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This case describes a real-time crisis experienced by the co-founder (Mr Yang) of a multi-national Chinese company operating in Vietnam during the 2014 Vietnam riot. After the strike broke out, Mr Yang made several critical decisions to protect and save both his factory and employees.

This case is applicable to graduate-level management courses such as: Business ethics, Decision-making, Business Communication and Cross-Cultural Management. Students should have some knowledge in Decision-Making concepts (e.g. “bounded rationality”); in Cross-Cultural Management concepts (e.g. “culture norms”); and in Strategic management theory such as “institution-based view” (e.g. formal vs informal institutions).

Part A of the case introduces the main character (Mr Yang) and his factory in Vietnam, the escalation of the strike and the course of the crisis. It also elaborates the important critical decisions Mr Yang made to save both his factory and employees. Part B of the case describes the rescue of Mr Yang and his Chinese employees, his actions after the crisis and strategic positioning in future business. Part C of the case introduces the aftermath of the riot and Mr Yang's reflection regarding the crisis.

The instructors may emphasize different learning objectives in different courses. Business Ethics: help the students learn to recognize, clarify, speak and act on their values when conflicts arise. Decision-Making: helps the students understand the logic of sense-making in crisis and the concept of bounded rationality. Business Communication: helps the students learn to raise issues in an effective manner and learn to deliver their own responses effectively. Cross-Cultural Management: helps the students identify and analyze the many ways in which managers can voice and implement their values in the face of critical moments in a different cultural environment.

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By reviewing the case study, readers are expected to understand the constraints of competitive strategies in a shifting environmental landscape; the difficulties of foreign companies to sustain in an emerging market with government interventions; the subtlety of joint venture (JV) formation by partners with very divergent background, priority and agenda; evaluation of behavioural orientations of partnership and JV operational arrangements as determinants of a successful JV strategy.

High-tech companies can enjoy super profits from their products when only a few competitors can compete with them technologically. However, these companies also nurture a high-cost operational culture that sets a constraint for their further growth when superiority of the technology can no longer be maintained. High-tech companies may reposition their businesses with a strategic shift from differentiation strategy to cost focus strategy. The attendant shift as well as synchronization problem in an organization may require a larger effort to revamp. This case describes a global telecom infrastructure company with successful business performance in China in her early establishment with a pre-emptive technological edge. Mitigation of technological superiority and the rise of local competitors have forced the Company to opt for a cooperative strategy with a local player in the establishment of a low-cost joint venture. Does the new joint venture facilitate the strategic shift or just create an illusion of cooperation?

Undergraduate students and post graduate students taking strategic management course.

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CSS 11: Strategy.

International business.

Undergraduate level course in international business.

Two fellow students at the Wharton School at the University of Pennsylvania, Wen-Szu Lin and Joseph Sze, reconnected after finishing their MBAs and decided to launch a franchise together in China. The franchise they decided upon was Auntie Anne’s Pretzels. The company had experienced strong growth in Asia with over 85 stores in Thailand, 30 stores in Korea, 25 stores in Malaysia and 8 stores in Japan. Because of these successes, Win and Sze had forecast smooth sailing for their franchise in Beijing. However, things were not as smooth as they had expected. The first challenge was the impounding of their second shipment of pretzel mix for a few weeks. Other problems that they faced had to do with Lin’s inability to write Chinese, although he could speak the language, the lack of regulation of food and ingredients in China which led to their producing some poisonous products, and problems they had with their own employees. Lin and Sze were searching for ways to overcome the cultural and other challenges they faced in Beijing with their franchise.

At the conclusion of the case discussion, students should be able to identify the appropriate global strategy for Auntie Anne’s in China; identify whether Lin and Szu were intending to use a production orientation or the marketing concept in introducing Auntie Anne’s Pretzels into China; list and describe challenges the two entrepreneurs encountered in China; develop a list of actions that American businesspeople should follow in anticipating setting up a business in China; and outline a strategy for Lin and Szu to use in attempting to save the Auntie Anne Pretzel franchise in China.

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CSS 5: International Business.

After reading and analyzing the case study, the students would be able to identify the main stakeholders and decision-makers and their importance and influence on the environment for a product, evaluate the value chain of the product and critical decision-makers, evaluate the various ways to avoid falling into the trap of greenwashing and examine the marketing strategy to market an environmentally friendly product.

LIKO-S is a Czech manufacturing and construction company. The company has been designing and creating intelligent solutions, such as green facades or vertical greenery systems, to save energy in building heating and cooling systems. The company launched green facades in the Czech market. However, the main obstacle was the need for supporting data to showcase the positive environmental impact of green facades. Under these circumstances, Libor Musil’s main objective was to overcome prevalent misconceptions about green facades and find a suitable market segment. The situation worried the company, as LIKO-S had heavily invested in developing and marketing the green walls. The management had to tackle this challenge as soon as possible to recover the substantial research and development and marketing investments. Furthermore, owing to lack of information, even genuinely sustainable products were seen as greenwashing. In addition, bad or wrong customer perceptions of these walls might spill over to other products, tarnishing the company’s image and threatening its survival in the domestic market. Under these circumstances, competitors might enter the Czech market, jeopardizing the company’s overall profits. Consequently, Libor was in a great dilemma about managing the financial and reputational risk of the company. Should Libor close the green walls unit, explore different markets/uses or help increase awareness among the general population about green walls by finding a suitable marketing strategy?

The case study was designed for graduate-level students in the strategic management (CSR and innovation module) courses. However, the case could also be an excellent addition to marketing courses dealing with customers’ perceptions of innovative products and strategies to improve the adoption of the product.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

After reading and analyzing the case study, the students will be able to recognize the role of the mega environment in shaping business strategy, explore the challenges and opportunities in a mature industry (Foam), understand the business context of a family-owned firm and assess the implications and recommend managerial strategies.

In July 2019, Unifoam, a leading foam manufacturer, found itself at a crossroads as the company leadership grappled with diverging vision and future course of action. The newly appointed chief executive, Mr Faraz Khalid Shaikh, had overseen significant investments in expanding production capacity, and the time had come to reap the rewards. However, a series of unexpected events had unfolded, presenting the company with a unique set of challenges. Unifoam relied heavily on imported raw materials from China. Unifoam had high hopes of capitalizing on the opportunities presented by the China Pakistan Economic Corridor. However, the newly formed government had made significant policy changes regarding currency valuation and borrowing rates. This had increased the company’s working capital cost by 40%. This unexpected development had divided the board on the future direction and had forced the leadership to confront a crucial question: Should they hit the brakes or accelerate their growth strategies? This case study explored into the dynamic interplay between external factors, internal divisions and the family-owned nature of Unifoam. The analysis recognized the influence of the mega environment on the company’s strategy, exploring the challenges and opportunities within the mature foam industry and assessing the implications of conflicting approaches. This case study also offered valuable insights and managerial recommendations to guide the company’s path forward. Through embracing discomfort and confronting strategic dilemmas head-on, Unifoam sought to navigate uncharted waters and emerge as a resilient player in the evolving foam industry.

This is suitable for BBA or at the very start of MBA in the strategy courses, mainly business strategy and strategic management, and the case study can be positioned during the initial weeks in the course to provide a quick review of the basic analysis frameworks used in strategic decision-making.

Teaching notes are available for educators only.

CSS 11: Strategy.