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The learning outcomes after reading and analysing this case study are dealing with the challenges of family business; learning the importance of succession planning; accepting the next generation and the role of the first generation; and understanding the decision-making skills and roles of the generations in family business.

Khushboo Pouch and Packaging was the first-generation initiative of Mr Bhavesh Udeshi. Mitesh Udeshi, son of Bhavesh Udeshi and the business’s sole successor, joined the firm in 2019 after graduating with a Master of Business Administration degree. Mitesh had desired to join his family firm since he was a teenager and aid the business with emerging business ideas. As a fresher, he applied his newly acquired theories to the company’s operations. He initiated several changes in the company; however, his actions were ineffective. He introduced modifications to the business premises, production units, marketing tactics, accounting department and product line extension for two years. Mitesh had intended to restructure his traditional firm in rational and innovative ways, but none of his plans had come to fruition. He failed because the firm’s change management was confronted with denial, rage, bargaining and melancholy from both his father and the employees. Amidst non-acceptance and inconsistency, he found himself in a quandary. He had two options: remain in the family firm and persevere in making his ambitions a reality or resign, find a job and embark on a new path. Unfortunately, leaving would indicate surrendering defeat after a two-year struggle.

Programmes: Master of Business Administration (MBA), Bachelor of Business Administration (BBA) programmes, MBA in Entrepreneurship and small businesses, and Post graduate diploma in management (PGDM).

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

After completion of the case study, the students will be able to understand the importance of being culturally savvy when working in a culturally diverse environment and managing people from different cultures; critically reflect on the risks resulting from the absence of a clear direction from the company’s top management regarding unifying corporate values and a diversity policy for cooperation across cultures; be aware of best practices in implementing diversity management (DM) initiatives in the company; and learn that changes in the strategic orientation (i.e. focus on automation projects) must be cascaded down to hard elements of structures, processes and systems, as well as to soft elements of skills, staff and management style.

The Kuwaiti branch of a Japanese corporation specialising in control systems and instruments, Rising Sun IT, hired a German professional, Alex, to handle the increasing demand for automation from customers. This recruitment followed several unsuccessful attempts by the company to deliver more advanced automation solutions. Recognising the need to adapt to Kuwaiti customer requirements or risk losing market share, Japanese management understood the importance of transforming their engineering staff. Failure to achieve this next automation step would result in a steady decline in market share and ultimately impact the company’s survival. However, Alex, who was supposed to lead automation projects, was confronted with opposition from the Indian engineering staff and managers. He was not able to find common ground with the staff and perceived issues such as lack of communication, delays in work schedules, missed deadlines and high levels of absenteeism, as a sign of low work morale. Although he tried to increase the awareness of his supervisor and other managers by informing them repeatedly about the problems regarding employee behaviours, his interventions went unheard. He felt ousted by his fellow colleagues and the other employees. Besides, from Alex’s point of view, the Japanese top management did not provide clear directions to the staff and explicit support to Alex in his efforts. This case study highlights three dimensions of Alex’s problem with establishing and maintaining working relationships with other people in the company:▪ Alex’s cultural “blindness” and ignorance of differences in work behaviours that ultimately led to his inability to build solid and trustful relationships with other employees. The case study demonstrates Germany’s performance-oriented and individual-centric culture versus India’s family- and community-oriented culture and the Japanese employees’ strongly hierarchical and company loyalty-oriented culture.▪ Lack of support from the Japanese top management to Alex, which is connected with a wider problem of the lack of a systematic strategic approach to managing a culturally diverse workforce. The case study pinpoints the rhetoric–reality gap in DM in the company, where the diversity, equity and inclusion programme and corporate values were applied only formally and had little attention from the leaders as well as non-managerial employees.▪ Employee resistance to change: The lack of positive communication from the top management level in the company regarding automation projects and the lack of support for Alex’s mission in the company resulted in steady resistance to executing projects, which endangered the company’s survival in the market. Also, one part of Alex’s problem with building a working relationship with the Indian engineering staff was based on the fact that others perceived him as the automation “change agent” – an advocate and catalyst of an undesirable change connected with adverse consequences on employment in the Indian community.

This case is intended for discussion in undergraduate management and business study programmes.

Teaching notes are available for educators only.

CSS 6: Human resource management.

Most talented executives can recognize when an acquisition has strategic or financial benefits, and in this case, the decision to be acquired was an appropriate exit strategy for a successful start-up. Peter Street’s start-up had been growing quickly and was building a reputation for reliability in a booming industry when a Japanese firm offered to pay a premium for the U.S. firm. Having done business in Japan (and extensively with the acquiring company) before the sale of his company, Street entered the acquisition with enthusiasm. As part of the deal, Street’s former company would continue to operate in the United States as a division of its parent company and Street would remain as CEO. A few months into the transition, however, Street discovered a huge difference between working with and working for the Japanese firm. Cultural norms for confronting seemingly small problems quickly became bigger operational issues, and Street experienced a growing dichotomy between corporate (in Japan) and his division (in the United States). This case focuses on the challenges of implementing a cross-border acquisition.

Manufacturing, Western management theories and Japanese management practices.

This case can be used in project management or management-related courses at tertiary institutions at Undergraduate and Postgraduate level.

This case provides students with an opportunity to find out what make Toyota so successful in manufacturing through its famous production system as well as the underlying Toyota Way principles. All students are expected to understand the Toyota Way model with a balanced view that goes beyond a set of lean tools such as just-in-time. This case opens a historical account for the Toyota Way model by connecting with possible Western management theories and Japanese management practices.

It is expected to significantly benefit students with industry experience with the intention of initiating appropriate changes in their own industry and/or organization by applying what they have learnt from the Toyota Way, through bridging with Western management theories.

Teaching notes.

Organizational behavior, human resources, culture, international business, international entrepreneurship and emerging market studies.

MBA and MSc students (and some advanced-level undergraduates) in an MBA module being taught face-to-face in an emerging market context. MBA courses such as managing cultural diversity, cross-cultural management, organizational behavior, human resource management, international business and business in emerging markets. The exercise is also relevant to teaching the subject of assignment- and dissertation-writing, given the element of data collection and analysis.

This exercise is designed to be an MBA class exercise in which students try to answer the question: what are the national cultural characteristics of the typical executive or manager in my country? Are these behaviors as the textbooks describe, or have they changed, especially with economic development?

The example of country chosen for the class exercise can be any emerging market country, especially one undergoing significant change. Much of the research on cross-cultural management conducted in emerging markets was carried out 20 or 30 years ago and the changes in emerging markets have been dramatic since then. It is highly likely, when reaching the results of this exercise, that the culture of the chosen country has indeed changed dramatically, becoming more like a typical developed or “emerged” country. Much of the original cross-cultural management research was also based on a similar group – employees of US-based high technology companies, arguably similar to the sample to be involved in our exercise here.

National cultural characteristics can be described and defined in ways which will allow for comparisons, to gain useful insights – and these behaviors are not good or bad, just real and different.

Cultures can change or stay the same, due to certain demographic, economic and social influences, which we can study and measure.

If we proactively interview colleagues and other contacts to test our understanding of these national culture constructs, we can gain more insights and awareness (rather than just listening to a lecture).

Teaching notes, student assignment.

Leadership, change management, knowledge transfer, quality, car manufacture, organisational culture, staff training and development.

This case study is intended for undergraduate courses on principles of management, cross-cultural management and organisational behaviour; postgraduate and MBA courses as above in addition to leadership studies and change management courses.

Globalisation inevitably led to attempts to transfer know-how and expertise to markets in different locations and cultures, where the particular organisation is willing to begin to operate. Hence, the need for understanding the conditions for successful knowledge transfer is especially important. The globalisation process in the Eastern bloc, which began in 1990, is a good example of knowledge transfer where the mutual meaning creation played a crucial role. This case study illustrates the process of international knowledge transfer between Western Europe and an emerging economy using the example of DAK Corporation and quality transfer to Poland. The case is especially useful for undergraduate and postgraduate students, including MBA students, studying general management as well as more specialised courses stemming from international management, for example, cross-cultural management and organisational behaviour. Since the material focuses on people management and development as well as organisational culture creation, current and future practitioners from the human resources department will find it particularly useful. Students considering a career in a multinational company can also use this case in their preparation for the challenges of operating in a global business environment.

These include: understanding of the process of international and cross-cultural knowledge transfer; identification of key cultural and organisational factors contributing to the success of international knowledge transfer; understanding of the organisational culture creation process; and exploration of the process of new staff development and training.

Teaching notes are available.

The case “Corporate Governance Failure at Ricoh India: Rebuilding Lost Trust” discusses the series of events post disclosure of falsification of the accounts and violation of accounting principles, leading to a loss of INR 11.23bn for the company, eroding over 75 per cent of its market cap (Financial Express, 2016). The case provides an opportunity for students to understand the key components of corporate governance structure and consequences of poor corporate governance. The case highlights the responsibility of the board of directors, audit committee and external auditors and discusses the changes required in the corporate governance structure necessary to ensure that such incidents do not take place. The case also delves into the classic dilemma of degree of control that needs to be exercised by the parent over its subsidiaries and freedom of independence given to the subsidiary board, which is a constant challenge all multinationals face. Such a dilemma often leads to the challenge of creating appropriate corporate governance structures for numerous subsidiaries.

The case is intended for MBA courses on corporate governance, business ethics and also for the strategic management courses in the context of multinational corporations. The case can be used to develop an understanding of the essential of corporate governance with special focus on the role of the board of directors, audit committee and external auditors. The case highlights the consequences and cost of poor corporate governance. The case can also be used for highlighting governance challenges in the parent subsidiary relationship for multinational corporations. The case can be used for executive training purposes on corporate governance and leadership with special focus on business ethics.

This case presents the challenges faced by the newly appointed Chairman Noboru Akahane of Ricoh India. In July 2016, Ricoh India, the Indian arm of Japanese firm Ricoh, admitted that the company’s accounts had been falsified and accounting principles violated, leading to a loss of INR 11.23 bn for the financial year 2016. The minority shareholders were agitating against the board of directors of Ricoh India and were also holding the parent company responsible for not safeguarding their interest. Over a period of 18 months, Ricoh India had been in the eye of a storm that involved delayed reporting of financials, auditor red flags regarding accounting irregularities, a forensic audit, suspension of top officials and a police complaint lodged by Ricoh India against its own officials. Akahane needed to ensure continuity of Ricoh India’s business and also act quickly and decisively to manage the crisis and ensure that these incidents did not recur in the future.

The case provides an opportunity for students to understand the key components of corporate governance structure and consequences of poor corporate governance. More specifically, the case addresses the following objectives: provide an overview of corporate governance structure; highlight the role of board of directors, audit committee and external auditors; appreciate the rationale behind mandatory auditor rotation; appreciate the consequences of poor corporate structure; explore the interrelationship between sustainability reporting and transparency in financial disclosures of a corporation; understand management and governance of subsidiaries by multinational companies; and understand the response to a crisis situation.

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 11: Strategy.

Strategy.

The case is suitable for upper level undergraduate business and MBA students.

FOTILE, one of the fam ily businesses in Zhejiang, Ch ina, has now become the leading brand in the Ch ina kitchen appliance industry and has successfully entered into the global market. It has gone from a traditional family business in the 1980s to a modern enterprise because of the successful transformation from the first generation (Father: Lixiang Mao) to the second generation (Son: Zhongqun Mao) and the blending of a family business with the modern enterprise system. They both have strong beliefs that family businesses have their own advantages, but they have different ways and strategies of running the business. The case describes the process of how the father and his son worked together designing the strategies to successfully grow FOTILE.

The case is a vehicle for exploring strategies to operate a family business, to successfully develop a sustainability model, to manage a growing company through its entrepreneurial stage, and to merge western business culture with Chinese Confucian culture. It should help students to: explore strategies of managing/leading a family business and transferring successfully the business from one generation to the next; understand the importance of marketing, focusing on overall strategy and sustainability; know how to identify market opportunities, exhibit start-up intent, perform start-up planning, mission development, and feasibility analysis, and acquiring initial resources; and appreciate the close link between culture and strategy.

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

International business or International marketing.

The case is recommended for undergraduate and graduate courses in the fields of international business and international marketing. The aim is to show students the problems that a family business in the animation industry faces while growing and internationalizing. Specifically, the case discusses the entry mode selection and market selection challenges faced by an emerging market company in the comic book and animation industry to operate overseas and compete with entertainment giants such as Disney and DC Comics. The case enables the instructor to discuss international market selection theories and evaluate entry modes. For graduate students, the international market selection can be further developed by using more robust concepts such as psychic and cultural distance.

This case examines the trajectory of a pioneering company in the comic book and animation industries, and in the licensing of trademarks in Brazil. Mauricio de Sousa Productions was founded in 1959 and is considered to be one of the most successful cultural producers in the country. According to a leading Brazilian public opinion research agency, 97 per cent of Brazilian children and 96 per cent of their parents are familiar with the Monica and Friends characters. As one of the main players in the publishing market, with 86 per cent of market share, Mauricio de Sousa Productions has a product portfolio that goes beyond Monica and Friends comic strips: the company’s show on the Cartoon Network ranks third in audience viewing in the country and the company has produced animated movies, books, shows and games. However, despite its experience in publishing comic books in several countries, Mauricio de Sousa Productions (MSP)’s worldwide operations have not been as profitable and sustainable as expected. Aiming at expanding its global presence, MSP’s top management decided in 2014 to review the company’s internationalization strategy and operations to enhance the firm’s performance.

The case highlights the key factors facing firms when expanding from an emerging markets. Students are expected to discuss and evaluate options, thus developing their knowledge and decision processes related to family-owned business challenges and opportunities, international market selection theories and international market entry mode. Developing strategies to face challenges as those presented by competitors such as Disney should bring opportunities to students to think outside models and weigh risks. Finally, the case gives students opportunity to base their decision processes and evaluations on logistics problems as well as psychic and cultural distances. It also compels the students to appreciate the various challenges involved in exploiting international market with animation content and intellectual properties as a service.

Company presentation to use in the discussion introduction can be found in: www.monicaandfriends.com/content/video.php

CSS 5: International business.

An instructor could link the case to lean production principles and Kurt Lewin’s change management model, key reading materials on these theories are, namely,  Lewin, K (1947) Frontiers in group dynamics: concept, method and reality in social science; equilibrium and social change. Human Relations 1(1): 5–41  Stewart, J. (2012). The Toyota Kaizen continuum: a practical guide to implementing lean. Boca Raton, FL: CRC Press. Wickramasinghe, V. and Wickramasinghe, G. L. D. (2020). Effects of human resource management practices, lean production practices and lean duration on performance. The International Journal of Human Resource Management, 31(11), 1467–1512.

This case was developed from both primary and secondary sources. The primary source included three face to face meetings with Mr CK in University Putra Malaysia (two meetings) and WSAE factory (Rawang, Malaysia – one meeting), respectively. Interviewed three workers at Rawang factory. The secondary source was taken from the company website and company reports.

Dr Wan, the Chief Executive Officer of WSA Engineering Sdn Bhd (WSAE) accepted the invitation from Small Medium Industries Development Corporation to participate in a Malaysian-Japanese Industry Cooperation program that focused on Lean Production System (LPS). Dr Wan was worried about Malaysia’s culture incompatible with Japanese-originated LPS. The case shares how the organization and behavioral change took place, for LPS buy-in. Successes and challenges WSAE faced in the 10-year journey of implementing LPS were elaborated.

This case was written for use in an operations management course, on the topic of lean production. It can also be used as a training material targeting the operation managers of a manufacturing company aiming to implement lean production or any change management process.