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Case Studies by Hellmut Schütte

24 case studies

published: 30 Aug 1997

  • Topic: Strategy
  • Industry: Hotels
  • Region: Asia

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Abstract:
As the world’s largest hotel group, Accor has been late entering Asia. In 1987 it finally pushes ahead with an aggressive expansion strategy using its brands Novotel, Mercure and Ibis. However, lack of capital and arguments between HQ in France and the legally independent regional center in Sydney in 1996 raise questions as to whether the rapid development can continue.

Pedagogical Objectives:
The case discusses the strategic and organizational issues facing a latecomer in the hotel/leisure industry in Asia. It focuses on the question of how much autonomy should be transferred to the region, and how much standardization is required in an industry, which increasingly operates with global brands, but faces different service requirements in different parts of the world.

Keywords:
Strategy, Asia, Expansion, Entry Strategy, Multinational, Organisation, Product Adaptation

published: 01 Oct 1996

  • Topic: Operations
  • Industry: Hotel Business; Services; Hospitality
  • Region: Asia

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Abstract:
The ACCOR group was started in 1967 in France with the introduction of the Novotel concept. Over the following 30 plus years it developed a group of hotels: Sofitel, Novotel, IBIS and Formule 1 and extended the groups business in the USA and Asia. With a range of brands marketed at different price levels the group has enjoyed wide market coverage. As with its previous internationalisation projects, ACCOR approached a different set of challenges in developing in Asia. This case examines in more detail the expansion into the Indonesian market.

Pedagogical Objectives:
This case illustrates the key steps involved in expanding abroad: Identifying an appropriate market Deciding on an entry strategy and development speed Deciding how to service the value proposition, the formulation and the delivery system to adapt efficiently in the chosen markets and how, eventually, to respond to new competition

Keywords:
Management of Services, Internationalization of Services, Hotel Management

published: 01 Jan 1992

  • Topic: Strategy
  • Industry: Personal computer
  • Region: Europe

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Abstract:
Acer has grown into a one billion dollar company in 1991, but faces a worldwide crisis in the PC industry. European operations have been profitable, but repositioning and price cutting of competitors expose Acer's weaknesses in distribution, in its organisation across Europe and its links with the parent company in Taiwan.

Pedagogical Objectives:
To discuss the success factors and problems of a company based in a newly industrialised country, which enters the European market. To discuss possible strategic options to ensure future growth. To understand that decisions have to be made under stress since the industry is undergoing a severe crisis at the beginning of the 1990s.

published: 26 Feb 2018

  • Topic: Strategy
  • Industry: Chemical Industry
  • Region: Asia

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Abstract:
This condensed case describes the attempts of a successful Swiss MNC to expand in Asia. Despite 100 years of experience in the region, its exposure remains limited. Globally run divisions continue to favour traditional western markets. Attempts to strengthen the geographic dimension with the opening of a regional headquarters in Hong Kong fail. Will the MNC miss out on Asia's booming markets?

Pedagogical Objectives:
The case exemplifies the problem of MNCs that are globally managed and face major shifts in the geography of their business. It goes further than discussing global-local or headquarter-subsidiary dualities by adding a regional dimension, both strategically and organisationally. As such, it deals with the fundamental question of the organisational structure of a divisionalised, multinational firm.

Keywords:
Multinational Management, International Strategy, International Organisation, Regional Headquarters, Subsidiaries, Asia

published: 01 Jan 1999

  • Topic: Marketing
  • Industry: Publishing
  • Region: Asia

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Abstract:
From humble beginnings Asiaweek is becoming one of the major weekly magazines in Asia. Now part of the media group Time Warner, it finds it difficult to rightly position itself as a Pan-Asian publication in between local journals and global players like Time and Newsweek. The Asian crisis boosts interest in Asiaweek’s editorials, but advertising revenue slumps.

Pedagogical Objectives:
Asiaweek struggles to find the right audience: English speaking, interested in Asian, but less in global affairs. This requires careful positioning for which the case provides sufficient data. It also brings on the complex relationships between editorial ambitions, and the need for revenues from circulation and advertising.

published: 01 Jan 1999

  • Topic: Marketing
  • Industry: Chemical Industry
  • Region: Asia

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Abstract:
BASF is successfully marketing Styropor to moulders of packaging and insulation materials in China. However, their imported chemicals are too expensive and too sophisticated to reach a broader market. Rapid expansion of local production capacity and the rapid technological upgrading of Asian competitors have endangered BASF’s position. BASF starts to produce locally, too, thereby adding to the already existing oversupply of the market.

Pedagogical Objectives:
The case raises the question of how a large MNC can cope with local or regional competition in an industry characterised by commoditisation and oversupply. BASF must use its company reputation and Styorpor�s brand name to differentiate, knowing that in terms of product and price it does not have a competitive advantage.

Keywords:
Asia

published: 01 Dec 1996

  • Topic: Marketing
  • Industry: Luxury Product, Jewellery/Watches
  • Region: Asia

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Abstract:
When Japan’s bubble-economy of the 80s turns towards stagnation in the 90s, Cartier is faced with a need to reposition its range of luxury products through changes in distribution, pricing, advertising and product portfolio. However, its move further up-market may cut Cartier off from the generation of younger spenders.

Pedagogical Objectives:
To demonstrate that a range of subtle changes in the marketing-mix - introduced even against conventional wisdom - can lead to a successful repositioning of a brand in a difficult market environment.

Keywords:
Market Environment, Consumer Behaviour, Repositioning, Luxury Products, Japan, Pricing

published: 01 Jan 1998

  • Topic: Strategy
  • Industry: Truck and diesel engines
  • Region: Asia

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Abstract:
The case describes the process of negotiations between a large American MNC, an Asian government, and a local fast growing conglomerate. Market access for trucks is traded against local production of diesel engines, but the requirements change constantly, as do competitive pressure and the relationship with the local partner. Then the Asian crisis hits.

Pedagogical Objectives:
The case demonstrates the complexity of dealing with fast changing government policies in developing countries and the volatility of emerging markets. Distributorship agreements, local assembly with high local content, acquisition or greenfield operations are options open to the MNC at times. The entire local scene is played out in the context of global competition in the oligopolistic market of trucks and diesel engines.

Keywords:
Us, Automobile

published: 01 Aug 2000

  • Topic: Strategy
  • Industry: White Goods
  • Region: Asia

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Abstract:
This case deals with the integration of a recently acquired state-owned enterprise by Haier, a rapidly expanding, collectively owned company in China. It highlights the challenges of managing post acquisition integration in China, especially that of state owned enterprises and also provides useful information to understand the characteristics of emerging Chinese companies.

Pedagogical Objectives:
The case can be used in MBA and executive programs on international management, Asian business, acquisition, change management and emerging markets. The objective is to understand the challenges of transforming Chinese state-owned enterprises through acquisition.

Keywords:
Acquisition, China, State Owned Enterprise

Prizes won:
- Winner 2000 EFMD Case Writing Competition, Strategy

published: 01 Jan 1997

  • Topic: Economics & Finance
  • Industry: Electronics
  • Region: Europe

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Abstract:
Daewoo Group companies run a distant third or fourth in their respective industries in Korea, but they are rapidly expanding their presence, mainly through acquisitions, in foreign markets. In this context, Daewoo Electronics makes a bid in 1996 for the heavily indebted French electronics manufacturer Thomson Multimedia, which is being privatised. The French government's October announcement of its preference for Daewoo's bid unleashes a storm of criticism in France, and the French Privatisation Commission's subsequent refusal to endorse the government's decision creates a major diplomatic incident between France and Korea.

Pedagogical Objectives:
To introduce one of the most aggressive Korean chaebol and its extraordinary growth plans. To expose the complexity of the issues, which can surround cross-border, cross-cultural acquisitions. T o contrast Korean and French industrial policies.

Keywords:
Internationalisation, Globalisation, Korean Mncs, Government Policy, Privatisation, Acquisition, State-Owned Enterprise, France, European Competitiveness Initiative, European Competitiveness, Europe, Government and Policy

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