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Case Studies by L. Felipe Monteiro

19 case studies

by Publication Date
published: 30 Oct 2017

  • Topic: Strategy
  • Industry: Information technology
  • Region: Global

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Abstract:
Thirty years after being founded by CEO Marco Stefanini, Stefanini is one of the largest providers of ICT services in Latin America. Unlike most Brazilian (and Latin American) companies, Stefanini has focused on international markets for many years. As a truly global company with presence in 41 countries it is one of the most globalized companies in Brazil, with 21, 200 employees and over US$800 million in revenues. In 2017, Stefanini is helping many companies with their digital transformation/journey, while at the same time being transformed itself as traditional sources of revenue diminish/disappear. Hence digital is both a great opportunity (in terms of new business) but also a challenge. How Stefanini will transform itself? What avenues to growth exist, and what alternatives in terms of new business models, new geographies, acquisitions?

Pedagogical Objectives:
Discuss how a Latin American company became a global player in the ICT sector, and how it is helping companies worldwide with their digital journeys as well as being transformed itself.

Keywords:
Digital Transformation, Internationalization, Information Technology, Global Strategy, Emerging Markets, Brazil, Outsourcing

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published: 25 Sep 2017

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Abstract:
This is a condensed version of the cases EBX Group (A): Eike Batista and the X-Factor/EBX Group (B): Autopsy of a failure. It describes the boom and bust of the EBX Group and its founder, Eike Batista. The first part traces the history of the Brazilian conglomerate from its origins as a small gold-mining operation in the early 1980s to 2012 when it has become a diversified national and global player in multiple industries. It examines Batista’s personal drive, motivations and choices, and how these influenced the strategy deployed by the company. Known for his huge ‘risk appetite’, Batista had an extraordinary ability to exploit gaps in the market when starting new businesses. The second part of the case recounts the “historic” downfall of the ‘X Empire’ which was of a magnitude and speed never seen before in the history. Batista’s personal net worth of US$30 billion – making him the seventh wealthiest person in the world and the richest in Brazil – had plummeted to US$200 million as debts piled up and the stock price went into freefall. In January 2014, Bloomberg reported that Batista had “a negative net worth”.

Pedagogical Objectives:
The case illustrates and explains the following: 1. The assets and liabilities of one of the world’s largest emerging markets – Brazil. 2. The concept of ‘institutional voids’ in emerging markets, and how companies both overcome and capitalize on these to create distinct value. 3. How business groups are formed and add value in emerging markets. 4. The challenges of making the transition from an entrepreneurial business to an operational one. 5. The concept of organizational ambidexterity – how firms need to be both entrepreneurial and innovative as well as operationally efficient – the ability to both exploit and explore. 6. Diseconomies of time compression

Keywords:
Mining, Oil & Gas, Diversified Conglomerates, Emerging Markets, Brazil, Institutional Voids, Entrepreneurship, South America

Prizes won:
- Winner of the EFMD Case Writing Competition 2017 in the Category “Latin American Business Cases”

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published: 24 Jul 2017

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Abstract:
The Swiss company TAG Heuer, maker of luxury watches, is part of the LVMH group (Moet Hennessy Louis Vuitton). In 2015, CEO Jean-Claude Biver is deciding whether to launch its first-ever fully connected Swiss watch, manufactured in partnership with Google and Intel. Entering this new market presents an unprecedented challenge: making a watch based on a technology (microprocessors) that the Swiss have not mastered. Is Tag Heuer ready to compete in the digital space - and potentially without the traditional 'Swiss Made' label? Case B takes up the story following the successful launch of the TAG Heuer connected watch. Sales are beyond all expectations for the luxury Swiss watchmaker and its partners Intel and Google. There are a few surprises too – the consumers are older than they expected and the watches sell out far quicker than anticipated – hence the company runs into some supply chain issues.

Pedagogical Objectives:
To learn how a nation achieves international success in a specific industry and how multinational corporations enable the emergence of clusters and benefit from them. In particular, how the Swiss luxury watch industry (in particular TAG Heuer) reacted and dealt with the challenge from connected watches such as the Apple Watch. Four key issues are addressed: 1. The importance of the 'Swiss Made' label for this market. 2. How to make a connected watch 'eternal' in the spirit of traditional mechanical watches. 3. How TAG Heuer prepared for a profound digital transformation by learning from the technology cluster in Silicon Valley (locating a team of engineers there and managing the partnership with Google and Intel). 4. How a company dealt with digital disruption in a conservative industry – Swiss watchmaking. 5. How multinationals identify technology in other clusters – “technology scouting” - and set up relevant processes.

Keywords:
Watches, Luxury, Wearables, Connected Watches, Digital Transformation, Google, Intel, Clusters, Jean-Claude Biver, Global Strategy, Digital Disruption, Apple Watch, Swissmade, Silicon Valley, Switzerland

Prizes won:
- Outstanding Case Writer: Hot Topic 'Disruptive Change', The Case Centre Competitions 2018

Related:

published: 21 Apr 2017

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Abstract:
The Swiss company TAG Heuer, maker of luxury watches, is part of the LVMH group (Moet Hennessy Louis Vuitton). In 2015, CEO Jean-Claude Biver is deciding whether to launch its first-ever fully connected Swiss watch, manufactured in partnership with Google and Intel. Entering this new market presents an unprecedented challenge: making a watch based on a technology (microprocessors) that the Swiss have not mastered. Is TAG Heuer ready to compete in the digital space - and potentially without the traditional 'Swiss Made' label? Case B takes up the story following the successful launch of the TAG Heuer connected watch. Sales are beyond all expectations for the luxury Swiss watchmaker and its partners Intel and Google. There are a few surprises too – the consumers are older than they expected and the watches sell out far quicker than anticipated – hence the company runs into some supply chain issues.

Pedagogical Objectives:
To learn how a nation achieves international success in a specific industry and how multinational corporations enable the emergence of clusters and benefit from them. In particular, how the Swiss luxury watch industry (in particular TAG Heuer) reacted and dealt with the challenge from connected watches such as the Apple Watch. Four key issues are addressed: 1. The importance of the 'Swiss Made' label for this market. 2. How to make a connected watch 'eternal' in the spirit of traditional mechanical watches. 3. How TAG Heuer prepared for a profound digital transformation by learning from the technology cluster in Silicon Valley (locating a team of engineers there and managing the partnership with Google and Intel). 4. How a company dealt with digital disruption in a conservative industry – Swiss watchmaking. 5. How multinationals identify technology in other clusters – “technology scouting” - and set up relevant processes.

Keywords:
Watches, Luxury, Wearables, Connected Watches, Digital Transformation, Google, Intel, Clusters, Jean-Claude Biver, Global Strategy, Digital Disruption, Apple Watch, Swissmade, Silicon Valley, Switzerland

Prizes won:
- Outstanding Case Writer: Hot Topic 'Disruptive Change', The Case Centre Competitions 2018

Related:

published: 25 Jan 2016

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Abstract:
Case A explores the career trajectory of Eike Batista, CEO and founder of EBX, a Brazilian conglomerate focused on mining, oil & gas, shipping and other industries, who is already looking to expand into new markets while his existing businesses are only just moving into an operational phase. His success comes from his strength in exploiting the institutional void in Brazil to uncover new market opportunities; operationalizing these new businesses is quite another challenge.

Pedagogical Objectives:
1. Institutional voids and the ability of firms to exploit such voids for new business opportunities. 2. Organizational ambidexterity: the challenge of exploiting existing business opportunities while exploring new ones. 3. Time compression diseconomies in building a large conglomerate in an emerging market.

Keywords:
Mining, Oil & Gas, Diversified Conglomerates, Emerging Markets, Brazil, Institutional Voids, Entrepreneurship, South America

Related:

published: 25 Jan 2016

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Abstract:
Case A explores the career trajectory of Eike Batista, CEO and founder of EBX, a Brazilian conglomerate focused on mining, oil & gas, shipping and other industries, who is already looking to expand into new markets while his existing businesses are only just moving into an operational phase. His success comes from his strength in exploiting the institutional void in Brazil to uncover new market opportunities; operationalizing these new businesses is quite another challenge. Case B charts the extraordinary debacle of EBX Group and Eike Batista, who loses US$30 billion in one year.

Pedagogical Objectives:
1. Institutional voids and the ability of firms to exploit such voids for new business opportunities. 2. Organizational ambidexterity: the challenge of exploiting existing business opportunities while exploring new ones. 3. Time compression diseconomies in building a large conglomerate in an emerging market.

Keywords:
Mining, Oil & Gas, Diversified Conglomerates, Emerging Markets, Brazil, Institutional Voids, Entrepreneurship, South America

Related:

published: 03 Dec 2015

  • Topic: Strategy
  • Industry: Banking
  • Region: South America

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Abstract:
Banco do Brasil, a leading Brazilian bank and one of its most established institutions, has a number of growth options. After a long but timid internationalization trajectory, it foresees various foreign expansion opportunities based on Brazil's accelerating economy and international visibility. These economic and social improvements also open up tempting domestic opportunities.

Pedagogical Objectives:
To understand the various issues firms face when seeking to expand overseas: (1) the reasons for internationalization and the difficulties they encounter; (2) issues to consider when selecting foreign countries where they can be most successful; and (3) the challenges and opportunities for state-owned multinationals from emerging markets.

Keywords:
Internationalization, Foreign Expansion, Emerging Markets, Brazil, Banking, State-Owned Enterprises, Financial Crisis, Latin America

Related:

published: 29 Sep 2014

  • Topic: Strategy
  • Industry: Banking
  • Region: South America

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Abstract:
Banco do Brasil, a leading Brazilian bank and one of its most established institutions, has a number of growth options. After a long but timid internationalization trajectory, it foresees various foreign expansion opportunities based on Brazil's accelerating economy and international visibility. These economic and social improvements also open up tempting domestic opportunities.

Pedagogical Objectives:
To understand the various issues firms face when seeking to expand overseas: (1) the reasons for internationalization and the difficulties they encounter; (2) issues to consider when selecting foreign countries where they can be most successful; and (3) the challenges and opportunities for state-owned multinationals from emerging markets.

Keywords:
Internationalization, Foreign Expansion, Emerging Markets, Brazil, Banking, State-Owned Enterprises, Financial Crisis, Latin America

Related:

published: 30 Jul 2014

  • Topic: Strategy
  • Industry: Pharmaceuticals
  • Region: Global

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Abstract:
The case presents a situation in which Merck’s World Wide Licensing (WWL) division needs to make important organizational decisions to increase the speed, the breadth and the efficiency of its global licensing and partnering activities.

Pedagogical Objectives:
Understand why and how firms are becoming more open to external knowledge, and the structural and behavioral challenges in organizing a global licensing/partnering function within a large multinational corporation.

Keywords:
Partnering, Open Innovation, Pharmaceuticals, Corporate Entrepreneurship, Licensing, Technology Scouting, Corporate Development, Multinational Corporations, Corporate Governance, Value Creation, Strategy and Implementation

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