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The subject area is international business and strategy. The case allows scope for the following areas: internationalisation, market strategy, emerging market multinational companies, and doing business in Africa.

The primary target audience for this teaching case is postgraduate business students such as Master of Business Administration (MBA), or postgraduate management programmes. The case is primarily designed for use in courses that cover strategy or international business.

This case centres on the international growth strategy of FMBcapital Holdings Group (FMB), the Malawian commercial banking firm. The case finds the founder and current group chairman, Hitesh Anadkat, in 2016, as he and the FMB board are about to decide on the next move in their Southern African strategy. Since opening the first FMB branch in Malawi and becoming the country's first commercial banker in 1995, Anadkat and his team have ridden a wave of financial deregulation across the region to successfully expand into neighbouring Botswana, Zambia, and Mozambique. Now, an opportunity to gain a foothold in Zimbabwe means the leaders must decide (1) whether they want to continue to grow the FMB footprint across the region, or focus on their integration and expansion efforts within existing markets; and (2) how they will realise this strategy.

International expansion – identifying the need to expand into new markets; identifying the combination of internal strengths and external conditions that make international expansion viable; and identifying and analysing each possible new market(s) and the decision-making process involved.

Political, social and economic factors in Africa – understanding how these external institutional factors present constraints, risks and opportunities for internationalisation and hence shape strategy; understanding that these factors may vary significantly across countries on the continent (in spite of their geographic proximity) and in some cases, within a single country; and understanding that by selecting markets with extreme socially and politically volatile contexts, the risk of a worst-case scenario transpiring (in which institutional forces trump business strategy) is appreciable.

Combination of resource- and institutional-based approaches – recognising that successful internationalisation requires capitalising upon both internal resources and institutional mastery.

Choosing expansion strategies – assessing the type of new market entry (e.g. greenfield or acquisition of existing operations) and its adequacy for penetrating a new market.

Using networks and local partners – to substitute and enhance the benefits that originally flow from a small (and sometime family-established) business, with an emphasis on acquisition of skills and networks in foreign countries.

Regional integration – optimising business operations through a sharing or pooling of resources and improved capital flow between subsidiaries, in some instances by taking advantage of economies of scale (this extends to enhancing the reputation and awareness of a brand across a wider region).

Family businesses – identifying the value that can be gained through establishing a family business with the support of many “close” stakeholders while also noting the limitation that exist as expansion and growth is required.

The case study aims to provide students with an understanding of the challenges businesses face expanding into the home market after having an international presence through exports. It also throws light on operations in an emerging market economy – both rural and urban. The key objectives are to understand the leather footwear business operation in India, understand the challenges of expanding business in India, analyse strategies adopted to sustain and compete in India and identify the possible distribution strategies for the leather footwear business in India.

The case study focuses on Tata International Limited’s (TIL) leather and leather products business in India. The leather and leather products division was present in India since 1973 (Anand, 2020) and exported to more than 35 countries across the world (Anand, 2020). TIL did not want to miss the opportunity available in India and planned to expand its leather footwear business in the country. The company opened retail outlets in major Indian cities and an experience store in Dewas (Madhya Pradesh) in 2019. It aimed for a domestic presence along with the existing export business. However, the biggest challenge that was in front of V. Muthukumaran, head of leather products division at TIL, was how to go ahead with the idea of domestic expansion (Anand, 2020). Should the company expand the market through sister companies (Westside and Tata CliQ) in India? How and in what way should TIL plan for going through Westside and Tata CLiQ? Should Muthukumaran think of either the brick-and-mortar route or the online route or both?

This case study is designed for use in undergraduate and graduate early-stage programmes. This case study is primarily designed for use in Master of Business Administration and/or Bachelor of Business Administration programmes. The case study is ideal for courses on understanding the expansion in the domestic market, strategy, retail and international marketing. The teaching note discusses theoretical frameworks such as external environment analysis and SWOT analysis to devise distribution strategies. The case study mapped the distribution channel and decision alternatives for the company.

Teaching notes are available for educators only.

CSS 8: Marketing.

After completion of the case study, students will be able to: 1. understand the basis for developing global supply chains for exploring international markets, 2. identify the various sources of geopolitical risk while expanding globally, 3. assess the market entry or exit decisions from a principled and commercial perspective and 4. identify and weigh different options when faced with an exit situation under conditions of geopolitical risk.

The Japanese fast fashion brand Uniqlo opened 45 stores in Russia as a part of its international retail expansion strategy. The brand provided affordable fashion for everyone. However, the Russia–Ukraine armed conflict had put the company in a dilemma. The Japanese Government and the public joined the broader global community in condemning Russia’s armed intervention in Ukraine. These countries also imposed economic sanctions on Russia, resulting in many multinational companies winding up their operations in Russia. Uniqlo faced a market exit dilemma. Russia had the largest number of Uniqlo stores in Europe. The company CEO also highlighted the necessity of meeting the clothing needs of the Russian people. However, people in Japan and elsewhere considered Russia as an aggressor nation. Any economic link with the Russian market would be ethically wrong, and consumers in Japan, the USA and the European Union might see this as support for Russia’s war efforts. The company had to choose between continuing operations in Russia or exiting the Russian market.

This case study can be used in basic marketing management and international business courses to discuss the market attractiveness and risk aspects for market entry or exit decisions. It can also be used in advanced courses such as strategic management, global strategy and global political economy, highlighting the impact of geopolitical conflicts on business operations.

Teaching notes are available for educators only.

CSS 11: Strategy.

International business, Accounting and Finance.

Undergraduate and Postgraduate levels (advanced financial accounting, international accounting, other accounting and business courses with an international setting.

The case uses the Asia Pulp & Paper Company’s (APP) entry into the international debt market to highlight the consequences of different business practices between the East (in this case, Indonesia) and the West. On the one hand, it shows that APP was set up as the “front” to access international debt capital; on the other, it reveals the naïvety of Western lenders who parted with their funds without conducting a thorough background research on the financial viability of the company they invested in. The APP debacle is a poignant reminder for market participants and business/accounting students that the divergence of the business settings across countries can make business contractual arrangements tenuous and corporate financial information irrelevant to its users. It also exposes the unique ways of how some Asian countries conduct their business affairs.

The following are the expected learning outcomes: comprehend the impact of differences in culture and ethnic origin on business practices; evaluate the impact of cultural nuances on the legality of contracts in the international business setting; understand the impact of currency fluctuation on the financial position of multinational firms; and be more cautious in conducting business and entering into contracts with foreign firms.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CCS 1: Accounting and Finance.

The main pedagogical objectives of the case are: illustrate how Latin American companies dedicated to the production and harvesting of commodities can be vertically integrated to gain a larger share of the value created throughout the production chain. Understand how futures and options contracts in commodities can be used to hedge price risk on long and short positions in the underlying products. Understand how option contracts add value by hedging risk in those contexts where the counterparty has optionality. Discuss the implications of Fair Trade for commodity traders and producers.

In the case, Hernan Arosamena, CFO of The Specialty Coffee Trading Co. (TSCT), faces the challenge of designing an effective strategy to hedge the price risk caused by the increasing demand of the so-called Fair Trade coffee. Hernan Arosamena decides to review how the company has typically managed the price risk in its business transactions using future contracts to then incorporate the additional elements that trading Fair Trade coffee may entail. The typical price risk hedging strategy involves the use of coffee future contracts in long and short positions to ensure that the company obtains the desired margin in its coffee trading negotiations. To hedge the exposure to the risk of fluctuations in the price of coffee when the company sells Fair Trade coffee requires the additional use of put options.

The case is appropriate for students enrolled in courses or specialization programs at both the undergraduate and graduate levels.

Teaching notes are available for educators only.

CSS 5: International Business.

The study enables students to critique the internationalisation strategy of an African business including elements of macroeconomic analysis, company fit with jurisdictions, non-market strategies and mode of entry.

Roland van Wijnen was the chief executive officer of Pretoria Portland Cement Company Limited (PPC), a 130-year-old cement maker based in South Africa. He joined after the business had embarked on an international expansion strategy that had taken the business to countries of Rwanda, the Democratic Republic of the Congo and Ethiopia in a matter of years. This expansion caused the deflation of the Johannesburg-listed company’s share price. The company failed to appreciate a number of success factors in each jurisdiction. The challenges included cultural misalignments, macroeconomic analysis and mode of market entry. The case dilemma involved the choices that van Wijnen faced in re-evaluating the international footprint of the business.

Undergraduate or postgraduate level.

Teaching notes are available for educators only.

CSS 5: International business.

Marketing in an emerging market.

The case is aimed at MBA students in a marketing strategy class on marketing at the bottom of the pyramid or on branding.

A young brand manager faced the challenge to increase drastically a brand market share to 8 per cent in 2015 in a context of a new emerging market with large number of consumers living with no more than US$1.25 a day.

Expected learning outcomes are as follows: to familiarize students with emerging markets characteristics; to illustrate the challenges of marketing a brand to local consumers with limited financial resources to craft a marketing strategy for Pepsodent with a clear positioning, allowing the Pepsodent brand to differentiate itself and to leverage its brand equity; and to develop a marketing-mix aligned with the brand positioning.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

International business.

Bachelor level.

This case study simulates a real life management decision. It explores the planning, organizing and controlling challenges associated with developing an internationalization strategy. Top managers planning to expand “internationally” contemplate about potential international markets should understand the risks and opportunities they present and how best to deal with them. Often organizational design is neglected prior to embarking on internationalization strategy. The case provides contrasting perspectives and entry options, to highlight the importance of an in-depth evaluation of alternatives.

Analyze and evaluate the strengths and weaknesses of business prior to exploiting international opportunities. Discuss key success factors, each of which has a different degree of importance in formulating a domestic and multinational business strategy. Understand economic, social, cultural, and political risks, and how a company can use of market research to identify and manage such risks. Formulate an internationalization strategy based on the evaluation of the costs and control provided by different international entry options.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Specific teaching and learning objectives include to identify factors influencing market expansion decisions and recommend appropriate entry modes, understand factors in the international business environment that contribute to success or failure of international businesses in developing countries, evaluate strategies enabling international businesses to sustain market presence in developing countries and overcome local competition, analyze the concept of local responsiveness in international business operations and suggest strategies for internationalizing domestic companies from developing countries.

The McDonald’s case examines the challenges associated with market expansion by global brands. The case occurs during the early-globalization era in the 1990s. Barbados, a developing country, is the site for potential expansion. Prospective investors, the Winters, are desirous of establishing a McDonald’s in Barbados. They need to thoroughly analyze the previous experience of McDonald’s against the host country’s current international business environment, e.g. political, economic, cultural and competitive environment. This case analysis provides a framework for understanding the multifaceted reasons behind McDonald’s exit from Barbados, considering the complex interplay of political, economic, sociocultural, technological and legal factors in the international business environment. The case equips the instructor and students to explore the risks of international expansion, particularly in developing country markets. The case study on McDonald’s failure in Barbados highlights the need to thoroughly examine one’s market entry strategy and available information on the host market and be more locally responsive regarding tastes and preferences. The case study also presents essential lessons for firms and planners from developing countries. Local firms innovated and enhanced their operations in response to the threat from the entry of the global fast-food giant. Yet, they did not seek to internationalize once McDonald’s exited the Barbadian market. The case study, therefore, considers strategies firms from developing countries could utilize to penetrate markets from developed countries.

At the undergraduate level, the McDonald’s Barbados case can be used in international business classes to highlight risks in the international business environment and the need for a carefully planned and executed market entry strategy.

Teaching notes are available for educators only.

CSS5: International Business.

Business environment, international business management.

The case is suitable for students of the business environment, and of international business management.

The case revolves around the reaction of the Finance Ministry of India on Vodafone's tax case and its implications on FDI and the foreign investors who are investing in India. The core issue is the political risk(s) faced by Vodafone even after having won the tax case in the Supreme Court, the highest judiciary body in India. The Government of India has amended the law to bring the tax into retrospective mode and it signifies the impact of political decisions on business organizations.

The case can aid in understanding the effects of changes in a political system and legal framework on the efficacy of business entities; and the importance of, and intricacies involved in, the formulation of political risk mitigating strategies while entering into new markets. The key learning outcomes are: understanding various types of political risks faced by multinationals; assessing the political risks involved in foreign investments; and appreciating the possible mitigating strategies to handle such risks.

Teaching notes are available, please consult your librarian for access.