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Subject area
Marketing.
Study level/applicability
This case can be used in an international marketing course or module, at executive or MBA level, and is particularly suitable as a case on global branding.
Case overview
MTN was launched in 1994 as a leading provider of communication services, offering cellular network access and business solutions. After building up a successful operation in South Africa, achieving a market share of some 38 per cent (second only to Vodacom, the dominant mobile telecommunications provider), the group began its expansion into the rest of Africa in 1998. It was the first South African cell phone network operator to do so. The objective of this expansion was, despite the uncertain political and regulatory environment, to take advantage of the market opportunities in Africa, given its underdeveloped telecommunications infrastructure and the transferability of MTN's skills into other African countries. At the time of the case (June 2005), MTN had established itself in eight different African countries, with a subscriber base of 14.3 million in South Africa and 2.9 million in the rest of Africa, with plans for further growth in the territory and elsewhere. As a result of this international expansion, a major challenge was to ensure consistent branding in the different countries.
Expected learning outcomes
The expected learning outcomes are: to explore the challenges of international expansion into new markets; to understand global brand building strategies, how to create a consistent identity and how to build a services brand; to understand the challenges of implementing a marketing change strategy across different countries with different cultures and with employees with different agendas and to highlight the importance of people in providing a service and in delivering the brand promise.
Supplementary materials
Teaching note.
Details
Keywords
John Luiz, Amanda Bowen and Claire Beswick
Sustainable development; business, government, and society.
Abstract
Subject area
Sustainable development; business, government, and society.
Study level/applicability
The case is designed to be taught to students at MBA and MA level.
Case overview
In February 2009, Justin Smith, manager of the good business journey at Woolworths, a leading South African department store, was a worried man. Woolworths had launched its five-year sustainability strategy just under two years before. After undertaking an impact assessment, Smith was concerned that the original targets – which covered transformation, social development, the environment and climate change – had been set without a clear understanding of exactly what it would take to achieve them. Woolworths had recently identified ten key risk areas that impacted on the achievement of its original goals. If the sustainability goals were not reached, Woolworths could lose credibility among its shareholders, staff, and consumers. What did Woolworths need to do to ensure that it achieved its sustainability goals? And had the company been too ambitious in the targets it had set initially, he wondered?
Expected learning outcomes
To examine the differences, if any, between sustainable development in South Africa and other developing nations and sustainable development in developed nations; to impart an understanding of sustainability in its broadest sense; to investigate the challenges in implementing sustainability strategies in business; to look at ways of measuring the success of sustainability strategies; and to explore whether and how sustainability strategies should differ across industry sectors and across companies.
Supplementary materials
Teaching notes.
Details
Keywords
Alexander St Leger Moss, John Luiz and Boyd Sarah
The subject area is international business and strategy. The case allows scope for the following areas: internationalisation, market strategy, emerging market multinational…
Abstract
Subject area of the teaching case
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.
Student level
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.
Brief overview of the teaching case
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.
Expected learning outcomes
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.
Details
Keywords
Juliana Binhote, Valéria Moreira de Pinho, Júlia Gouveia de Melo do Rego Monteiro and Victor M. C. Almeida
Appendixes for the case study, teaching notes with figures and suggested chart plan schema.
Abstract
Supplementary materials
Appendixes for the case study, teaching notes with figures and suggested chart plan schema.
Learning outcomes
Students are expected to learn the use of networks for market growth; types of network connections; and ways to achieve international expansion through networks’ relations.
Case overview/synopsis
This teaching case describes the internationalization of an emerging country artist, the Brazilian singer Anitta, who seeks to expand her audience in foreign markets, while dealing with maintaining the public in her home country.
Complexity academic level
Recommended to International Business disciplines in specialization courses.
Subject code
CSS 5: International Business.
Details
Keywords
Leandro A. Guissoni, Paul W. Farris, Ailawadi Kusum and Murillo Boccia
Faced with declining market share and sales, Natura, Brazil’s second-largest brand in the cosmetics, fragrances, and toiletries market, expanded its customer reach by moving from…
Abstract
Faced with declining market share and sales, Natura, Brazil’s second-largest brand in the cosmetics, fragrances, and toiletries market, expanded its customer reach by moving from a direct-sales company to a multichannel company. In 2014, Natura added online catalogs, physical stores, and drugstores to its well-established direct-selling model, but the results were disappointing. Between 2014 and 2016, three different Natura CEOs attempted to lead the company in the strategic transition to focus less on the direct sales consultants and more on reaching the end consumers directly with multiple channels and touchpoints. In October 2016, the company’s board appointed its former commercial vice president, João Paulo Ferreira, as the most recent CEO. Ferreira’s challenge was to find the right balance between the direct-selling and other channel formats to market Natura, thus enabling it to thrive in the face of intense competition in the beauty and personal care market in Brazil.