The American Graduate School of International Management
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Case Michael Moffett, Anant Sundaram Since the advent of the floating exchange rates, any time that a transactionuwhether that transaction is in goods, services, people, capital, or technologyuhas crossed borders, it has been subject to the influence of changes in exchanges rates. The basic problem posed by exchange rates on the cross-border firm is that money across borders has no fixed value. Consequently, neither does the transaction undertaken across borders. In the note, our purpose is to understand, categorize, and define the specific types of exchange rate risks that firms face across borders, and to address how managers can plan for, manage, and hedge these risks. Specifically, this note provides an overview of the risks posed by exchange rates to the cross-border firm, and the major strategies and solutions managers can employ to deal with them. Thunderbird Number: B03-03-0006 Type: Case Publication Date: Subjects: International finance; financial management; currency exposure
Case Author(s): Rosane Gertner, Dennis Guthery, Richard Ettenson Abstract: This case presents market research data concerning the launch of a new drawstring trash bag in Brazil. Ad-lider, one of the leaders in the Brazilian plastic bag industry, has purchased the production machinery for producing the trash bag, and now must decide how the new product should be launched. Data for focus groups and field interviews are included for analysis. The case touches on many areas of marketing, including new product development, marketing research, and creating customer value. Teaching: This is appropriate for both undergraduate and graduate marketing classes. It’s ideally suited for the marketing research component of a marketing management class. Alternatively, it‘s also appropriate for the market research session of the new product development course or for a qualitative data session of a marketing research course. The teaching note is useful for all three purposes. Thunderbird #: A12-04-0031 Setting: Latin America Industry: Consumer goods Subjects: Marketing
Case Robert S. Tancer, Susan Talley In an effort to control the spreading of the AIDS epidemic in South Africa, the South African government enacted a controversial patent law, the effect of which would enable the country to import or manufacture much-needed AIDS medicines at substantially lower costs than usually available. The pharmaceutical industry and the U.S. government opposed this legislation, believing it would undermine the importance of protecting intellectual property rights. The U.S. eventually imposed sanctions on South Africa. An uneasy truce was finally reached, and in 1999 South Africa considered amendments to the patent law. The U.S. position softened in response to the scope of the epidemic and the need to provide medicines in South Africa at affordable prices, and the President of the U.S. issued an Executive Order prohibiting sanctions. Thunderbird Number: A10-00-0008 Type: Case Publication Date: 1999 Geographic Setting: South Africa Industry Setting: Pharmaceutical Subjects: International trade
Case Author(s): Kenneth R. Ferris, Julie Garel Abstract: This case concerns America Online’s accounting for its subscriber acquisition costs and product development costs. By 1996, these “assets” were valued at over $300 million, or approximately five times AOL‘s recent pretax earnings. Teaching: The purpose of the case is to provide a forum to evaluate the practice of cost capitalization employed by some early-stage technology companies. Students are asked to evaluate AOL's policy of capitalizing subscriber acquisition costs and product development costs, and to restate AOL's reported earnings using an alternative accounting treatment of their choice. Thunderbird #: A01-04-0002 Setting: U.S., 1995 Industry: Technology, Internet Subjects: Accounting and control
Case Karen Walch This case illustrates consolidation trends in the Internet industry. In November 1998, AOL announced it would acquire NCC and form an alliance with Sun. This acquisition would make AOL the leader in consumer online services and front-runner in the e-commerce industry. This negotiation represents some of the unresolved issues to be negotiated as a result of the merger/alliance. Thunderbird Number: A13-00-0011 Type: Case Publication Date: 1999 Geographic Setting: U.S., Global Industry Setting: Internet Subjects: Negotiation
Case Author(s): Lauranne Buchanan Abstract: America West Airlines has had a tumultuous history: Chapter 11 in 1991, record FAA fines for maintenance violations, poor employee morale, and even poorer customer relations. Douglas Parker, who became the CEO on September 1, 2001, has presided over an amazing transition in operations and performance during one of the worst times in airline history. The case examines the strategy and “out-of-the-box” thinking that has led to the airline’s transformation. Teaching: This case demonstrates: • How internal company policies and practices, as well as external macro events, affect a company‘s relationship with its customers; • How decisive corporate leadership and actions — guided by strategy -- can help the company to regain business and customer loyalty; and • How management and customer perceptions can differ, and how difficult it is to change customer perceptions even with operational improvements. Thunderbird #: A12-04-0026 Setting: U.S. Industry: Airlines Subjects: Marketing; industry and competitive strategy
Case F. John Mathis, Darian Narayana, Paul Keat This case is about the $41.3 million financing of a U.S. company?s international telecommunications construction project in South Africa for the government, installed by a Korean construction company as part of a larger project. It is a 3-1/2-year project that involves medium-term, multiple components financing, with the ultimate source of funds coming from The World Bank, USAID, and Japan?s MITI. The financing vehicle consists of a series of Letters of Credit with Ex-Im Bank guarantees. The case focuses on the pricing and financing of the project and the evaluation of country risk conditions in Korea and South Africa during the term of the project. Thunderbird Number: A06-01-0002 Type: Case Publication Date: Geographic Setting: U.S., Korea, South Africa Industry Setting: Telecommunications Subjects: Finance; international trade
Case Dennis Guthery, Dorn Wenninger, Andrew Dodenhoff This case focuses on the ethical dimensions of a decision an American-based company must make in order to survive in a country experiencing civil war. Major issues addressed include: (1) What is a company?s obligation for the protection if its employees? (2) What type of payment is allowed under the Foreign Corrupt Practices Act? (3) Should a company pay fees to terrorist organizations in order to continue to operate? Background information is given about the company (disguised) and its move to Columbia. Additional information is provided about the Colombian business and political environments as well as the obstacles facing the company. Thunderbird Number: A02-01-0021 Type: Case Publication Date: Geographic Setting: Columbia Industry Setting: Mining Subjects: Business ethics
Case Author(s): Lauranne Buchanan Publication Date: 2007 Product Type: Case Product ID: A11-06-0018 Geographic Setting: USA Industry Setting: Consumer goods Subjects: Manufacturing and operations Product Description: This case examines the experience of two young entrepreneurs as they work to gain entry into the world’s most powerful retailer, Wal-Mart. The path is full of obstacles — from thousands of competitors to one skeptical buyer. Even as the entrepreneurs are granted a trial period in the store, challenges continue: the giant retailer may have the most efficient back-end operations in the world, but that doesn‘t mean that product always gets to the shelf. Teaching — This case can be used to demonstrate the challenges of gaining distribution for a start-up operation. Getting a new product to market requires thinking outside the box and patiently building the market. In addition, the case demonstrates the value-add of the supplier in store operations. Most students assume that once product is delivered to Wal-Mart's distribution center, the supplier's job is over. Nothing could be further from the truth. Diligent investigation of store operations by supplier is critical for product sales. The case can also be used successfully in conjunction with a reading from the Wall Street Journal about the experience of another team of entrepreneurs, Mark Fleming and Bill Hall of the Charleston Tea Company, with Wal-Mart: Kortney Stringer (2000), “U.S. Tea Grower is in Hot Water,” Wall Street Journal, September 13, B1. Together, these two readings can produce an interesting contrast of what it takes for a small company to work successfully with the world's largest retailer.
Case Author(s): Michael Moffett, Kannan Ramaswamy Abstract: The case discusses the acquisition of Harbin Brewery, a Chinese-owned company with extensive operations in the northeast of China, by Anheuser-Busch, the U.S. multinational brewer. The Chinese beer industry had witnessed multiple waves of foreign investment in the late 1980s and early 1990s. Many of the foreign entrants had their grandiose plans scuttled by a mix of archaic industrial licensing policy, infrastructural challenges, and economic realities. Most sold to local companies and moved out of China. By 2003 the market was heating up again, and the majors such as SAB Miller and Anheuser-Busch (AB) were aiming for China once again. Harbin Brewery was partly owned by SABMiller through a joint venture when AB launched a takeover bid. The case discusses the nature of the Chinese business system, economic potential, consumer behavior, and the nexus between politics and business. It offers a rich context within which the strategic actions of AB and SABMiller can be interpreted. The case closes with the successful acquisition by AB. Teaching: This case is intended for use in a course/program dealing with corporate strategy and/or global strategy issues or in an advanced stage of a preliminary class in competitive strategy. Given the rich China focus, it fits in with courses on international business environments as well. It has been successfully used in several executive programs to emphasize global strategy or China-specific themes. The purpose of the case is to illustrate: (a) the contextual challenges facing firms that aspire to profit from a China presence (b) the relationship between country v. global strategy (c) valuation of firms in emerging markets Thunderbird #: A07-05-0003 Setting: China Industry: Beer Subjects: General management
Case Author(s): Eskandar A. Tooma, Robert Grosse Abstract: Arab African International Bank (AAIB) is a private-sector bank competing in Egypt against four large state-owned banks and about 20 other foreign and domestic private-sector banks. The case focuses on AAIB’s retail banking strategy, and particularly on the launch of a “smart card” for use as a credit/debit card, and potentially for additional functions. The product is supported by VISA International, and AAIB is the first bank to issue the card in Egypt. The case describes the product launch, the positioning of AAIB in the Egyptian market, and the strategy that AAIB was following at the time of the launch. Teaching: This case can be used for finance or financial-institutions course, a marketing course, or a strategy course. Information is presented in the case to analyze the product launch, the decision of whether to purchase or lease card-reader machines, and to consider AAIB‘s competitive position in the Egyptian market. Thunderbird #: A06-05-0007 Setting: Cairo, Egypt, 2003 Industry: Commercial banking Subjects: Finance; marketing; industry and competitive strategy
Case Author(s): C. Roe Goddard Abstract: This case is intended for a broad range of student/executive audiences, and has the ability to be used successfully in a number of courses. It can be used in courses in international economics, international finance, international political economy, financial risk management, and regional courses focusing on the politics or economies of emerging markets/Latin America. Ideally, students/executives would have had macro- and microeconomics; however, I have found that students/executives with neither of these courses have still performed well in the case analysis. It is a challenging case study and is particularly useful in an MBA or executive MBA course, but can be taught successfully in advanced undergraduate courses. Teaching:The purpose of the case study is to both illustrate the complex set of internal and external causes of emerging market financial crises, and assist the student to comprehend the high degree and multiple strands of interdependence linking emerging market economies and the large international economy. The case is highly illustrative in the application of financial/banking concepts such as interest rate spreads, debt swaps, reserve requirements, the role of international sovereign credit rating agencies to the deteriorating position of Argentina’s finances. Argentina‘s experience in December 2001/January 2002 and the failed policies that led up to this economic, political, and social tragedy provide a vivid example of the risk associated with doing business in emerging markets in general, and Latin America countries in particular, with their penchant for excessive fiscal spending. More specifically, this case helps the student to comprehend international economic and financial concepts and linkages, and assess financial and exchange rate risk. Thunderbird #: A03-04-0006 Setting: Argentina Industry: Emerging markets Subjects: Business, government, an
Case Andrew Inkpen AT&T once dominated virtually all U.S. telecommunications sectors. In 1984 AT&T was broken up into a new AT&T and seven operating companies, known as RBOCs (regional Bell operating companies), or Baby Bells. This case focuses on the period from 1984 to 2000, during which time AT&T went through a series of tumultuous changes. AT&T acquired, and then divested, the computer company NCR. AT&T bought McCaw Cellular Communications Inc. for almost $12 billion. AT&T spun off its equipment division into a new company called Lucent. AT&T invested more than $100 billion to acquire various cable television assets. Finally, in 2000 AT&T announced a sweeping restructuring plan that would break the company up into separates wireless, broadband, business long distance, and consumer long distance companies. Thunderbird Number: A07-01-0014 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Telecommunications Subjects: General management
Case Author(s): John Zerio, Carolina Chahuan Eltit Abstract: Banco Santiago is one of the leading financial institutions in modern Chile. With the liberalization of trade in Chile, and the globalization of financial institutions, Banco Santiago is under increased pressure to maintain market share, margins, and profitability. To establish a more differentiated market presence, Banco Santiago launched a value segmentation strategy. A few months into the rollout, problems started to surface. Though relatively successful, the implementation process requires fine-tuning. The marketing leaders must face some critical decisions on how to regain momentum. Teaching: Appropriate for advanced marketing strategy courses at graduate level, and international marketing and management classes of an MBA program. Its primary focus is on strategy implementation. Thunderbird #: A12-03-0022 Setting: Chile; 2001/02 Industry: Banking Subjects: Marketing; financial services; strategy implementation; Latin America
Case John Zerio, Pablo Benitiz, Gabriel Areas, Apostolos Dokianos, Sheela Satpute British American TobaccouCentral America is the cigarette market leader in the Central America region. Increasing competition from Philip Morris and RJR Tobacco Holdings, combined with deficient management of sales and marketing, have contributed to a loss of market share in the years 1997 and 1998. The company has decided to implement an integrated, region-wide, sales force automation solution. The existing Telxon 460-based system is no longer sufficient to support the complexity of customer relationships, as merchandising and promotion activities demand a great deal more from the field sales personnel. Management is evaluating two PDA (Personal Digital Assistant) hardware productsuHusky and HP Jornadauand considering the necessary process changes to support the new sales force automation tools. Thunderbird Number: A12-02-0011 Type: Case Publication Date: Geographic Setting: Central America Industry Setting: Consumer goods Subjects: Marketing; electronic commerce disintermediation; information management
Case Lauranne Buchanan, Christopher K. Merker In the mid-1980s, Bayer AG faced a crisis when aspirin was associated with Reyes Syndrome, a rare but serious illness in children. Bayer decided not to remove Children?s ASPIRIN from the market, but they pulled all promotion for the brand and complied with government regulations regarding product warnings on packaging. Shortly thereafter, new discoveries revealed the effectiveness of aspirin in the prevention of heart attacks and strokes in adults. Children?s ASPIRINudue to its lower cost and lower dosageuwas an ideal product for the prevention market. Over the years, sales of Children?s ASPIRIN had increased, but Bayer AG had never analyzed the percent of sales due to the children?s v. prevention markets. Now the company must make a decision about what to do with the product. Should they retract Children?s ASPIRIN altogether in order to increase sales of Bayer?s higher-margin prevention brands, or reintroduce it as a prevention product under another brand name? Implication for company growth and profitability are examined. Thunderbird Number: A12-02-0026 Type: Case Publication Date: Geographic Setting: Germany, Europe, U.S., Latin America Industry Setting: Pharmaceutical Subjects: Marketing
Case Kenneth R. Ferris, Faruk Muratovic The case examines the downfall of Beige Holdings Ltd, a South African pharmaceutical company, in 1999. Students prepare a financial analysis of the company in an effort to see if traditional indicators of financial performance (e.g., ratios, cash flows) can predict the company?s problems. Nontraditional predictors of distress (e.g., Altman?s Z-score) are also considered Thunderbird Number: A06-00-0026 Type: Case Publication Date: 1999 Geographic Setting: South Africa Industry Setting: Pharmaceutical, cosmetics Subjects: Accounting; finance
Case Michael Moffett, Haw Eah Clara Chan In April of 1996, George Tossan reviewed the due diligence reports for the Beijing International Club Corporation (BICC) joint venture in Beijing, China. The BICC project was a joint venture with the Chinese Ministry of Foreign Affairs (MFA) to build a hotel recreation complex in the center of Beijing. George Tossan worked for Sheraton Asia Pacific Corporation (SAPC), which was currently negotiating with the Sun Corporation (Hong Kong) to buy out Sun?s interest in the JV. In two days, George Tossan was due to attend a meeting of SAPC?s senior management, at which time he would present his assessment of Sheraton?s investment in BICC. Thunderbird Number: A06-03-0009 Type: Case Publication Date: 1996 Geographic Setting: China Industry Setting: Hotel Subjects: International finance; capital budgeting; international joint ventures; China
Case Author(s): Richard Etttenson, Dennis Guthery Abstract: Best Western International (BW) is striving for global brand leadership in the broad, worldwide, mid-scale lodging market. Management must decide how best to strategically position the Best Western (BW) brand in an increasingly competitive lodging environment. There is also the need to provide direction and connection to BWI’s affiliates and members worldwide to ensure that marketing and business success in different markets is not isolated and random. How to achieve this goal presents management with many marketing, branding, and organizational challenges. Teaching: This case is appropriate for both graduate marketing courses and executive education programs. The case is well suited for a graduate brand management course or executive program. The issues addressed in the case make it useful either as an introductory brand management case or as a comprehensive summary case. The case addresses such issues as value delivery, customer analysis/marketing research, brand equity, positioning, global branding, and brand extensions, among others. The case is also well suited for a graduate marketing management course when used in the session covering brand management. Thunderbird #: A12-03-0024 Setting: Worldwide Industry: Lodging Subjects: Brand management; global branding; international marketing; marketing research
Case Michael Moffett, Kannan Ramaswamy Brasil telecom in June of 2001 is one of the three wireline concessions resulting from the privatization of the national Brazilian telecom giant Telebras. The company is currently debating whether to expand infrastructure in-line with regulatory requirements or expand even faster in order to be allowed to provide both wireline and wireless services in the other two telecommunications regions in Brazil. The problem, however, is that its two controlling owners, Opportunity and Telecom Italia, are in the midst of a significant battle for control of the company. Thunderbird Number: A07-02-0003A Type: Case Publication Date: Geographic Setting: Brazil Industry Setting: Telecom Subjects: Strategy; privatization; telecom
Case Author(s): Graeme Rankine Abstract: Anna Amphlett and Katy Ianuzzo are in the planning stages of acquiring a bankrupt cable company operating in the San Juan Islands of Washington State. The entrepreneurs plan to resuscitate the business with new capital, develop new products and services such as high-speed Internet, and operate the new business as Broadband Communications, Inc. The entrepreneurs have approached San Juan Community Bank for a $3 million loan, but the bank has asked the entrepreneurs to provide the company’s business plan, including projected financial statements for the first year of operations, before they will consider funding the new business. Teaching: Students are asked to prepare financial statements using the company‘s balance sheet at its inception (Exhibit 2 in the case) and a set of eleven summary transactions described in the case. The instructor can provide students with an Excel worksheet to organize the beginning balance sheet, i.e., each balance sheet account in a separate column and the accounting events. The amounts on the balance sheet at the business's inception can be put in the first row under the appropriate balance sheet account label. The transactions described in the case can be inserted in successive rows on the worksheet. The completed worksheet (see Exhibit TN-1) enables students to prepare the company's financial statement. These include (1) the balance sheet at the end of the first year from the totals in the last row (see Exhibit TN-2), (2) the income statement and statement of retained earnings for the first year from the amounts recorded (excluding the dividends) in the retained earning account (see Exhibit TN-3), (3) the statement of cash flows for the first year using the direct method from the amounts recorded in the cash column (see Exhibit TN-4), and (4) the statement of cash flows for the first year using the indirect method by starting with net income and adding the accrual adjustment
Case F. John Mathis, Darian Narayana, Paul Keat The case involves the sale of production equipment by a U.S. manufacturer, Broadway Metal Equipment (BME), to a large Mexican steel producer, Acero del Norte (ADN), that wants to upgrade and expand its capacity. It is a major and complex order for BME, and Acero has required that whoever wins the bid also must provide financing. The project is valued at $35 million, involves more than 60 subcontractors in the U.S., and takes two years to complete before final payment is received. The case is designed to examine the methods of structuring the financing of capital goods exports over a two-year period. The case is useful for identifying all the various risks associated with the transaction and possible methods for mitigating these risks. The case also involves an analysis of country risk conditions in Mexico during the period 1992 to 1999. Thunderbird Number: A10-01-0004 Type: Case Publication Date: Geographic Setting: U.S., Mexico Industry Setting: Steel manufacturing Subjects: Finance; international trade
Case F. John Mathis, Darian Narayana, Paul Keat This case provides insight into the issues faced by a small company producing scientific equipment that earns a significant share of its sales revenue from exports to an industrialized country. The company has no debt and wants to explore different avenues to provide it with access to working capital should sales suddenly increase. Currently, they are financing exports on open account. Thunderbird Number: A10-00-0021 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Small optic company Subjects: Finance; international trade
Case Mark D. Griffiths Catastrophe insurance, like most types of insurance, is essentially a protective put option, purchased by someone to ensure or olocko the value of some underlying asset, be it a house, car, or their health. The buyer pays the insurance company a premium to purchase the policy. If some predetermined event occurs, reducing the value of the protected asset, the insurance company effectively buys or replaces the asset for the policyholder according to the details of the policy. A catastrophe, by legal standards, must be an event causing a least $25 million in damage and affecting multiple parties. Thunderbird Number: B06-00-0023 Type: Case Publication Date: Geographic Setting: North America Industry Setting: Weather Subjects: Finance; derivatives
Case Kenneth R. Ferris This case concerns a start-up operation (a scuba diving operation) in The Cayman Islands. Two friends buy out an existing operation and then try to figure out how to make the business grow. The case begins as a straightforward transaction analysis exercise, leading to the preparation of the basic financial statements for the first month of operations. Pro forma statements are then prepared to determine whether the purchase of an additional dive boat is justified (see Cayman Island Divers (B)). Thunderbird Number: A01-03-0002 Type: Case Publication Date: Geographic Setting: Caribbean Industry Setting: Leisure, Sport Subjects: Accounting and control; entrepreneurship
Case Kenneth R. Ferris This case is the follow-up to Cayman Island Divers Ltd. (A). Part (A) focused on the preparation of historical financial statements, whereas Part (B) focuses on the preparation of pro forma financial statements for an eight-month period. The decision-setting concerns are whether or not the new venture would be wise to make a capital investment into an additional dive boat. Thunderbird Number: A01-03-0003 Type: Case Publication Date: Geographic Setting: Caribbean Industry Setting: Leisure, Sport Subjects: Accounting and control; entrepreneurship
Case Author(s): John Zerio Abstract: CHP — Chaud Froid Plomberie is a French distributor of construction supplies. The company occupies a dominant position in Southern France and has won several large supply contracts. Margins and profitability have come under pressure because of new European entrants. CHP is ready to place a large order for flexible couplings. A meeting has been arranged with representatives from Mission Rubber Technologies to discuss a possible deal. The negotiation meeting is to take place in France. Teaching: The case can be used in Sales and Marketing programs to prepare the students for an intricate negotiation with a major customer. It may also be used in a Negotiations course to illustrate the use of a variety of negotiation tactics. The case should be used in conjunction with the case Mission Rubber Technologies. The teaching note contains additional confidential information for team preparation. Thunderbird #: A10-04-0021 Setting: France Industry: Construction Subjects: International trade; marketing; negotiation
Case Robert Grosse This case follows the tortured path of Citibank?s acquisition of the Mexican bank, Confia, in 1998. The process began with the Mexican Tequila Crisis of 1994-95, in which most of the domestic banks became insolvent and had to be rescued by the Mexican government. In the process of reviving the banking system, the government looked to foreign banks to bring in new capital and management skills in exchange for ownership of the local banks. In the case of Citibank, there was an ongoing strategic alliance with Confia that made this match-up a logical one. The case describes the situation of Confia, the initial agreement to acquire the bank, the long period of due diligence evaluation, and the shock of the money laundering indictment, and the final purchase of Confia in August 1998. The focal points are the attempt to value Confia for the acquisition and the examination of Confia?s fit within Citibank?s overall strategy. Thunderbird Number: A07-00-0022 Type: Case Publication Date: Geographic Setting: Mexico Industry Setting: Banking Subjects: International management; HR; global strategy
Case Robert Grosse, Humberto Valencia Citibank decided to pursue the acquisition of a failing Mexican bank, Confia, in 1996 after the Tequila effect had hit the country. The process of carrying out this acquisition produced a large number of complications for Citibank as Confia went into insolvency, its president was jailed for misuse of company funds, the bank was indicted in the U.S. for money laundering, and the process of integrating personnel of Confia with those of Citibank-Mexico was repeatedly revised as events required new responses. The case describes the process of acquisition, the integration of the two banks? personnel, and some of the cultural differences involved. Thunderbird Number: A07-00-0020 Type: Case Publication Date: Geographic Setting: Mexico Industry Setting: Banking Subjects: International management; HR; global strategy
Case Dennis Guthery, John Zerio The case describes the transformation of a traditional Mexican company in response to growing international competition for the GCC (Ground Calcium Carbonate) market in Mexico. The company is considering whether to enter the U.S. market and the best method of entry. GCC is primarily utilized in the paper, plastics, and paint and coatings industries. Transportation costs and industry dynamics present a difficult challenge for senior management. Thunderbird Number: A12-02-0022 Type: Case Publication Date: Geographic Setting: U.S., Mexico Industry Setting: Mining, chemicals Subjects: Market entry strategy
Case Author(s): Denise Guthery, David Gertner, Rosane Gertner Abstract: This case presents the challenges the Coca-Cola Company faced in Brazil. Not only was Coke up against its nemesis, Pepsi, it also had to compete with hundreds of local brands, many of which did not pay taxes. These local brands were generically called tubaí nas. The case provides background information on the history of Cake in Brazil, trends in the Brazilian soft drink market, and on competition by Pepsi and the many local soft drink firms. In addition, Coke’s strategies for competing are outlined. The student is asked to analyze the information presented in the case and to make recommendations to Coke on how to better compete in Brazil. Teaching: This case is appropriate for both undergrad and MBA international marketing classes. It is ideally suited for discussing international branding and strategies MNCs can use to compete with local brands. The teaching note includes the citation of three excellent articles focusing on global brands versus local brands. These three articles plus the case cover most issues relating to this topic and can be used in conjunction for a discussion covering at least two hours. Thunderbird #: A12-04-0025 Setting: Latin America, Brazil Industry: Soft drink, beverage Subjects: Marketing; industry and competitive strategy
Case John Zerio Columbia Industries, a medium-size manufacturer of couplings for construction applications located in British Columbia, Canada, is considering the acquisition of seven new forklifts. The company?s key operation managers will be meeting shortly to study the proposals presented by five qualified suppliers, and will be making a final recommendation to the company general manager. Thunderbird Number: A12-00-0014 Type: Case Publication Date: Geographic Setting: Canada Industry Setting: Construction Subjects: Couplings
Case Christine Uber Grosse When Jamie Dimon took over as CEO of Bank One in 2000, the Bank?s shareholders barraged him with questions and complaints about customer service. They wanted to know what he planned to do to improve customer service at Bank One, the sixth largest bank in the U.S. Dimon made customer service one of the top priorities he tackled during the first two years of his leadership. He set up systems to track, measure, and reward the quality of customer service. Thunderbird Number: A20-03-0015 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Banking Subjects: Service management
Case John Zerio Goodyear has been a dominant and profitable player in the Latin American tire industry for many decades. After Brazil, Mexico is Goodyear?s second largest market in Latin America. However, its roles in the Goodyear global business portfolio are about to change dramatically. The year 1994 marks the beginning of a period of great transformations for the Mexican society, and profound turmoil to its economic system. The case is situated in the context of the changes that start in 1994 and culminate in the Mexican international bailout of 1995. The (A) case focuses primarily on the economic and market changes and their impact on Goodyear, while the (B) case unfolds in the context of the financial crisis and focuses on the company?s market responses. Thunderbird Number: A12-00-0015 Type: Case Publication Date: Geographic Setting: Mexico Industry Setting: Tires Subjects: Marketing
Case John Zerio Goodyear has been a dominant and profitable player in the Latin American tire industry for many decades. After Brazil, Mexico is Goodyear?s second largest market in Latin America. However, its roles in the Goodyear global business portfolio are about to change dramatically. The year 1994 marks the beginning of a period of great transformations for the Mexican society, and profound turmoil to its economic system. The case is situated in the context of the changes that start in 1994 and culminate in the Mexican international bailout of 1995. The (A) case focuses primarily on the economic and market changes and their impact on Goodyear, while the (B) case unfolds in the context of the financial crisis and focuses on the company?s market responses. Thunderbird Number: A12-00-0015 Type: Case Publication Date: Geographic Setting: Mexico Industry Setting: Tires Subjects: Marketing
Case Author(s): Lauranne Buchanan, Carolyn J. Simmons Abstract: This case provides a synopsis of three companies — Dell, Inc., IKEA, and Seven-Eleven (Japan) -- that has developed a competitive advantage through channel management. Each case highlights the company’s focus on customer relationships and how the channel is designed to maximize customer service. Examples illustrate how these companies think “outside the box” in their selection of channel partners and in the sequencing and assignment of the activities involved in product design, production, and transfer. They also illustrate how closely these companies work with their suppliers in order to coordinate activities and reduce channel cost. The net effect is a more efficient channel designed to serve the customer more effectively. Teaching: The case is intended to stimulate discussion about what it takes to develop a competitive advantage through channel management. It illustrates that a competitive advantage can be created by: • Controlling channel costs so that the right product can be sold profitably at a fair price to consumers, • Ensuring that the product is available at the right time (mundane but crucial), • Ensuring that customers‘ shopping experience in the retail environment (store, catalogs, or online) meets their specific needs. Thunderbird #: A12-04-0019 Setting: U.S., Japan, Sweden, 1990-2004 Industry: Hi-tech, retail Subjects: Marketing
Case Anant Sundaram This note develops the foundations of the ideas underlying much of the theory and practice of international finance, notably the basic oparity conditionso linking exchange rates, interest rates, and inflation rates. Specifically, the note develops the ideas of purchasing power parity, speculative efficiency, uncovered interest parity, and the international Fisher effect, and the links among these from a managerial perspective. It includes a brief discussion of the factors driving exchange rate changes in the medium term, and of the three types of exchange rate exposure that cross-border firms face; namely, translation exposure, transaction exposure, and economic exposure. Thunderbird Number: B06-03-0010 Type: Case Publication Date: Geographic Setting: World Subjects: Finance; international trade
Case F. John Mathis, Darian Narayana, Paul Keat This case is about pre-export finance for an exporter in a developing countryuBrazil. The Prepayment Facility is arranged up to a predetermined amount for a specified time period before the buyers are known, so that the exporter knows as it receives orders, it will be paid in advance to help cover the cost of production. The Prepayment Facility provides the exporter with greater certainty about the volume of sales. For example, if the size of output is important to achieve economies of scale, or if the building of a sales force and the level of sales activity are significant costs, then these factors can be better managed. Thunderbird Number: A06-01-0008 Type: Case Publication Date: Geographic Setting: Brazil Industry Setting: Manufacturing ferrous metal products Subjects: Finance; international trade
Case Author(s): Priscilla Wisner, John Zerio Abstract: D’Aquino Quimica S.A. is the Brazilian subsidiary of Berre Chimique. The operation serves the four Mercosur markets — Brazil, Paraguay, Uruguay, and Argentine. The economic volatility in the region requires extraordinary focus on resource utilization and profit measurement. The case highlights issues dealing with marketing unit performance, product line profitability, profit impact of marketing programs, and sales strategy. In addition, by linking events to the Mercosur context, the case offers an opportunity to explore the economic and political circumstances that surround the customs union. Teaching: The case can be successfully used in a capstone marketing course on strategy, managerial accounting, and profit planning and control. Thunderbird #: A12-04-0024 Setting: South America Industry: Chemical Subjects: Account and control; finance; marketing; finance and international trade
Case Author(s): Robert Grosse, Juan Yañ es Abstract: Ecuador’s main industry is petroleum, which generates half of export earning, finances much of the government budget, and employs directly more than 12,000 people in a country of 14 million people. The oil was discovered by foreign oil companies, produced and distributed largely by them until a national company was created in 1974, and is exported to them by the government-owned company and by the remaining companies operating in Ecuador. Relations between the companies and the government have been quite turbulent, with the government taking partial ownership of the main company in 1974, buying out Gulf Oil a year later, and finally taking Texaco‘s share in 1992. Only medium-sized and small foreign oil companies remain, since the opportunities in Ecuador are limited, and the government has proven unreliable in its regulation of the firms. This case describes the process through which a second oil pipeline was built in 2001 to transport oil from the jungle to the coast, and the dealing between the companies and the government during that process. Even in 2004 there were several major unresolved issues that left government-company relations on very conflictive terms. Teaching: This case can be taught in a government-business relations course, a course on doing business in emerging markets, and of course in any context that deals with company-government relations in the oil industry. Either a company or a government point of view may be taken — and the case could be used to create a negotiation between the two sides, either at the time of the OCP approval effort in 1998-2001 or, more currently, to deal with the tax conflict and the various other problems that have arisen between the Ecuadorian government of President Lucio Gutierrez and the foreign companies during 2002-04. Thunderbird #: A03-04-0028 Setting: Ecuador 1998-2001 Industry: Oil Subjects: B
Case Roy C. Nelson Dell has recently concluded a site selection process in Brazil to determine where it will locate its manufacturing plant in that country, which will be its first manufacturing plant in Latin America. After a lengthy site selection process in the first half of 1998 involving five states in BraziluS?o Paulo, Rio de Janeiro, Paran?, Minas Gerais, and Rio Grande do SuluDell has decided to locate the plant in the state of Rio Grande do Sul, Brazil. Although a number of factors influence Dell?s decision, one of them is the generous incentives that Governor Antonio Britto of the relatively centrist Partido do Movimento Democratico Brasileiro (PMDB) has offered Dell. However, after Dell makes this decision, a new governor, Olivio Dutra of the Partido dos Trabalhadores (PT, or Workers? Party), is elected in October 1998 and takes office in January 1999. The PT is a socialist party. Having made an issue of what he considered to be overly generous incentives offered to transnational corporations during his campaign, Governor Dutra seems likely to rescind the incentives that the Britto government had offered. Given this situation, Keith Maxwell, Dell?s Senior Vice President for Worldwide Operations, must make a recommendation to Michael Dell. The case presents three possible options for Dell: (1) leave Brazil entirely; (2) move the plant to another state within Brazil; (3) try to renegotiate with Governor Dutra. Thunderbird Number: A03-03-0021 Type: Case Publication Date: Geographic Setting: Brazil Industry Setting: Computer Subjects: Business; government; and international policy
Case Author(s): Roy C. Nelson Abstract: Delta Air Lines has decided to consolidate its reservations centers in Latin America into one regional office. This new consolidated office will be Delta’s Latin America Contact Center, handling reservations for the entire Latin American region. The executives on Delta‘s site selection team have narrowed down the company's choices of a location for this Center to three options: Mexico City, Mexico; Buenos Aires, Argentina; and Santiago, Chile. Mary Smith will be helping to make the recommendation as to which country Delta should choose. Teaching: The case can be used in a number of contexts. It is appropriate to use in any course or module dealing with issues related to foreign investment or negotiations between multinational corporations and host country government. It can also be used in a course on comparative business environment or the business environment of Latin America. In a course on international development, it could be used to demonstrate effective ways of attracting foreign direct investment. Thunderbird #: A03-04-0011 Setting: Latin America Industry: Airline Subjects: Business, government, international policy; negotiation
Case Author(s): Dennis Guthery, Rosane Gertner Abstract: This case presents the marketing and branding efforts of the Las Vegas Convention and Visitors Authority (LVCVA) from 1998 to 2004. During this period, significant changes have taken place with respect to several factors influencing travelers. These include an increase in family vacation, the growth of Las Vegas, and the new types of properties and entertainment options available in the city. The LVCVA developed advertising campaigns taking these changes into consideration. Rationale for the “brand essence” is given and incorporated into the ad campaigns. Teaching: This case is appropriate for use in either an undergraduate or graduate marketing management course or in an advertising/promotions course. If used in a marketing management course, it should be used in covering either the branding or advertising portion of the course. If used in an advertising course, it is most appropriate for the strategy development portion of the course. It’s appropriate to assign the reading, The Strip Is Back, by Joel Stein and Laura Locke. Thunderbird #: A12-04-0032 Setting: U.S. Industry: Advertising Subjects: Marketing
Case Author(s): Christine Uber Grosse Abstract: This case investigates how Bank One responded to the mutual fund crisis of 2003-2004. It examines the communication strategy of Jamie Dimon, Chief Executive Officer of Bank One. His strategy, which consisted of ethical behavior, transparency, cooperation, and open communication, helped the company to reach a settlement with the Security & Exchange Commission and the New York Attorney General’s office. Teaching: To understand how ethical behavior affects a company in time of crisis to study the effect of open and transparent communication on a company during a corporate crisis. To gain insight into the communication strategy employed effectively by Bank One. Thunderbird #: A02-04-0030 Setting: New York Industry: Banking Subjects: Business ethics; organizational communications
Case Andrew Inkpen In September 2001, Houston-based Enron Corporation (Enron) was embroiled in a long-running dispute with various levels of government in India. The dispute involved the Dabhol Power Company (DPC), a 2,184-megawatt (MW) power project in the Indian state of Maharashtra. The dispute began in the mid 1990s. In April 1995, Enron began construction of a $2.8 billion power plant in the state of Maharashtra. In August 1995, the Maharashtrian government announced that the project was canceled based on the recommendations of a committee set up by the government to review the project. After the contract was renegotiated, construction resumed and Phase I was completed in 1999. In 2001, with Phase II of the project 95% complete, Enron announced that it would sell its DPC stake because of payment disputes with its sole buyer, the Maharashtra State Electricity Board (MSEB) and the failure of the Indian central government to honor its counter-guarantee. Thunderbird Number: A07-02-0008 Type: Case Publication Date: Geographic Setting: India Industry Setting: Energy Subjects: General management; industry; competitive strategy
Case Author(s): Graeme Rankine Abstract: The collapse of Enron will undoubtedly go down in history as one of the most notorious corporate scandals in the twentieth century. Enron’s employees lost billions of dollars in retirement savings tied up in Enron as stock became worthless. The rise and fall of Enron was marked by inflated earnings and substantial amounts of hidden debt, enabled by the use of special purpose entities, the application of unethical accounting techniques, and an unquestioning board of directors. The transformation of Enron from a mundane natural gas transportation company into a financial trading empire, with operations in natural gas, water, broadband, electricity, power plants, and exotic derivatives, was masterminded by Jeffrey Skilling, one-time chief executive officer, and Andrew Fastow, the company‘s chief financial officer. In the aftermath of the company's collapse, the U.S. Congress enacted sweeping changes to corporate governance. But why did Enron's collapse take the financial community by complete surprise? Were there any warning signs that Enron was not as financially solid as it appeared? The case examines these issues using data from Enron's 2000 10-K and Compustat data for 1984-2000. Teaching: The purpose of this case is to determine whether there were any early signs of Enron's collapse. Students are asked to undertake an analysis of selected financial statement data from Enron's 2000 10-K, including the company's use of off-balance sheet entities accounted for using the equity method of accounting. Students are asked to assess the company's earnings quality using historical data from cCompustat for 1984-2000. In addition, students are asked to consider whether Enron was worth over $60 per share at the end of April 2001. Thunderbird #: A01-04-0017 Setting: U.S. Industry: Energy Subjects: Accounting and control; finance
Case Author(s): Gail Petersen Abstract: A US manager in a multinational consumer products company has been assigned to lead a product launch in Argentina with an international team. This case highlights how issues around cultures, virtual teams and matrixes organizations intersect and challenge managers to use all their leadership skills. Teaching: To stimulate discussion leading towards better understanding of the requirements of effective international team collaboration. Thunderbird #: A07-03-0027 Setting: US Industry: House Hold Subjects: General management; organizational behavior
Case Winter Nie In this case, we introduce basic notions and features about ERP systems. Issues frequently encountered in ERP implementation are illustrated and discussed. Cost overrun is a major source of risk. Thunderbird Number: A11-02-0006 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Oil, Gas Subjects: Operations management
Case Winter Nie In this case, we introduce basic notions and features about ERP systems. Issues frequently encountered in ERP implementation are illustrated and discussed. Cost overrun is a major source of risk. Thunderbird Number: A11-02-0006 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Oil, Gas Subjects: Operations management
Case Graeme Rankine In 2000, Fairfield Communities, Inc. was one of the largest time-share operators in the U.S. The company?s portfolio of resorts consisted of 35 resorts located in 12 states and the Bahamas. Of the company?s resorts, 25 were located in destination areas with popular vacation attractions such as Daytona Beach, Florida, and Las Vegas, Nevada, and ten were located in scenic regional locations. Fairfield sold and financed vacation ownership intervals (VOI), providing a deeded interest in the use of a fully furnished vacation property of a specific size, at a specific location, at a specific time of the year, and a specified length of stay. Customers typically provided a down payment of 16%-18% of the purchase price and financed the balance. Approximately 80% of Fairfield?s customers elected to finance their VOI purchases through the company on terms of up to seven years and at interest rates of approximately 15% per year. To finance its rapid growth, Fairfield securitized the receivables by osellingo them to special purpose entities (SPE). The SPE issued debt collateralized by the receivables. As permitted under U.S. GAAP, Fairfield accounted for the SPE using the equity method of accounting rather than consolidating the SPE?s financial statements. Thus, the SPE?s debt did not directly appear on Fairfield?s balance sheet. Thunderbird Number: A01-02-0015 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Leisure Subjects: Accounting; control
Case Michael Moffett, Kannan Ramaswamy LVMH Moet Hennessey Louis Vuitton (France) acquired a large interest in the Gucci Group (Italy and Netherlands) in January 1990. Gucci accused LVMH of undertaking a ocreeping acquisitiono and refused to cooperate in LVMH?s efforts to gain representation in Gucci?s management. The case details the actions of the purported takeover attempt, and the defense mechanisms employed by Gucci. The defenses employed included the use of a poison pill and a white knight. Ultimately, Gucci found a white knight, Pinault-Printemps-Redoute (PPR) of France to save it from LVMH?s unwanted advances. The primary question, which the case addresses, is whether the actions taken by Gucci?s management in defending its independence were actually in the best interests of shareholders. Thunderbird Number: A06-02-0007 Type: Case Publication Date: Geographic Setting: Europe, Global Industry Setting: Luxury goods Subjects: Finance; corporate governance
Case Graeme Rankine Companies within an industry face similar opportunities and constraints; they often make similar operating, investing, and financing decisions. Therefore, companies within the same industry tend to exhibit similar financial characteristics, as measured by financial ratios. On the other hand, since opportunities and constraints tend to be different across industries, companies in different industries tend to exhibit different financial ratios. With some knowledge of the different operating, investing, and financing decisions across industries, financial ratios can be used to identify an industry. Thunderbird Number: A01-01-0022 Type: Case Publication Date: 1998 Subjects: Accounting; financial ratios
Case Robert Grosse YPF was the formerly state-owned and largest company in Argentina in 1995. It was privatized in 1993, and was planning its second annual capital budget as a private-sector company in the fall of 1994. When the Tequila Crisis hit Mexico in December 1994, international borrowing became much more difficult for emerging market borrowers in general and Argentine borrowers in particular. This case presents the situation that faced YPF at the beginning of 1995, after most of the pieces of its capital budget had been laid out but not finalized at the end of 1994. Thunderbird Number: A06-02-0005 Type: Case Publication Date: Geographic Setting: Argentina Industry Setting: Oil Subjects: Finance
Case Michael Moffett, Andrew Inkpen General Motors (U.S.) and AvtoVAZ (Russia) are, in the spring of 2001, in the final stages of forming a joint venture (JV) for the manufacture of a new automobile in Russia, the Chevy Niva. The car would be largely the result of Russian engineering and construction with limited GM input and the GM Chevrolet badge. The JV, if completed, would represent a $300 million combined investment by the parties and be a totally new approach used by Western investors in penetrating emerging markets. Thunderbird Number: A07-01-0013 Type: Case Revision Date: May 2009 Geographic Setting: Russia Industry Setting: Automobile Subjects: Strategy; joint ventures
Case Francisco Carrada-Bravo This company was founded in 1972 by Anthony Lo, in Tachia, a port city in western Taiwan. From a very humble beginning, this company turned, in a period from 1984 to 2000, into the largest producer and largest exporter of bicycles in the world. The success enjoyed by Giant was based on the ability of top management to turn a problem into an advantage, and the skill of this group to differentiate between a fad and an enduring shift in consumer demand. From its inception, a large proportion of the company revenues were the result of exports to North America and Europe. Therefore, managing pricing and exchange rate exposure were two major priorities of Giant. Thunderbird Number: A06-00-0006 Type: Case Publication Date: 1996 Geographic Setting: Asia, Taiwan Industry Setting: Bicycle Subjects: Global finance
Case Christine Uber Grosse After being privately held for over 90 years, United Parcel Service (UPS) carried out the largest initial public offering ever by a U.S.-based company in 1999. The IPO raised $5.47 billion, leaving the company cash-rich and able to pursue strategic acquisitions and mergers. Since then, the company has embarked on aggressive expansion around the world, consistent with its new charter to become an enabler of global e-commerce, as well as a leader in parcel delivery service. UPS?s broad vision of e-commerce includes integrating the flow of information, capital, and goods around the world. How can UPS keep its competitive edge and continue to grow in times of rapid change? How can the giant company integrate e-commerce throughout its global operations? Thunderbird Number: A07-02-0010 Type: Case Publication Date: Geographic Setting: Georgia, World Industry Setting: Mail, package, freight Subjects: Strategy
Case F. John Mathis, Darian Narayana, Paul Keat This case study involves the sale of capital equipment to a developing country that has experienced financial difficulties over the years. The payment period is spread out over three years, and the company?s primary bank does not have a large, long-term country exposure limit for Egypt. Thunderbird Number: A06-01-0001 Type: Case Publication Date: Geographic Setting: U.S., Egypt Industry Setting: Manufacturing, agriculture Subjects: Finance; international trade
Case Kannan Ramaswamy The case focuses on a joint venture between Honda Motor Company (HMC) of Japan and the Hero Group, a conglomerate of Indian companies held by the Munjal family. Hero is the largest manufacturer of bicycles in the world, and at that time, had already dabbled in the motorized two-wheeler market with its mopeds. HMC entered into a 50/50 alliance with Hero to manufacture motorcycles for the Indian market. It assumed product design and technology transfer responsibilities while Hero was in charge of manufacturing and marketing. The venture performed very well until the contract renewal period, when Hero felt that HMC was slowing down its technology transfers. The agreement was extended for another ten years after protracted negotiations. Just as the relationship appeared to get better, HMC announced the setting up of a subsidiary in India to manufacture scooters. It said that the subsidiary would enter the motorcycle market in 2004. This grew from a split between Honda and its Indian partner in a venture that was manufacturing scooters. Having exited the venture, HMC wanted to go it alone. This caused serious concerns for Hero, since HMC?s entry into the motorcycle market would threaten its very survival. The case closes with a set of issues that face Hero, and sets the stage for exploring alternative paths that Hero could take in managing it future. Thunderbird Number: A09-03-0012 Type: Case Publication Date: 2002 Geographic Setting: India Industry Setting: Automotive Subjects: Industry and competitive strategy; international management
Case John Zerio, Jeffery Olsen Hobart Corporation is a market leader in the food equipment industry. The advent of the digital economy has forced the company to evaluate the need to join an e-marketplace (virtual market). Also, e-procurement initiatives by key customers in the hospitality industry pose a new array of competitive challenges. Hobart has traditionally operated through value-adding, full service distributors. It must devise a new competitive strategy and redefine many aspects of its relationship with dealers and end-users. Thunderbird Number: A04-01-0017 Type: Case Publication Date: Geographic Setting: USA, Global Industry Setting: Food Equipment Subjects: Marketing; electronic commerce; disintermediation; information management
Case Author(s): Graeme Rankine Abstract: Home Store, Inc. is a retail chain of home improvement stores catering primarily to middle income female homemakers interested in undertaking do-it-yourself (DIY) and do-it-for-me (DIFM) projects. The company grew rapidly from a single store with sales revenue of $8.8 million in 2001 to 20 stores with total sales of $11.334 million in 2003. Yet, the company’s rapid growth in revenues has been accompanied by declining profits and a substantial increase in receivables, inventories, and capital investments in new stores. The resulting cash outflows have been financed by increased borrowing from Bank of America as well as stretching the company‘s payables, i.e., taking longer to pay suppliers. Bank of America reluctantly increased the maximum amount available to the company under its term loan to $5 million from $2.6 million. In early January 2004, Hermione Granger, President and Chief Executive Officer of Home Store, Inc., and Ron Weasley, the company's chief financial officer, completed a review of the company's financial situation. The company's executives are unsure whether the new credit limit will permit the company to implement its growth strategy since there is only $1.464 million remaining under the term loan at the beginning of 2004. Teaching: The purpose of the case is to evaluate the company's recent financial performance, determine whether the company's planned growth strategy can be financed within the new credit limits, and to assess alternative courses of action that might be available to improve the company's future performance. First, students are asked to consider the company's business strategy and whether it's likely to yield a sustainable competitive advantage. Second, students are asked to develop a cash flow statement for 2001-2003 to assess the company's cash generation. The cash flow statement indicates that the decline in the company's cash flow from operations is a result of ballo
Case Author(s): Christine Umber Grosse Abstract: One hundred percent Peruvian-owned, Grupo Supermercados Wong (GSW) is widely respected for its outstanding customer service and innovation. How did the Wong family manage to succeed in such a difficult and competitive industry? In the face of competition from foreign companies, can GSW continue to gain market share and increase sales? Teaching: • To learn how E. Wong grew from one neighborhood grocery store to the largest supermarket chain in Peru
• To study how a family-run business continues to grow in a competitive industry
• To discover ways to continuously seek innovation
• To examine how to maintain a high level of customer service while growing the company Thunderbird #: A07-04-0029 Setting: Peru Industry: Food Subjects: General management; computer information systems and technology; e-commerce; organizational communication
Case Dennis Guthery, David Gertner This case centers on the decisions a key executive must make to restore the image and profitability of his multinational pizza franchise in Porto Alegre, Brazil. The case contains information on franchising in Brazil and background information on both the franchiser and franchisee (disguised). In addition, the student is given information about Brazil; Brazilian dining habits and preferences with specific regard to pizza; information on competitors; and key aspects of IPH?s marketing strategy and operations. Thunderbird Number: A12-01-0005 Type: Case Publication Date: Geographic Setting: Brazil Industry Setting: Convenience food Subjects: Marketing
Case Kenneth R. Ferris This case centers around the first two years of operation of a small local restaurant. The case principally concerns the development of key financial statements for the two years of actual operations. Students are also asked to use ratios to analyze past operations, and to develop pro forma financial statements for the third year of operations. The decision setting is a possible bank loan to expand additional locations. Thunderbird Number: A01-03-0001 Type: Case Publication Date: Geographic Setting: Southwest U.S. Industry Setting: Food, Restaurant Subjects: Accounting and control
Case F. John Mathis, Darian Narayana, Paul Keat This case deals with the use of forfaiting in international trade to improve a company?s liquidity position and reduce its exposure to payment risk. Japan Glass Company is a large company that supplies products globally, including many developing countries. The company is facing a serious liquidity problem that has been caused largely by a slowing of its accounts receivable collections, specifically from developing countries. The CFO of the company is considering the use of forfaiting as a means of mitigating this risk and improving cash flow for the company. Thunderbird Number: A06-01-0009 Type: Case Publication Date: Geographic Setting: Japan Industry Setting: Manufacturing of architectural glass products Subjects: Finance; international trade
Case A Author(s): Inkpen, Andrew Publication Date: 2007 Thunderbird Number: A07-07-001 Geographic Setting: Brazil Industry Setting: Consumer Products Subjects: General management; Industry and competitive strategy Abstract: In January 2000, Jose Antonio Justino, accepted an offer to become the Managing Director of the Consumer Division of Johnson & Johnson Brazil (in Portuguese: Johnson & Johnson Comercio e Distribuicao Ltda.). Johnson & Johnson Brazil (J&J Brazil) had been the early leader in Brazil in a variety of products, including disposable diapers, sanitary napkins, bandages, cotton swabs, sunscreen, and baby care products. Unfortunately, performance had deteriorated in recent years, with both sales and profitability dropping significantly. Market share in many categories was falling because of increased competition from local firms and multinationals. The company group chairman of J&J’s global consumer business told Justino in February that he would have to present a business plan at a J&J meeting in Mexico in May 2000. The business plan would have to identify the specific steps that would allow J&J Brazil to restore profitability by the end of 2000 and position the company for future growth. Teaching: The J&J Brazil case series examines organizational turnaround. In 2000, J&J Brazil was in dire straits. Although still one of the strongest consumer brands in Brazil, the company was struggling with new competition, an outdated approach to sales and marketing, a changing Brazilian macro-environment, declining sales in key product categories, and an organizational culture resistant to change and innovation. After a successful stint as president of J&J Colombia, Justino was brought in to fix things. The (A) case requires students to develop a turnaround plan that establishes priorities and leads to improved financial performance. The (B) case describes the changes that took place and allows studen
Case Llewellyn D. Howell All firms operating in foreign environments face some element of political risk. Political risk is a probability of a loss to a foreign enterprise that stems from some political or social cause. This case reports losses to the Keene Industries rubber plantation in Liberia as obtained from the records of the Overseas Private Investment Corporation (OPIC). This political violence claim covered some but not all of Keene?s losses. The case explores the sources of the claimed losses, the nature of other unclaimed losses, and alternatives for political risk management. Thunderbird Number: A03-00-0010 Type: Case Publication Date: 1990 Geographic Setting: Liberia Industry Setting: Agriculture Subjects: Political risk; risk management
Case F. John Mathis, Darian Narayana, Paul Keat This case deals with the use of factoring in international trade to improve a company?s liquidity position and reduce its exposure to payment risk. Korean Plastics Company (KPC) is a large company that supplies products globally, including many developing countries. The company is facing a serious liquidity problem that has been caused largely by a slowing of its accounts receivable collections, specifically from developing countries. The CFO of the company, Taeho-Hoon Kim, is considering the use of factoring as a means of mitigating this risk and improving cash flow for the company. Thunderbird Number: A06-01-0016 Type: Case Publication Date: Geographic Setting: Korea Industry Setting: Manufacturing plastic products Subjects: Finance; international trade
Case Philip D. Drake This case serves to introduce the role of the firm and the need for information systems to help guide management decision-making. Thunderbird Number: A01-00-0018 Type: Case Publication Date: Geographic Setting: Russia Industry Setting: Clothing Subjects: Accounting
Case Author(s): Caren Siehl Abstract: Leading Across Cultures: China is part of a series of cases/white papers focusing on leadership effectiveness in a variety of cultural settings. The authors explore the historical and cultural roots of leading effectively in China. Leadership in China is contrasted with leadership in the U.S. In addition, the authors conclude with a discussion of how leadership in China is changing in the context of globalization. Teaching: The cases/white papers in the Leading Across Cultures series can be used as standalone reading/discussion vehicles or as a set to provide a compare-and-contrast type discussion. The series was created to be used in both MBA and Executive Education teaching. The papers would fit well in an MBA-level leadership course or as a session in a management course. The papers are particularly appropriate for a class on global leadership. Thunderbird #: D15-04-0033 Setting: China Industry: N/A Subjects: Organizational behavior
Case Author(s): Caren Siehl Abstract: Leading Across Cultures: Current Issues in the U.K. is part of a series of white papers focusing on leadership effectiveness in a variety of cultural setting. The authors explore the historical and cultural roots of leading effectively in the U.K. in the context of contemporary issues and changing expectations. Leadership in the U.K. is contrasted with leadership the U.S. In addion, the authors focus on contemporary challenges and how leadership in the U.K. is changing and should be changing in the context of globalization. Teaching: The white papers in the Leading Across Cultures series can be used as standalone reading/discussion vehicles or as a set to provide a compare-and-contrast type discussion. The series was created to be used in MBA and Executive Education teaching. The papers would fit well in an MBA-level leadership course or as a session in a management course. The papers are particularly appropriate for a course/class on global leadership. Thunderbird #: D15-05-0005 Setting: United Kingdom Industry: N/A Subjects: Organizational Behavior
Case Author(s): Siehl, Caren Publication Date: 2005 Product Type: Case Thunderbird Number: D15-05-0020 Subjects: Organizational Behavior; Leadership; Global Leadership Product Description: Leading Across Cultures: France is part of a series of white papers focusing on leadership effectiveness in a variety of culture settings. The authors explore the historical and cultural roots of leading effectively in France. Examples of leadership in France are contrasted with leadership in other cultures. In addition, the author concludes with a discussion of how leadership in France is changing in the context of globalization.
Case Author(s): Caren Siehl Abstract: Leading Across Cultures: Germany is part of a series of white papers focusing on leadership effectiveness in a variety of cultural settings. The authors explore the historical and cultural roots of leading effectively in Germany. Leadership in Germany is contrasted with leadership in the U.S. The authors conclude with a discussion of how leadership in Germany is changing in the context of globalization. Teaching: The white papers in the Leading Across Cultures series can be used as standalone readings/discussion vehicles or as a set to provide a compare and contrast type of discussion. This series was created to be used in MBA and Executive Education teaching. The papers would fit well in an MBA-level leadership course or as a session in a management course. The papers are particularly appropriate for a class on global leadership. Thunderbird #: D15-05-0004 Setting: Germany Industry: Multiple Subjects: Organizational behavior
Case Caren Siehl Leading Across Cultures: Japan is part of a series of white papers focusing on leadership effectiveness in a variety of cultural settings. The authors explore the historical and cultural roots of leading effectively in Japan. Leadership in Japan is contrasted with leadership in the U.S. In addition, the authors conclude with a discussion of how leadership in Japan is changing in the context of globalization. Thunderbird Number: D16-03-0017 Type: Case Publication Date: Geographic Setting: Japan Subjects: Leadership; organizational behavior
Case Caren Siehl Leading Across Cultures: Mexico is part of a series of white papers focusing on leadership effectiveness in a variety of cultural settings. The authors explore the historical and cultural roots of leading effectively in Mexico. Leadership in Mexico is contrasted with leadership in the U.S. In addition, the authors conclude with a discussion of how leadership in Mexico is changing in the context of globalization. Thunderbird Number: D16-03-0008 Type: Case Publication Date: Geographic Setting: Mexico Subjects: Leadership; Organizational Behavior
Case Caren Siehl Leading Across Cultures: The United Kingdom is part of a series of white papers focusing on leadership effectiveness in a variety of cultural settings. The authors explore the historical and cultural roots of leading effectively in the U.K. Leadership in the U.K. is contrasted with leadership in the U.S. In addition, the authors conclude with a discussion of how leadership in the U.K. is changing in the context of globalization. Thunderbird Number: D16-03-0016 Type: Case Publication Date: Geographic Setting: U.K. Subjects: Leadership; organizational behavior
Case Author(s): Kenneth R. Ferris Abstract: This case concerns the restatement of financial statements for a German developmental stage technology company by a U.K. equity analyst. Financial statements prepared using IAS accounting are restated to reflect a developmental stage company in the U.K. Financial ratios are calculated to assess the effect of the restatements on firm performance. Teaching: The purpose of the case is to give students an opportunity to develop and practice financial statement restatement skills. Five restatements are required: 1. A LIFO to FIFO method change. 2. An accelerated to straight-line depreciation method change. 3. Elimination of asset revaluation. 4. Capitalization (partial) of research and development costs. 5. A deferral to flow-thru tax credit method change. Thunderbird #: A01-04-0001 Setting: Germany, 2003 Industry: Technology Subjects: Accounting and control
Case Graeme Rankine Roberto and Pablo Conca are in the planning stages of developing and operating a new wine-making business to be called the Lost Peak Winery, Inc. The winery will produce wine othe old fashioned way.o The brothers plan to establish the Lost Peak Winery outside of Sequim, Washington, with a 100-acre farm owned by Roberto, and additional facilities that Pablo will contribute. The entrepreneurs have approached a local bank for a $4.8 million loan, but it has asked the entrepreneurs to provide the company?s business plan including projected financial statements for the first year of operations. Thunderbird Number: A01-02-0023 Type: Case Publication Date: Geographic Setting: Northwest U.S. Industry Setting: Wine Subjects: Accounting; control
Case Graeme Rankine Roberto and Pablo Conca have just completed the first year of operations of the Lost Peak Winery, Inc. as described in the Lost Peak Winery, Inc. (A) case. The first year of operations has been successful, but the company faced considerable competition from high-quality, low-priced wines from Australia, South Africa, and Spain. Stiff competition had forced the company to cut its wine prices, and some customers had not complied with the company?s credit terms, resulting in lower cash collections. The company also experienced higher costs than anticipated. In response to these developments, the company took longer to pay its trade creditors and had obtained an emergency short-term loan. Why did the company need an emergency short-term loan? In Lost Peak Winery (B), Pablo and Roberto Conca plan to prepare a statement of cash flows and analyze how changes in the business affected the company?s cash flows. The brothers also decided that they should also plan their business over a longer horizon to avoid being unable to meet the long-term debt repayment schedule and to be able to arrange for future financings should they need additional cash to continue growing. In Lost Peak Winery (C), Pablo and Roberto plan to prepare pro forma financial statements for the next five years to examine the effects of alternative business scenarios on the company?s cash flows. Thunderbird Number: A01-02-0024 Type: Case Publication Date: Geographic Setting: Northwest U.S. Industry Setting: Wine Subjects: Accounting; control
Case Graeme Rankine Roberto and Pablo Conca have just completed the first year of operations of the Lost Peak Winery, Inc. as described in the Lost Peak Winery, Inc. (A) case. The first year of operations has been successful, but the company faced considerable competition from high-quality, low-priced wines from Australia, South Africa, and Spain. Stiff competition had forced the company to cut its wine prices, and some customers had not complied with the company?s credit terms, resulting in lower cash collections. The company also experienced higher costs than anticipated. In response to these developments, the company took longer to pay its trade creditors and had obtained an emergency short-term loan. Why did the company need an emergency short-term loan? In Lost Peak Winery (B), Pablo and Roberto Conca plan to prepare a statement of cash flows and analyze how changes in the business affected the company?s cash flows. The brothers also decided that they should also plan their business over a longer horizon to avoid being unable to meet the long-term debt repayment schedule and to be able to arrange for future financings should they need additional cash to continue growing. In Lost Peak Winery (C), Pablo and Roberto plan to prepare pro forma financial statements for the next five years to examine the effects of alternative business scenarios on the company?s cash flows. Thunderbird Number: A01-02-0025 Type: Case Publication Date: Geographic Setting: Northwest U.S. Industry Setting: Wine Subjects: Accounting; control
Case Patrick Cronin This case details the experience of Metalclad, a small California company, with an investment in a hazardous waste treatment and disposal facility in Mexico. Led by its new president and CEO, Grant Kesler, Metalclad shifts away from its core business and attempts to become a major player in the emerging market for hazardous waste disposal in Mexico. Despite support for the project at the highest levels of Mexican government, the project fails because of local opposition. The case ends with Metalclad charging illegal expropriation and filing the first-ever suit by a private company against a NAFTA government. Thunderbird Number: A03-01-0018 Type: Case Publication Date: Geographic Setting: Mexico Industry Setting: Hazardous waste Subjects: Business; government; international policy entrepreneurship
Case Patrick Cronin Following oMetalclad in Mexico (A),o this case details two parallel processes. The first traces the process by which Metalclad, a small California company, ultimately wins a NAFTA dispute settlement process judgment against Mexico for illegal expropriation of the company?s property in the state of San Luis Potosi. Second, the case discusses the problems that led to the company?s failed investment in a second waste disposal facility, this time in the state of Aguascalientes. With this last failure, Metalclad sold its assets and left Mexico. Thunderbird Number: A03-01-0019 Type: Case Publication Date: Geographic Setting: Mexico Industry Setting: Hazardous waste Subjects: Business; government; international policy entrepreneurship
Case Kenneth R. Ferris This case concerns the 1994/95 accounting policy change by Microsoft Corporation wherein the company began deferring approximately 20% of its software sales revenue. Thunderbird Number: A01-02-0016 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Software Manafacturing Subjects: Accounting; control
Case Author(s): Jutta Ulrich Abstract: Migros is a grocery retailer in Switzerland, organized as a co-op with over one million Swiss households as members. Migros also operates a travel agency, gas stations, a book and record club, and other business. In the last decade, Migros has tried to expand into neighboring countries, but the venture in Austria failed and the presence in France and Germany remained small. The case asks why Migros has not been more successful abroad, especially in Austria, given the seemingly quite similar cultural environment and language (German). A key issue is the Migros brand strategy, both in the domestic market and abroad. Cultural questions are important since behavior and food preferences vary significantly. The case also raises the question what a successful enterprise can do when it seemingly cannot grow. Teaching: This case works well for a discussion of culture and language issues, an introduction to differences in shopping behavior and the importance of brands, and sensitizing students to the fact that countries may appear similar in culture and language but, in fact, pose challenges to marketers. The case is appropriate for an international marketing course and other international business courses that wish to focus on marketing communication and culture. For advanced business language courses, the case is also available in German translation. Most students will require some background on countries involved (Switzerland, Austria, perhaps Germany and France), including geography, demographics, and national culture. Students can research these topics as part of the case preparation. Class discussion usually revolves around the Migros brand, the importance of name recognition, as well as the extensive use of the Migros house brand. Most students take it for granted that Migros can continue to grow and that the enterprise can and should expand outside of Switzerland, when Migros may, in fact, find growth of its
Case Author(s): John Zerio Abstract: Mission Rubber Technologies is a manufacturer of couplings for pipes used in construction. The company wants to diversify into the European market to counter market losses in the U.S. A large prospective customer in France (CHP — Chaud Froid Plomberie) is interested in negotiating a large purchasing order. Mission is sending a negotiation team to France to negotiate the contract. The case provides the basis for conducting a sales and contract negotiation. Teaching: The case can be used in Sales and Marketing programs to prepare the students for an intricate negotiation with a major customer. It may also be used in a Negotiations course to illustrate the use of a variety of negotiation tactics. The case should be used in conjunction with the CHP -- Chaud Froid Plombeerie. The teaching note contains additional confidential information for team preparation. Thunderbird #: A10-04-0022 Setting: U.S. Industry: Construction Subjects: International trade; marketing; negotiation
Case Philip D. Drake This case presents an introduction to the primary financial statements and transactional accounting without the use of debits and credits. Thunderbird Number: A01-00-0017 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: E-commerce Subjects: Accounting
Case Graeme Rankine The purpose of this case is to illustrate the derivation of financial statements under accrual accounting without using ledger accounts or T-accounts or using the terms debits and credits. The case is written for executive education programs to illustrate financial statements to nonfinancial managers. The case takes a balance sheet perspective by asking students to interpret how each of the accounting events described in the case affect the beginning balance sheet. The case is centered around a fictitious entrepreneurial company established to purchase and distribute propane gas on the island of Molokai. Thunderbird Number: A01-00-0016 Type: Case Publication Date: Geographic Setting: Hawaii Industry Setting: Oil, Gas Subjects: Financial statements
Case Author(s): Roy C. Nelson Abstract: Ireland has experienced rapid economic growth in the last 15 years, in part because of its successful effort to attract foreign direct investment (FDI). The government agency responsible for this effort, originally called the Industrial Development Authority (IDA), has been restructured and is now divided into three organizations: Forfás (charged with coordinating Ireland’s economic development strategy); IDA Ireland (responsible for investment promotion), and Enterprise Ireland (charged with promoting the development of indigenous industry). Now that Ireland has reached full employment and salaries and other operating costs have risen, the country is no longer competitive as a low-cost investment location in Europe for manufacturing and service industries. As a result, Forf?s must decide how to deal with this situation. Teaching: This case can be used in a number of contexts. It would be appropriate to use in any course dealing with different perspectives on foreign direct investment (FDI). In this context, it can be used to demonstrate to international managers how the regulatory environment for FDI might be affected by government development efforts. The case would also be useful in a course on international development. In this context, it could demonstrate how development agencies can use FDI in order to promote economic development. Thunderbird #: A03-04-0018 Setting: Ireland Industry: N/A Subjects: Business, government, and international policy
Case Dennis Guthery This case centers on Nick Jensen, a country manager of an athletic shoe company, who has come to the conclusion that he must resign his position or do something to improve the working conditions in his company?s production plants. The case setting is the fictitious country of Myland. The student is given background information on Nick and asks what should be done. This case has been used with international business graduate students, and it always generates a substantial list of actions Nick might take. Students almost always feel that Nick should do something other than just resign. Thunderbird Number: A02-01-0006 Type: Case Publication Date: Geographic Setting: Southeast Asia Industry Setting: Shoe manufacturing Subjects: Business ethics
Case Author(s): Graeme Rankine, Ken Ferris Abstract: Andrew Amphlett’s first assignment as a recently hired MBA at Sequim Investments was to evaluate NIKE Inc. for possible addition to the company‘s high-growth equity portfolio. NIKE's revenues had grown substantially during 2003 and 2004, in large part because of growth in global sales. Although the company's share price had climbed to over $70 per share, JPMorgan reported $88 per share as their newly established target price. A Value Line report on NIKE, however, noted that there was little upside stock price potential to NIKE's shares because much of the anticipated growth was already impounded in the current price. Amphlett must prepare a financial and valuation analysis of NIKE and make a portfolio recommendation to his boss. Teaching: The purpose of the case is to analyze NIKE's recent financial performance and estimate the company's share value. The case provides historical financial data for NIKE as well as Reebok and adida-Saloman, two leading competitors in the athletic footwear and apparel business. The case also provides capital market data on NIKE's beta, debt rating, etc. Students can use the data to estimate future NIKE's free cash flow and the company's weight-average cost of capital (WACC), and then use these values to estimate the firm's intrinsic value. The case has been used in the full-time MBA program as well as several Executive MBA programs focused on financial analysis and corporate valuation. Thunderbird #: A01-05-0009 Setting: Global Industry: Sportswear Subjects: Accounting and Control
Case Author(s): Caren Siehl Abstract: This case is set in the finance operation of a $1.4 billion aerospace company with global operations. The protagonist is the leader of this 90-person group, the Director of Finance. He is faced with immediate issues of missed financial targets, $20,000,000 in accounting write-offs, and finance employees violating company policy. He is grappling with how to drive an integrated financial approach in a complex global environment with significant cultural differences. The leader faces several options, including address the symptoms, dig in and understand the underlying issues, or do nothing and hope for isolated corrective actions. Teaching: The case is intended for use in an MBA-level course on global management or an Executive Education program for middle managers. The case highlights both the challenges and the opportunities for leading from the middle of a large, global business. Thunderbird #: A15-04-0008 Setting: U.S., Germany Industry: Aerospace Subjects: Organizational behavior; general management
Case Kenneth R. Ferris This case explores the accounting for acquisition goodwill in the context of the August 2000 acquisition of Hong Kong Telecom by Pacific Century CyberWorks LTD. Thunderbird Number: A01-02-0014 Type: Case Publication Date: 2000 Geographic Setting: Asia Industry Setting: Internet Subjects: Accounting; finance
Case Mark D. Griffiths The purpose of this case is to introduce the student to natural gas futures, and issues that arise in the management of a hedging operation. The case approaches the various issues by examining a fictitious company modeled on an Enron Gas Division. The company is the sole importer and distributor of natural gas. Because of its monopoly position, government officials who were concerned about the potential for price gouging monitored the company very closely. Pangea Island Natural Gas Services? [PINGS] problem was quite the reverse, however. In recent years, the company had been offering fixed price contracts to its customers to reduce the uncertainty inherent in natural gas prices. PINGS had thereby taken on the price risk of the cost of natural gas rising. Thunderbird Number: A06-00-0019 Type: Case Publication Date: Geographic Setting: North America Industry Setting: Natural Gas Subjects: Finance; futures; natural gas
Case M. Edgar Barrett PDVSA is one of the largest oil and gas firms in the world. Further, it is both the national oil company and the primary economic engine of Venezuela. This case, which provides data on both the firm known as PDVSA and the country of Venezuela, is designed to allow the student to gain a broad, albeit rudimentary, understanding of both the firm and the country. Thunderbird Number: A03-03-0019 Type: Case Publication Date: Geographic Setting: Venezeula Industry Setting: Oil, Gas Subjects: Business policy; corporate governance; industry analysis; international studies
Case Michael Moffett The case focuses on Starbucks Coffee (NSE: SBUX) in the early spring of 2003. The company has demonstrated rapid growth for over a decade, and is continuing to grow profitably through the current recessionary environment. The case details the history and development of the company, highlighting the evolution of the corporate concept of a othird place,o and the key individuals in the organization in this development. The second part of the case details the international expansion activities of the firm, highlighting the potential cultural and economic challenges which it may increasingly face as it expands to more traditional coffee-drinking markets and low-income emerging markets. The third and final section of the case details the increasing pressure placed on Starbucks by the antiglobalization movement. Although Starbucks has actively pursued a number of socially responsible operating policies, such as the purchase of Fair-Trade coffee, the subsidization of health care facilities in Central America, and the introduction of a number of socially responsible coffee products in its stores, it continues to be the target of antiglobalization activities. The case concludes with the question as to whether the company will be able to continue to grow as rapidly and profitably as the recent past as it reaches saturation point in the domestic market. Thunderbird Number: A09-03-0007 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Fast Food Subjects: Corporate strategy; social responsibility; brand management
Case Michael Moffett The case discusses the international expansion efforts of the global coffee retailer, Starbucks. Starbucks had proliferated in several regions of the world, many of which had historical ties to a coffee heritage such as Western Europe. It had also challenged traditionally tea-drinking countries such as Japan and China. In implementing its globalization strategy, the company relies on a set of sound principles that call for astute partner selection, real estate management, and managing the brands. While the company had witnessed critical success in most of its major markets overseas, it appeared to be facing significant challenges in every region. For example, in Japan, revenues had declined and so, too, profitability. New copycat competitors had emerged, and many had started questioning the validity of Starbucks? market saturation strategies. In emerging countries such as Mexico, China, and India, the company saw very good potential, but this rosy picture was somewhat dampened by the ability of the consumer to pay close to $3 for a cup of coffee when local versions retailed at $.50. The case considers several questions related to the future of Starbucks in the global arena, whether it should alter its new-store growth strategy, whether it should rethink its uniform pricing policy in emerging markets where affordability was of paramount importance, and where the next major thrust ought to be. Thunderbird Number: A07-03-0013 Type: Case Publication Date: Geographic Setting: Global Industry Setting: Retailing, Food Subjects: Industry and competitive strategy; international management
Case Author(s): Kenneth Ferris, Mofilal Gyamlani Abstract: In September 1990, Polly Peck International was forced into bankruptcy by its lenders. From 1983 to 1989, the company embarked on a major acquisition program, with financing largely provided by banks on a revolving line-of-credit basis. In many instances, the debt was secured by the company’s publicly traded shares. Students are asked to evaluate the company‘s financial health using cash flow analysis, ratio analysis, and bankruptcy prediction techniques. Teaching: The purpose of the case is twofold. First, provide a forum to illustrate the importance of ratio analysis and cash flow analysis when analyzing the financial health of a company. Second, illustrate the use of bankruptcy/distress prediction techniques. Thunderbird #: A01-04-0005 Setting: U.K., 1990 Industry: Textile Subjects: Accounting and control
Case Author(s): Michael Moffett, Barbara S. Petitt Abstract: It was January and Porsche — the legendary manufacturer of performance sports cars -- wished to reevaluate rate strategy. Porsche’s management had always been unconcerned about opinions of the equity market, buts its currency hedging strategy was becoming something of a lighting rod for criticism. Although the currency hedging results had been positive, many experts believed that Porsche had simply been “more lucky than good.” There was a growing nervousness among analysts that the company was actually speculating on currency movements, and that was not in the best interests of shareholders. Analysts were estimating that more than 40% of earnings were to come from currency hedging. Porsche‘s President and CEO, Dr. Wendelin Wiedeking, now wished to revisit the company's exposure management strategy. Teaching: The case is intended to provide a contemporary debate over the use of financial derivatives (in this case, foreign currency options) as a method for the management of the economic exposure (also called operating exposure) experienced by Porsche as a result of its global sales. Porsche serves as an excellent focal point for this debate, given that it produces in only one currency environment, the euro zone, and then exports products globally. In addition, the decision-making of senior management is also questioned because the firm has continued to be highly controversial in its attitudes and practices related to financial reporting, and the associated practices of management towards shareholders relations and corporate governance as a whole. The case could be used in a class in international finance, international financial management, or corporate finance. Thunderbird #: A06-04-0004 Setting: Europe, U.S., 2004 Industry: Automotive Subjects: International finance; foreign exchange exposure; international corporate governance
Case Douglas Pressman Prague Venture Group chronicles an attempt by an American entrepreneur to start a venture capital investment firm in post-communist Eastern Europe. To demonstrate the feasibility of acquiring and turning around former state-owned companies, the protagonist structures a deal with an optics manufacturing firm, only to learn that the firm?s Czech owners have no intention of allowing Prague Venture Group to gain control. After this setback, the protagonist finds it difficult to regain momentum. Thunderbird Number: A05-00-0012 Type: Case Publication Date: 1993 Geographic Setting: Eastern Europe Industry Setting: Ventura Capital Subjects: Entrepreneurship
Case Author(s): Michael Moffett, Barbara Petitt Abstract: It was May 1, 1996, and the Procter & Gamble Company (P&G) was nearly out of time. If it was to settle its $200 million lawsuit against Bankers Trust Company (Bankers Trust) out of court, it had to do so soon. The two companies had already suffered two very hard years of a very public disagreement. P&G needed to decide now if it wanted to go to trial, or settle for some amount short of what it actually owed to Bankers Trust (it had never actually paid Bankers Trust any of the funds in question). On a large scale, the controversy surrounding the P&G swap losses had threatened to undermine the widespread use of financial derivatives by corporate treasuries in general. These swaps had been entered into under the guise of hedging, but were now being characterized as purely speculative. Corporate finance groups — and their bankers -- were all asking the same question: How could this happen? Teaching: The case was written to detail the multitude of issues involved in what is frequently cited as the most prominent derivatives debacle in U.S. financial history. Although finance students are routinely schooled in the construction and valuation of various financial derivatives, including foreign exchange and interest rate swaps, they rarely see how these specific instruments fit within the corporate frameworks of financial policy and procedure. The failure of Bankers Trust to divulge all of the valuation details behind the transaction sold to Procter & Gamble in 1993-94, and the failure of P&G’s treasury staff to pursue their own valuation and mark-to-market due diligence on the transactions entered into, combine to create a situation in which disaster was an eventuality. Topics include the understanding and valuation of leveraged interest rate swap transactions, a bank‘s possible fiduciary duties in regards to corporate customers, and corporate philosophy on differentiating hedging from spec
Case Graeme Rankine The case focuses on the rapid growth of Rite Aid from a small company established by Alex Glass in Pennsylvania in 1962 to the second largest U.S. retail drug chain based on store count by early 1999. Until the mid-1990s, Rite Aid grew by acquiring smaller chains on the eastern and southern regions in the U.S. Martin Glass, Alex?s son, assumed the position of CEO in 1995 and began an ambitious expansion path. After failing to acquire Revco D.S. in 1995 with over 2,100 stores, Rite Aid acquired Thrifty Payless, a West Coast drug chain with over 1,000 stores in 1996. Thrifty Payless was no stranger to reorganizations, having been the product of Thrifty?s acquisition of Payless Drugs and a subsequent initial public offering in 1995. Rite Aid?s long-term debt increased dramatically after the Thrifty Payless acquisition in 1996 and the acquisition of PCS Health Systems, Inc., the largest pharmaceutical benefit management company (PBM), from Eli Lilly in November 1998. Rite Aid?s top management announced plans to continue its rapid growth, but the company faced many challenges in implementing the aggressive plans, not least of which was the fact that Rite Aid?s stock fell dramatically on March 12, 1999, after the company announced that it would restate its financial statements. The disclosure cast doubt over the likelihood that the company would be able to issue new equity to refinance the debt issued to acquire PCS. Rite Aid faced fierce competition from CVS Corp. and Walgreen Co., companies that were also driven to become low-cost providers of health products and services. Thunderbird Number: A01-02-0001 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Retail Subjects: Accounting; control
Case Kenneth R. Ferris, Alexander Reznik An overview of current Russian accounting principles and practices. Thunderbird Number: E01-00-0009 Type: Case Publication Date: Geographic Setting: Republic of Russia Subjects: Accounting
Case Author(s): Dennis Guthery, John Zerio, Robert Philips Abstract: The case focuses on a large Brazilian company that must make the decision of whether or not to build a tourist resort. The company is trying to diversify from construction and chemicals into new areas, but has no expertise in tourism. The case presents a series of research studies by consultants, and ultimately asks the students whether the project should proceed or not. Teaching: The case is suited for courses in tourism, marketing strategy, marketing research, and general management. Students must develop a list of needed information and a sequence of research useful for making a major financial investment. Students are also required to evaluate research findings and to perform a SWOT analysis. Thunderbird #: A12-03-0025 Setting: Brazil Industry: Tourism Subjects: Marketing; general management
Case John Zerio, Sundaresan Ram The case describes the company?s first attempt to design a global product development process. A major Japanese customer expresses interest in a more compact model of the existing liquid soap dispenser. The company?s senior management decided to leverage this market opportunity to develop a product that would also fit the product portfolio of European and North American divisions. The new process should integrate a world-class network of industrial designers, molders, toolmakers, contract manufacturers, and logistics providers. Thunderbird Number: A12-02-0021 Type: Case Publication Date: Geographic Setting: U.S., Global Industry Setting: Personel Subjects: New product development
Case Andrew Inkpen Sesame Workshop is the producer of Sesame Street, the highly acclaimed children?s educational show. Since its American debut more than 30 years ago, Sesame Street has achieved great success in many countries. In virtually every country where it was introduced, Sesame Street, or a locally produced version of the show, had become an immediate success. Within Sesame Workshop there was a consensus that many interesting international growth opportunities existed. For example, Sesame Street was not broadcast in large-market countries such as Brazil, France, or India. There were also opportunities for co-productions in many of the countries where the English language version of the show was broadcast. Evaluating the various international opportunities had to take into consideration several factors. Sesame Workshop was a not-for-profit organization with a mission of educating children and their families globally. But, even though Sesame Workshop was a not-for-profit organization, creating a financially viable and growing organization was a necessity. Thunderbird Number: A07-02-0004 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Entertainment, Education Subjects: General management
Case F. John Mathis, Darian Narayana, Paul Keat This case deals with the process and uses of securitization, and focuses specifically on its use for international trade receivables since a substantial share of SF sales revenue comes from exports to Latin America, especially Brazil. The case involves a telecommunications equipment company that was trying to grow and compete during the early 2000s when technology was changing rapidly and global telecommunication systems were being revamped worldwide. Survival in this highly competitive environment is dependent on being able to finance research and development as well as the installation and delivery of new systems. From the buyers? perspective, pricing and financing are also very important. Thunderbird Number: A06-01-0015 Type: Case Publication Date: Geographic Setting: U.S., Latin America Industry Setting: Manufacturing of telecommunications equipment Subjects: Finance; international trade
Case Author(s): Kannan Ramaswamy Abstract: By 2004, Singapore International Airlines (SIA) enjoyed a run of exemplary profitability and service performance. It had built its strategy around the principles of a differentiated positioning using its brand image, geographic location, and outstanding service as the cornerstones of its strategy. The case offers enough data to launch into a rich discussion of the industry factors that drive profitability, and complements it with an in-depth look at the model of strategy that SIA had built in order to compete in the airline business. In recent years, there have been many environmental shocks, such as SARS, that have challenged the continued viability of the model. The company entered into an equity alliance with Virgin that has destroyed significant value. It found itself challenged by the entry of many low-cost airlines in its home market. The case closes with a decision that SIA needed to make about how it would address the onset of low-cost competitors, and whether it would make sense to move away from its differentiated premium approach. Teaching: This case is designed to be used in a module on business strategy. It is especially effective when it follows a discussion of both cost leadership and differentiation strategies, since the main decision point in the case relates to one of strategic change from one generic archetype to another. It has been very effective with both MBA students and executive audiences. Thunderbird #: A09-04-0013 Setting: Global, Asia-Pacific Industry: Airlines Subjects: Industry and competitive strategy; general management
Case Kannan Ramaswamy Singapore Airlines has built a storied reputation for excellence in customer service, attention to detail, and a progressive stance in designing strategy. It has established a well-orchestrated system that nurtures significant sources of competitive advantage that are used to support a strategy of differentiation. At the time of the case, some of that luster might be fading with the advent of copycat competitors and intensifying pressures to compete on the basis of cost. The increasing incidence of alliances in the aviation industry is also raising new questions for Singapore Airlines. The case focuses on the multipronged efforts at SIA to build competitive advantage. It closes with a set of issues revolving around an impending alliance with Virgin Atlantic Airways. Thunderbird Number: A07-01-0012 Type: Case Publication Date: Geographic Setting: Global Industry Setting: Airline Subjects: Strategy; service
Case F. John Mathis, Darian Narayana, Paul Keat This is a large innovative company that has become a division of a larger company, Greenpoint Electronics. They have export contracts to Korea, and have been adversely impacted by the Asia Crisis that hit in 1997. The issue is how to protect their export sales revenue and to obtain bank funding when banks are backing away from lending to Asian countries. Thunderbird Number: A06-00-0024 Type: Case Publication Date: Geographic Setting: U.S., Korea Industry Setting: Refrigeration Subjects: Finance; international trade
Case Caren Siehl The case deals with the challenge of developing a global business from a South African base. South African Breweries is the dominant company in beer production and distribution in Africa with rapidly growing presence in Europe and Asia. South African Breweries faces both the challenge of global expansion and the development of a talented local work force in the face of a changing legal and social environment in South Africa. The case describes the series of programs instituted by South Africa Breweries management to deal with these challenges. Thunderbird Number: A07-00-0007 Type: Case Publication Date: Geographic Setting: South Africa Industry Setting: Beverage Subjects: General management
Case Andrew Inkpen This case deals with Southwest Airlines (Southwest) and the reason for its success in an unattractive industry. Southwest has been very successful with its low-fare, short-haul strategy. With the airline industry in turmoil in 2002, Southwest was in an interesting and unique position. Southwest was the only major U.S. airline to earn an operating profit in 2001. With its strong financial position, Southwest was poised to increase its market share and embark on new strategic initiatives. Thunderbird Number: A07-02-0009 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Airlines Subjects: General management; industry; competitive strategy
Case Author(s): Andrew Inkpen Abstract: This case deals with Southwest Airlines (Southwest) and the reason for its success in an unattractive industry. Southwest has been very successful with its low fare, short haul strategy. With the airline industry in turmoil in 2004, Southwest was in an interesting and unique position. Southwest was one of the few major U.S. airlines to earn an operating profit in 2004. With its strong financial position, Southwest was poised to increase its market share and embark on new strategic initiatives. Teaching: This case can be used to illustrate how a firm can be successful in an inherently unattractive industry. Southwest has been profitable and expanding for many years and has been able to maintain a low-cost position despite many potential imitators. I use the case to illustrate the importance of a unique activity system and the difficulty of imitating the entire system. I also use the case to review industry structure, generic strategies, and the importance of internal and external consistency in creating a strategy. Finally, the case drives home the important links between internal organizational factors and strategic choices. Thunderbird #: A07-05-0006 Setting: U.S. Industry: Airlines Subjects: General management; industry and competitive strategy
Case Michael Moffett, Dale Davison Stanley Works, a U.S.-based manufacturer of tools, hardware, and specialty hardware product for home, industrial, and professional use, announced in February 2002 that it intended to reincorporate outside of the United Statesucorporate inversionuin order to reduce its total tax burden. The announcement led to a firestorm of debate in and out of the company, including accusations of unpatriotic behavior and tax avoidance. The case requires the reader to assess the arguments for corporate inversion by Stanley and determine whether they would support the inversion decision. Thunderbird Number: A06-03-0005 Type: Case Publication Date: Geographic Setting: U.S. Industry Setting: Tools Subjects: International taxation; international finance; business ethics; corporate strategy
Case Author(s): Andrew Inkpen Abstract: GFS-China is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating, ventilation, and air conditioning parts. Two weeks after GFS-China began operating; Good Fortune’s president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune‘s president wrote a letter to Standard and demanded that the joint venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and that the general manager would come from Standard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if he would be interim general manager in GFS-China. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track. Teaching: This four-case series is intended to put students in the position of a joint venture general manager trying to build a viable business. The collaborative issues facing the manager involve strategy, finance, and human resources — in short, joint venture general management issues. Ethical dimensions in the (B) case complicate the decision-making. The (A) case ends with Steve Parker being asked to become GFS-China general manager. If he accepts the job, he will be largely on his own, because the only Standard manager with much knowledge about GFS-China has gone back to the United States and no Standard managers were assigned to the venture. Assuming Parker does take the job, the objective with the (A) case is to explore the challenge of a new managerial assignment. What should Parker do first? How should he allocate his time? What skills should he have in order to do an effective job? Ho
Case Author(s): Andrew Inkpen Abstract: GFS-China is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating, ventilation, and air conditioning parts. Two weeks after GFS-China began operating; Good Fortune’s president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune‘s president wrote a letter to Standard and demanded that the joint venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and that the general manager would come from Standard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if he would be interim general manager in GFS-China. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track. Teaching: This four-case series is intended to put students in the position of a joint venture general manager trying to build a viable business. The collaborative issues facing the manager involve strategy, finance, and human resources — in short, joint venture general management issues. Ethical dimensions in the (B) case complicate the decision-making. The (A) case ends with Steve Parker being asked to become GFS-China general manager. If he accepts the job, he will be largely on his own, because the only Standard manager with much knowledge about GFS-China has gone back to the United States and no Standard managers were assigned to the venture. Assuming Parker does take the job, the objective with the (A) case is to explore the challenge of a new managerial assignment. What should Parker do first? How should he allocate his time? What skills should he have in order to do an effective job? Ho
Case Author(s): Andrew Inkpen Abstract: GFS-China is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating, ventilation, and air conditioning parts. Two weeks after GFS-China began operating; Good Fortune’s president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune‘s president wrote a letter to Standard and demanded that the joint venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and that the general manager would come from Standard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if he would be interim general manager in GFS-China. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track. Teaching: This four-case series is intended to put students in the position of a joint venture general manager trying to build a viable business. The collaborative issues facing the manager involve strategy, finance, and human resources — in short, joint venture general management issues. Ethical dimensions in the (B) case complicate the decision-making. The (A) case ends with Steve Parker being asked to become GFS-China general manager. If he accepts the job, he will be largely on his own, because the only Standard manager with much knowledge about GFS-China has gone back to the United States and no Standard managers were assigned to the venture. Assuming Parker does take the job, the objective with the (A) case is to explore the challenge of a new managerial assignment. What should Parker do first? How should he allocate his time? What skills should he have in order to do an effective job? Ho
Case Author(s): Andrew Inkpen Abstract: GFS-China is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating, ventilation, and air conditioning parts. Two weeks after GFS-China began operating; Good Fortune’s president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune‘s president wrote a letter to Standard and demanded that the joint venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and that the general manager would come from Standard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if he would be interim general manager in GFS-China. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track. Teaching: This four-case series is intended to put students in the position of a joint venture general manager trying to build a viable business. The collaborative issues facing the manager involve strategy, finance, and human resources — in short, joint venture general management issues. Ethical dimensions in the (B) case complicate the decision-making. The (A) case ends with Steve Parker being asked to become GFS-China general manager. If he accepts the job, he will be largely on his own, because the only Standard manager with much knowledge about GFS-China has gone back to the United States and no Standard managers were assigned to the venture. Assuming Parker does take the job, the objective with the (A) case is to explore the challenge of a new managerial assignment. What should Parker do first? How should he allocate his time? What skills should he have in order to do an effective job? Ho
Case Andrew Inkpen SA-Tech is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating ventilation and air conditioning parts. Two weeks after SA-Tech began operating, Good Fortune?s president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune?s president wrote a letter to Standard and demanded that the joint venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and that the general manager would come from Standard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if he would be interim general manager in SA-Tech. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track. Thunderbird Number: A07-02-0018 Type: Case Publication Date: Geographic Setting: China Industry Setting: Automotive Subjects: General management; industry and competitive strategy
Case Andrew Inkpen SA-Tech is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating ventilation and air conditioning parts. Two weeks after SA-Tech began operating, Good Fortune?s president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune?s president wrote a letter to Standard and demanded that the joint venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and that the general manager would come from Standard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if he would be interim general manager in SA-Tech. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track. Thunderbird Number: A07-02-0019 Type: Case Publication Date: Geographic Setting: China Industry Setting: Automotive Subjects: General management; industry and competitive strategy
Case Andrew Inkpen SA-Tech is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating ventilation and air conditioning parts. Two weeks after SA-Tech began operating, Good Fortune?s president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune?s president wrote a letter to Standard and demanded that the joint venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and that the general manager would come from Standard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if he would be interim general manager in SA-Tech. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track. Thunderbird Number: A07-02-0020 Type: Case Publication Date: Geographic Setting: China Industry Setting: Automotive Subjects: General management; industry and competitive strategy
Case Michael Moffett, Arthur Stonehill In mid-1999, Tektronix, Inc. (Tek) implemented a divestment strategy designed to focus the remaining Tek activities on its Measuring Business Division (MBD). This was its original line of business, but Tek had expanded into a successful Color Printer and Imaging Division (CPID) and a Video and Networking Division. The case is set in October 1999. Tek has already sold off its Video and Networking Division to a private investment group. On September 22, 1999, Tek announced that it had agreed to sell its CPID activities to Xerox Corporation for $950 million in cash. The deal was expected to close in sixty days but would need regulatory approvals. Jerry Davies, Tek?s Treasurer, and Randahl Finnessy, Worldwide Cash manager, needed to make some urgent decisions about Tek?s foreign exchange risk management strategy. Thunderbird Number: A06-02-0002 Type: Case Publication Date: Geographic Setting: U.S., Global Industry Setting: Electronic Subjects: International finance; risk management
Case Arthur Stonehill, D. Schafer, Barbara Block This case takes place in the early 1980s when the U.S. dollar had begun its dramatic rise in value. Tektronix experienced a classical operating exposure problem. It produced in Oregon for sale in Europe. This resulted in continuing transaction exposure losses on finished goods and backlog. Tektronix also had a cash management system that lacked discipline, resulting in high costs. The case takes place as the main character, Barbara Block, is attempting to formulate a set of solutions to present to management for the multitude of problems facing Tek. Thunderbird Number: A06-00-0003 Type: Case Publication Date: 1983 Geographic Setting: U.S., Europe Industry Setting: Electronic instruments Subjects: Finance
Case Kannan Ramaswamy The case deals with a detailed look at the nature of decisions made by a U.K. grocer in moving from its traditional bricks-and-mortar business into the world of online grocery shopping. Tesco Plc. has been acclaimed as one of the most successful grocery chains in the U.K.uone that is making significant inroads into Europe, and parts of Asia as well. Its approach of leveraging bricks-and-mortar assets to widen its coverage to include online shoppers has often been held up as an exemplar in terms of market entry strategy. The case focuses on a systematic appraisal of the grocery industry and competition in the U.K. and an evaluation of the strengths and weaknesses of Tesco and how it may migrate its competencies to the online marketplace. Thunderbird Number: A07-01-0011 Type: Case Publication Date: 2000 Geographic Setting: U.K. Industry Setting: E-business retailing Subjects: Management; e-business
Case Author(s): M. Edgar Barrett Abstract: The largely privately funded, $3.7 billion Chad-Cameroon Petroleum Development and Pipeline Project represented the single largest foreign direct investment ever made in Sub-Saharan Africa at the time of its approval by the World Bank in June 2000. This case provides descriptive data about the project, its sponsors, the countries involved (particularly Chad), and the views of some of the project’s critics. It is designed to allow the student to gain a modest, but balanced, view of the process of dealing with large natural resource projects in emerging economies. Teaching: The focus of the class discussion should be on some of the more important issues surrounding the process of developing a natural resource-based project in a country which faces a host of financial, political, and social issues. Due to its location and size, this particular project involves a complex series of interactions between and among three of the world‘s largest oil firms (Chevron Texaco and ExxonMobil of the U.S., and Petronas of Malasia), several multilateral agencies, and a series of nongovernment organizations (NGOs). In terms of distinct points of focus for the class discussion, or so-called “pastures,” the case easily offers five or six such venues. For many students, this will be on of their few chances to discuss the economic, political, and social reality that exists in many African countries today. Chad is an extreme example, but it does have more than a passing similarity to a number of other countries located on the same continent. There can also be a quite reasonable discussion of the potential benefits and costs to the citizens of Chad of a natural resource-based project such as the one described in this case. These first two pastures set the stage for forays into one or more of several other topical areas. Among those that can be addressed are the following: 1. A more in-depth look at some specific
Case John Zerio, Bryce Kelley The Internet is fast becoming the platform for business integration worldwide. Increasingly, competitive advantage is associated with a company?s role and capabilities as part of dynamic networks. This note introduces business managers, who do not have technical degrees, to the central elements of intranets, extranets, and the Internet. Thunderbird Number: E04-01-0023 Type: Case Publication Date: Subjects: Information management; information technology
Case John Milliken, Dean Fu In 1999, after posting losses in eight of the preceding nine years, Nissan seeks a partnership with Renault. At the request of Nissan, Carlos Ghosn is appointed COO. Ghosn, a Frenchman with Brazilian-Lebanese heritage, who has spent much of his career in Michelin in Latin America and the U.S., has earned the nickname oLe Cost-Killero during his tenure at Renault. Despite his multicultural background, he speaks no Japanese and has no Asian experience. His charter, however, is to quickly turn around the ailing Japanese carmaker, with all the unique challenges of leading change as a foreigner in Japan. He commits to doing it within three years, or resigning. Enlisting middle management, he uses solid change management technique and is successful, but now must confront the process of institutionalizing his initial successes and planning for a successor. Thunderbird Number: A07-03-0014 Type: Case Publication Date: Geographic Setting: Japan Industry Setting: Automotive Subjects: Global Leadership; Succession Planning; Change Management
Case Robert Grosse, Carlos Fuentes LanChile was the most successful Latin American airline of the late 1990s. Despite upheaval in the industry and failures of several other airlines in the region, LanChile had a record of success and international expansion that were the envy of the industry. This case explores the history of this success and the strategy that was envisioned by LanChile?s leaders. The case is intended to offer users the opportunity to evaluate a corporate strategy and to try to come to grips with the major challenges that exist at the end of the period that is described, namely in 2001 and beyond. Thunderbird Number: A09-02-0013 Type: Case Publication Date: 2000 Geographic Setting: Chile Industry Setting: Airlines Subjects: Strategy; international management
Case Andrew Inkpen This case describes the development and subsequent failure of Iridium. Iridium was a satellite-based communications system initially developed by Motorola and then spun off as a separate company. Using its constellation of 66 low earth-orbit satellites, the Iridium system was intended to provide reliable communications from virtually any point on the globe. On November 1, 1998, Iridium began commercial telephone service, and satellite-paging service began two weeks later. However, a variety of problems plagued the company and by May 1999 Iridium had only 10,000 subscribers. In August 1999, Iridium defaulted on its debt and filed for Chapter 11 bankruptcy protection. In March 2000, with only 50,000 subscribers, Iridium terminated its services. Motorola?s estimated financial exposure to the bankruptcy of Iridium was $2.2 billion. Thunderbird Number: A07-00-0025 Type: Case Publication Date: Geographic Setting: World Industry Setting: Telecom Subjects: General management
Case Robert Grosse Stan O?Neal, newly designated CEO of Merrill Lynch, was torn by the need to move forward boldly to deal with the series of scandals that hit the firm starting in spring of 2002, and the competing need to avoid taking steps that might drive away clients of Merrill?s own financial advisers. The settlement with the State of New York had terms in which Merrill paid a $US 100 million fine in June for abuses focused mainly on stock analysts who had promoted stocks that their analysis did not support (but which were important to Merrill for obtaining underwriting business). Then he had to deal with the implications surrounding Martha Stewart, who apparently traded on inside information (provided by a Merrill financial advisor) in ImClone Stock and sold shares just before bad news was announced publicly. Merrill Lynch was the hot seat in the press. O?Neal had been named President of Merrill in July of 2001, Chief Executive Officer in July of 2002, but to take over in December 2002, and would become Chairman in April 2003, when David Komansky was to step down. Thunderbird Number: A02-03-0018 Type: Case Publication Date: Geographic Setting: New York, NY Industry Setting: Investment Banking Subjects: Business ethics; general management; strategy
