newasianabstracts dec 2010

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ABSTRACTS FOR NEWLY REGISTERED ASIAN CASES

December 2010 9B10N034

Acer Incorporated: Core Management Principles David J. Sharp, Lynette Chou, Hsien-Lian Chiu

Publication Date: 11/1/2010

The chief financial officer of Acer Incorporated has to decide how to manage the higher level of complexity of the company's exchange risk after their restructuring, consistent with Acer's core principles, one of which is to "find simple effective solutions to unavoidable business risks." The case addresses the technical issues of exposure measurement and hedging, the challenge of hedging expected, but not contracted, future foreign currency revenues, and IFRS hedge accounting requirements.

Disciplines: Finance, International Issue(s): Foreign Exchange, Restructuring, Corporate

Values, Foreign Currency, Exchange Risk Industry: Business Services Setting: Taiwan, Large organization, 2004 Difficulty: 4 - Undergraduate/MBA Length: 14 pages

9B10M078

China's Banks 2010 David W. Conklin, Danielle Cadieux

Publication Date: 9/24/2010 Teaching Note: 8B10M78

In the 1990s, considerable debate arose concerning the strength and stability of China's banks. Of particular concern were the debts owed to the banks by state-owned enterprises (SOEs). Many SOEs were experiencing financial difficulties and so they might not have been able to repay these loans. Some analysts emphasized that, since the banks and the SOEs were both owned by the government, the only relevant concern was the financial strength of the government and its preparedness to take responsibility for any of the banks' non-performing loans. In the early years of the 21st century, the government undertook a widespread program aimed at improving the balance sheets at the banks by purchasing non-performing loans from the banks and then reselling these at a discount, often to foreign private sector financial institutions. Prior to 2010, this process provided a generally accepted faith in the stability and security of China's banks. Total non-performing loans as a per cent of total bank loans decreased from 20 per cent in 2003 to three per cent in 2008. The year 2010 brought a new realization that the non-performing loan problem had reappeared. However, China's banks now had private as well as government shareholders, and so the solution had become more complex. The government's response was

to insist that China's banks increase their capital base by issuing new equity.

Disciplines: Finance, General Management, International Issue(s): Financial Institutions, Government and

Business, Government Regulation Industry: Banking Setting: China, Large organization, 2010 Difficulty: 4 - Undergraduate/MBA Length: 2 pages

9B10M063

Design Careers of Alan Yip and Winnif Pang Kevin Au, Bernard Suen, Daisy Wong, Na Shen

Publication Date: 10/13/2010 Teaching Note: 8B10M63

This case describes how two Hong Kong product designers chose their respective paths and achieved design excellence and celebrity status. The case is suitable for teaching MBA and senior undergraduate students the value of design entrepreneurship in professional services. It is useful for courses in entrepreneurship and innovation management in business and engineering schools. Human resources management or organizational behaviour classes may also use this case for discussion on career paths. Given the design context, it will be very informative for students or executives from the design industry.

Disciplines: General Management, Entrepreneurship,

International Issue(s): International Marketing, Product Design/

Development, Entrepreneurial Marketing, Opportunity Recognition Industry: Business Services Setting: Hong Kong, Small organization Difficulty: 4 - Undergraduate/MBA Length: 15 pages

9B10B010

Dr. M. L. Dhawale Trust Hospital - Towards Sustainability Gayathri Sivaraman, Vasant Sivaraman

Publication Date: 9/9/2010 Teaching Note: 8B10B10

This case deals with a rural charitable homeopathic hospital in the state of Maharashtra, India, set in the year 2008. The hospital, "Dr. M. L. Dhawale Memorial Trust's Rural Homepathic Hospital," is one among many clinics and hospitals run by the Dr. M. L. Dhawale Memorial Trust (MLDT). Dr. Navin Pawaskar, the head of the hospital, has to make recommendations to the management team to improve the profitability of the hospital and be financially

Richard Ivey School of Business Abstracts for Newly Registered Asian Cases — December 2010


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sustainable. He has findings and data from a field study done by management students of S. P. Jain Institute of Management and Research, Mumbai, India. The study involved a preliminary costing exercise of the various services offered in the hospital. The data from the costing exercise must now be analyzed to arrive at actionable conclusions.

Disciplines: Accounting, Finance, General Management,

International Issue(s): Break-Even Analysis, Contribution Analysis,

Financial Strategy, Management Accounting, Sustainability Industry: Health Services, Non-Profit Organizations Setting: India, Small organization, 2008 Difficulty: 4 - Undergraduate/MBA Length: 14 pages

9B10M067

Louis Vuitton in Japan Justin Paul, Charlotte Feroul Publication Date: 10/19/2010 Teaching Note: 8B10M67

This case study deals with the opportunities and challenges of Louis Vuitton, the leading European luxury sector multinational firm, in Japan, taking into account the unique features of brand management, and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton's most profitable market, but it seems that the global economic crisis has resulted in a decline in sales.

Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market. The days of relying on a logo and charging a high price seem to be gone as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works.

Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton's successful business model in the Japanese market?

This case was written to help students develop their analytical and strategic decision skills. The case aims at helping in developing a business model, adapting to a new cultural environment, recommending a course of action for further strategic moves, identifying issues and eventually enhancing multidisciplinary decision making.

This case can be used to discuss 1) the complexity of multinational business, particularly the issues of brand management, international marketing and marketing strategy for succeeding in East Asia 2) consumer behaviour in Japan and characteristic features of the Japanese market and 3) strategies to succeed in a foreign country.

Disciplines: General Management, Marketing,

Entrepreneurship, International Issue(s): International Business, International Marketing,

Brand Management, Strategic Management Industry: Leather & Leather Products

Setting: Japan; France, Large organization, 2008-2009 Difficulty: 4 - Undergraduate/MBA Length: 20 pages

9B10A022

Parle-G Miranda Goode, Ramasastry Chandrasekhar Publication Date: 11/1/2010 Teaching Note: 8B10A22

In 2009, Parle Products Pvt. Limited (Parle), a leading Indian biscuit manufacturer, had the distinction of producing the largest selling glucose biscuit brand by volume in the world, the Parle-G. Parle-G biscuits sold for approximately US$1 per kilogram and as very few processed and ready-to-eat foods were available at this price point, Parle-G was strongly associated with offering value for money (VFM). A looming problem in this brand category for Parle was that the input prices of two major raw materials for the Parle-G biscuits (which together accounted for 55 per cent of their input costs) had risen enough in the past 18 months to decrease margins from 15 per cent to less than 10 per cent. Pressure to restore margins led Parle to consider a price increase yet a previous attempt had caused dramatic reduction in sales. Parle subsequently addressed rising input costs by reducing the weight of the package, franchising production, reducing supply chain costs and reducing packaging costs. Parle could not ignore the deeply entrenched perception of VFM when devising both short- and long-term marketing plans to retain Parle-G's success in the marketplace. These plans needed to address segmentation, positioning and changing Indian demographics when considering a potential price increase for Parle-G biscuits.

Disciplines: Marketing, International Issue(s): International Business, Marketing Planning,

Pricing, Market Strategy, Positioning Industry: Food and Kindred Products Setting: India, Large organization, 2009 Difficulty: 4 - Undergraduate/MBA Length: 16 pages

9B10M088

Sampoorn Foods and Feeds Limited Kumar Rakesh Ranjan Publication Date: 11/24/2010 Teaching Note: 8B10M88

A business school graduate has been assigned the responsibility of running a profit centre that deals in the production and sales of animal feed. The structure and operations of a mid-sized agri-input company are discussed, along with the interactions among several stakeholders in the supply chain and the sources of cooperation and conflict between them. The case details the interactional dynamics among agri-input sellers, the nature of competition between them, their sources of trade dominance and the distribution channel structure. Amid such a scenario, the graduate is trying to enhance the performance of his profit centre. On the other hand, a former classmate and recruit in an NGO is striving to achieve the developmental objectives of her organization. The case poses questions to evoke reflection on building



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mechanisms and institutions that deliver benefits for the many rather than profits for the few.

Disciplines: General Management, Marketing,

International Issue(s): Sales Management, Sustainable Development,

Strategy Development, Rural Marketing Industry: Agricultural Production - Livestock Setting: India, Medium organization, 2007 Difficulty: 5 - MBA/Postgraduate Length: 16 pages

9B10A017

Shiny Provision Store: Retailing Challenges in the Indian Context S. Ramesh Kumar, Radhika Vishvas Publication Date: 10/5/2010 Version Date: 10/13/2010 Teaching Note: 8B10A17

India has millions of kirana (small stores) but modern retail outlets are emerging. The case illustrates the challenges confronting the shop owner of Shiny Provision Store, a kirana in the suburbs of Bangalore, India. A customer, who is a market researcher, decides to explore how a small retailer in the food and groceries business can survive in an environment that is getting increasingly sophisticated in terms of professional techniques being applied to modern retailing. Data on retail images of small shops and modern outlets as well as lifestyle information on consumers is presented.

Disciplines: Marketing, Entrepreneurship, International Issue(s): Market Segmentation, Retailing, Small

Business, Market Strategy, Target Segment, Competitive Strategy, Image Management Industry: General Merchandise Stores Setting: India, 2008-2010 Difficulty: 4 - Undergraduate/MBA Length: 13 pages

9B10A026

Super Shampoo Products and the Indian Mass Market S. Ramesh Kumar, Nitya Guruvayurappan Publication Date: 11/30/2010 Teaching Note: 8B10A26

The case analyzes the response of the non-users of shampoo in an emerging environment, namely India. The non-users belong to the lower end of the socio-economic spectrum and they respond with their perceptions about the category of shampoo and well-known brands. The entrepreneur's challenge is to obtain the insights, analyze the attitude of the non-users towards the category and brands, and prepare a strategy to position a new brand of shampoo (Super brand) in the Indian mass market.

Disciplines: Marketing, Entrepreneurship, International Issue(s): Consumer Behaviour, Consumer Marketing,

Emerging Markets, Brand Management, Perception Setting: India, 2010 Difficulty: 4 - Undergraduate/MBA Length: 21 pages

9B10M068

The IOI Group: Creating a Malaysian Palm Oil Multinational Marleen Dieleman, Megha Mittal Publication Date: 10/25/2010 Teaching Note: 8B10M68

The case discusses the story of the IOI Group, one of the largest palm oil players in Malaysia, which has seen rapid growth in the past two decades. Family-controlled since 1982, the IOI Group's main businesses initially were property and palm plantations. As a relative latecomer in the palm oil industry, it grew both organically and through acquisitions, and, in 2010, had sales of about US$4.3 billion and employed 30,000 people. Over the years, the IOI Group moved away from producing crude palm oil (CPO), a key commodity, and pursued a strategy of vertical integration by moving into downstream activities such as food ingredients manufacturing and oleochemicals. This transformed IOI from a Malaysian plantation company to a global ingredients manufacturer, making IOI a good example of a so-called "emerging market multinational."

The case takes the point of view of the second generation family leader who is currently in charge of the downstream businesses, and discusses three challenges he faces in IOI's transformation process: 1) the issue of optimizing and integrating the global value chain; 2) the most suitable way to coordinate a multinational company with substantial global sales and operations; and 3) adaptation to changing needs of global customers. All this is supported by extensive information on the changing dynamics in the palm oil industry, where emerging market players are moving up the value chain, snapping up manufacturing assets from global fast-moving consumer goods companies, such as Unilever, while the latter increasingly focus on branded goods and seek to exit the lower margin and capital intensive manufacturing of ingredients. Students are asked to analyze the changing industry dynamics and provide recommendations given the goal to make IOI a leading palm oil player.

Disciplines: General Management, International Issue(s): Internationalization, Multinational, Strategic

Change, Emerging Markets, Family Business, Palm Oil Industry: Food and Kindred Products Setting: Malaysia, Large organization, 2010 Difficulty: 4 - Undergraduate/MBA Length: 17 pages

9B10M060

Toy2R: A Pioneer of Creative Designer Toys in Hong Kong Kevin Au, Bernard Suen, Daisy Wong

Publication Date: 10/13/2010 Version Date: 10/28/2010 Teaching Note: 8B10M60

The case illustrates the intriguing development path of a famous design entrepreneur in Hong Kong, who was not trained formally as a designer but managed to build an entrepreneurial career out of his hobby of collecting designer toys. This case is suitable for teaching MBA and senior undergraduate students about resources acquisition at the startup, development and expansion



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stages in an entrepreneurship course. It can also be utilized in product development and innovation management courses for business, engineering and design school students.

Disciplines: General Management, Entrepreneurship,

International Issue(s): International Marketing, Product Design/

Development, Entrepreneurial Marketing, Opportunity Recognition Industry : Wholesale Trade - Durable Goods Setting: Hong Kong, Medium organization Difficulty: 5 - MBA/Postgraduate Length: 12 pages

newasianabstracts dec 2010

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