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Instructor Manual
Integrated Cases
(Prepared by Klaus E. Meyer, March 2019)
Learning Objectives
1. Enhance the understanding of theoretical concepts through application in real world business situations
2. Learn to apply concepts and frameworks to real world situations
3. Develop analytical and communication skills
General Teaching Suggestions
The integrative cases have been written as a basis to discuss issues that arise across chapters
and can be used to deepen and integrate understanding of international business. The
following Table provides suggestions regarding the match of cases and Chapters:
Case
Locations
Primary
Chapter
Also related
to Chapter
Xiaomi
China
2, 3, 4
1, 11
SSI Schaefer
Germany, Switzerland
4, 6
12, 17
BMW
Germany, Global
4
6
Bharti Airtel
India, Africa
6
4, 12, 14
Negotiating Brexit
UK, EU
8
5, 9
Cars made in Britain
UK
8
9, 15, 17
Canada-EU CETA
Canada, EU
9
5
German Chamber of
Commerce in Shanghai
China
10
3, 15
GSK China
China, UK
3
10, 15
Fan Milk Africa
Ghana, Africa
11
1, 12, 14
ESET
Slovakia
11
8, 12
McDonalds
India, USA
11
12, 14, 17
Beko
Turkey, UK, EU
15
12, 14, 17
SG Group
China, Germany
14
12, 15
Move to China
Singapore, China
16
3
2
Case by Case Synthesis
Case Title: Xiaomi Challenges Global Smartphone Leaders
Case Summary:
The Integrative Case “Xiaomi Challenges Global Smartphone Leaders” has been written
specially to discuss the fast-paced development of firms in emerging economies (which likely
will surprise many students in Europe), and thus the rapidly evolving role of emerging
economies in the global economy (Chapter 1). The case allows to highlight the
complementarity of the institutions-based (Chapter 2&3) and resource-based views (Chapter
4) in explaining MNEs. It also provides leads into a discussion of the early stages of
internationalization (Chapter 11).
Assignment Questions:
From an institution-based view:
1. How has Xiaomi been able to leverage the institutional environment in China to
challenge global players such as Samsung and Apple?
2. What obstacles would it have to overcome to similarly succeed in India or Brazil?
From a resource-based view:
3. What resources has Xiaomi been able to create to enable its growth in China? Do you
believe it has a sustainable advantage in China?
4. What obstacles to transferring resources to India and Brazil is Xiaomi likely to
experience, and how do you suggest overcoming them?
Teaching Ideas:
Ask students where they have come across the Xiaomi brand, and how popular it is in their
3
Case Title: SSI Schaefer: Internationalization of Intra-Logistics
Case Summary:
The case SSI Schaefer: Internationalization of Intra-Logistics introduces the notion that
companies traditionally operating as ‘manufacturing’ are moving to become ‘solutions
provider’. This requires not only much higher degrees of customization and after sales
services, but changes how they can reach international customers. Thus, the discussion of this
case should start from an assessment of the firms’ resources and capabilities and their
evolution over time (Chapter 4) to an analysis of its foreign direct investment motives
(Chapter 6) and the assessment of specific options for foreign entry (Chapter 12). The main
business of the firm is to help firms optimize their intra-logistics, and hence the case also
raises many issues discussed in Chapter 17.
Assignment Questions:
1. What are the key firm-specific advantages (ownership advantages) that enable SSI
Schaefer to compete internationally?
2. What are the main challenges for selling a turnkey warehouse logistics system to
customers in distance locations?
3. How can SSI Schaefer address these challenges?
4. Why does SSI Schaefer consider the technology centre in Kunshan as essential to
growing business in China?
Teaching Ideas:
Show a video of an SSI Schaefer plant (see below) and ask, what are the key resources and
Complementary Resources:
The company has placed several videos on youtube that illustrate how a modern warehouse
designed by the company operates. These are very impressive indeed, see for example this
video of their warehouse build for Brose in Ostrava, Czech Republic:
www.youtube.com/watch?v=AJtXtIFz8-A
4
Case Title: BMW faces Technological Disruptions
Case Summary:
The Integrative Case “BMW faces Technological Disruptions” provides a brief introduction
to numerous technological changes affecting the automotive industry. In consequence, BMW
has to take strategic decisions how to invest in new technologies, and which projects to
prioritize. This discussion allows to develop students’ understanding of the dynamics of
resource development and exploitation over time (Chapter 4) and to explain linkages between
firms ownership advantages and outward foreign direct investment (Chapter 6).
Assignment Questions:
1. What are the key resources and capabilities of BMW in 2018?
2. How has BMW been able to maintain and extend these resources and capabilities for
over 100 years?
3. What are the main competitive threats for BMW in 2018?
4. How do you propose to address these competitive threats?
Teaching Ideas:
Ask students how they envisage to move around in cities in ten to twenty years, and thus
Complementary Resources:
There are numerous videos on the future of mobility on youtube, including for example
https://www.youtube.com/watch?v=WGPDHHWw62M,
https://www.youtube.com/watch?v=Ddjkj5VNil4,
https://www.youtube.com/watch?v=za419a9hLWI
5
Case Title: Bharti Airtel Acquires Resources and Companies
Case Summary:
The Integrative Case “Bharti Airtel Acquires Resources and Capabilities” has been
prepared to discuss the different strategies and motivations that drive FDI (Chapter 6), and
how they are grounded in the firm’s own evolving resources and capabilities (Chapter 4).
They can also be used to discuss foreign entry strategies (Chapter 12) and global mergers and
acquisitions (Chapter 14).
Assignment Questions:
1. From a resource-based view, what are Bharti Airtel’s main resources? How were
these resources built, and how do they shape its ongoing path of growth?
2. From an institution-based view, how are the challenges of entering emerging
economies such as Bangladesh and Africa different from entry in Western European
economies?
3. Compare Bharti Airtel’s approach to internationalization with that of European
MNEs. To what extent is Bharti Airtel’s model unique to emerging economy MNEs?
4. What are the implications of the rise of emerging economy MNEs such as Bharti
Airtel for globalization?
Teaching Ideas:
The case enables developing students’ understanding of the complementaries of the resource-
Complementary Resources:
This Bloomberg video introduces the deal acquiring Zain Africa, with an FT columnist
explaining the risks involved: https://www.youtube.com/watch?v=DP6CyufoQAMg
6
Case Title: Negotiating Brexit
Case Summary:
The Integrative Case “Negotiating Brexit” provides basic data on the UK international trade
along with the key parameters of different (hypothetical) trade regimes that the UK might
have developed with the EU after Brexit. Analysis of this information challenges students to
integrate what they have learned on international trade (Chapter 5) with the institutions of the
EU (Chapter 8) and the WTO (Chapter 9). The case thus helps consolidating understanding
of both international trade theories and concepts related to supra-national trade institutions.
Assignment Questions:
1. As a representative of a UK manufacturing business, what type of post-Brexit
arrangement would you be lobbying for, and why?
2. As a representative of a foreign-owned manufacturer in the UK, what type of post-
Brexit arrangement would you be lobbying for, and why?
3. As a trade union leader, what type of post-Brexit arrangement would you be lobbying
for, and why?
Teaching Ideas:
This case will stimulate a very lively debate in an open classroom setting; the main challenge
Complementary Resources:
There is no shortage of new reports and analysis that can complement the case; the references
at the end of the case include some useful items.
7
Case Title: Cars Made in Britain, Post-Brexit
Case Summary:
The Integrative Case “Cars Made in Britain, Post-Brexit” has been designed to help student
understand the consequences of the Brexit process and of different options to design future
international trade regime for companies that have to make major investment decisions. It
thus integrates key theoretical ideas on international trade (Chapter 5) with institutional
knowledge of the EU (Chapter 8) and of multilateral institutions such as the WTO (Chapter
9). While the preceding case (Negotiating Brexit) is taking a national policy perspective, this
case brings the issues down to the corporate level. The case can also be discussed to analyse
the role of subsidiaries and unit HQ within a multinational organization (Chapter 15) and the
role of pan-European supply chains and sourcing operations (Chapter 17).
Assignment Questions:
As CEO of UK operations of a carmaker (Jaguar, BMW, Nissan or Vauxhall), how would
you handle the following challenges:
1. The next generation model of your bestselling car is due to be introduced in one year.
To remain on schedule you need to take a decision now whether to invest in
upgrading your UK factories. How would you argue with corporate headquarters not
to delay the decision?
2. Global headquarters are planning to introduce electrical engines, and are looking for
proposals from country managers where to locate the engine plant. How are you going
to convince corporate headquarters to choose your UK plant rather than a plant in
Slovakia?
3. What initiatives would you take to ensure that your supply chain will remain efficient
and reliable after Brexit?
4. How should you set up your European organizational structures to compete in both
UK and EU markets in the future?
Teaching Ideas:
This case will stimulate a very lively debate in an open classroom setting, the main challenge
8
Case Title: Canada and the EU Negotiate CETA
Case Summary:
The Integrative Case “Canada and the EU Negotiate CETA” has been designed to discuss
bilateral trade and investment agreements, and their implications for policy and businesses. It
is best introduced after the foundations of international economics (Chapter 5 to 7), the basic
structure of the EU (Chapter 8) and the pros and cons of multilateral and bilateral trade
agreements (Chapter 9) have been introduced.
Assignment Questions:
1. How will CEFTA change the institutions governing international trade between
Canada and the EU?’
2. How is CEFTA likely to impact on international trade between EU and Canada?
3. Why are some interest groups opposed to liberalizing trade through CETA?
4. If you were a member of the European Parliament, would you vote for or against the
treaty?
Teaching Ideas:
Complementary Resources:
Instructors may advise students to include or exclude in their deliberations the ‘Investor State
Dispute Settlement’ Tribunals (In Focus 9.5). Integrating them in the discussion will make
the analysis more policy relevant (ISDS are the most controversial aspect) but may also make
it hard to keep the discussion focused.
There is no shortage of new reports and analysis that can complement the case; the references
at the end of the case include some useful items.
9
Case Title: German Chamber of Commerce Develops Social Responsibility in China
Case Summary:
The Integrative Case ‘German Chamber of Commerce Develops Social Responsibility in
China’ has been designed as a real world scenario in which the Chamber as representation of
German business is trying to encourage and coordinate CSR initiatives. It is based on an
initiative that I myself have been involved in. Designing potential social engagement
initiatives will not only enhance students understanding of CSR (Chapter 10 and its
embeddedness in informal institutions of a society (Chapter 3), but also of headquarter and
subsidiary relationships (Chapter 15) because the actors in the case are mostly representing
Shanghai-based subsidiaries of firms headquartered in Germany.
Assignment Questions:
1. What are the social responsibilities of foreign-owned firms in a host society?
2. Is the creation of vocational training institutions a CSR activity or ‘just’ good human
resource management practice?
3. How can smaller companies with limited financial resources demonstrate their social
and environmental values abroad?
4. What sort of initiatives could mid-sized companies fruitfully take together?
5. The GCC was considering creating an award to recognize outstanding initiatives by
German firms in China. How would you design such an award?
Teaching Ideas:
The class may start with discussion of the meaning of social responsibility in the context of a
Complementary Resources:
The More Than A Market initiative of the GCC developed its own website, which has videos
of best practice examples of what German firms do in terms of social engagement in China.
http://www.morethanamarket.cn/
Also see on youtube: https://www.youtube.com/watch?v=Mu2E7Ke6qJA
10
Case Title: Tackling Corrupt Practices: GSK in China
Case Summary:
The Integrative Case “Tackling Corrupt Practices: GSK in China” brings together the
themes of corruption (Chapter 3), social responsibility in foreign countries (Chapter 10) and
headquarter-subsidiary relationships (Chapter 15). GSK has globally announced high
standards of social responsibility, but appears to have failed to implement these policies in
China. This resulted in one of the largest scandals involving a foreign MNE in China in
recent years. The case details the complex demands on the pharmaceutical sector in China
that create strong incentives to be inventive in ‘cutting corners’.
Assignment Questions:
1. What institutions impact on the sales of pharmaceuticals in China, and why does it
seem so difficult to navigate them?
2. As a board member of the global GSK, how do you prevent similar scandals
happening in the future?
3. As CEO of the Chinese subsidiary of a competing European pharmaceuticals
enterprise, how would you lead the company’s growth in China?
4. As representative of the British Chamber of Commerce (or as Commercial Attaché of
the British Embassy), how would you advise the Chinese authorities? Or would you
stay silent?
5. As a middle-aged doctor in a Chinese hospital, how do you cope with the changes
around you?
Teaching Ideas:
The class first needs to extract from the case the challenges created by the institutional
Headquarters
Local
Grow market share
Earn good margins
Financial incentives
Obey corporate ethics code
Penalties if discovered
REILLY
Doctors: expect ‘benefits’
Sales folks: expect bonuses
Hospitals: expect ‘benefits’, make money
from pharm sales
Government/party: drive out corruption;
control costs of public health care
11
Case Title: Fan Milk in West Africa
Case Summary:
The integrative case “Fan Milk in West Africa” has been designed to discuss different stages
of entrepreneurial growth (Chapters 11, 12, 14): from an entrepreneurial start-up by a Danish
entrepreneur to a regional multinational expanding to Nigeria and other West African
countries, and eventually to a subsidiary of French MNE Danone who acquired Fan Milk. It
can also be used in conjunction with the rising emerging economies theme (Chapter 1).
Assignment Questions:
1. How has a Danish entrepreneur been able to build a successful business in Africa?
2. How did Fan Milk as a Ghanaian business manage the challenges of expanding to
other African countries?
3. How should Fan Milk respond to ongoing changes in retail channels and consumer
demand?
4. How would you recommend Danone manages its newly acquired business Fan Milk?
Teaching Ideas:
I have recently used this case in the first session of my International Business class because it
takes most student by surprise, and broadens their horizon, by inducing them to view
1960s
1980s/1990s
2015
→
IB
phenomenon
Immigrant Entrepreneur
Growing SME
Subsidiary of a Global
Multinational
Markets
Ghana
West Africa
All of Africa?
Opportunities
Access to supplies (milk
powder etc.)
Access to Finance (IFU)
Growing markets with
similar demands &
similar infrastructure
challenge
Operational synergies
across products and
locations
Challenges
Politics and legal issues
of a newly independent
nation
Understanding Ghana
culture
Frozen milk not a
traditional product
Building distribution
networks
Regulatory differences
and bureaucracy
Consumer demand
differences
Contracting and
monitoring agents
Language differences
Coordination
Local global trade-offs
HQ subsidiary relationships
12
Case Title: ESET: From Living Room to Global Player in Anti-virus Software
Case Summary:
The Integrative Case “ESET: From Living Room to Global Player in Anti-virus
Software” focuses on entrepreneurial growth in the internet age, with a focus on the early
stages (Chapter 11). It thus in particular allows to explore to what extend traditional barriers
to internationalization still apply, and to discuss of the internationalization process model is
still suitable to explain business growth in the 21st century. It also facilitates discussion of the
specific challenges faced by entrepreneurs in Central and Eastern Europe, and how they are
impacted by EU membership (Chapter 8).
Assignment Questions:
1. How did entrepreneurs in Slovakia create a leading global player in the antivirus
software industry?
2. From a resource-based view, what are ESET’s sources of competitive advantage?
3. From an institution-based view, country-of-origin images reflect the view and
perceptions of (potential) customers regarding the rules of the game in the country of
origin. How does this affect companies in Central and Eastern Europe?
4. What can companies do to address negative country-of-origin perceptions?
Teaching Ideas:
13
Case Title: McDonald’s Reinvents itself in India
Case Summary:
The Integrative Case ‘McDonald’s Reinvents itself in India’ has been written to discuss two
fundamental challenges of foreign market entry: (1) how to adapt products and processes to a
local contexts, and (2) how to manage a partnership with a local firm or entrepreneur. The
case illustrates many good practices regarding adaptation, perhaps surprising given
McDonald’s image of a global brand.
However, it also highlights problems McDonald’s experienced in the relationship with one of
its local joint venture partners, a conflict that is still ongoing, and among other highlights
challenges of contract enforcement in a ‘weak’ institutional context. The case discussion thus
requires integrating learning from entry strategy (Chapters 11 and 12) with operational
strategy in logistics and marketing (Chapter 17).
Assignment Questions:
1. Do you think McDonald’s entry strategy was appropriate for the Indian market?
2. What have been key success factors for growing the McDonald’s business in India?
3. What are the probable causes for the conflict with their co-owner, Vikram Bakshi?
4. How could the conflict with Vikram Bakshi best be resolved?
Teaching Ideas:
In teaching this case, I tend to quickly go over the many things McDonald’s did to adapt to
India, while emphasizing the long preparation McDonald’s took before opening its first
The causes of the conflict were initially unsatisfactory partner performance (not detailed in
the case as it is not clear from public sources) probably including less innovation and or
What lessons can we learn from this experience? Issues include challenges of legal
14
Case Title: Beko Washes Clothes Across Europe
Case Summary:
The Integrative Case ‘Beko Washes Clothes Across Europe’ discusses the international
growth strategy of the Turkish washing machine brand Beko. It covers initial entry strategies
(Chapter 12), development of the brands and its distribution channels (Chapter 17), mergers
and acquisitions (Chapter 14) and eventually coordination of dispersed units across Europe
(Chapter 15).
Assignment Questions:
1. From an institution-based view, how did the institutional environment of Turkey (also
see Chapter 2) influence the growth strategy of Beko?
2. From a resource-based view, what capabilities did Arçelik have to develop to build
market share for Beko in different countries of Europe?
3. How would you suggest developing Beko’s European operations further?
Teaching Ideas:
Assign the Opening Case of Chapter 2 along with the Beko case to provide information on
the economic and institutional context of Turkey. A critical aspect here is the EU Turkey
15
Case Title: SG Group: Managing European Acquisitions
Case Summary:
The integrative case “SG Group Manages European Acquisitions” focuses on the challenges
of post-acquisition integration for an emerging economy MNE. It explores in particular
challenges of cross-cultural management (Chapter 3) in the context of global strategies and
mergers and acquisitions (Chapter 14 and 15).
Assignment Questions:
1. From an institution-based view, what were the key challenges that SG Group
experienced in integrating its European operations?
2. From a resource-based view, what capabilities did SG Group have to develop to (1)
compete with Japanese manufacturers in China and (2) supply the European
automotive industry?
3. How should SG Group manage its European operations after the two new
acquisitions?
Teaching Ideas:
Start by analysing the resources and capabilities of the SG group and its German acquisition
16
Case Title: Just Another Move to China?
Case Summary:
The Integrative Case ‘Just Another Move to China?’ has been written to discuss the
challenges faced by expatriates and their families as they cope with unfamiliar environments,
and have to make decisions over their international careers (Chapter 16). It also allows to
further deepen the discussion on how and why differences in formal and informal institutions
(Chapters 2 and 3) matter for international business.
Assignment Questions:
1. In what ways does the MacDougall family represent a rare and valuable resource to a
multinational firm?
2. Reflecting on Lisa’s dual-career trailing spouse journey, how would you have
approached the situation differently?
3. Although not discussed, what impact do you think international mobility has had on
the MacDougalls’ marriage?
Teaching Ideas:
Ask students to describe how they envisage their family life to look like when they are in
