Accounting and control ALPHA METALS LÖTSYSTEME GMBH

See EC Competition Policy: The Merger and Acquisition Directive (Full-length Version). Copyright: 1992 INSEAD-CEDEP, France Also available: Teaching Note THE EC-JAPAN ELEMENTS OF CONSENSUS Jonathan Story Case Writer: Kathy Burton The case deals with the negotiations between the EC and Japan on automobiles concluded in June-July 1991. The main part of the case covers the EC story from the positions of the Commission, Government and automobile companies. Pedagogical Objectives: this is a case on the making of the EC trade policy. It posits a situation where the states and corporations do not agree on possible outcomes. Copyright: 1993 INSEAD, France ECOVER® H. Landis Gabel and Niraj Dawar Case Writer: Gunter Pauli Ecover, a small Belgian manufacturer of ‘green’ consumer products making detergents, is considering how to extend sales distribution from health food channels to supermarkets. In the former the company is very successful, but the latter raises questions of its products' appeal to a different clientele and the competitive reaction of very large, fast-moving consumer goods products. Economics and political science 66 Pedagogical Objectives: to make students aware of the many potential pitfalls to would-be sellers of ‘green’ consumer goods. These pitfalls include (1) ensuring the product really is better for the environment; (2) communicating that credibly to customers; (3) getting customers to pay for it; (4) getting on supermarket shelves; and (5) responding to provoked competitive reactions. Copyright: 1995 INSEAD, France Also available: Teaching Note EGMONT GOES TO ASIA Jonathan Story Case Writer: Jocelyn Probert This case follows on from the country case on regime change in China, and runs parallel to the Danuta case which follows the country case on Poland (all by the same author). It illustrates the infrastructure of political networking in entering the Chinese market, and also involves a business policy discussion on whether entry to the market is worth it for Egmont, with its main markets in Eastern Europe. Copyright: 1993 INSEAD-EAC, France ELECTERMASH Jonathan Story The case presents a fictional company, based in Fontainebleau, and with three overseas subsidiaries. The CEO wants to select a location for a corporate presence in one of the territories covered in any of the country potential and risk cases. Pedagogical Objectives: this case should be used along with the Story CPRA Software to link country analyses to corporate strategy, though looking at a corporate location decision. Copyright: 2000 INSEAD, France ENVIRONMENTAL POLICY IN THE EUROPEAN COMMUNITY H. Landis Gabel Case Writer: Hanna Nolan Sets out the history and current status of environmental legislation and regulations in the European Economic Community. Pedagogical Objectives: this technical note constitutes background factual information to supplement other cases on environmental policy and management issues in Europe. Copyright: 1990 INSEAD, France ERICSSON IN CHINA Jonathan Story Case Writer: Adam Pearson See abstract and pedagogical objectives for Alcatel in China. Copyright: 1997 INSEAD-EAC, France Economics and political science 67 THE EUROPEAN ECONOMIC COMMUNITY H. Landis Gabel Case Writer: Anthony E. Hall Abstract: See Ford of Europe and Local Content Regulations. Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French See Ford of Europe and Local Content Regulations. Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French EUROPEAN EXHAUST EMISSION STANDARDS FOR SMALL CARS H. Landis Gabel Case Writer: Hanna Nolan The case describes the turmoil around setting emission standards in Europe for small cars from 1985's "Luxembourg Compromise" to 1988 when French objections scuttled an apparent agreement. Material in the case includes an industry and regulatory policy background as well as descriptions of the interests of the major European governments and producers. Pedagogical Objectives: the objective of the case is to explore how popular interest in a cleaner environment can be sabotaged in the arena of the European Commission when and where vested interests and multiple policy principles clash. Copyright: 1991 INSEAD, France THE EUROPEAN STEEL INDUSTRY IN CRISIS H. Landis Gabel and Olivier Cadot Case Writer: Pamela Denby Describes the 'crisis' in the EC steel industry and traces its origins to policies instituted in the 1980s to deal with a similar crisis then. Those policies are contrasted with policies instituted in the USA in the 1980s and the results are compared. Attention is paid to EC-USA and Western-Eastern European trade conflicts. Pedagogical Objectives: to examine the range of public policies available for declining industries in the developed countries and the problems that invariably accompany each of them. From the experiences of the EC in the 1970s and '80s, especially in comparison with experiences at the same time in the USA, various lessons are drawn with relevance to managers. Copyright: 1993 INSEAD, France Also available: Teaching Note EUROPEAN UNION AND A SINGLE CURRENCY? Jonathan Story The case describes the history of repeated attempts at monetary union, and provides an overview of various motivations and initiatives taken since the relaunch of EU integration in the mid-1980s, the events surrounding the Maastricht Treaty, and the turbulent years since then. Pedagogical Objectives: to provide a predictive analysis of what will happen, and the possible impact on firms. The case may also be used to weigh the pros and cons of monetary union, from political, economic and business perspectives. Copyright: 1997 INSEAD, France Economics and political science 68 “EUROTEL” IN CHINA Jonathan Story Case Writer: Adam Pearson See abstract and pedagogical objectives for Alcatel in China. Copyright: 1997 INSEAD-EAC, France EUROTUNNEL EQUITY Roy Smith and Ingo Walter Case Writers: Dorothea Bensen and Hugh Thomas The case discusses a major project financing in Europe from the perspective of stock market investors, evaluating the potential risks and returns involved. Pedagogical Objectives: risk assessment on large-scale infrastructure projects from the perspective of equity investors. Copyright: 1989 INSEAD-New York University, France-USA Also available: Background Note (Eurotunnel Background) EUROTUNNEL DEBT Ingo Walter and Roy Smith Case Writers: Dorothea Bensen and Hugh Thomas Simulation exercise in which students are required to decide, on behalf of a fictitious employee of Barclays Bank, Ian Morrison, assistant to the project finance division manager, whether or not to accept the invitation to join the Arranging Banks in underwriting the Eurotunnel syndicated project financing in the form of a "precommitment to commit". The seven-page case contains a brief description of Barclays' position as a sponsor of the competing EuroRoute project, the nature of the invitation from Arranging Banks, the events which would have to occur between Barclays' commitment and the signing of the underwriting agreement, the terms and conditions of the proposed credit agreement, the project sponsors' description of the sensitivity of debt service cash flows to various project risks, and the task which Ian is to perform. A 16-page supplement entitled EurotunnelBackground describes Eurotunnel's history, technical specifications, corporate and management structure, construction plan, financing plan and the cash flow projections. Copyright: 1989 INSEAD, France Also available: Background Note (Eurotunnel-Background) Teaching Note FAIR TRADE IN COMMERCIAL AIRCRAFT: THE CASE OF BOEING VS. AIRBUS INDUSTRIE IN DEFENSE OF AIRBUS INDUSTRIE BOEING CASE AGAINST AIRBUS H. Landis Gabel and Damien Neven Case Writer: John Thomas This is the principal case in a set of three (with Boeing Case against Airbus and In Defence of Airbus Industrie) that addresses trade problems due to subsidies in high technology strategic industries. European subsidies to Airbus Industrie have led the Americans to complain at the GATT that Airbus is competing unfairly with Boeing and McDonnell Douglas. Economics and political science 69 Pedagogical Objectives: to apply strategic and intra-industry trade models to a current and important trade conflict. Copyright: 1988 INSEAD-CEDEP, France Also available: Teaching Note Other languages: French FORD OF EUROPE AND LOCAL CONTENT REGULATIONS (A) H. Landis Gabel Case Writer: Anthony E. Hall A set of six cases (with General Motors Corporation, Peugeot SA, The European Economic Community, The Nissan Corporation, and United Kingdom Industrial Policy toward the Automobile Industry) that deal with the challenge that threatened Japanese foreign direct investment into the UK, and the problem that it posed to European producers and governments. Pedagogical Objectives: by having students play the roles of the different parties involved, to lead to an appreciation of the problems in making trade policy in the EC. Copyright: 1984 INSEAD, France Also available: Teaching Note Other languages: French FORD OF EUROPE AND LOCAL CONTENT REGULATIONS (B) H. Landis Gabel This case extends the case Ford and Local Content Regulations, INSEAD 1984 (see above), up to 1994. It offers a potpourri of quotations, paraphrases and opinions from articles appearing in the press between 1984 and 1991 which set the stage for the 1991 automobile trade agreement, optimistically called the "Elements of Consensus". The case ends with a brief postscript and then some questions which the EU, its member states, Japan and the major automobile producers will face in the decade of the 1990s. At the end of the decade, both the internal and external European automobile markets are supposed to be freed of all administrative barriers to international trade and foreign direct investment. Copyright: 1994 INSEAD, France FRANCE: BETWEEN DOMESTIC IMPERATIVES AND RUPTURE IN THE EC? Jonathan Story This is the first in a series of general country cases for advanced industrial countries. The case covers the background of French economic policy and asks the question as to what Prime Minister Balladur's choices are, as of June 1993. Pedagogical Objectives: to serve as an introduction to French politics and economic policy. Copyright: 1993 INSEAD, France Economics and political science 70 A FRENCH INSURANCE FIRM AND THE "FORTRESS GERMANY" Douglas Webber Case Writer: Mohamed Razeen Sally The case investigates what happened when the French insurance firm AGF acquired a substantial stake in, and tried to acquire a strong influence over, the second largest German insurer, AMB. Pedagogical Objectives: • Identify some of the central traits of German capitalism, especially the networks of cross-shareholdings linking the major financial institutions. • Portray obstacles to hostile take-overs of German firms. • Explore the extent to which the German model of capitalism is changing. Copyright: 1994 INSEAD, France Also available: Appendix Teaching Note FROM FRANC FORT TO FRANC FAIBLE: TWELVE YEARS OF FRENCH ECONOMIC POLICY Olivier Cadot and Antonio Fatás Case Writer: Francesca Gee This case focuses on macroeconomic policy in France during the period 1981-93. The early socialist attempt at reflating the economy during 1981-82 is critically reviewed, offering lessons that go beyond the case of France. The case then reviews the Franc’s stabilisation and the concomitant rise in unemployment over 1983-93. Pedagogical Objectives: the case is designed to illustrate the key trade-offs in macroeconomic policy, the logic of government choices and their impact on business. The case also serves as a useful introduction to a discussion of Economic and Monetary Union (EMU) issues including the Single Currency and the Maastricht convergence criteria. Copyright: 1996 INSEAD, France Also available: Teaching Note THE GENERAL ELECTRIC COMPANY AND ITS BANKERS Ingo Walter and Roy Smith Problem: how should Dennis Dammerman, CFO of GE, go about raising $5.5 billion to finance the all-cash acquisition of the RCA corporation? Pedagogical Objectives: an integrative case requiring students to draw on all possible global financial markets and instruments to raise $5.5 billion. Complementary focus on interest rate direction and timing issues. Copyright: 1990 INSEAD-New York University, France-USA GENERAL MOTORS CORPORATION H. Landis Gabel Case Writer: Anthony Hall Abstract: See Ford of Europe and Local Content Regulations Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French Economics and political science 71 GERMAN SOLIDARITY PACT I: FEDERALISM IN POST-UNIFICATION GERMANY Douglas Webber Case Writers: Razeen Sally and Douglas Webber The case portrays the negotiations which took place between the federal and state governments in Germany in 1992/93 over a redistribution of tax revenues in favour of the new eastern German states. Pedagogical Objectives: to analyse whether the traditional system of "cooperative federalism" will survive in Germany or whether unification will result in the emergence of a much more highly centralised German state. Copyright: 1994 INSEAD, France Also available: Background Note (German Federalism) GERMAN SOLIDARITY PACT II: GOVERNMENT AND ORGANISED INTERESTS IN POST-UNIFICATION GERMANY Douglas Webber Case Writers: Razeen Sally and Douglas Webber The case describes the negotiations that occurred between the federal government, trade unions and business associations in Germany in 1992/93 over wage restraint and measures to aid the East German economy. Pedagogical Objectives: to analyse the probability of the cooperative relations between the state, business, and organised labour in Germany surviving the distributional conflicts engendered by unification and the pressures exerted on German business to exercise collective self-regulation. Copyright: 1994 INSEAD, France Also available: Background Note (The Organisation of Economic Interests in Germany) THE GITIC CRACKDOWN: KILLING COCKROACHES IN THE KITCHEN Jonathan Story GITIC was forced into closure in 1998/99, creating concern among foreign investors, particularly Japanese and Korean, that the Chinese government would not stand behind its own store investment bank. The case is about how to read economic policy-making in a non-transparent environment. Pedagogical Objectives: How should GITIC’s failure be seen? • A reaction to Asian financial crash. • Beijing wants to preserve financial independence. • Beijing assets central government control over provinces. • Beijing wants financial reform. • Beijing as a credible partner. Copyright: 1999 INSEAD, France Also available: Teaching Note Economics and political science 72 GOLDMAN SACHS AND THE REPUBLIC OF THE PHILIPPINES Ingo Walter and Roy Smith Assessment of risk associated with a new issue of bonds by the Republic of the Philippines, brought to market in 1993 by JP Morgan, for sale to global institutional and private investors. What are the risks, and how do they compare with the returns? Pedagogical Objectives: Calibration of country risk in internationally placed sovereign bonds. Strategic issues facing an investment bank, Goldman Sachs & Co., in entering the emerging markets debt business. Copyright: 1993 INSEAD-New York University, France-USA GREENPEACE VS. FORD: CATALYTIC CONVERTERS COME TO THE U.K. H. Landis Gabel Case Writers: Hanna Nolan and Graham Wrigley Looks at the conflict between Ford U.K. and Greenpeace. Ford had refused to offer cars with catalytic converters in the U.K., preferring instead to advocate development of its lean burn technology. Greenpeace targeted Ford in a vigorous public relations attack which resulted in Ford finally introducing catalytic converters, although whether because of or in spite of Greenpeace is open to question. Pedagogical Objectives: show that a sophisticated understanding of and a pro-active involvement in the public policy-making process, can prevent a company finding itself in a no-win position in which it appears to be opposing environmental protection. Copyright: 1990 INSEAD, France Also available: Teaching Note HIGH DEFINITION TELEVISION IN EUROPE H. Landis Gabel and Olivier Cadot Case Writer: Pamela Denby This case traces the development of high-definition TV from a public-policy perspective over the years 198691. After a brief description of the main technical questions, the case examines industrial policy issues related to HDTV in the EC, US and Japan. It is accompanied by three satellite cases: High Definition Television in Europe: British Sky Broadcasting, High Definition Television in Europe: Philips Consumer Products and High Definition Television in Europe: Thomson Consumer Electronics. Pedagogical Objectives: (1) to illustrate the difficulties of industrial targeting in areas of rapid technological progress; (2) to introduce participants to the analysis of markets with network externalities. Copyright: 1993 INSEAD, France Also available: Teaching Note Economics and political science 73 HUNGARY'S TRANSITION TO DEMOCRACY AND A MARKET ECONOMY Jonathan Story Case Writer: Ritsa Panagiotou The case describes Hungary's transition from a command economy to a democratic/pluralist system. Special emphasis on how Hungary's case is unique due to its 20-year experimentation with market-oriented principles. Will its transition be facilitated because of its past experience/historical background? Focus on Hungary's chances of joining the E.C. Copyright: 1996 INSEAD-CEDEP, France ICICI Ingo Walter and Roy Smith This case deals with a Eurobond issue by the Industrial Credit & Investment Corporation of India in early 1996. Students are asked to think-through the following questions: (1) What pricing level and structure may be appropriate? (2) Which markets for end-investors are most likely to be successfully addressed? (3) How should the underwriting be conducted? (4) What is the level of risk for which investors will have to be compensated, how does it relate to India sovereign risk, and how can this risk be calibrated and priced? (5) What other concerns need to be considered in developing a strategy for the issue, and how should they be handled? (6) How should an investment bank, in this case SBC-Warburg, develop a coverage program to build a relationship with what may be a very important emerging market client in the future? Pedagogical Objectives: valuation of country “haircuts” superimposed on the underlying credit risk of an emerging market corporate borrower in international capital markets, which includes the entire array of country risk assessment techniques that are ultimately focused on the issue of pricing and investor acceptability. Beyond that, students have to assess the viability of, and prospects for, ICICI as a key financial institution in the evolving Indian competitive context, and its relationship with the Government of India. Finally, students will have to develop a business plan for covering ICICI as a client for investment banking services in future years. Copyright: 1996 INSEAD-New York University, France-USA Also available: Teaching Note IN DEFENCE OF AIRBUS INDUSTRIE H. Landis Gabel and Damien Neven Case Writer: John Thomas One of a series of three cases (the principal case, Fair Trade in Commercial Aircraft, plus two mini-cases, Boeing Case against Airbus and the present In Defence of Airbus Industrie) which explores competition in the commercial aircraft industry. Copyright: 1988 INSEAD-CEDEP, France Also available: Teaching Note (Fair Trade in Commercial Aircraft) Other languages: French Economics and political science 74 INDIA, THE WORLD'S LARGEST DEMOCRACY: HINDU ELEPHANT OR ASIAN TIGER? Jonathan Story Case Writer: Ritsa Panagiotou The case is part of a series by the same author on political and economic systems undergoing regime or system change Pedagogical Objectives: the case objective is to illustrate the political dynamics entailed in an embedded regime, one of whose policy objectives is liberalisation of economic policy Copyright: 2004 INSEAD France 1 publication © 1994 2 publication © 1997 3 publication © 1999 Other languages: French (© 1999) INDUSTRY CFC REPLACEMENT STRATEGIES H. Landis Gabel The case picks up the CFC story at the point where Dupont has just announced that it will unilaterally phase out CFCs by the end of the 1990s. The case then contrasts the strategies of Dupont and ICI for attaining a competitive advantage in a post-CFC market. Pedagogical Objectives: to show the complex interrelationships between public and corporate environmental strategies (at the national and international levels) in a setting of rapidly changing scientific knowledge and public perceptions of environmental hazards. Copyright: 1993 INSEAD, France Also available: Teaching Note IRAN (1953-79) (A) Jonathan Story Case Writer: André Khodjamirian The case dscribes the events occurring in Iran from 1953-1979, leading to the fall of the Shah. Pedagogical Objectives: make managers sensitive to the domestic and international dynamics of revolution. Copyright: 1986 INSEAD, France. Revised 1988 ISLAM IN SOUTHEAST ASIAN POLITICS Douglas Webber and Ulla Fionna The case explores the historical evolution of the nature and political role of Islam in the colonial and postindependence periods and in the recent past in four Southeast Asian states with majority or minority Muslim populations (Indonesia, Malaysia, the Philippines and Singapore) and poses the question whether political stability in the region will be undermined by a political radicalization of Southeast Asian Muslims. Pedagogical Objectives: the case is designed to provide the basis for a classroom discussion of whether, in the context of a more general Islamic ‘resurgence’ and after the terrorist attacks in the US on 11 September 2001 and ensuing war in Afghanistan, Southeast Asia may be destabilized politically by growing support for radical Islamic movements. Copyright: 2002 INSEAD, Singapore Economics and political science 75 JAPAN: ASIAN GIANT OR OLD AGE PENSIONER? Jonathan Story Case Writer: Ritsa Panagiotou This case presents the domestic and external context of Japan after the end of the cold war. Questions are appended on the political, economic and business prospects of the country. Pedagogical Objectives: the case is based on the analytical framework presented for the G7 countries. It also serves as an introductory case to subsequent cases on Japanese corporate strategies, banking, organisational patterns, etc... Copyright: 2004 INSEAD, France 1 publication © 1997 2 publication © 1999 Other languages: French (© 1999) J.P. MORGAN AND BANCO COMERCIAL DE CREDITO Ingo Walter and Roy Smith A case that links the government takeover of a major Spanish bank to the evolving merchant banking activities of an American banking and securities firm. It illustrates the franchise-effects of operating a merchant banking business in difficult foreign environments, and the conflicts of interest that may be encountered. Pedagogical Objectives: to identify the ingredients of a bank's franchise and reputation in the field of merchant banking; illustrate the high potential for error and loss of control, and pinpoint the cost to shareholders when things go wrong. Copyright: 1994 INSEAD-New York University, France-USA Also available: Teaching Note (Banesto) J.P. MORGAN CHASE & CO. Ingo Walter Case Writer: Shantanu Chakraborty The announced merger of J.P. Morgan and Chase Manhattan in September 2000, which became effective at the end of the year, was one of a series of major combinations in the financial services sector that is ongoing, particularly in the US, Europe and Japan. This has led to greater concentration in important areas of wholesale and investment banking, as well as the formation of financial conglomerates combining retail and wholesale financial services, asset management and, in some cases, insurance. Questions arise whether the direction of this consolidation process is ultimately beneficial for the financial system, and whether individual transactions are beneficial for the shareholders involved. This case requires students to focus on the latter question by dissecting the JPMC merger and identifying sources of shareholder value enhancement, as well as the costs and risks embedded in the transaction. Pedagogical Objectives: mergers and acquisitions in the financial services sector are among the most complex. This case requires students to think through the causes, course and consequences of one of the largest mergers in global banking from the perspective of shareholder value, market share performance and competitive impact. What were the possible sources of value-accretion in these mergers, and what were the sources of value-destruction? What kinds of integration problems is management likely to encounter? Was this a merger or an acquisition? Copyright: 2001 INSEAD/New York University, France-USA Economics and political science 76 KING MOHAMED VI: MOROCCO’S MODERNISER? Jonathan Story Case Writer: Francis Ghiles The case presents material to discuss the prospects of King Mohamed VI of Morocco. Domestic policy inheritances, the new context and Morocco’s external setting and relevant data provide a basis for country analysis. Pedagogical Objectives: • Political, economic transformation. • Trade and foreign investment policy. • Macro-political/economic analysis. Copyright: 2004 INSEAD, France 1 publication © 2000 THE LAUNCHING OF THE EMS: OCTOBER 1977 APRIL 1978 Jonathan Story Case Writer: Sophie Boisseau du Rocher The case covers the launching of the EMS, October 1977 to May 1978. Pedagogical Objectives: provide a framework on forecasting exchange rate policy changes, and a model on how to proceed. Copyright: 1987 INSEAD, France MACHINE TOOL INDUSTRY H. Landis Gabel and Damien Neven Case Writer: John Thomas Explores the problems in the US machine tool industry and the trade conflict these problems have caused between the US and Japan. President Reagan must decide what action to take on the basis of a case brought by the industry trade association against imports. Pedagogical Objectives: develop the topic of foreign industrial targeting. Copyright: 1987 INSEAD-CEDEP, France Also available: Teaching Note Other languages: French MALAYSIA: MULTI-RACIAL SOCIETY UNDER ONE-PARTY RULE Jonathan Story Case Writer: Heather Grabbe The case describes the political, economic and corporate policies of the Malaysian state. It falls within the series on regime/change development, and is to be taught in particular alongside parallel cases on China and Japan. The multi-racial strategy may be compared to that being introduced to South Africa. Economics and political science 77 Pedagogical Objectives: these include: Developing skills to assess the politics and business prospects of a country. The art of “thinking about the future” of a significant state as it is incorporated in the world economy. Copyright: 1996 INSEAD-EAC, France MANULIFE IN INDONESIA (A & B) Douglas Webber and Ulla Fionna The case recounts the unanticipated trials and tribulations experienced by a Canadian insurance company, Manulife, when it tried to take over its local partner’s stake in their Indonesian joint venture. Pedagogical Objectives: to illustrate the problems that a foreign company may encounter in a country where the rule of law is weak or Absent; discuss and identify the historical roots of corruption in Indonesia, and provide insights into why corruption may grow in post-authoritarian states. Copyright: 2002 INSEAD, Singapore Also available: Background Note MONSANTO AND GENETICALLY MODIFIED ORGANISMS Olivier Cadot, H. Landis Gabel and Daniel Traça Case Writer: Sara McDonald The case analyses the failed introduction of genetically modified organisms (GMO) in Europe by Monsanto. Showing how a favourable context (the legacy of mad-cow disease) made it relatively easy for consumer groups and environmentalists to wage successful anti-GMO campaigns in Europe, the case examines how Monsanto attempted to deal with its image problem and how the company’s efforts backfired. The case then moves on to show how the industry’s public-relations crisis grew into a transatlantic trade dispute pitching the U.S. administration against the E.U. Commission, analyzing the legal, economic and political issues raised by the dispute. Pedagogical Objectives: the case’s objective is to provide a particularly rich context for a discussion of the following issues: • How to handle major PR crises (short run) and stakeholder dialogue (long run). • The evolution of the international regulatory and political context in which product innovation takes place (e.g. the “precautionary principle”). • Hidden protectionism through product standards, and how it can be identified and dealt with through the WTO’s non-discrimination rules. Copyright: 2001 INSEAD, France Also available: Teaching Note Other languages: Spanish MOTOROLA IN CHINA Jonathan Story Case Writer: Adam Pearson See abstract and pedagogical objectives for Alcatel in China. Copyright: 1997 INSEAD-EAC, France Economics and political science 78 NEGOTIATING WITH THE TREUHANDANSTALT: SOLVAY AND THE BERNBURG SODA ASH PLANT (A & B) Douglas Webber Following German re-unification, Solvay S.A. tried to recover a soda ash plant it had operated in pre-second World War (East) Germany. Part A of the case traces the negotiations which occurred between Solvay and the German Treuhandanstalt and the obstacles which Solvay's restitution bid encountered. Part B portrays the outcome of the negotiations. Pedagogical Objectives: to identify some of the problems and pitfalls that may be encountered by firms trying to acquire companies in the former communist-controlled states of Eastern Europe and provide some insights as to how they may be overcome or avoided. Copyright: 1994 INSEAD, France THE NISSAN CORPORATION H. Landis Gabel Case Writer: Anthony E. Hall Abstract: see Ford of Europe and Local Content Regulations. Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French see Ford of Europe and Local Content Regulations. Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French NORTEL IN CHINA Jonathan Story Case Writer: Adam Pearson See abstract and pedagogical objectives for Alcatel in China. Copyright: 1997 INSEAD-EAC, France OLIVETTI – TELECOM ITALIA Ingo Walter The European market for corporate control has undergone rapid change. Together with the attempted takeover of Thyssen by Krupp and their eventual merger, and the successful hostile takeover of Mannesmann by Vodafone Airtouch, the takeover of Telecom Italia by Olivetti was a ground-breaking event in this process. A transaction that would have been unheard-of only a few years before not only was successfully carried out but also financed in a new financial market characterized by a single currency. This case illustrates the dramatic changes that have been taking place in European financial markets and their implications for corporate governance. Pedagogical Objectives: • Illustrate the changing corporate governance structure in Europe. • Understand the strategic and tactical issues involved in hostile takeovers. • Develop the implications of the Euro-zone capital market for corporate restructuring. Copyright: 2000 INSEAD/New York University, France/USA Economics and political science 79 ONE KOREA? Douglas Webber Case Writer: Rafael Bueno The case describes the evolution of relations between South and North Korea since the division of Korea and the Korean War, explores the background to the conflict over North Korea’s nuclear and missiles programmes in the 1990s, shows how inter-Korean relations have been shaped by the interests and interventions of the big powers present in the region (the US, the USSR/Russia, China and Japan) and facilitates an analysis of the likelihood of a new armed conflict on the Korean peninsula and Korean reunification. Pedagogical Objectives: (1) To illustrate the extent to which the dynamics and outcomes of regional conflicts are shaped by the major international powers; (2) To analyse the probability of a new war on the Korean peninsula and/or of Korean reunification; and (3) To assess the longer-term economic, political and strategic implications of a unified Korea, should reunification occur. Copyright: 2001 INSEAD, Singapore ONE MONEY, GREATER EUROPE Jonathan Story The case describes the history of repeated attempts at monetary union, and provides an overview of various motivations and initiatives taken since the relaunch of EU integration in the mid-1980s, the events surrounding the Maastricht Treaty, and the turbulent years since then. Pedagogical Objectives: to provide a predictive analysis of what will happen and the possible impact on firms. The case may also be used to weigh the pros and cons of monetary union, from political, economic and business perspectives. Copyright: 2004 INSEAD, France 1 publication © 1999; case entitled “One Money and Fifteen States” OXFAM AND THE CAMPAIGN TO BRING AFFORDABLE HIV TREATMENT TO SOUTH AFRICA Jill Klein and Ethan Kapstein Case Writer: Robert Crawford The case places students in the complex moral and legal environment of AIDS in South Africa. In the early 1990s, South Africa, along with many other developing countries, agreed to accept World Trade Organization regulations with respect to trade in intellectual property – the so-called TRIPS agreement. In 1997, however, the South African Government passed a new Medicines Act which a group of pharmaceutical companies argued was in violation of South African patent laws and of the TRIPS accord. Their lawsuit was quickly attacked by such leading non-governmental organizations as Oxfam. This case requires students to address pharmaceutical company policy in the face of the AIDS pandemic. Pedagogical Objectives: by using this case business students will grapple with some of the most complex issues of corporate social responsibility with which they could be confronted during their professional careers. They also learn to appreciate the perspectives of different stakeholders including governments and nongovernmental organizations. By addressing the problem of AIDS in South Africa, students will gain a deeper understanding of the social issues they may encounter when engaging in business in the developing world context. Copyright: 2003 INSEAD, France Economics and political science 80 PACKCO (A & B) Jonathan Story Case Writer: Martin Baker PackCo is negotiating an investment in St Petersburg. The situation in Russia is unpredictable. Should this investment deal be done or an alternative found? Pedagogical Objectives: follow up to regime change case on Russia. The case aims to illustrate the type of problems confronted by investors in Russia after the collapse of the USSR. Copyright: 1994 INSEAD, France PANNON MARBLE INDUSTRIES PLC (A & B) Jonathan Story Case Writer: Micky Allen Case A presents the complex inheritance of the company and the perspective of the UK acquirer, Centurion. The two managements meet at a seaside resort. What is the situation, what should the recommendations be? Case B presents what happened. Pedagogical Objectives: the case raises questions about doing business in a country undergoing transition. It follows on from the author's Hungary transition case, and is to be taught in tandem with his Poland and Danuta cases. Copyright: 1993 INSEAD, France PEUGEOT SA H. Landis Gabel Case Writer: Anthony E. Hall Abstract: see Ford of Europe and Local Content Regulations. Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French POLAND'S TRANSITION TO DEMOCRACY Jonathan Story Case Writer: Ritsa Panagiotou The case explores Poland's transition from a centrally-planned, communist-controlled regime to a free market, pluralist system. The case focuses on which factors have influenced the Polish transition to democracy and how Poland will attempt to join the mainstream of Europe. The case is part of a series on regime change. Copyright: 2004 INSEAD, France 1 publication 1997 2 publication 1999 Other languages: French (© 1999) Economics and political science 81 POST-SUHARTO INDONESIA: DEMOCRATIZATION AGAINST THE ODDS? Douglas Webber The case describes the evolution of the Indonesian state and Indonesian politics from the beginning of the Dutch occupation in the early seventeenth century down to the present day. The main focus is on the period since the fall of the authoritarian Suharto regime in 1998. It identifies and portrays the challenges facing both the incumbent government in the wake of the country’s profound economic and political crisis in 1997-98 and the consolidation of democratic politics in the country. Pedagogical Objectives: to assess the prospects for the stabilization of a democratic political system in Indonesia and the implications of political developments in the country since the fall of the Suharto regime in 1998 for the business environment. Copyright: 2002 INSEAD-EAC, Singapore THE PRIVATISATION OF BRITISH AIRWAYS (A) BRITISH AIRWAYS BRITISH CALEDONIAN AIRWAYS H. Landis Gabel Case Writer: Robert Levy This is the principal case in a set of three (with British Airways and British Caledonian Airways) that describes the situation just prior to the privatisation of British Airways when the UK government was considering major structural and regulatory changes to the industry. Questions about the objectives of both privatisation and regulatory change are raised. Pedagogical Objectives: through role-play to have students explore the objectives and likely consequences of privatisation and regulatory liberalisation in air transport in the UK and the EC. Copyright: 1986 INSEAD, France Also available: Teaching Note Other languages: French THE PRIVATISATION OF BRITISH AIRWAYS (B) H. Landis Gabel This case extends The Privatisation of British Airways (INSEAD 1986) up to 1994. It offers a potpourri of quotations, paraphrases and opinions from articles appearing in the press after 1984, going through the agonising period of attempted airline liberalisation in the EU. The period is still far from over. The case ends with some questions regarding the path that still lies ahead to "freedom in the skies" by the end of the decade. Copyright: 1994 INSEAD, France Also available: Teaching Note Other languages: French Economics and political science 82 THE PURSUIT OF CHASE MANHATTAN Roy Smith and Ingo Walter Case Writer: Jeannie Lorenz The case describes the challenge by an institutional investor to the control of one of the oldest and largest U.S. banking companies and how this challenge led to the merger of Chase with Chemical Bank. Pedagogical Objectives: this case addresses the origins of the Chase merger with Chemical Bank, especially the role played by mutual fund investor Michael Price. The case can be used in combination with BK Vision (by the same authors), which entails the pursuit of Union Bank of Switzerland by Swiss investor Martin Ebner. Copyright: 1995 INSEAD-New York University, France-USA REFORM OR REVOLUTION? ANALYSING CHANGES IN REGIMES Jonathan Story This technical note reviews literature on regime change or revolution. It draws up a model of application to the series of cases (China, Russia...) by the same author. Pedagogical Objectives: market operators register prices, which contain information. Much of this is political, so reading price signals in a world state and regime system is a necessary art and skill. Copyright: 1995 INSEAD, France REINVENTING AIRBUS Olivier Cadot, Landis Gabel and Daniel Traça Case Writer: Robert Crawford Airbus is contemplating changing its legal structure and launching a super-jumbo to compete with the 747, but the consortium is divided on strategic priorities. Should it focus on changing its legal structure? Should it maintain a market share strategy? Should the consortium seek a truce in the price war with Boeing? Pedagogical Objectives: the case’s objective is to discuss the strategic options for Boeing and Airbus and to understand how Airbus’ idiosyncratic structure and internal decision-making process affect the nature of the competition with Boeing. Copyright: 1999 INSEAD, France Also available: Teaching Note RE-ORGANIZING & PRIVATIZING GERMAN STATE ENTERPRISES (A & B) Mark Lehrer and Douglas Webber The case portrays the political process by which, in the first half of the 1990s, decisions were taken in Germany to re-organize and/or to privatize the state-owned airlines, telecommunications and railways enterprises. Pedagogical Objectives: to identify how and to what extent important public policy outcomes in Germany are shaped by the organizations of the German political system. Copyright: 1997 INSEAD, France Also available: Teaching Note Economics and political science 83 RUSSIA: BOUND TO BOOM? Jonathan Story Case Writer: Ritsa Panagiotou The case poses the question, ‘Whither Russia?’ It deals with the problems of transition from communism in a multi-ethnic society. Pedagogical Objectives: to continue the series on regime change. It is to be accompanied by companyspecific cases. Copyright: 1997 INSEAD, France SCHRODER SALOMON SMITH BARNEY Ingo Walter Case Writer: Michael Fidance This case focuses on Citigroup’s attempt to bolster its European presence by acquiring the investment banking business of Schroders PLC in 2000, following a conclusion on the part of key Schroders shareholders that the future of an independent Europe-based investment bank was limited – that it was unlikely that shareholders would be able to achieve a better outcome than the Citigroup offer on a riskadjusted present value basis if the firm remained independent. Pedagogical Objectives: a number of questions are addressed in the case: Was Schroders unable to survive as an independent, Europe-based investment banking firm, or was it? Why did the previous shareholders choose to sell only the investment banking business to Citigroup, retaining the asset management business? How does the Schroders acquisition fit into Citigroup’s overall strategy? How would you measure “success” or “failure” in this regard? What about the price? What are the key integration challenges that face Citigroup to make sure it gets the most out of the Schroders acquisition? Copyright: 2003 INSEAD-NYU, France-USA SEEDS OF DISCONTENT: GENETICALLY MODIFIED ORGANISMS, NON-GOVERNMENTAL ORGANIZATIONS, AND THE (MORTAL?) WOUNDING OF AN INDUSTRY Michael Yaziji The case describes a political, social, and public opinion crisis for a firm and an industry. The crisis is spurred by non-governmental organizations opposed to genetic engineering. The case highlights issues concerning the social and political environment and its impact on the firm’s options and adoption of technological innovations. Pedagogical Objectives: the teaching objectives are to acquaint participants with the potential impact of the non-market environment, namely, civil society and NGOs, and regulatory and legal bodies. The case also provides insights into how technological innovations and resulting product differentiation can be difficult to integrate into commodity supply chains. Copyright: 2001 INSEAD, France Economics and political science 84 SEMICONDUCTORS: A CASE FOR STRATEGIC TRADE? Daniel Traça, Olivier Cadot and Landis Gabel Case Writer: Robert Crawford This case analyses the evolution of the semiconductor industry in the US and Japan, how it was shaped by their domestic policies, and the international trade problems it created. The authors address the implications of the international agreements between the two countries which constituted a landmark in international trade politics. Pedagogical Objectives: • To broaden the concept of comparative advantage beyond the standard notions of factor abundance. The case shows that there are elements of comparative advantage in the allocation of different branches of the semiconductor industry between the US and Japan. • To show how strategic trade policy may be counterproductive in the presence of elements of comparative advantage. • To demonstrate that the ability of governments to predict technology, and/or the market, is low, leading to policy interventions that destroy value for the domestic and world economy. Copyright: 1999 INSEAD, France SHOULD BUSINESS INFLUENCE THE SCIENCE AND POLITICS OF GLOBAL ENVIRONMENTAL CHANGE? THE OIL INDUSTRY AND CLIMATE CHANGE (A & B) Marc Le Menestrel and Henri-Claude de Bettignies Case Writer: Sybille van den Hove Case A presents three strategic options considered by a fictitious international oil and gas corporation to address the issue of climate change: “fight against action”, “wait and see”, and “dynamic proactive”. Case B presents the climate change strategies of three multinational corporations – ExxonMobil, BP Amoco, and TotalFinaElf. Pedagogical Objectives: • Assess critical business strategies on global environmental risks and underlying ethical dilemmas; • Acknowledge influence of business on the scientific and political dimensions of society, and ethical responsibility as an inherent dimension of business global strategy; • Reflect on ethical management of this influence; • Reflect on the evolution of business responsibility. Copyright: 2001 INSEAD, France Other languages :French SIEMENS IN CHINA Jonathan Story Case Writer: Adam Pearson See abstract and pedagogical objectives for Alcatel in China. Copyright: 1997 INSEAD-EAC, France Economics and political science 85 SOCCER BALLS MADE FOR CHILDREN BY CHILDREN? CHILD LABOR IN PAKISTAN (A & B) Olivier Cadot and Daniel Traça Case Writer: Robert Crawford The case describes an international agreement to phase out child labor in soccer ball manufacturing. This high-profile agreement, which involves major brand manufacturers, has been hailed as an example of socially responsible corporate policy. Pedagogical Objectives: the objective is to analyse in some depth the economic, historical and ethical aspects of child labor, and to assess in the light of this analysis whether agreements such as this one serve any useful purpose. Copyright: 1999 INSEAD, France (Case A) 2001 INSEAD, France (Case B) Also available: Teaching Note THE SOUTH AFRICAN TRANSITION: FROM APARTHEID TO MULTI-RACIAL DEMOCRACY Jonathan Story Case Writer: Ritsa Panagiotou The case presents the background to the opening of a negotiation between the many parties engaged in creating the new South Africa. Pedagogical Objectives: this case deals with transition in a multi-ethnic state such as South Africa. The process and the requirements for success are notably different to those in countries with less ethnic diversity. Copyright: 2004 INSEAD, France 1 publication © 1997 2 publication © 1999 Other languages: French (© 1999) SPAIN'S TRANSITION TO DEMOCRACY Jonathan Story Spain's transition from an authoritarian regime applying import subsidies, to a pluralist state in the EC, provides an ex post case study of successful regime change. What lessons can be learned? The case is one of a series of cases on regime change. Pedagogical Objectives: to develop a general method for analysing regime change; to identify key features and isolate those particular to Spain and to integrate political analysis, economics and corporate strategy with awareness of the EC. Copyright: 1991 INSEAD, France STORM CLOUDS OVER TAIWAN (A & B) Douglas Webber The case explores the historical origins, dynamics and recent evolution of the triangular conflict between China, Taiwan and the U.S.A. over Taiwan’s relationship with the Chinese mainland following Taiwan’s election of a pro-independence candidate as president in March 2000. Economics and political science 86 Pedagogical Objectives: to identify the forces, internal and external, shaping the policies pursued by the three principal protagonists in the conflict and to analyse the relative probability of a “cross-strait” war or a peaceful reunification of China and Taiwan. Copyright: 2000 INSEAD, Singapore STRATEGY, IDEOLOGY AND POLITICS: THE RELAUNCH OF SOCIAL EUROPE 1987-89 Jonathan Story Case Writer: Ethan Schwartz The drafting of the EC's Social Charter on workers' rights came to be one of the more contentious and symbolic acts accompanying the Community’s relaunch. This case presents a history of the episode and considers the major players' domestic, strategic and economic motives. Pedagogical Objectives: consider the ideological, political and economic factors influencing European decision-makers; show that the manipulation of EC institutions, policy processes and the "theatrical" component of politics should be taken into account. Copyright: 1990 INSEAD-CEDEP, France Also available: Technical Note (Europe and 1992) TECHNICAL NOTE ON THE ECONOMICS OF THE ENVIRONMENT AND ENVIRONMENTAL POLICY H. Landis Gabel This technical note lays out the economic principles relevant to the allocation of environmental resources resources generally characterized by market externalities and thus market failure. From this, the note goes on to discuss alternative policy approaches to the allocation of environmental resources, the strengths and weaknesses of each, and some implications for business of the direction in which environmental policy making is going. Pedagogical Objectives: this note can provide the basis for discussion of the issues it addresses or it can stand alone and obviate the need for such class discussion. Copyright: 1992 INSEAD, France TELEVISION WITHOUT FRONTIERS (A & B) Jonathan Story Case Writer: Kathy Burton The EC introduced voluntary quotas on imports of films, etc. and their use by networks. This case covers the story from both EC and US angles and places the events in the context of Europe's multi-state and corporate system. Pedagogical Objectives: to illustrate the pros and cons of import quotas in the context of international economics and to look at the policy-making process in the EC. Copyright: 1992 INSEAD, France Also available: Teaching Note Economics and political science 87 TRITON CHEMICALS INTERNATIONAL Ingo Walter Corporate response options after the Union Carbide Bhopal poison gas disaster. Pedagogical Objectives: global operations facing environmental and in-plant health and safety concerns, under conditions where the rules of conduct are unclear and/or contradictory. Copyright: 1986 INSEAD, France TURKEY: BOUNCING BACK FROM THE BRINK? Jonathan Story Case Writer: Ritsa Panagiotou The case sketches the domestic legacies, external relations and political transition before setting out the main elements of economic policy and performance. The 1994 stabilisation programme is designed to smooth the way to closer relations with the EU. Pedagogical Objectives: the Bretton Woods Institutions apply formatted policy recipes around the world and in Turkey. What are the factors influencing the making of economic policy in Turkey and how should Turkey be evaluated? Copyright: 2005 INSEAD, France 1 publication © 1997 2 publication © 1999 Other languages: French (© 1999) UBS PRIVATE BANKING Ingo Walter This case looks at strategy formulation and implementation in global private banking from the perspective of the pre-eminent firm in this industry. Pedagogical Objectives: selection of strategic objectives and identification of fundamental drivers of one of the most hotly contested parts of the global financial services industry. The key issue is how to profitably grow the 'onshore' business in various markets against stiff local competition. Copyright: 2000 INSEAD/Stern School of Business, New York University, France-USA. Also available: Teaching Note UNITED KINGDOM INDUSTRIAL POLICY TOWARD THE AUTOMOBILE INDUSTRY H. Landis Gabel Case Writer: Anthony Hall Abstract: see Ford of Europe and Local Content Regulations. Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French see Ford of Europe and Local Content Regulations. Copyright: 1985 INSEAD, France Also available: Teaching Note (Ford of Europe) Other languages: French Economics and political science 88 USA ALL THE BENEFITS, CHINA ALL THE CONCESSIONS? THE US-CHINA BILATERAL WTO AGREEMENT Jonathan Story Case Writer: Robert Crawford The case focuses on the US-China bilateral negotiations on China’s bid for WTO membership. It presents the domestic policy processes of both countries regarding the entry negotiation and indicates the likely impact of China’s entry. Pedagogical Objectives: the case may be used to illustrate the impending economic, political and business transformation of China, and of US-Chinese relations. It also serves to illustrate the dynamics of bilateral relations in an interdependent waved economy. Copyright: 2000 INSEAD, France THE US: BOUND TO LEAD OR “SLOUCHING TO GOMORRAH”? Jonathan Story Case Writer: Ritsa Panagiotou This is one of the G-7 case series by the same author. It covers an overview of US history, external relations, the emergence of the US industrial economy, US corporate structure, and government policies. The annexes contain selected statistics. Pedagogical Objectives: to subject the US to the type of analysis that may be conducted on any national economy, and that is used with regard to the other cases in the G7 series (Japan, France...). Copyright: 2005 INSEAD, France First publication © 1997 INSEAD. Also available: Case Supplement VIRGIN BLUE – FIGHTING NATIONAL CHAMPIONS Daniel Traça Case Writer: Elisa Crotti This case describes the turmoil in the Australian airline industry, after the entry of low cost carriers Virgin Blue and Impulse in 2000. The events led to a dramatic consolidation by 2002, with fears of even greater threats to competition than before deregulation. The case looks at the challenges to industry regulators, as well and the companies involved. Pedagogical Objectives: this case highlights the complex competition dynamics in industries with barriers to entry, such as the airline industry, stressing the implications for competition policy and the process of deregulation. In such industries, the activities of top management are directly inter-related with the actions of policy-makers. Hence this case can be used in discussion about economic policy as well as business strategy. Copyright: 2004 INSEAD, Singapore Economics and political science 89 VOLVO-SCANIA: MERGERS AND COMPETITION POLICY Daniel and Traça Vanessa Strauss-Khan Case Writer: Philip Krinks On March 2000, the European Commission rejected Volvo’s application for competition clearance for the Scania acquisition on the grounds that it would give the merged firms a virtual monopoly in Sweden and a clearly dominant position in the Nordic area. Such an event leads to the following questions: Why is competition policy necessary? How do you measure market power? How to define the market? Pedagogical Objectives: the case discusses the economic analysis of mergers and the parameters of their regulation. It allows the analysis of the determinants of merger activity from a corporate perspective. It also looks at the theory and the practice of merger regulation and aims at discussing the main aspect of competition law, i.e., the abuse of dominant position. A particular emphasize is placed on the definition of the relevant market while assessing market power abuses. Copyright: 2003 INSEAD, France Also available: Background Note WORLD ONLINE INTERNATIONAL N.V. Ingo Walter The IPO of World Online on the Amsterdam Stock Exchange in the spring of 2000 triggered one of the most embarrassing stock market debacles in recent years, related to a transfer of ownership stakes by the firm’s CEO just prior to the offering and at a fraction of the offering price. Questions were raised about the conduct of the management of the firm, its board, the Amsterdam Stock Exchange, and the underwriting banks – and about the implications for the future of European financial markets themselves. Pedagogical Objectives: assessment of proper standards for initial public offerings, especially related to technology stocks, and the conduct of all parties to such transactions. What is adequate disclosure, especially in the case of shares to be distributed widely to retail investors? Does meeting the technical constraints imposed by the regulators necessarily suffice? Appreciation of risks faced by firms engaged as financial intermediaries in such transactions from a reputational point of view. Copyright: 2000 INSEAD / New York University, France-USA. Y2K: THE BUG THAT FAILED TO BITE Jonathan Story Case Writer: Robert Crawford The case is a unique insight into the preparations to stop the Y2K bug striking at the world economy’s financial nerve centre. It tells the real story of how a global network was swifty formed, procedures set in place, and norms introduced. Pedagogical Objectives: a central feature of the globalisation process is the “new diplomacy” where corporations become significant players along with public officials and multilateral organisation in setting rooms. This case illustrates the latest research paradigm on the process of global standard setting. Copyright: 2001 INSEAD, France. Also available: Teaching Note Entrepreneurship & family enterprise 90 Entrepreneurship & family enterprise THE 3M COMPANY: INTEGRATING EUROPE (A & B) Daniel Muzyka and Neil Churchill Case Writer: Mary Ackenhusen This two-part case series presents the reorganization of 3M's European operations in 1992 from a strong, autonomous country structure to a pan-European product line structure matrixed with a regional structure. The cases describe the transition and the resulting rewards and challenges in the context of 3M's unique culture and processes which have made the American multinational corporation a benchmark in innovation. Pedagogical Objectives: this case series permits the exploration of the strengths and weaknesses of an entrepreneurial corporation in undertaking and managing change, as well as some of the more delicate complexities in transitioning organizational direction and process within such corporations. Additionally, the cases sensitize the student to the challenges a company faces in serving the evolving, integrated market of Europe. These cases are appropriate for either an MBA or executive audience. Copyright: 1994 INSEAD, France Also available: Teaching Note ABILENE CATERPILLAR Neil Churchill Stan Treanor takes over the business from his father in 1976 and builds sales from $23 million to $119 million by 1981. Then in 1981 the oil crunch hits West Texas and Stan manages the company as it shrinks back to $30 million in less than a year and a half and makes money doing it. The case examines how Stan accomplished this rather unusual feat and what he learned from managing in adversity. Pedagogical Objectives: the teaching objective is to examine the differences in managing in good times and managing during a severe economic downturn. It is also used to examine what is different during adversity and what is just good management in any economic period. A transparency highlights the differences that Stan faced and that between a "turnaround" or "work-out" manager, and can be used to contrast their behavior. Copyright: 1995 INSEAD, France AFTER ABBE: THE BONNIER GROUP IN TRANSITION Manfred Kets de Vries Case Writer: Robert Dick This case describes the history of one of the best known family firm dynasties in Scandinavia. It highlights the personalities of the major players and their roles in influencing the strategic direction of the firm. Pedagogical Objectives: to help the reader better understand the complex interface between a family and a business system of a company which has successfully managed to survive six generations. The case gives the opportunity to clarify some of the factors which contribute to the survival of a family firm. Copyright: 1992 INSEAD, France Also available: Teaching Note Entrepreneurship & family enterprise 91 ALBERT SPEER AND THE GERMAN WAR EFFORT Manfred Kets de Vries Case Writer: M. Webber The case describes the historical, social and political factors which led the German people to support the NSDAP and brought Hitler to power. It presents Speer's role in the process and shows his role as an innovative organisational designer and seeks to determine to what extent Speer's personality contributed to his deepening involvement in Nazi activities or the degree to which he was a victim of circumstances. Pedagogical Objectives: to analyse the major themes in a person's intrapsychic world and assess the extent to which these themes determine his later behaviour. The understanding of the psychodynamics of the individual help us to get a better idea about the psychodynamics of leadership. Copyright: 1989 INSEAD, France Also available: Teaching Note ALICE IN WONDERLAND? A DIFFERENT APPROACH TO ORGANIZATIONAL CHANGE Manfred Kets de Vries Case Writers: Helene Gorter-Van Gorp and Elizabeth Florent-Treacy This case shows how the new managing director of LVV transformed this trucking company from a “fossilized and arthritic” minor subsidiary of a Dutch shipping group into a revitalized organization. The case looks at how her own leadership characteristics as well as Dutch leadership styles, contributed to the development of an authentic culture of trust, affiliation, and meaning for employees, and how the financial situation of the company was turned around as a result. Pedagogical Objectives: Emma van Nijmegen is a rare example of a female top executive in a typically male-dominated industry (shipping and transport). This case aims to show how LVV’s remarkable turnaround from a loss-making company in 1996 to a very profitable market-focused organization was facilitated by van Nijmegen’s focus on a change of culture, a change of image and a drive for open communication. • To provide insight into the dynamics of female leadership and its influence on the corporate culture. • An opportunity to discuss the importance of emotional intelligence in leaders. • Discussing the ways in which corporate culture is shaped and changed. Copyright: 1999 INSEAD, France Also available: Teaching Note ANTON DREESMAN: THE RISE AND FALL OF A DEPARTMENT STORE DYNASTY Manfred Kets de Vries Case Writer: Nelleke Hennemann The case describes the evolution, expansion and internationalisation of a family-owned company in the area of retail and services. It looks at the role of the family and, particularly, its driving force, Anton Dreesman. Pedagogical Objectives: to demonstrate the relationship between personality, leadership style, corporate culture, strategy and structure; to highlight the problems around the succession. Copyright: 1992 INSEAD, France Entrepreneurship & family enterprise 92 ARNHEITER'S NINETY-NINE DAYS Manfred Kets de Vries This case describes the 99 days during which Captain Arnheiter commanded The Vance, a destroyer escort ship assigned to patrol the South Vietnamese coast during the war in Vietnam. It is an excellent example of how leadership pathology affects subordinates' behaviour and may have extremely dangerous consequences. Pedagogical Objectives: the case offers an opportunity to study the vicissitudes of leadership. It raises questions about safeguards against people who have reached positions of great power and then abuse that power. In addition, the objective of this case is to recognise specific leadership styles and identify the danger signs. Copyright: 1989 INSEAD, France Also available: Teaching Note (Marcus Aurelius Arnheiter) BANG & OLUFSEN Manfred Kets de Vries Case Writer: Katharina Balasz This case describes a major organizational transformation process at the Danish audiovisual company, Bang & Olufsen A/S. It highlights the role of leadership played in the change process. Additional issues concern human resource management practices, the management of innovation and strategic marketing. Pedagogical Objectives: the teaching objectives of the case consist of presenting an illustrative example of a successful corporate transformation process, highlighting the role of leadership in creating a change of mind-set. Copyright: 1997 INSEAD, France Also available: Teaching Note BANKING ON CHANGE (A & B) Manfred Kets de Vries Case Writer: Elizabeth Florent Banking on Change focuses on key issues involved in organizational transformation and culture integration. It looks at what happened when a well-known Swiss bank acquired a British investment bank (names are disguised): from the mismatch of corporate cultures, to the frustration and fear caused by poor communication and planning on the part of the Swiss executives. The second part of the case (B) shows how the CEO belatedly took control of the transformation process himself and turned it around. Pedagogical Objectives: this case focuses on the three main phases in the transformation process: Phase One: Dealing with Organizational and Individual Stress (breaking out of the vicious circle of frustration and dissatisfaction with the status quo); Phase Two: Hope A New Vision (the arrival of a powerful change agent, in this case the CEO of the acquiring bank who is able to develop a positive relationship with employees and design and communicate a compelling reason for the transformation and vision for the future); and Phase Three: Transformation (steered focal events to set goals and declare intent to change; individual change in relation to one’s perception of locus of control, crystallization of discontent, acceptance of change on a personal level; reality check concretization of rewards, small wins). These points are summarized in an exhibit which serves as an outline of the transformation process. Copyright: 1996 INSEAD, France Also available: Teaching Note Entrepreneurship & family enterprise 93 BRANSON'S VIRGIN: THE COMING OF AGE OF A COUNTER-CULTURAL ENTERPRISE Manfred Kets de Vries Case Writer: Robert Dick This case follows the development of Richard Branson from his early days as the editor of his own student magazine to his current status as founder and chairman of the Virgin Group. It focuses on the iconoclastic (yet extremely effective) management style and business philosophy of a man who has become one of the world's best-known entrepreneurs. The broad overview of Richard Branson and Virgin given in the case itself is complemented by a personal interview with Richard Branson and a video interview with Branson and his two managing directors, Robert Devereux and Trevor Abbott. Pedagogical Objectives: Virgin is of particular interest as a case study because of the questions raised about leadership in a creative organization. One of the major issues is that of entrepreneurship and the case allows for full discussion of this topic. However, the company also offers insight into a number of other management topics. Among these are the transition from entrepreneurial to more systematic management; the formulation of strategy for, and the management of, rapid growth, particularly expansion into unrelated areas and expansion overseas; a corporate culture centered around youth and informality; a preference for promotion of "insiders who fit" rather than outside candidates; the personal characteristics of an entrepreneur; the management of creativity and the transition from a private enterprise to a public company and back again. Copyright: 1995 INSEAD, France Also available: Case Supplement, Interview Teaching Note Videos (long & short) Video Transcript (long & short) Other languages: French BRITISH PETROLEUM: TRANSFORMATIONAL LEADERSHIP IN A TRANSNATIONAL ORGANIZATION Manfred Kets de Vries and Elizabeth Florent-Treacy The case looks at the difference in Robert Horton’s and David Simon’s leadership styles in the context of the upheaval of the oil industry in the past 25 years, and the roles the two leaders played in the transformation process at BP. It examines the reasons why, although the two men’s goals were nearly identical, their individual style determined failure for one, and success for the other. The case addresses issues of transformation and national and corporate cultures in a transnational organization. Pedagogical Objectives: • Addressing the concepts of triggers of change and barriers to change. • Exploring the dynamics of the individual and organizational transformation processes. • Analyzing the role of the CEO and Chairman in the transformation process. • Emphasizing the importance of a “global mind-set” and cultural relativity in transnational organizations. • Discussing the ways in which corporate culture is shaped and changed, and the corporate culture and values of “vanguard” companies like BP. Copyright: 1997 INSEAD, France Also available: Teaching Note Video Slide set (transparencies) Written interview Video transcript Entrepreneurship & family enterprise 94 BUILDING BUSINESSES AT BRAINSPARK PLC. Christoph Zott Case Writer: Iwona Bancerek In June 1999, Steward Dodd, Noah Freedman, and Richard Davidson established Brainspark, a British business incubator designed to support and grow fledgling new businesses. The Brainspark business model was built on a blend of investing mentoring, teamwork, and the creation of an environment that would facilitate and enable knowledge and information sharing among companies. By the first half of 2001, however, Brainspark had suffered a serious downturn in its market value and its cash reserves were dwindling. The case focuses on the debate among Brainspark’s management team about the appropriate business model and/or exit strategy for Brainspark. Pedagogical Objectives: the Brainspark case offers students the opportunity to analyze various exit options for a publicly quoted, yet highly entrepreneurial firm that has run into problems. The possible exit options include 1) continuation of operations with a modified business and revenue model, 2) a merger, 3) privatization, and 4) liquidation. The case also allows students to analyze the value proposition of business incubators. By considering the experience of a particular incubator (Brainspark), students learn about the resource needs of entrepreneurial ventures and discuss how they may be best served. Finally, the case lends itself well to a discussion of the viability of the business incubator concept. Copyright: 2002 INSEAD, France Also available: Teaching Note THE BULL MARKET INTERNATIONAL PRINTERS, MEXICO (A, B & C) Manfred Kets de Vries Case Writer: Elizabeth Florent This case looks at a situation in which a German managing director, newly assigned to his organization's Mexican subsidiary, confronts a dilemma in which cross-cultural understanding plays an important part. The German's preparation and training for the move are touched on, as are the stereotypes of German business practices vs. Mexican business practices. The potential for cross-cultural conflict is examined in the context of the successful negotiation of an important contract between the German managing director and a major Mexican client. Pedagogical Objectives: this case will be useful in organizational behavior courses in which the question of cross-cultural management is raised. It addresses in particular the issues of preparation for expatriate posts, and the importance of cultural sensitivity. Copyright: 1994 INSEAD, France Also available: Teaching Note CARL ZEISS JENA: MANAGING CATASTROPHE (A & B) Manfred Kets de Vries Case Writer: Marc Cannizzo Examines numerous issues surrounding the transition of this famous East German optics company from November 1989 (when the communist system began to break down in Central/Eastern Europe) until the end of 1991, after West German executives had supervised the company's downsizing from 27,000 staff to 10,000. Pedagogical Objectives: to prepare managers for undertaking assignments in alien environments; to improve understanding of the role of corporate culture in an organisation, particularly when that culture is strong and when the environment in which it operates undergoes dramatic change in a short period of time. Copyright: 1992 INSEAD, France Also available: Teaching Note Entrepreneurship & family enterprise 95 NEW CARLOS GHOSN: LEADERS WITHOUT BORDERS Manfred Kets de Vries and Elizabeth Florent-Treacy Case Writers: Mark Mildon and Antoine Ting In late 2004, after five years at the head of Nissan in Japan, Carlos Ghosn was hotter than a new Nissan Z350, a 1970s icon recreated by Nissan in 2000. But the French-educated, Lebanese-Brazilian Ghosn was about to shift into even higher gear, to become CEO of both Nissan and its French partner, Renault. Renowned for his transparency, listening and analytical skills, and for having the “subtlety of a chainsaw”, as of 2005 he would lead an automotive alliance operating on three continents, with all the production issues, personnel challenges and currency fluctuations contingent to the job. In his new position, Ghosn would have to orchestrate the complicated alliance between Nissan and Renault, develop synergies within the partnership and, at the same time, foster competition between the two brands in some markets. Would Carlos Ghosn’s transformational leadership style be enough to take Renault from admirable to awe-inspiring at a global level? Pedagogical Objectives: this case enables students to: -explore successful corporate transformation. -understand how early formative life and work experiences contribute to global leadership development. -explore cross-cultural issues. -analyse Carlos Ghosn’s key leadership talents. -discuss the future of Renault/Nissan under Ghosn’s leadership. Copyright: 2005 INSEAD, France CHOCOLATE CEO Stanislav Shekshnia Case Writer: Pavel Pavlovsky The case study evolves around business career of Ruben Vardanian, the founder, majority owner and CEO of Russian chocolate making and selling company. It follows the evolution of Korkunov early business career and leadership style and concentrates on his decision to enter a new business of making and selling chocolates. It describes leadership challenges, which Korkunov faced during five years of the company existence, such as creating business model, securing financing, choosing technology, developing brand and building organization and his leadership style. Pedagogical Objectives: Students are expected to get insight into the nature of entrepreneurial leadership and factors contributing to the development of a particular leadership style and organizational model. Problems of growth of entrepreneurial organizations operating in fast growing market environment will be also examined. Students will enrich their understanding of the Russian business environment and the style of new Russian entrepreneurs. Copyright: 2004 INSEAD, France NEW THE CHUMAK FOOD COMPANY Stanislav Shekshnia Case Writer: Fredrik Juto Making ketchup in the Ukraine may sound like an unusual business proposition, but two young Swedish entrepreneurs who set out in the mid 1990’s managed to build a large and growing food manufacturing operation doing just that. The Chumak group of companies provides a strikingly clear illustration of several issues associated with building business in a foreign culture, among them: the challenge of leadership in an Entrepreneurship & family enterprise 96 alien culture, the need to develop the industrial network around the company, the new challenges as the company and the market develops over time. Chumak is a startup that breaks away from the almost formulaic model of new business creation many MBAs are familiar with by being decidedly ‘old economy’, and clearly demonstrates what can be achieved through a credible, long-term personal commitment of the founders. Pedagogical objectives: The aim of the case is to make students aware of some of the challenges faced in developing a new business in a foreign culture, including • Learning to cope with and be effective in the local business environment • Cultivating a network of suppliers, distributors and other partners in undeveloped economies • Developing relationships with strong backers in the home country • Coping with the increasing demands as an industry matures Further, the Chumak case would illustrate to MBA students that there are alternatives to the conventional high-tech startup model, and a tradeoff to keeping all career options open, as MBAs typically do. The founders worked for several years before they got their big break and financing for their business. The company built factories in an 'unsexy' industry in an unattractive location, and the founders committed to staying in that location for an extended, indefinite amount of time. Copyright: 2005 INSEAD, France NEW CUMBERLAND ENTERTAINMENT (A): Expanding with Private Equity? (B): The Revised Offer (C): Excess Cash (D): Exiting the Deal Christoph Zott Case Writer: Abigail Leland Cumberland Entertainment, a niche music producer, was looking for capital to finance its planned expansion. CEO, Tom Smith, entered into negotiations with private equity firms, and struck an agreement that turned out to be incomplete. As a result, serious problems arose between financial investors and management. The case series describes how the parties dealt with these problems as their relationship evolved. Pedagogical Objectives: the case aims: 1. To highlight and analyze the dynamic nature of entrepreneur – venture capitalist relationships, and to address some of the key issues that might arise over time (e.g., how to share risk, when and how to exit). 2. To compare and analyze offers from different private equity firms, as well as different offers from the same firm made in the course of negotiations. Copyright: 2004 INSEAD, France Also available: Teaching Note DATRONICS (A, B & C) Manfred Kets de Vries Case Writer: Katharina Balasz The three-part case describes the “do’s” and “don’ts” of a downsizing process in a high-tech company. It contains numerous examples of the different issues that arise during a downsizing effort and makes suggestions about how and how not to deal with these issues. Entrepreneurship & family enterprise 97 Pedagogical Objectives: the teaching objectives of this case consist of pointing out the dangers of a poorly planned corporate downsizing effort and to provide suggestions about how to proceed in a more constructive way. Copyright: 1996 INSEAD, France Also available: Teaching Note THE FROG AND ROSBIF (A, B & C): A PUB AND MICROBREWERY IN CENTRAL PARIS Daniel Muzyka Case Writer: Patrick Siegler-Lathrop The case describes the process undertaken by two MBAs to start an innovative brew-pub in Paris. Pedagogical Objectives: to study the start-up process in companies and the nature of the business formation process from the standpoint of the entrepreneurs. Copyright: 1994 INSEAD, France FROGPUBS (A, B, C, D, E & F) Randel Carlock and Elizabeth Florent-Treacy It is now recognized that new venture start-ups can offer a career choice that is a little sexier, a little wilder, and in the long run as equally lucrative as the consulting or banking jobs that typically dominate post-MBA career paths. The FrogPubs case describes two entrepreneurial “bad boys” who 10 years ago chose a different path, forming a partnership to develop their own, traditional business start-up. In the case, the two entrepreneurs discuss the thrills and chills involved in writing and implementing their business plan, as well as the lessons learned while building their successful business brick by brick. The case study is organized in a way that allows discussion based on natural focus points – ranging from potential bankruptcy in the early days, to later issues of personnel management, joint venture partnership and protecting and exploiting a unique but maturing business concept. Pedagogical Objectives: this case focuses on the challenges that entrepreneurs face as they attempt to exploit growth opportunities with a new venture. Each section of the case looks at the issues that entrepreneurs face as they launch and grow their firm. As the case evolves, the authors explore different decisions confronting the entrepreneurs related to growth, organization development and new strategic opportunities. As the case concludes, FrogPubs has multiple locations and it is time for the entrepreneurs to consider and refine their personal vision for the business and their own career expectations. Copyright: 2001 INSEAD, France Also available: Teaching Note, CD-Rom FRONTSTEP IN RUSSIA (A & B) Manfred Kets de Vries Case Writers: Konstantin Korotov and Elizabeth Florent-Treacy It is commonly held that entrepreneurship in Russia is close to impossible without government or mafia connections. This case study argues that, on the contrary, “garage-type” entrepreneurship is possible in Russia. For the Russians at Frontstep, the company in this case study, however, there were no how-to manuals to turn to. When the employees started making demands for Western-level salaries and benefits, matters came to a head. The problem was solved as the founders developed a hybrid organization, with Western incentives and structures, and Russian corporate culture. Entrepreneurship & family enterprise 98 Pedagogical Objectives: the objective of this case is to analyze: 1. Dynamics of growth of entrepreneurial organizations in Russia. • Evolution of complexity of managerial challenges faced by entrepreneurs. • Naïve nature of relationships with foreign partners. • Staffing approaches and limitations faced in entrepreneurial organizations. • Identity issues (Russian vs. multinational company). 2. Managing new generations of professionals • New labor force in Russia (and, by extension, other Eastern European organizations). • Career aspirations of young professionals. • Career development and growth challenges. • Coaching and counseling issues. • Owner-manager development in areas beyond functional expertise. Copyright: 2002 INSEAD, France Also available: Teaching Note HAPPYFLOORS (A, B, C & D) Stanislav Shekshnia Two young Polish entrepreneurs built a profitable and fast growing business, which has reached the stage where the traditional management model of making all-important decisions together in an informal way is no longer adequate. The founders are struggling with the challenge of creating a new management system, adjusting their personal roles in the business and bringing in professional managers. Pedagogical Objectives: the objective of this case is to foster the discussion of changing system of corporate governance as the entrepreneurial venture is growing. It could be used as an in-class individual exercise where students have to choose some of the alternatives for changing the role of the company founders in its management, which are presented in the case or as a basis for a group discussion. Copyright: 2004 INSEAD, France THE HOUSE THAT BRANSON BUILT: VIRGIN’S ENTRY INTO THE NEW MILLENNIUM Manfred Kets de Vries Case Writer: Robert Dick The case study The House that Branson Built provides an opportunity to explore the person-organisation interface. From a developmental point of view, it examines the making of an entrepreneur. The case also allows for an exploration of the vicissitudes of leadership. It looks at effective leadership in the context of a high performance organisation, and stimulates discussion about planning for the future of an entrepreneurial organisation, in particular the use of a brand to enter new, unrelated markets. Pedagogical Objectives: the case focuses on leadership in a creative, entrepreneurial organisation. Virgin has made many brilliant moves and weathered spectacular setbacks. The case offers insight into these and other management issues that have come to the fore in its history. Among them are the transition from entrepreneurial to more conventional, systematic management; the formulation of strategy for, and the management of, rapid growth around the stretching of a brand, particularly expansion into unrelated areas and expansion overseas; the management of strategic alliances; the development of a corporate culture centred around youth and informality; a preference for promotion of “insiders who fit” rather than outside candidates; the management of creativity; and the transition from a private enterprise to a public company and back again. Entrepreneurship & family enterprise 99 The case also examines the basic issue of the future of the Virgin Group, with or without Richard Branson. Can synergy, which is so dependent on the integrative capacities of the key players, be retained between the various parts? As the company moves into new ventures far removed from the original core businesses, what will the impact be on the Virgin brand name? Most importantly, what would happen to the Virgin Group if its charismatic chairman were no longer associated with the company? Copyright: 2000 INSEAD, France Also available: Teaching Note THE HP-COMPAQ MERGER: A BATTLE FOR THE HEART AND SOUL OF A COMPANY Randel Carlock Case Writer: Elizabeth Florent-Treacy At first glance, HP doesn’t seem to be a family firm, but when push comes to shove—as it did during the controversial HP-Compaq merger—family matters. The case introduces the strategy that drove the merger, analyses Carly Fiorina’s background and leadership style, and discusses the corporate culture of HP. Chronologically, the case begins with the announcement of the merger and ends with the shareholders’ vote. This case study illustrates the importance of corporate governance, parallel planning, and a shared vision in organizations in which the founding families still have a large financial and emotional stake. Pedagogical Objectives: • Defining the role of board: strategic development and decision-making. • Recognizing the importance of family legacy and shareholders’ influence. • Exploring the challenge of leadership: regenerating a highly regarded corporation. • Understanding the significance of corporate culture in organizational transitions. Copyright: 2003 INSEAD, France – First publication © 2002 INSEAD. Also available: Teaching Note Video ICE AND FLAME: BUILDING A NYSE COMPANY IN WILD RUSSIA Manfred Kets de Vries Case Writer: Stasnislav Shekshnia VimpelCom is a Russian cellular operator that grew in less than 10 years (1992-2002) from a hypothetical concept to small family-like company, to a $2 billion NYSE-quoted corporation with 5.5 million subscribers on its wireless networks. This case study describes the perfect partnership between the two founders. One was “the professor,” Dr. Dimitry Zimin, formerly a department head at the Applied Radio Research Institute, and a cog in the Soviet machine. The other was Augie Fabela II, a very young, yet experienced American entrepreneur. The case looks at their complementary leadership styles. It also tells the story of how they managed to capture a majority share of the market in Moscow and bring their company to the New York Stock Exchange. Pedagogical Objectives: this case can be used to explore the following themes: • Formation of business alliances with Russian partners. • Strengths and weaknesses of Russian business leaders. • Historical context and current climate for entrepreneurship in Russia. Copyright: 2003 INSEAD, France Also available: Teaching Note Entrepreneurship & family enterprise 100 JOHAN TOBLER (A & B) Manfred Kets de Vries The cases describe the life history of an executive who in mid-life is struggling to strike a balance between his career and his personal life. The stress of his job eventually leads to his premature death. Pedagogical Objectives: to get a better understanding of the inner world of a senior executive. The case offers insights about workaholism, stress and the pressures on leadership. Copyright: 1992 INSEAD, France KING LEAR REVISITED Manfred Kets de Vries Case Writer: Katharina Balazs This case study highlights the different aspects of succession. It describes the issues that affect the departing CEO. It considers the organization, and the background of internal and external candidates for succession. It also treats the issue of non-executive board-members and their preferences. Pedagogical Objectives: the aim of this case study is to: • Help participants gain insight into the dynamics of CEO succession. • Create an understanding of the barriers of CEO succession and the underlying issues that influence the process. • Prompt participants to make a thoughtful analysis of the leadership competencies needed for a successful transition and highlight issues of corporate governance and the role board members play. Copyright: 2004 INSEAD, France Also available: Teaching Note LARRY ELLISON: A SAMURAI WARRIOR IN SILICON VALLEY Manfred Kets de Vries Case Writer: Elizabeth Florent-Treacy Larry Ellison – fact or fiction? Although he is a tremendously successful entrepreneur and founder of Oracle, it is sometimes hard to decipher the rationale behind his decisions and behaviour. This case study explores Ellison’s “inner theatre,” the life experiences that shaped his character. It is a study of the strength and weaknesses of a larger-than-life leader, giving insights into the dark side of entrepreneurship, succession in entrepreneurial organizations, and the role of top executives in this kind of organization. Pedagogical Objectives: students will have the opportunity to explore: • The life experiences and character development of a powerful entrepreneur, and how this affects his organization. • Corporate culture in an entrepreneurial firm. • Leadership succession – after Larry, le deluge? • Effective executive role constellations – balancing the founder’s strengths and weaknesses. • Narcissistic leadership – an advantage or a handicap? Copyright: 2002 INSEAD, France Entrepreneurship & family enterprise 101 A LICENCE TO PRINT MONEY (A & B) David Molian and Michael Ullmann This case is a study of the formation of an entrepreneurial personality. It shows how entrepreneurs identify and shape opportunity, and examines the potential conflict between informal and formal managerial structures. Pedagogical Objectives: to lay out the entrepreneurial “career path”; to contrast the entrepreneurial vs. administrative approaches in business; and to expose the dilemmas facing the entrepreneur in growing a business. Copyright: 1988 INSEAD, France LOUIS ROBERT (A): IN SEARCH OF A DEAL Benoit Leleux and Daniel Muzyka Case Writer: Benoit Leleux In mid 1993, Louis Robert, a recent INSEAD graduate with significant consulting experience but limited financial resources, begins the search for a company to acquire. The case describes the search process and focuses on one opportunity, the Carter-Presser Company. Pedagogical Objectives: the case is designed to expose students to the problems of deal search, and the opportunity-recognition phases of the entrepreneurial process. Copyright: 1995 INSEAD, France Also available: Teaching Note LOUIS ROBERT (B): THE DEAL Benoit Leleux and Daniel Muzyka Case Writer: Benoit Leleux Louis Robert, a recent MBA graduate from INSEAD with extensive consulting experience but limited financial resources, is analyzing the leveraged acquisition of a chain of furniture stores in Nothern France. Pedagogical Objectives: focuses on deal analysis and structuring to take full advantage of taxes. Also highlights negotiation strategies. Copyright: 1995 INSEAD, France Also available: Teaching Note Other languages: Spanish LOVE AND WORK: FINDING ONE’S PLACE IN THE FAMILY FIRM Randel Carlock and Elizabeth Florent-Treacy The critical issues facing young adults from family businesses involve balancing responsibility to family with their own career aspirations. The Love and Work case helps students recognize that there are many ways⎯other than full time employment⎯for participating in their family business. Rena, a young MBA student from a business family, discusses the deeply emotional issues she faced as she was deciding whether to return to the family firm or seek her own career outside. The case study is structured to allow students to study her conflict and dilemmas, and project their own family business career issues. Entrepreneurship & family enterprise 102 The final case segment is designed to help students recognize the many forms of important participation that a family business can create, including governance, ownership, and advising. Students’ understanding of Rena’s emotional struggle and resolution is enhanced by the accompanying 15 minute video interview. Pedagogical Objectives: the Love and Work case has been taught many times with MBA students and executives. It is popular because Rena’s personal story resonates with the issues they themselves are facing. These unique family career issues include: • What are my responsibilities to my family? • Should I explore a new career option outside of the family business, and if so, for how long? • What other options for participation in the family business exist – (advisor, board member, owner)? Copyright: 2002 INSEAD, France Also available: Video NEW MAXXIUM (A & B) Ha Hoang Case Writer: Rumiana Lulova Maxxium (A) covers the creation and growth of the wine and spirits distribution joint venture formed in 1999 by three different producers: Highland Distillers of Scotland, Jim Beam Brands of the USA, and Remy Cointreau of France. It highlights tools and principles that the top management team developed to guide its relationship with its shareholders, as well as with 3rd party brands that use their distribution network. Maxxium (B) details the addition of the 4th partner, and new partnership models that it has adopted. The case raises issues around whether and how the company should grow. Pedagogical Objectives: the cases are designed to illustrate effective partnership management within a joint venture. The case presents tools and principles that the top management team used in creating and running the new organization. It also explores more flexible partnership models employed by Maxxium in its geographical and product expansion. Copyright: 2004 INSEAD, France Also available: Teaching Note MIKHAIL KHODORKOVSKY AND YUKOS Manfred Kets de Vries Case Writers: Konstantin Korotov, Stanislav Shekshnia and Elizabeth Florent-Treacy In the Fall of 2003, Mikhail Khodorkovsky, Russia’s richest man and the CEO of Yukos, Russia’s secondlargest oil producer with a market capitalization of US$26 billion, was arrested and jailed on charges of fraud. Several days later he resigned as CEO of Yukos. This case study tells the story of the rise and fall of a young man whom some would call a brilliant entrepreneur, and others a scoundrel. The case includes an interview with Khodorkovsky while still CEO and offers a rare opportunity to examine the leadership philosophy of one of Russia’s top business leaders. Pedagogical Objectives: this case provides opportunities to explore entrepreneurship, Russian business leadership, and Russian organizational structures. It also illustrates the evolution of business in Russia over the past 10 years. Copyright: 2003 INSEAD, France Entrepreneurship & family enterprise 103 MOTIVACTION (A & B) David Molian and Michael Ullmann At the beginning of November 1985, Adam Kingdon and his partner were faced with the prospect of informing the shareholders and creditors of Motivaction that their business had failed. Only 12 months earlier when he had bought into the business, it had seemed that it just couldn't fail. So how could things have altered so drastically in such a short space of time? Pedagogical Objectives: to explore the challenges in starting an entrepreneurial opportunity by buying into a business. Copyright: 1996 INSEAD, France NEW MOTOROLA: BUILDING AND PARTICIPATING IN PARTNERSHIP ECOSYSTEMS Ha Hoang Case Writer: Abigail Leland The case covers the use of partnerships by a business development group of Motorola to gain quick access to new, complementary technologies, and highlights how Motorola manages collaborations with smaller, entrepreneurial firms. The case ends with questions about how Motorola will jockey for position in an ecosystem formed by its customer, BT., which regrouped firms such as Vodafone, a mobile operator, and Ericsson and Alcatel, competitors in some of Motorola’s markets. Pedagogical Objectives: this case illustrates the role of business development in creating and managing partnership networks. It also explores: 1) the tension between value creation and value capture in partnership ecosystems, and 2) how entrepreneurial companies cooperate with large established companies. Copyright: 2004 INSEAD, France NEW NASH ENGINEERING: 100 YEARS OF EVOLVING FAMILY COMMITMENT (A & B) Randel Carlock Case Writer: Elizabeth Florent-Treacy As a multi-generational family business with a 100-year history in industrial engineering, the Nash Engineering Company had turned many challenges into opportunities. But in the late 1990s, the market for their products collapsed. The family and executive managers were faced with several options. Should they try to continue as a stand-alone organization? Should they pursue a strategic acquisition? Should the family sell Nash Engineering? There were many factors to consider, among them individual shareholders’ need for dividends and liquidity, and the family’s sense of pride in their heritage. What was the best solution for the business and the family? Pedagogical Objectives: • Exploring the importance of family involvement in decisions that affect the business • Exploring options for the next generation: stand-alone; merge or acquire; or sell? Copyright: 2004 INSEAD, France Entrepreneurship & family enterprise 104 NEW AGE CONSULTING (NAC): “CRONUS” IN ORGANIZATIONAL LIFE Manfred Kets de Vries Case Writers: Nesreen Srouji and Elizabeth Florent The objective of this case is to provide a cautionary tale. The narcissistic entrepreneur/founder of the company was initially successful in building his organization during the Internet dotcom bubble as he was able to motivate and inspire his young employees. As they began to realize that they were being exploited, he lost control of them. Most of them left the company, ironically leaving him without the knowledge resources to recreate the organization in the post dotcom economy. Themes addressed in the case are: entrepreneurship; narcissistic leadership; corporate culture, succession, leadership development and the perils of growing out of the start-up stage. Pedagogical Objectives: a clinical perspective is used in analyzing the personality and behavior of the leader of this company. Concepts of developmental psychology, family systems theory, cognitive theory, dynamic psychiatry, psychotherapy and psychoanalysis are applied to better understand his behavior and actions. Significant themes that highlight psychological dimensions relevant to his leadership style are explored. Observations are made about the key elements of effective leadership, and what contributes to leadership derailment. Lessons learned from the case concern leadership development and succession. Copyright: 2003 INSEAD, France NIRAJ: A SUCCESSOR’S DILEMMA IN AN INDIAN FAMILY FIRM Ludo Van der Heyden and Christine Blondel The case describes the dilemma faced by a young MBA participant, Niraj, regarding the decision to join his family’s business in India. Niraj has already spent several years abroad, and feels some pressure to join the business while uncertain of his own desires. The case also describes the foundation and evolution of business and family relationships. Pedagogical Objectives: the objective of the case is to foster discussion on the topic of joining the family firm. It is of particular relevance for classes with potential successors, e.g. MBA classes on family firms. The case also demonstrates the need for increased family communication. Copyright: 2003 INSEAD, France PERCY BARNEVIK AND ABB Manfred Kets de Vries Case Writer: Raafat Morcos ABB, a $30 billion giant whose portfolio covers global markets for electric power generation and transmission equipment, high speed trains, automation and robotics, and environmental control systems, is the product of the world's largest cross-border merger to date. ABB has been described as an organizational prototype for the post-industrial age. This case traces the cultural, developmental and career history of Percy Barnevik, CEO of ABB, and looks at his way of managing this sprawling engineering group. In addition to tracing the person-organization interface illustrating how a leader's personality and background determine leadership style and affect organizational culture, strategy and structure the case addresses a number of other issues: 1. The process of corporate transformation. 2. The architecture of the corporation of the future. 3. The making of global executives. 4. Various strategic issues. 5. Management succession. Entrepreneurship & family enterprise 105 Pedagogical Objectives: the case set offers a great opportunity to explore the kind of leadership practices necessary to run a corporation effectively beyond the year 2000. It looks at both the leader's charismatic and instrumental roles. Barnevik has gone further than most company presidents in creating a new kind of organization that combines global scale and world-class technology with deep roots in the local community. He has given new meaning to the concept of being local worldwide. Given his effectiveness as an organizational architect, Barnevik is an ideal point of focus in the study of both organization and leadership. The personal background provided in the case also allows an exploration of a number of psychodynamic issues which are part and parcel of life organizations. The case set is available in the form of a teacher's pack for first-time users. Copyright: 1994 INSEAD, France Also available: Case commentaries Interview Teaching Note Video &Video Interview Other languages: French PETER DUNHAM (A & B) Manfred Kets de Vries From the moment he was hired by a multinational firm after earning his MBA, Peter Dunham was on the fast track. He soon found himself promoted to the post of director of new business development. Although Dunham's superiors were satisfied with his performance, resentment was building among subordinates and colleagues who were critical of his way of dealing with people: he had become rather exploitative, claiming others' ideas for his own, and was notorious for his angry outbursts. Dunham decided to ignore his critics and focus on rising further in the company. One day, however, matters came to a head. Dunham arrived at work to find a note telling him that the CEO wanted to see him on an urgent matter. Dunham expected to be told that he had been selected for a seat on the board of directors, but as it turned out, the CEO had something quite different (and rather negative) to discuss with him. Pedagogical Objectives: this case focuses on the issue of the roots and results of irrational behaviour. Dunham is a fictional example of a young manager whose need to excel is based in part on feelings of unworthiness and insecurity left over from childhood. Students are asked to think about what made Dunham behave the way he did, and how the CEO should handle this situation. Copyright: 1995 INSEAD, France REFAAT EL-SAYED: THE RISE AND FALL OF FERMENTA Manfred Kets de Vries Case Writer: Jan Lindgren The rags-to-riches-to-rags story of Refaat El-Sayed, an Egyptian immigrant to Sweden who turned a small penicillin factory, Fermenta, into a multi-million dollar publicly-held company. The case ends with Refaat ElSayed facing financial ruin and lawsuits. Pedagogical Objectives: to illustrate the vicissitudes of the entrepreneurial personality. It offers the opportunity to highlight some of the personality characteristics which may contribute to the failure of an enterprise. It also gives insight into the 'imposter syndrome'. Copyright: 1993 INSEAD, France Entrepreneurship & family enterprise 106 NEW THE RESORT IN PUEBLO VALLEY (A & B) Christine Blondel “The Resort in Pueblo Valley” case describes the story of three generations of a business family, who owned and managed a beautiful resort. The family story includes traumatic events like early deaths, suicide, and remarriages – and lack of communication on succession issues. Succession took place in abrupt ways, through the deaths of owner-managers, or the threat to sell by their widows. Case A describes the history of the family and the business until 1996, when the second generation widow confronted the children with her determination to sell the business. Case B (to be used after case discussion) explains what happened afterwards. Pedagogical Objectives: the case was written primarily to illustrate the concept of Fair Process in key family business circumstances, i.e. ownership succession and leadership succession. While the mother wanted to sell, the children called for a meeting and family discussion before taking the decision. They ultimately took the decision to sell, but, thanks to a better process, obtained a much higher price, and preserved family relationships. The case also illustrates family dynamics, relationships between step-children and step-mother, repetition from first to second generation, and the sale of the family business. Copyright: 2004 INSEAD, France Also available: Case commentaries RHONE-POULENC SECTOR AGRO: SIMPLIFY, DECENTRALIZE, MANAGE Daniel Muzyka Case Writer: Mary Ackenhusen When Alain Godard, Director General of Rhone-Poulenc’s agricultural chemical business, saw the 1993 annual profit projection reduced halfway through the year to about 30% of the original forecast, he concluded that he must act quickly to address the problems underlying the sector’s continuing poor performance. Although the Sector Agro presented itself as a multinational, it could be argued that it was a very centralized French company maintaining operations on a world-wide basis. Employees could not respond quickly to customers or act entrepreneurially due to the controls imposed by headquarters. The company was suffocating from too much bureaucratic management and Godard felt that this was the core issue to attack. His response was a comprehensive transformation program which he personally designed and initiated, meaningfully labelled ‘Simplify, Decentralize, Manage’ (SDM). Copyright: 1996 INSEAD-CEDEP, France ROBINSON INSTRUMENTS David Molian and Michael Ullmann This case is the sequel to the Motivaction case by the same authors. It describes the turnaround of a mature business by an INSEAD alumnus and the buy-out of the business from the parent company. Pedagogical Objectives: To show that failure in one venture does not preclude subsequent success. To demonstrate the type of opportunity afforded by acquisition. To encourage students to identify what makes a ‘deal’ from the perspectives of the entrepreneur and the investor. Copyright: 1996 INSEAD, France Entrepreneurship & family enterprise 107 ROUSTAM TARIKO: RUSSIAN ENTREPRENEUR Manfred Kets de Vries and Elizabeth Florent-Treacy This case looks at entrepreneurial leadership and business development on several levels. It addresses issues that typically arise in new ventures and “bricks to clicks” transformation, including: evolution from the messy start-up stage to a more professional organization; entrepreneurship and internal incubators; strategies for continued growth and diversification; and brand management and marketing. It also looks closely at entrepreneurship in the very complex political and economic environment in Russia, and analyses the way past history and culture influence the course of an entrepreneurial organization’s development – insights which can be applied to organizations in other Eastern European countries. Finally, the case is a chronicle of a founder-entrepreneur’s hopes, fears and impressions, an intimate look at the birth and growth of an entrepreneurial organization. Pedagogical Objectives: this case has several main themes. It serves as a basis for discussion of many of the challenges that typically face young entrepreneurs. These insights will help to reinforce students’ understanding of such global issues as: • The importance of the leader’s charismatic and architectural roles – defining and communicating a compelling and unifying vision and building reward and control processes that are aligned to the organization’s vision. • Creating an intra-preneurial culture and in-house incubators. • The transformation from entrepreneurial to more “systematic” management. • Strategies for diversification and growth; capturing synergies between divisions. • Personal issues: the ways in which the founder’s character affects the organization; the importance of life balance; the development of a set of core business values that complement strict control systems. The case raises these points in a specific context: the chaotic environment in post-Soviet Russia. There are unique difficulties faced by entrepreneurs in Russia, ranging from lack of confidence by foreign investors, to dealing with the mafia and government officials. Students are challenged to reach their own conclusions about Roustam Tariko and his business practices, based on the objective and subjective information they are given – just as they would do in a real life situation working for him or with him as a consultant or potential investor. Copyright: 2000 INSEAD, France Also available: Teaching Note RUBEN VARDANIAN AT THE HELM OF TROIKA DIALOG Manfred Kets de Vries Case Writer: Stanislav Shekshnia The case study evolves around the business career of Ruben Vardanian, CEO of the Russian investment bank Troika Dialog. It follows the evolution of the business and Vardanian’s leadership style over a 10-year period focusing on the turning points and decisions the CEO had to make with regard to his vision for the business, its business model, organizational culture and human resource management systems. Pedagogical Objectives: students are expected to gain insight into the nature of leadership and factors contributing to the development of a particular leadership style. The problem of the growth of entrepreneurial organizations operating in a changing environment is examined through the prism of people management. Students are expected to enrich their understanding of the Russian business environment and the style of new Russian entrepreneurs. Copyright: 2003 INSEAD, France Other languages: Russian Entrepreneurship & family enterprise 108 SOLODVD.COM – AN ONLINE RETAILER OF DVD HARDWARE AND SOFTWARE IN SPAIN Patrick Turner Case Writer: Ignacio de la Torre The case describes the launch and early experience of an Internet retailing business. The company quickly runs into problems and this sparks a series of personality clashes among the managers leading to a crisis that threatens to force the company to close. Pedagogical Objectives: the main objective is to explore the formation of teams in new ventures, and how individual managers interact with each other, especially when the company runs into difficulties. The main messages are that team formation should not be improvised and that there should always be clearly defined responsibilities and clear leadership. Copyright: 2002 INSEAD, France STEINBERG INC. (A, B & C) Manfred Kets de Vries Case Writer: Brian Baxter The cases deal with the vicissitudes of what was once one of the most important family firms in Canada. It describes the company's establishment, growth and decline, paying particular attention to the family dynamics. The case series illustrates the extent to which sibling rivalry contributed to the decline of the company. Pedagogical Objectives: to help students gain a better understanding of the special problems associated with family firms. The case series (combined with the film 'After Sam', made by the Canadian National Filmboard) highlights, in particular, the psychodynamics of succession. Copyright: 1992 INSEAD, France Also available: Teaching Note SUMITOMO 3M (A, B & B1) Charlotte Butler and Daniel Muzyka In describing the evolution of a US-Japanese joint venture between 1960-95, the cases illustrate the difficulties associated with the transfer of a strong culture and entrepreneurial practices from one country to another. They show how the partners resolve differences in management, organisation, culture, marketing, production, etc. in order to build a successful business in Japan. Pedagogical Objectives: the teaching objectives of the cases are multiple, which is why these cases were chosen for development: To illustrate how a very successful and long-standing joint venture can be formed and how it can be sustained, even in the face of open competition with one of the parent companies. To involve conducting business in Japan. The expansion of an “entrepreneurial corporation” and how it has maintained a different style of corporate entrepreneurship in a new culture. Copyright: 1997 INSEAD-EAC, France Entrepreneurship & family enterprise 109 THROUGH THE LOOKING GLASS: THE STRATEC COLLUSION (A, B & C) Manfred Kets de Vries This case describes a knotty problem in consulting. The intervention explores the role of social defences and unconscious processes in organizations. It illustrates the use of the clinical approach to organizational intervention. Pedagogical Objectives: the case highlights the applicability of the clinical approach to organizational intervention and change. In this context it deals with issues such as leadership, corporate culture, and organizational transformation and change. Copyright: 2003 INSEAD, France NEW TROUBLE IN TUSCANY: EXPLORING FAMILY BUSINESS RELATIONSHIPS Randel Carlock and Ludo Van Der Heyden Trouble begins in this Tuscany family business as repercussions of traumas suffered by first and second generation family members affect the third generation. The Baldinis had always worked together in their olive groves to produce the finest quality olive oil, but now, old wounds of which younger family members were barely aware, threatened the future of the business. Using genograms as a tool to help understand family dynamics and relationships, this case challenges students to find solutions to a potential succession crisis in the Baldini family. Pedagogical Objectives: applying learning from genograms to family businesses, addressing issues of: -conflict avoidance -sibling or family competition -difficulties with change or loss -gender stereotypes -power concentration -succession in family business Copyright: 2005 INSEAD, France VALENTINE GODINOV AND RUSK Manfred Kets de Vries Case Writer: Nikolai Tess This case study examines the development of a Russian entrepreneur who worked within the chaotic postGorbachev environment in Russia to build a thriving Russian-American joint venture in import-export. The company has earned a steady profit, despite exorbitant taxes, fickle customs regulations, and the Russian Mafia. Pedagogical Objectives: this work examines a new area of entrepreneurship and will be of primary interest to students of Eastern European management styles, the entrepreneurial environment in the former USSR, and joint ventures with Russia. It could also be used in a cross-cultural elective. Copyright: 1994 INSEAD, France Entrepreneurship & family enterprise 110 VALTEX INC (A & B) Manfred Kets de Vries Case Writer: Henk Luykx This case centres on the conflict experienced between management and the owners of a medium-sized family firm, a situation aggravated by the divorce of the managing director from one of the major shareholders. Pedagogical Objectives: to give students a better understanding of the problems found in a family firm. It demonstrates the way two systems (family and business) can come into conflict. Copyright: 1992 INSEAD, France VISUAL SYSTEMS: COMPUTER SERVICES START-UP (A & B) Manfred Kets de Vries Case Writer: Fergal Byrne The cases describe the difficulties surrounding the start-up of a new venture in the art information business. It explores the interpersonal problems experienced by its founders. Pedagogical Objectives: to give students a better understanding of interpersonal dynamics in a crosscultural setting; to explore the vicissitudes of entrepreneurial teams. Copyright: 1993 INSEAD, France WAKING THE BEAR (A & B): “DANONIZING” THE BOLSHEVIK BISCUIT FACTORY Manfred Kets de Vries Case Writers: Elizabeth Florent and Pavel Pavlovsky Direct foreign investment in Russia was only 1% of GDP in 1999, and Russian industry was only half as productive in that year as in 1992. Not surprisingly, the prevailing opinion is that privatization has only aggravated Russia’s economic problems, and that foreign firms should avoid investing in Russia for the time being. This case study argues that, on the contrary, Russian companies can be successfully integrated within a multinational organization. It shows that an Anglo-Saxon-style revolutionary change process is not always the best way to proceed in Eastern European organizations; that the commonly accepted goals of rapid change, employee empowerment and a flatter hierarchy are not necessarily appropriate in these organizations in the short-term; and that even the definitions of trust, strategy and leadership can differ according to cultural context. The challenge lies in understanding the complexities − the lingering influence of the Soviet planned central economy, as well as the Russian culture and management systems. Pedagogical Objectives: the A case describes the process of transforming a Russian organization, still run as if it were part of the Soviet-era planned economy, to one with the leadership and mentality to operate as part of a global organization in an open market. There are three main themes in the case: • The complex cultural and economic context that has stifled privatized organizations in Russia. • Similarities of the Russian and French leadership style and corporate culture; and the choice of Jacques Ioffé, a completely bi-cultural leader, to take control of Bolshevik. • The transformation process at Bolshevik. The objective of the B case is to analyze these themes to illustrate: Culture-specific leadership • The charismatic and architectural leadership roles in the context of Russian organizations. • The definition and development of trust in Russian organizations. • The related cultural concepts of authoritarian leadership and risk-avoidance. Entrepreneurship & family enterprise 111 The different concept of time in these organizations • “La permanence du passé”. • Long-term strategic vision. Managing change processes within Russian (and by extension, other Eastern European organizations) • Importance of the “cultural fit” of managers’ styles and backgrounds. • Influence of the national culture on the corporate culture and change process dynamics. Copyright: INSEAD 2000, France Also available: Teaching Note WEBRASKA: EVOLVING WITH THE WIRELESS MARKET Christoph Zott Case Writers: Beatrix Biren and Iwona Bancerek The French firm Webraska was established in 1998 to offer a personal navigation solution as an alternative to maps and CD-ROM based car navigation tools. The turnkey service was accessed through Internetenabled mobile devices such as mobile phones and car terminals, and by different access modes such as SMS, WAP, and call centers. To encourage adoption of its service, Webraska modified its initial business model by introducing an application programming interface. This interface provided developers of application services with access to a library of navigation and mapping functions hosted on Webraska’s servers. Then an apparent shift in demand from customers away from purchasing turnkey services toward owning the technology platform begged the question whether the company should yet again modify its business model to become a software vendor. Pedagogical Objectives: The Webraska case allows students to analyze the co-evolution of the business and revenue models of a growing company in an emerging and rapidly changing market space. Particular consideration is given to the organizational implications of business model change. Specific pedagogical objectives are: • To understand the evolutionary and complementary nature of business and revenue models in a dynamic industry, and analyze the organizational implications of business model change. • To analyze how Webraska’s various business models have created value for the firm and for other business-model stakeholders, such as customers, end-users, suppliers, and partners. • To assess to what extent Webraska is an attractive opportunity for investment. • To provide insight into the wireless services market. Copyright: 2002 INSEAD, France. Revised Version 2003 INSEAD, France Also available: Teaching Note WEBRASKA MOBILE TECHNOLOGIES (A) & (B) Christoph Zott Case Writers: Case (A): Iwona BANCEREK, Case (B): Christoph ZOTT The French firm, Webraska, was established in 1998 to offer a wireless navigation solution as an alternative to maps and CD-ROM based car navigation tools. The business model was based on access through mobile phones and car terminals, and on different access modes such as SMS, WAP, and call centers. An apparent shift in demand from wireless carriers away from purchasing turnkey services toward owning the technology platform begged the question of whether the company should modify its business model to become a software vendor. Pedagogical Objectives: • To give an example of a firm that was faced with the fundamental choice between two business models • To sharpen the understanding of the value drivers of business models, which define the potential of the business model for value creation, and thus help in evaluating and comparing different business model designs Entrepreneurship & family enterprise 112 • To add dynamic considerations to the static analysis of business models, and to highlight the fact that evolution of business model designs may involve considerable challenges • Requirements in terms of credibility & legitimacy and established partnerships that may not be easy to fulfill, especially for young firms • Organizational costs of shifting and opportunity costs of not shifting • Loss of flexibility (e.g., getting locked into a business model that may not be optimal when the environment changes the next time) • Lastly, to learn about a new industry (wireless telecommunication) and a new life cycle stage (start-up, early stage) Copyright: 2004 INSEAD, France 1 publication 2002, 2 publication 2003 THE WHISTLE INTERJET: THE FIRST INTERNET APPLIANCE FOR SMALL & MEDIUM SIZE BUSINESSES (A, B & C) Ha Hoang Case Writer: Michel Darnaud This case covers a California-based, venture capital-backed start-up, Whistle Communications, in 1997 as it seeks to overcome sales growth problems in the US through a number of strategic partnerships in Asia. Whistle Communications is the provider of the Interjet, a device that allows a small business to connect to an Internet Service Provider, gives employees access to email and the web and creates an Intranet protected by a rudimentary firewall. In the A-C case, three possible partnerships are considered by Darnaud, Whistle's head of business development. Pedagogical Objectives: for courses with an entrepreneurship focus, it illustrates the importance of partnership strategies for start-ups. For courses with a focus on business development or strategic alliances, it explores the dynamics of a partnership where both firms seek to exploit existing assets and capabilities. This case could be contrasted with another case in which exploration (or the development of new assets and capabilities) is the primary goal. Copyright: 2003 INSEAD, France Also available: Teaching Note WORLD CLASS HEROES FOR RUSSIA: OLGA SLOUTSKER AND WORLD CLASS FITNESS CHAIN Manfred Kets de Vries Case Writers: Irina Boudrina, Elizabeth Florent-Treacy and Konstantin Korotov This case focuses primarily on a specific leadership style that is based on an underlying system of values. Olga Sloutsker, founder and CEO of World Class gyms, has twin desires—to mother clients and employees, and to “seduce” them. Olga Sloutsker’s leadership style involves dispensing calibrated doses of maternal concern and correction. She motivates her employees to excel not by offering extravagant material rewards, but by telling them that each person’s efforts will contribute to the greater good of the Russian people. She leads by flamboyant example; she has created a corporate culture that is entirely professional, but at the same time vaguely resembles a kind of crusade led by a Russian Joan of Arc. As Olga Sloutsker’s business matures, and as other competitors enter the market, her vision has grown exponentially. Her vision— crusade—is to improve the general health of all Russians. Her battle plan has three main thrusts: to spread her expertise through consulting; to train her employees to increasingly professional levels, and send some of them—imbued with her philosophy—out into the world; and to recruit Russian politicians to her cause. Pedagogical Objectives: as a descriptive case, the material provides insight into a uniquely Russian business leadership style. Because the case does not focus on specific decision points, students are encouraged to think more deeply about the reasons for Olga Sloutsker’s success. Key learning points are: the way in which Sloutsker’s personal experiences have shaped her career choices and leadership style; anevaluation of the effectiveness of her leadership; a thorough understanding of the specific Russian context in which World Class operates; and potential future challenges Sloutsker faces. Copyright: 2004 INSEAD, France