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Discusses the restructuring of the food production, processing and retailing sectors in the USA. Describes different methods of vertical and horizontal integration that have occurred. Goes on to discuss the consolidation of business in retailing in particular. Refers to the relationships that are being formed between the supermarket chains, for example Wal‐Mart and Kroger, and dominant food‐chain clusters. Considers whether or not smaller retail chains and wholesalers should feel threatened by this consolidation. Takes the dairy sector in the USA as a case study in the restructuring of the retailing and processing sectors.

Marketing boards are an integral part of the farm economy in Canada. Their purposes have been debated for decades but seldom from a marketing perspective. Such an approach makes for an interesting way to study them. The purpose of this paper is to assess the pros and cons of marketing boards, suggesting how they can be made more responsive to market forces.

The paper positions the need for Canada to bring agricultural market reforms. The wave toward freer access to world markets makes the study of supply management that more interesting and relevant in the twenty‐first century. A brief history of marketing boards is presented, followed by a discussion of their economic, social and constitutional impacts on Canadian society. Dairy supply management issues are discussed because they serve as the basis for comparative analysis, given that dairy trade liberation has been the most successful. The impact of marketing boards on consumers is well documented.

The research points out that marketing boards lack managerial savvy to make them more efficient and responsive to market changes. Logistical and supply chain management approaches seem to be lacking. A failure to respond to markets has resulted in lost market opportunities, both domestically and abroad. The quota values, the legal and constitutional powers of Canadian marketing boards and the interprovincial trade barriers, among other issues, have stifled entrepreneurship and innovation, all with rising prices to consumers. Trade liberation will not be easy to implement even if it is urgently needed.

Some of the suggested market reforms presented in the paper are bound to have repercussions not only on farmers and their current ways of doing business but on Canadian society as well.

Few studies on marketing boards have been done from a marketing perspective rather than an agricultural economic one. It is the most current review of Canadian marketing boards. Marketing studies are needed to know more about how such boards are managed and function. They need to be more accountable. The recommended managerial studies on boards make the paper unique. While trade liberation is highly recommended for milk and dairy boards to meet world pressure, the paper does not call for their elimination.

This book is the result of a selection of papers presented in the seminar held in Beijing in 2012. It is the third in chronological order of a seminar series on the comparative analysis of rural development in China, Brazil, and the EU. In previous seminars (2010 in Rome, 2011 in Porto Alegre) the focus was, first, on the nature and dynamics of rural development processes and, second, on the performance of rural development policies. In the third seminar (held in Beijing in November 2012), the focus was on actors and practices. What motivates the actors who are actively involved in rural development? And how do they structure their new practices? In this chapter, different stories on rural development practices between China, Brazil, and the EU are illustrated, highlighting the differences and also commonalities and similarities. In this story, the figure of the peasant appears crucial and in different dimensions: from the manager of natural resources who takes the greatest care of their condition in order to achieve the largest profits; to the innovator who builds on age old methods to find novel solutions with the available conditions, resources, and technologies, and who creates the right synergies for harmonious and positive impact solutions; to the rural villager who does with what he/she has and knows, but who at the same time is curious about innovations; to the father who is aware that he is responsible for building a future for his children. Peasant agriculture seems to go beyond its own limits through a transition process that has led to a paradigm shift moving away from the modernization and creating new opportunities and alternatives in terms of practices, products, and markets. These alternatives are now representing the base for a new autonomy and competitiveness of rural areas in an increasingly globalized world.

This paper studies how Chinese consumers respond to foreign goods in the post‐WTO era. Specifically, it examines brand sensitivity as a mediator and product cues as moderator of purchase intention. Additionally, it examines consumer preferences for different products and consumption plans for the subsequent five years. The survey sample is drawn from a population of foreign product users from 34 cities in 18 provinces in China. Results provide evidence that brand sensitivity mediates the relationship between consumer ethnocentrism and purchase intention; product cues moderate the effect of ethnocentrism on purchase intention. As the first study to link consumer ethnocentrism directly to brand sensitivity and purchase intention, this research provides some managerial implications. Global marketers can offset the negative effect of ethnocentrism by emphasizing brand image of its products, taking advantage of specific product cues, or by providing more comprehensive after‐sale service to reduce the perceived risk of purchasing imports. Also, price is still a hurdle that prevents Chinese consumers from mass consumption of foreign products. Global firms should not overestimate the purchasing power of Chinese consumers. This study represents a “snapshot” of Chinese consumers’ decision making at a time when their economic system is undergoing rapid change.

A series of CEO shake‐ups, re‐stated earnings and rising numbers of so‐called “trust violations” have all recently drawn attention to the ugly side of the business world which – when it surfaces – often has far‐reaching implications for those caught up in the wake. For while few businesses intentionally set out to operate unethically, the recent state of affairs in the USA in particular has raised searching questions about the fundamentals of corporate conduct.

The purpose of this paper is to discuss Centrolac, a Nicaraguan company engaged in processing ultra-pasteurized milk, and provides abundant information for readers to decide on vertical vs horizontal integration to deal with the changing competitive environment. It has been prepared to simplify discussion and knowledge about the competitive field (where to compete); generic cost-leadership and high-perceived-value strategies (how to compete); and the action required to attain positioning (how to implement it).

The case study is based on primary research conducted in conjunction with the company, including interviews with senior management and a broad document review. Secondary research was also conducted into the relevant environmental, industry and competitor trends and characteristics.

The case study presents topics of competitive positioning and how current company strategy can have a significant impact on future growth decisions.

This case study is for use in an MBA-level business strategy course with a focus on strategic positioning and growth paths. However, it can also be used for MBA corporate strategy courses in relation to corporate expansion on issues linked to organic growth within the same business (expansion into new dairy products) or vertical integration (integration into dairy-farming).

Este estudio de caso analiza Centrolac, una empresa nicaragüense dedicada al procesamiento de leche UHT, y proporciona abundante información para que los lectores decidan entre la integración vertical y horizontal para hacer frente al cambiante entorno competitivo. Ha sido elaborado para facilitar la discusión y el conocimiento sobre el campo competitivo (¿dónde compito?); estrategias genéricas de liderazgo en costos y alto valor percibido (¿cómo compito?); y la acción necesaria para alcanzar el posicionamiento (¿cómo lo implemento?).

El estudio de caso se basa en investigación primaria realizada en conjunto con la empresa, incluyendo entrevistas con la alta dirección y una amplia revisión de los documentos. También se llevó a cabo investigación segundaria sobre las tendencias y características relevantes del entorno, industria y competencia.

El estudio de caso presenta temas de posicionamiento competitivo y cómo la estrategia actual de la empresa puede tener un impacto significativo en las futuras decisiones de crecimiento.

Este estudio de caso fue escrito para ser usado en un curso de Estrategia Empresarial a nivel de MBA con un enfoque en posicionamiento estratégico y rutas de crecimiento. Sin embargo, también puede ser utilizado para un curso de MBA en Estrategia Corporativa en relación con la expansión corporativa en temas vinculados con el crecimiento orgánico dentro del mismo negocio (expansión en nuevos productos lácteos) o la integración vertical (integración en la producción lechera).

In the 1990s and beginning of the next decade, a series of financial accounting scandals occurred in the United States (USA or US) and in several other countries of the world. The USA and Italy (among others) responded with legislation to reform financial reporting and corporate governance in these jurisdictions. This paper aims to compare the regulatory response of Italy to that of the USA.

This paper includes a review of relevant literature and evaluation of the actions of the regulatory authorities.

In the case of the financial reporting crises, the rapid response put the USA into the role of the “first mover” with the European Union (EU) reacting to US initiatives and eventually converging to a large degree with the provisions of the US legislation. Italy has adopted many of the same regulatory reforms as the USA and has added some reforms that are directed to the specific needs to Italy.

In conjunction with legislative initiatives like Sarbanes-Oxley, private enforcement mechanisms, such as shareholder class action suits in the USA, play an important role in discouraging and punishing financial accounting fraud.

In the absence of significant reforms of the Italian private enforcement system, corporate governance abuses and the potential for accounting scandals may still be persistent. As a whole, cooperative efforts continue between the USA and the EU. Such efforts are needed more and more, as companies become increasingly globalized.

This paper provides comparison and evaluation of corporate governance reform efforts in the USA and Italy.

The purpose of this research is to understand how accounting information mobilises stakeholder salience at an industry level.

A case study method using an explanation building approach was applied to gather information surrounding dairy industry stakeholder uses of accounting information to communicate their salience, in the historical context, leading to, and the events surrounding the milk price “war” in Australia. The Mitchell et al. (1997) stakeholder salience framework was used to advance our understanding of the different ways accounting can be mobilized by stakeholders with different types of salience attributes, at an industry level.

This empirical analysis produces two insights into the relation between accounting and stakeholder salience. First, there is evidence as to how accounting information impacted on stakeholder salience at an industry level by demonstrating how accounting information (in)directly communicated and justified the increase of a stakeholder’s level of salience. Second, the Mitchell et al. (1997) model is extended by attributing levels of importance to each stakeholder attribute. It was found that, in this setting, power was the most salient attribute of the three, usurping legitimacy and urgency, leading to the outcomes observed.

This paper acknowledged the usual method limitations related to this style of qualitative research, including investigator bias and lack of statistical generalization. In addition, a second set of limitations critiques the paper’s operating framework. While the Mitchell et al. (1997) stakeholder salience model proved to be a suitable choice for this research, it is limited in the way in which stakeholder attributes are presented and used to identify stakeholders. In addition, further light may be provided on the distinctions between the different magnitudes of power, legitimacy and urgency between stakeholders after suggesting that they are not equally weighted.

The milk price “war” remains a high-profile discussion amongst the general public. This research contributes to a better understanding of how different players (stakeholders) have their salience claims mobilized through accounting information. Practitioners in the dairy industry might reflect on the findings to enhance their legitimacy pursuits in future negotiations with their counter-parties, and better deploy accounting to achieve the same.

The findings speak more broadly to notions of social equity in stakeholder relations, for the production and distribution of a product that is ubiquitously used in society (dairy – milk). The findings from this study therefore have potential to assist policymakers better understand the strategies adopted by stakeholders to impose their influence and defend their claims in a public forum, using accounting information.

The authors contend that the article provides evidence at an industry level, that is lacking in extant management accounting research (Collier, 2000). To this extent, an original contribution is claimed. The paper is also valuable to management accounting and management researchers studying stakeholder salience, and is one of the first to investigate this issue at an industry level, as well as express how accounting mobilises this salience.