in short sentences and containing little plot or character development, cell phone novels republished in book form and even remade as movies have come to dominate mainstream media content. At media giant Sony, Ken Munekata, CEO of Sony Pictures Entertainment (SPE), and Atsushi Fukuda, President of Sony Digital Entertainment (SDE), are attempting to craft an adequate response. After establishing SDE as a 100% subsidiary of Sony Japan, they now develop a wide range of digital content offerings for mobile phone users, mostly original content "made in Japan"-including keitai novels. But can SDE's subscription model compete in a market dominated by free keitai novel offerings? And, more generally, do Sony's current keitai initiatives move the company in the right strategic direction? Allows for an in-depth examination of viable business models for established media companies competing in digital markets dominated by user-generated, advertising-supported content. Also enables an assessment of the economics of producing and distributing traditional films and books versus digital (cell phone) content.

Terumo (A)

Godes, David, Masako Egawa, and Mayuka Yamazaki
April 2008

Terumo faces two challenges: how to sell its catheter products in the U.S. and its new "Solution Pack" in its domestic market, Japan. The case provides rich detail on the firm's evolution from a manufacturer of thermometers to a seller of commodity products like syringes to a diversified firm offering a range of advanced products--catheters and grafts, for example--in addition to commodity products. It describes how the firm's sales strategy-including changes in structure and compensation-changed as its overall product line evolve. The case also offers an interesting contrast for students studying sales forces, in terms of how this Japanese model differs in the way, for example, the firm compensates-and views-salespeople

Terumo (B)

Godes, David, Masako Egawa, and Mayuka Yamazaki
April 2008

Supplements the (A) case

Terumo (C)

Godes, David, Masako Egawa, and Mayuka Yamazaki
April 2008

Supplements the (A) case

Shinhan Financial Group (B)

Kanter, Rosabeth Moss, and Matthew J. Morgan
April 2008

Supplements the (A) case.

China Netcom: Corporate Governance in China (A)

Abrami, Regina, William C. Kirby, F. Warren McFarlan, and Tracy Yuen Manty
April 2008

With its dual listings on the Hong Kong stock market and New York Stock Exchange, state-owned enterprise China Netcom was mandated to meet the listing requirements of these exchanges. From this initial step, China Netcom's Chairman, Zhang Chunjiang, began a program that sought to further develop the company's corporate governance practices to meet international corporate governance standards. The company hoped that its commitment in developing a globally-accepted governance structure would help the capital markets and potential investors understand that the company was a true, modern corporation, even with the state as a majority owner.

China Netcom: Corporate Governance in China (B)

Abrami, Regina, William C. Kirby, F. Warren McFarlan, and Tracy Yuen Manty
April 2008

Supplements the (A) case.

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

Koll, Elisabeth
April 2008

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

Fiyta-The Case of a Chinese Watch Company

Abrami, Regina, William C. Kirby, F. Warren McFarlan, Luc Wathieu, Gao Wang, Fei Li, and Tracy Yuen Manty
April 2008

Fiyta had long been one of China's foremost watch brands. However, as China's economy began to improve and the livelihood of many Chinese rose with it, their tastes began to change. Exposed to more luxurious foreign brands, many Chinese strived to purchase a Swiss or Japanese watch. How could Fiyta build up its brand image to a more sophisticated Chinese consumer? What marketing activities should it undertake to reinvigorate its brand? Is it meeting the needs of all segments of Chinese consumers? Should it?

Esquel Group: Integrating Business Strategy with Society to Create Competitive Advantage

McFarlan, F. Warren, William C. Kirby, and Tracy Yuen Manty
April 2008

Focuses on the experience of China's largest shirt manufacturer in managing various aspects of government relations in China. Identifies a wide variety of social initiatives it has undertaken.

Marketing the $100 Laptop (C)

Quelch, John, and David Chen
April 2008

Supplements the (A) case

Sealed Air China

Abrami, Regina, William C. Kirby, F. Warren McFarlan, and Tracy Yuen Manty
April 2008

With a 10-year history of doing business in China, Sealed Air was now betting on the country to help propel its growth as a global company. The company identified China as one of the initial investments in the company's Global Manufacturing Strategy that aimed to create efficiencies in its operations across the globe. As Sealed Air's new Shanghai plant starts production in 2008, will its almost $50 million investment pay off? Is 10 years of experience in China enough to know how China works?

Shangri-La Hotels

Campbell, Dennis, and Brent Kazan
April 2008

In November 2006, Symon Bridle, the newly appointed chief operating officer of Shangri-La Hotels and Resorts, was thinking about a number of organizational issues that presented challenges to Shangri-La's rapid expansion strategy. There were three major issues at hand: (1) the company was expanding into high-wage economies in Europe and North America; (2) the company was expanding its presence in China-a country where front-line employees were not used to exercising decision-making authority; and (3) newcomers in the Chinese hotel market were poaching Shangri-La's staff and driving up wages in historically low-waged markets. As a COO, Bridle needed to ensure that Shangri-La's signature standards of "Asian Hospitality" were maintained during this expansion.

Innovation at Timberland: Thinking Outside the Shoe Box

Kanter, Rosabeth Moss, and Ryan Leo Raffaelli
April 2008

Innovation was linked to Timberland's heritage. In 2005, CEO Jeff Swartz and COO Ken Pucker hoped the Invention Factory, an advanced concept lab, would develop new breakthrough products and reinvigorate the company's culture of innovation. Since the 1960s, Timberland had relied on innovation, developing the world's first waterproof boot and, in the 1980s, category-defining boat shoes and day hiking boots. Creating variations of these core products, along with expansion into apparel, had sustained Timberland's business for more than 30 years. Timberland's growth in the past six years was due to increased international sales and new customer segments. As Timberland's leaders looked to the future, they hoped Doug Clark, a biomechanist, and his Invention Factory team would bring a scientific approach toward building the next generation of Timberland products and ideas. The team had to convince those in the mainstream business to accept their new ideas and integrate them back into the product line.

Wyoff and China-LuQuan: Negotiating a Joint Venture (A)

Sebenius, James, and Cheng Qian
April 2008

Through stalled joint venture talks between Pennsylvania-based Wyoff Corp. and China-based China-LuQuan, strategic and cross-cultural negotiation challenges are explored both from American and Chinese perspectives. Wyoff, a leading US chemical company has been seeking ways to secure the company's foothold in China's emerging market since the late '90s. When approached by China-LuQuan in 2000, a major Chinese state-owned chemical producer for a joint-venture opportunity to make a popular chemical catalyst in China, Wyoff, leveraging its superior technology, demanded one-sided terms and played hardball, ruining both the deal and the relationship with China-LuQuan. Seven years later in 2007, Wyoff faced market pressure to again seek a joint venture with China-LuQuan on two other types of products. Both parties had to overcome past distrust to work things out on a series of strategic issues: investment, product slate, marketing, technology, management, organization, staffing, etc. In the negotiations, cross-cultural themes (e.g. trust, relationships, communication, time, autonomy, face, etc.) and different negotiation styles created challenges along with the business and strategic issues. The (A) case sets up the negotiations, highlights issue impasses, explores cross-cultural frictions, and poses tactical challenges. The (B) case describes the strategies, tactics, and results of these negotiations.

Kinyuseisaku: Monetary Policy in Japan.

Alfaro, Laura, and Akiko Kanno
March 2008

Toshihiko Fukui, Government of the Bank of Japan, faced a complex situation in the fall of 2007. An economic recovery had allowed the central bank to abandon its zero interest rate policy, which had been in place for years, and raise rates to 0.5%. The Bank of Japan was eager to increase them to more "normal" levels to exert effective monetary policy. Yet the appropriate timing and approach was a controversial issue, especially as the government did not want a rate hike that could potentially hinder economic growth and increase its already large fiscal debt burden.

Transforming Korea Inc: Financial Crisis and Institutional Reform

Alfaro, Laura, and Renee Kim
March 2008

South Korea, as one of the Asian "tiger" economies, transformed itself into the world's 11th largest economy and major exporter by 1996, emerging from being one of the lowest income countries in the region back in the 1960s. Yet one year later in 1997, Korea was swept up in the Asian financial crisis and sought a record $58 billion bailout from the International Monetary Fund. The crisis exposed fundamental weaknesses in the Korean economy, from bad loans to reckless growth policies pursued by large conglomerates. Sweeping reforms took place and the Korean economy rebounded quickly. Yet as Korea approached the 10-year anniversary of the crisis, the nation found itself pondering whether it had implemented enough institutional and structural reforms, or whether more had to be done, such as searching for a new economic development model to ensure its future.

Queensland Sugar Limited

Bell, David E., and Mary L. Shelman
March 2008

Until industry deregulation in 2006, Queensland Sugar ran Australia's single-desk marketing system for raw sugar exports. Since deregulation, eight of the ten Queensland sugar millers have elected to continue collective marketing through QSL. However, several millers are threatening to leave the group and market on their own. Their primary objection is to QSL's board structure, which is currently divided equally between millers, growers, and independent directors. The case describes the evolution of Australia's sugar industry; the differing interests of growers, millers, and customers; and the impact of changes in global supply (e.g., the rise of Brazil as a major sugarcane and sugar producer) and demand (e.g., the increased use of sugarcane for ethanol production).

Kazuo Inamori, A Japanese Entrepreneur

Mayo, Anthony J., Masako Egawa, and Mayuka Yamazaki
March 2008

The case provides insight into a business leader whose cognizance of contextual forces (social, economic, and political) allowed him to drive significant change in an industry and Japanese society in the second half of the twentieth century.

Roppongi Hills: City Within a City

Elberse, Anita, Andrei Hagiu, and and Masako Egawa
February 2008

Minoru Mori is the CEO of Mori Building, which has built Roppongi Hills, an ambitious large-scale, mixed-use development in Tokyo, Japan that includes high-end retail, restaurants, hotel, office, library, and art museum. A destination site for tourists and local people, the performance of the development was strong, with the exception of the art museum, which posted losses. Also, the branding efforts by Mori were at odds with other tenants and he needed to manage "the town." Lastly, another competing development was in the works just blocks away, and Mori needed to determine how to address this new competitor.

Indonesia: Attracting Foreign Investment

Porter, Michael E., and Christian H.M. Ketels
January 2008

Describes the economic development of Indonesia from independence after World War II to 2006 and the post-Suharto period. The coverage of the post-Suharto period provides evidence of how political and economic conditions are intertwined after a change in the political regime. Profiles the business environment in 2006, including a documentation of past and present policies that shaped the current situation. A particular focus is Indonesia's stance towards attracting foreign direct investment (FDI). The country has a checkered history of oscillating between seeking and fighting foreign investors. Provides a perspective on the relative importance of FDI policies, general economic policies and business environment conditions, and the nature of competition from other locations on FDI flows.

Microsoft in China and India, 1993-2007

Khanna, Tarun, and Prithwiraj Choudhury
January 2008

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

Haier Hefei Electronics Co. (A)

Paine, Lynn S.
January 2008

The Haier Group, the first mainland Chinese company to make the Financial Times list of Asia's "most admired companies," attributes its success in large measure to the new value system it has sought to instill throughout the organization. However, when Haier takes over the Yellow Mountain television factory in the distant Hefei province at the behest of Hefei's government, workers strike against the Haier culture and what it stands for. The immediate catalyst is the labor contract Haier has asked them to sign. Haier's management must decide what's fair and how to respond to the workers' demands in the face of local government pressure to compromise.

Haier Hefei Electronics Co. (B)

Paine, Lynn S.
January 2008

Supplements the (A) case

Haier Hefei Electronics Co. (C)

Paine, Lynn S.
January 2008

Supplements the (A) case

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2007

The Beijing Dream

Segel, Arthur I., Voon Siang Lee, Jialei Tian, and Ying Laura Wang
December 2007

The purchase of a single-family home is generally the major investment for most young couples in China. Shows in detail the process that a young couple goes through in late April 2007 to find, finance, and close on an apartment in Beijing within what they believe to be their financial capabilities. Takes place in the context of the rapidly developing Chinese real estate market and introduces issues concerning the search and property acquisition that are specific to Beijing. Also deals with the direct and indirect cost involved in home acquisition, and compares these costs to the rental alternative. Also explores the role that the Internet can play in the home-buying process in China.

Will RacingThePlanet Ltd. Reach the Finish Line?

Isenberg, Dan, William C. Kirby
November 2007

Mary Gadams, founder and CEO of RacingThePlanet is facing one of the many logistical crises that her young Hong Kong-based venture faces as it stages its popular 4Deserts(tm) adventure marathon series in Atacama Chile, Gobi Desert Mongolia, Sahara Desert Egypt, and Antarctica. How can a small company in Hong Kong continue to effectively coordinate such a far-flung, complex, global operation?

Fu Ji Food and Catering

Jin, Li, Li Liao, Jielun Zhu, and Wenkai Sun
November 2007

Fu Ji, the largest corporate caterer in China, is thinking about how its financing strategy accommodates the overall corporate strategy. Fu Ji has enjoyed phenomenal growth as the corporate catering market in China develops. But that growth in the business also entails a transition from a single restaurant to a restaurant chain, then to a catering business. Is Fu Ji well equipped for the new business model? What does it need to do on the financing side to accommodate the transition of its business model? The company is listed on the Hong Kong Stock Exchange and is thinking about issuing additional convertible bonds to finance its growth. What is the funding need? What are the alternative sources of funding that it has? How would the choice of financial instrument affect and be affected by the business strategy, and how is the instrument choice influenced by the general development of the financial markets in China?

Colgate Max Fresh: Global Brand Roll-Out

Quelch, John A, and Jacquie Labatt-Randle
November 2007

In February 2005, Nigel Burton, in his third year as president of global oral care at Colgate-Palmolive Company (CP), had every reason to feel optimistic. Worldwide market shares were strong and Colgate Max Fresh (CMF), a new toothpaste that had helped drive Colgate to a record value share in the important U.S. market, was in the global pipeline for 2005. Burton had on his desk the proposed marketing launch plans for CMF in China and Mexico. Each plan sought to maximize the business potential in the local market. Burton had to assess the plans from a global perspective.

A Note on Private Equity in Developing Countries

Lerner, Josh, and Ann Leamon
November 2007

Provides the background and high-level situation of private equity in emerging markets as of the end of 2006.

Gome: Bidding for China Paradise

Jin, Li, Li Liao, Ruoran Guo, and Jielun Zhu
November 2007

Gome, China's largest electronics retailer, has the opportunity to acquire China Paradise, the number three player in the Chinese electronic retailer industry. This happened in the general context of a great market development and potential consolidation of the household electronic appliance retailing sector. Gome, Suning, and China Paradise, the three largest players in the market, all experienced phenomenal growth, but Gome is slowly losing steam and risks being overtaken by the current number two, Suning. In addition, following China's entry into the WTO and the end of its five-year protection period, foreign competition, such as Best Buy, has entered the market and is bound to change the competitive landscape. Gome needs to decide what to do, and if it proceeds, it needs to move very fast. The decision will hinge on answering a few important questions. Why did China Paradise want to sell? If China Paradise failed, how could Gome guarantee that it would not follow suit? Is this the best time to snap up China Paradise? Should it focus on fixing its per-store performance measure or should it still rely on the growth of the total size of the operation in terms of the total number of stores? Does the acquisition of China Paradise put Gome in a position that it would again be very high in total number of stores but falling behind in the per store performance? This might be a big concern, especially if the acquired operation has a different culture than its existing operation. How can Gome remedy that? How does the acquisition, if it happens, fit the overall corporate strategy of relying on thin margin and volume? How would this strengthen or hurt Gome in its positioning when competition with both domestic and international players is expected to intensify?

Gome: Going Public

Jin, Li, Li Liao, Ruoran Guo, and Jielun Zhu
November 2007

Gome, China's largest electronics retailer, is plotting the best course to go public. Unlike many high-growth businesses in China, Gome has only moderate financing needs. Its charismatic and ambitious chairman Wong Kwongyu has built an expansive retail network in China and successfully used trade credits by suppliers and banks to make Gome a highly cash-generative business. The decision to go public has three inseparable components: why, where, and how. Does Gome really face substantial funding shortages for its operations? If so, are there any alternatives other than going public? If not, what are the other potential motivations to go public? Given these considerations, financial and otherwise, which stock market is the best one to list Gome's shares on? And between an IPO and a backdoor listing, which option suits Gome the best in terms of timing, costs, feasibility, and risks? Assuming Gome chooses to go public via a backdoor listing, what is the process

Gome Electronics: Evolving the Business Model

Abrami, Regina, William C. Kirby, McFarlan, F. Warren, Cao Wang, Fei Li, Tracy Manty, and Wai Shun Lo
September 2007

After 20 years of expansion, Gome Electronics has become China's largest consumer electronics retailer. It has opened stores in almost every province in China, acquired some of its competitors, and went public in Hong Kong. However, it has begun to experience a slowdown in growth as sales per-square-meter have declined. The company is now being challenged to develop new ideas for growth, including experimenting with its product mix, renegotiating its relationships with suppliers, and developing new business models to maximize profitability.

Secom: Managing Information Security in a Risky World

McFarlan, F. Warren, Robert D. Austin, Junko Usuba, and Masako Egawa
September 2007

Examines the type of security that is appropriate for an Internet company to have on its site. Focuses on a 20-person electronic e-commerce company trying to decide what parts of the information security product line they should acquire from the largest security service company in Japan, Secom. The services include everything from server hosting, advanced housing, firewall intrusion detection, etc. Introduces the wide range of products that can be used to ensure secure operations.

Manila Water Company

Rangan, V. Kasturi, David Wheeler, and Jane Comeault
September 2007

In 1997, the Philippines government privatized its water utility in the metropolitan Manila area. The East Zone concession was won by Manila Water Company and the West Zone concession by Maynilad Water Services. Over the next decade, Manila Water turned in an impressive and profitable performance, while Maynilad failed. Describes the management actions of Manila Water and poses the question of whether, and how much, they should bid for the vacated West Zone concession.

China Merchants Bank

McFarlan, F. Warren, GuoQing Chen, Heng Yuan Zhu, Yan Yang, Michael Shih-Ta Chen, Wai Shun Lo, and Bin Yang
August 2007

Founded in 1987, China Merchants Bank (CMB) is a pioneer in the use of technical innovation and IT as a competitive tool in the rapidly evolving Chinese banking sector. With a relatively small branch network when compared to its larger competitors, CMB uses an IT-driven strategy to introduce an "all-in-one" card, which integrates a suite of financial products to drive its personal banking business enabling CMB to be ranked 6th among China's commercial banks and 2nd among the other national commercial banks in terms of total assets as of June 2006. Underlying its excellence in personal banking is CMB's leadership in developing its credit card business. By April 2006, CMB had issued a total of over 5 million credit cards, capturing one-third of the Chinese credit card market. In September 2006, CMB's IPO in Hong Kong fetched about $2.4 billion and, given deregulation in the banking sector in China, CMB's President was presented with new challenges and opportunities concerning how such funds should be productively allocated to ensure CMB's competitiveness.

WuXi PharmaTech

Hamermesh, Richard G., and Simin Zhou
August 2007

WuXi Pharmatech has gone from zero to $21 million in sales in three years. The company must decide its growth strategy and how best to finance and organize for rapid growth.

Shinsei Bank: Developing an Integrated Firm (B)

DeLong, Thomas J., and Terry Heymann
August 2007

Supplements the (A) case

China Resources Corporation (A): 6S Management

Campbell, Dennis, and David Lane
July 2007

N/A

BYD Company, Ltd

Huckman, Robert S., and Alan D. MacCormack
July 2007

Considers whether BYD Co., Ltd., the largest Chinese maker of rechargeable batteries, should enter the Chinese automobile industry by acquiring Qinchuan Auto, a state-owned car manufacturer. Set just after BYD's initial public offering on the Hong Kong Stock Exchange in 2002, it describes the development of BYD's labor-intensive approach to battery manufacturing-an approach decidedly different from its more capital-intensive Japanese competitors and one that took advantage of the abundant supply of low-cost labor in China. Highlights the unique benefits and challenges created by BYD's operations strategy and asks students to determine whether the capabilities developed by the company in battery manufacturing can productively be applied to the automobile sector. Asks students to consider which, if any, aspects of BYD's operations constitute sources of sustainable competitive advantage for the company.

Digital China Holdings Ltd.: Managing the Transition from a Product-Oriented towards a Service-Oriented Company

McFarlan, F. Warren, Guoqing Chen, Kai Reimers, and Xunhua Guo
July 2007

Digital China is the largest Chinese independent systems integrator (IBM and HP are larger). Describes their history and their current strategy and invites the student to advise them as to how they should continue to grow in the future. This is the closest China currently has to Infosys and their 7,700-person company is a very interesting, and today, a largely unknown organization outside of China.

Vivaldi Food Concepts--The Start-up of an Asian Venture (A)

Isenberg, Daniel J.
June 2007

Joel Silverstein needs to raise an additional $1.5 million from private investors to round out the equity financing for his new Quick Service Restaurant venture in China, Korea, and Japan. How should he pitch the opportunity? What should be the terms?

Beijing Hualian

Bell, David E., and Mary Shelman
May 2007

China's fifth largest domestic retailer faced intensifying competition from Wal-Mart and Carrefour with the opening of China's fast-growing retail market in January 2005. In response, Beijing Hualian developed a new "Family Store" format targeted at the nation's growing middle class, made up of younger consumers with more fashionable tastes. Like hypermarkets, Hualian Family Stores include both food and nonfood lines, but differ in design and in the product and brand mix that would be carried. Results from the pilot store (a remodeled hypermarket in Beijing) were encouraging, with revenues and profits up and customers spending more on each visit. The company must decide how quickly to roll out Family Stores in China. Strategic issues include preempting competition by moving quickly into new cities, balancing the buying power of multinational retailers who were also purchasing merchandise for export, leveraging Beijing Hualian's understanding of the rapidly changing domestic market, accessing capital for expansion, and training and retaining Chinese management talent.

Korea: After the 1997 Financial Crisis

Alfaro, Laura, Rafael Di Tella, and Renee Kim
April 2007

Examines what happened to Korea after the 1997 financial crisis and the implementation of the IMF-mandated reforms imposed on Korea as conditionalities to the country's emergency loan package.

AmorePacific

Ofek, Elie, and Kerry Herman
April 2007

Describes the dominant firm in the Korean cosmetics market up to the mid-2000s. Gives background on AmorePacific's historical evolution, its current brands, and the competition it faces from local and international players. Also provides information on the market structure and prominent channels of distribution.
HBS Note

Chiaphua Group Vietnam

Retsinas, Nicolas P., and Michael Shih-ta Chen
April 2007

As part of its expansion and diversification strategy, the Chiaphua Group explored real estate investments in emerging markets. The Group was one of the largest privately held company groups based in Hong Kong, with international investments in a variety of manufacturing and property development. A family member, Raymond Cheng, had narrowed the list of potential markets to Singapore, Malaysia, Indonesia, and Vietnam. Notwithstanding a history of instability and conflict and substantial government control of markets, Raymond concluded that Vietnam was the best option. Revolves around how to assess the market in the absence of hard data, and what would be the appropriate entry points. Illuminates how relationship-driven investments can be the foundation of a long-term investment strategy. Issues also involve how, by working with government through a structured forum (along with personal relations), laws and regulations can evolve to facilitate real estate investments.

Fujifilm: A Second Foundation

Gavetti, Giovanni, Mary Tripsas, and Yaichi Aoshima
April 2007

N/A

Production I.G: Challenging the Status Quo

Hagiu, Andrei, Tarun Khanna, Felix Oberholzer-Gee, Masako Egawa, and Chisato Toyama
April 2007

N/A

The Nikkei 225 Reconstitution

Greenwood, Robin M.
April 2007

Taka Haneda, a proprietary trader at the Tokyo office of Goldman Sachs, has just learned that the Nikkei 225 will undergo a significant redefinition over the coming week. He faces several billion dollars of customer orders, as well as the opportunity to commit the firm's capital to provide liquidity for the event. He must decide what positions to establish, and at what price he is willing to get out.

WildChina (A)

Isenberg, Daniel J., and Shirley Spence
April 2007

WildChina (A) tells the story of Mei Zhang, a Chinese-born HBS alumna, and her pursuit of a dream: to share her passion for travel, her appreciation of China's beauty and culture, and her desire to start her own business. Describes the startup of WildChina, a tour company targeting a high-end clientele with unusual and high-quality products, and its survival of two business crises. The focus is on Zhang's decision to bring in a COO, transition him to CEO, and assume the position of Chairperson. Also describes communication and control challenges faced when Zhang moves to Los Angeles with her family, and tries to remain involved in her Beijing-based business. The decision Zhang faces is how to proceed when, in the midst of sales and operational problems and financial pressures, her CEO announces that he will be leaving the company in a matter of months.

Chongqing Tiandi

Segel, Arthur I., Nicolas P. Retsinas, Joshua A. Katzin, Nadeem Meghji, and Cindy Yan
April 2007

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

Li Ning--Anything Is Possible

Wathieu, Luc, Gao Wang, and Medha Samant
April 2007

A leading sporting goods company in China competes aggressively against global brands Nike and Adidas, with marketing strategies adapted to geographic segments. In the main cities, where competition takes place at a very conceptual level, Li Ning has chosen to adopt a very controversial "oriental theme" for its brand, while becoming at the same time a major sponsor of international athletes of the highest caliber.

The Challenges of Launching a Start-up in China: Dorm99.com

Kirby, William C., F. Warren McFarlan, and Tracy Yuen Manty
March 2007

After graduating from Harvard Business School in June 2006, Ken Pao and Bill Li were ready to fully commit to the Internet start-up they had been working on since they first stepped foot on the business school campus. They moved to Beijing, rounded out their management team, received venture capital investment, developed joint-venture partnerships, and set key milestones to create a full-impact product launch for their social networking Web site catering to the college market. On the day of their launch, they faced a setback from China's Ministry of Education and were forced back to square one. Discusses the pluses and minuses of partnering with China's government ministries, the highs and lows of entrepreneurship, and the numerous opportunities available to entrepreneurship in China today.

Gobi Partners: Raising Fund II

Hardymon, Felda G., and Ann Leamon
March 2007

The three founding partners of Gobi Partners, a venture capital fund investing in early start IT and digital media companies in China, are planning to raise a second fund. The first $51.75 million fund is close to being entirely invested and the portfolio companies are doing well, with two having raised subsequent financings at significantly increased valuations. The firm itself has increased its headcount and opened a second office, but it has not, however, exited any of its companies. How much money should the partners hope to raise, and from whom? The stakes are high, as none of them has taken a paycheck in three years.

Li Ka-Shing

Nohria, Nitin, and Bridget Gurtler
March 2007

From his humble beginnings in China as a teacher's son, a refugee, and later as a salesman, Li provides a lesson in integrity and adaptability. Through hard work, and a reputation for remaining true to his internal moral compass, he was able to build a business empire that includes: banking, construction, real estate, plastics, cellular phones, satellite television, cement production, retail outlets (pharmacies and supermarkets), hotels, domestic transportation (sky train), airports, electric power, steel production, ports, and shipping. Teaching Purpose: To examine leadership.

Li Ka-Shing and the Growth of Cheung Kong

Nohria, Nitin, Anthony J. Mayo, and Mark Benson
March 2007

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

China and the WTO: What Price Membership?

Vietor, Richard H.K., and Julia Galef
March 2007

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.

Haier's U.S. Refrigerator Strategy 2005

Ghamawat, Pankaj, and Thomas M. Hout
January 2007

Haier, the first Chinese consumer durable brand in the United States, succeeded in the compact refrigerator, freezer, and air conditioner markets and then built a U.S. factory to enter the full-size market. Issues include the value of a local entrepreneur to the Asian manufacturer entering the United States; brand building and price positioning; the sourcing location decision trade-off between production costs and logistics costs; the role of change in the U.S. appliance distribution channels; global and regional competitive analysis; the response of U.S. competitors to the global sourcing evolution; and the time horizons of Chinese company management.

China: "To Get Rich Is Glorious"

Vietor, Richard H.K., and Julia Galef
January 2007

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.

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2006

Framedia (A)

Jin, Li, Huabing Li, Li Liao, and Jielun Zhu
December 2006

Examines an acquisition in the highly competitive new media advertising industry in China in late 2005. The transaction leads to eventual consolidation of the industry and a positive stock market reaction. Discusses valuation in the context of an M&A transaction in an emerging economy and the role of private equity and venture capital in the development and the eventual consolidation of the new media advertising industry. Provides a context in which to discuss antitrust regulation, or lack there of, on an industrial organization in China.

Framedia (B)

Jin, Li, Huabing Li, Li Liao, and Jielun Zhu
December 2006

Supplements the (A) case

Ayala Corp

Villalonga, Belen, Raphael Amit, and Chris Hartman
December 2006

Ayala Corporation is the oldest conglomerate in the Philippines and has been controlled by the Zobel de Ayala family for seven generations. Over the past 25 years, Ayala has evolved from a real estate family business into a highly diversified and professionally managed business group, with a significant number of non-family shareholders. Between the holding company and its four largest subsidiaries, the Ayala group accounts for a quarter of the market capitalization of the Philippines Stock Exchange. Provides data to assess the value created for Ayala's stockholders in the ten years leading up to 2006, when the transition to the seventh generation of the Zobel de Ayala family culminated.

Crisis at Japan Communications, Inc

Isenberg, Daniel J.
September 2006

In 2001, Seiji Frank Sanda is facing his worst crisis since founding Japan Communications Inc. (JCI) in 1996. His planned IPO was stopped, leaving JCI with a large organization and strong revenues, but losses and a dwindling balance sheet. He is seriously considering severe personnel cuts, however, layoffs in Japan may cause severe damage to his reputation and make it difficult to hire people in the future. Furthermore, JCI is facing decisions regarding implementation of its business strategy, wondering if now is the time to diversify its service offerings.

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