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This case serves as a foundation for student discussion of the estimation of required rates of return (ROR) on investments in emerging markets. An associate in J.P. Morgan's Latin America M&A department (mergers and acquisitions) is assigned the task of valuing the telephone directory operations (“paginas amarelas” means “yellow pages”) of a large Brazilian conglomerate. All cash flows have been converted to U.S. dollars, and present values computed for various discount rates. The remaining step is to determine the appropriate target rate of returns for dollar flows originating in Argentina, Brazil, and Chile. The capital asset pricing model (CAPM) is used along with a political risk premium and country beta. The necessary figure work is comparatively light, leaving the student time to reflect on the need for various adjustments in estimating crossborder rates of return.

California telecommunications company Wireworld is considering an acquisition of Nusantara Communications, a subsidiary of Indonesian conglomerate Bakrie & Brothers. Nusantara had invested $50 million in developing the advanced rural telephone system, which had the potential to provide much-needed telecommunications services to the mostly rural Indonesian population. If if were exported, the worldwide market for this product in the next five years was projected to be in the billions. Should Wireworld acquire this small company halfway around the world? Was it prepared to enter the Indonesian marketplace and beyond?

Students will examine a variety of data, including financial projections, in order to decide whether acquiring Nusantara will add value to Wireworld.

Set in September 1992, this exercise provides teams of students the opportunity to negotiate terms of a merger between AT&T and McCaw Cellular. AT&T, one of the largest U.S. corporations, was the dominant competitor in long-distance telephone communications in the United States. McCaw was the largest competitor in the rapidly growing cellular-telephone communications industry. Prior to the negotiations, AT&T had no position in cellular communications. This case and its companion (F-1143) are designed to allow students to be assigned roles to play. The case may pursue some or all of the following teaching objectives: exercising valuation skills, practicing strategic analysis, exercising bargaining skills, and illustrating practical aspects of mergers and acquisitions.

The spin-off of Iridium, a global telecommunications system, represented a significant business risk for Motorola, as many talented Motorola executives joined the venture in the late 1990s. This bold technology gamble suffered from numerous marketing missteps, which led to Iridium's bankruptcy in August 1999.

This case describes the evolution of an entrepreneur's venture-capital fund-raising from seed-stage financing through later-round efforts. The case focuses on where the “action” is in venture finance: the exploitation of social capital by an entrepreneur and investors. Much of the teaching materials on venture finance focus on the economics of financing; while these materials provide useful information about the mechanics of valuation and how to structure venture-capital agreements, they miss the social side of venture-capital investing. The case illustrates the theoretical concept that social capital (i.e., a person's relationship to other people in society) influences venture finance. The case can be used in a class on entrepreneurship or venture finance.

Marketing.

The primary target for this case study is marketing and communications undergraduate students, especially those from emerging countries; the secondary target is MBA students studying principles of marketing, integrated marketing communications.

Turkey probably faced the most severe economic crisis after the Second World War in February 21, 2001, when the Turkish Lira was devalued by 94 percent against US dollar just overnight. Against this volatile business environment, Bank Z as one of the major banks in Turkey, was preparing for the launch of a major new marketing and communication plan. In April 2000 Bank Z had set itself the target of “changing the banking concept in Turkey, accomplishing no other bank was able to realize”. So Bank Z was ready to communicate its new consumer banking products when the country started to face rough times. Especially financial institutions and banks were encountering serious trust issues. Bank Z on the other hand, had grouped its products according to their line of financial expertise in five groups with the aim of having specialized personnel in these different areas, serving clients in the best possible way. Furthermore, the bank was aiming to realize 80 percent of its transactions via telephone and internet banking. Therefore, Bank Z had undertaken major technological investments in order to be able to deliver these services. But under these volatile economic conditions, should they go ahead with the campaign? Or should they postpone the campaign? Or should they realize it with a reduced frequency and budget? What if they postpone and one of the competitors start a new advertising campaign with similar propositions? The case tries to answer these critical questions with the help of market data, showing the likely course of business decisions can take in an emerging country just under 24 hours.

There are two main outcomes: first, to show the importance of consistent, continuous and sustainable communication for brand's marketing activities, especially during times of economic instability. The second outcome is to simulate difficulties of decision making under highly volatile market conditions and in high-risk environments, especially when the business environments can change abruptly.

Teaching notes are available.

Most business contracts are meant to be in writing, on standard terms. However, with the facilities of communications, businesspersons will talk business on the phone. With this, contentions will arise, whether they were only negotiating or had gone the distance and made a contract. If they have contracted, what are the terms of the contract? The case explores the judgement of the United Kingdom Supreme Court judgement, Wells v Devani, which is on the theme of oral contracts.

Enterprise, Strategy

This case study documents the history of e-commerce adoption and usage in a fabric and garment manufacturing firm operating in an African country. Lessons drawn from the case could be applied to understanding the achievement of e-commerce benefits through the complex interrelationships between firm-level, national and global resources.

The case study presents a summary of e-commerce capabilities in the firm, the key resources developed and actions taken to deploy e-commerce capabilities and the notable benefits obtained through these e-commerce capabilities. The study shows that, first, the ability to access information and communication technology (ICT) infrastructure matters in developing countries, but managerial capabilities matter more. Managerial capabilities enable firms to find external resources (both in-country and globally) to substitute for internal resource deficiencies. Second, intangible social resources – trust, reputation and credibility – play a critical role in determining whether the e-commerce strategies of firms are successful or not.

An understanding of how managerial capabilities influence the creation of e-commerce capabilities and the achievement of e-commerce benefits, especially in an African or Ghanaian context. Learners can also draw lessons that could be applicable to understanding how a firm's strategic orientation, resource portfolio and the nature of its target market differentiate the extent of integration or adoption and usage of e-commerce in the firm.

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

In February 1994, the senior management team at Continental Cablevision received the final joint-venture agreement from Fintelco, a potential partner in Argentina. The tasks for the student are to review the terms of the agreement, the outlook for the Argentine economy, and the corporate cultures at both companies to decide whether Continental should sign the agreement.

Winner of the 2014 EFMD competition for best African Business case.

In the 1990s, two entrepreneurs made daring, early entries into mobile telecommunications in Sub-Saharan Africa, both seeing great market opportunities there. One firm, Adesemi, would ultimately go bankrupt. The other firm, Celtel, would ultimately succeed and make its founder, Mo Ibrahim, a star of the global business community. Why the difference in outcome? Emerging markets often present weak rule of law, bringing many challenges to business success—from the demand for bribes to regulatory obstacles, hold-up problems, and even civil war. This case explores strategies that can limit these critical non-market risks in foreign direct investment and entrepreneurship. Students will step into the shoes of both companies by exploring their entry strategies, wrestling with the challenges they faced, and diagnosing the reasons why a shared insight about a new business opportunity turned out to be prescient—and led to extremely different endpoints.

• Identify key challenges to successful entrepreneurship in emerging markets

• Evaluate government officials or competitors that might trigger regulatory obstacles or hold-up problems

• Evaluate potential allies that can help avoid these problems

• Assess strategies to avoid paying bribes

• Understand the importance of incentive alignment in directing investment success, even in the face of difficult challenges

• Identify and appraise the strategic value of partnerships with development agencie

Identify key challenges to successful entrepreneurship in emerging markets

Evaluate government officials or competitors that might trigger regulatory obstacles or hold-up problems

Evaluate potential allies that can help avoid these problems

Assess strategies to avoid paying bribes

Understand the importance of incentive alignment in directing investment success, even in the face of difficult challenges

Identify and appraise the strategic value of partnerships with development agencie