Nanyang Case

The Nanyang Case Collection(including cases from the IMARC Case Series and

The Asian Case Collection)

Housing cases from the following subjects:

Strategy & Organisation Human Resource ManagementStrategy & Organisation Human Resource ManagementAccounting International BusinessAccounting International BusinessBusiness Communication Infocomm / IT & E-commerceBusiness Communication Infocomm / IT & E-commerceEconomics Management of Technology & InnovationEconomics Management of Technology & InnovationEntrepreneurship MarketingEntrepreneurship MarketingFinance Productions & Operations ManagementFinance Productions & Operations Management

NOTE: For a more detailed look at our cases, please visit http://www.asiacase.com/nanyangCase.html. For cases in our IMARC case series and Asian Case Collection, please visit http://www.asiacase.com/nanyangCase-imarc.html and http://www.asiacase.com/asianCase.html respectively. Last updated on 3 February 2012

2Strategy & Organisation

*New* Singapore Chinese Orchestra (A): Building a Sustainable 21st Century Arts EnterpriseBy Wee Beng Geok & Yvonne Chong

Publication reference no: ABCC-2011-004AIssues: Managing an arts enterprise; Strategy planning and implementation; Board-management roles in a non-profit; Artistic enterprise business models; Stakeholders management

Abstract:Singapore Chinese Orchestra (SCO) was one of three flagship arts companies under the governments Renaissance City Plan to develop a dynamic global city for the arts. To achieve its mission to be a world renowned orchestra and longer-term goal of building a sustainable arts enterprise, SCOs executive team initiated a strategic planning process and set about implementing its plans which included: programming that reflected the orchestras core artistic values, audience development, talent acquisition and development, and corporate partnerships.

*New* NanoBright Technologies, Singapore: Transition into a Commercial Venture By Olaf Rieck & D G Allampalli

Publication reference no: ABCC-2011-003Issues: Technology commercialisation; Product-market evaluation; Securing commercial orders for new technology-based products

Abstract:The case study on NanoBright documents the technology development and commercialisation process with limited capital grant or investment. Although the young technology firm successfully developed the nano-fluorescent materials (NFM) technology and a number of new products such as solar film, spray, paints and ink, it had to grapple with the delay in licensing the new NFM technology and the unpredictability of the process of securing commercially viable orders based on it, and manage its tight cash-flow situation of technology startup.

*New* The Society for the Physically Disabled: Managing Mission and Vision in a Non-Profi t Organisation Adaptation in Dynamic EnvironmentsBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2011-002Issues: External environment of non-profit organisations: Resources, stakeholders and institutional fields; Impact of environmental changes on social enterprise operations; Managing mission, strategy and change.

Abstract:The case is about the impact of the external environment on the operations of a non-profit organisation Society for the Physically Disabled (SPD). The sustainability of its social enterprise operations in such a context is also examined. It describes how the charity managed the continuous adaptation in the implementation of programmes to meet the changing needs of beneficiaries and other stakeholders. A Disability Employment Network launched at a national level would require the charity to further fine-tune the founders mission of providing employment to people with physical disabilities in Singapore.

The Demerger of Six Continents PLC(A)By Siriwan Chutikamoltham & Yvonne Chong

Publication reference no: ABCC-2010-006AIssues: M&As; Strategic issues of a demerger; Benefits and costs of a demerger; Challenges of raising capital during market turmoilTeaching Note Available

Abstract:Top hospitality group Six Continents announced in 2002 the separation of its hotels and pubs business, to be renamed InterContinental Hotels Group (IHG) and Mitchells & Butlers. Set against a backdrop of intense M&A activity in the industry and the aftermath of the September 11 US terrorist attacks, the case provides an opportunity to debate the business and financial strategic issues of a demerger.


Wilmar International Limited: Managing Growth and Sustainability in a Global Agribusiness GroupBy Wee Beng Geok , Geraldine Chen & Ivy Buche

Publication reference no: ABCC-2010-004Issues: Global agribusiness and sustainable growth;

Stakeholder management; Environmental NGOs

Background Note Available Teaching Note Available

Abstract:Wilmar International, the third-largest listed oil palm plantation company in the world, operated across the entire value chain, from plantations to processing, merchandising and distribution. In 2010, Wilmar embarked on two strategic initiatives acquisition of Sucrogen, Australias largest sugar company and expansion into sub-Saharan Africa. As the global demand for palm oil grew, environmental groups were concerned about the adverse impacts on the environment. The challenge for Wilmar was to manage the new initiatives in view of the environmentalists demands for more sustainable operations.

HCA Hospice Care Services (A): Balancing Growth and SustainabilityBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2010-003AIssues: Sustainable growth of a non-profit

organisation; Scaling up a charity to meet growth in demand for palliative care services; Healthcare professionals - attraction and retention.

Teaching Note Available

Abstract:HCA Hospice Care (HCA) was the largest home-based hospice care provider in Singapore. The charity managed a successful turnaround from three years of operating deficits (2001-2003) to surpluses in the years that followed. As the general population grew older, demand for hospice home care services was expected to grow over and above HCAs operating capacity. At the beginning of 2010, HCAs leaders were at a crossroad as the charity faced several resource constraints to growth. Firstly, the challenge was to raise sufficient financial resources to expand capacity. Secondly, an adequate pool of competent palliative professionals, were required to deliver the home-based hospice services. Finally, HCA needed ready managerial talent if operations were scaled up.

Tata Consultancy Services: Sustaining Growth Momentum in China 2010By Wee Beng Geok, A. Lee Gilbert & Ivy Buche

Publication reference no: ABCC-2010-002Issues: Service delivery framework; Near market

strategy; Talent acquisition and development in China

Teaching note Available

Abstract:In 2002, Tata Consultancy Services (TCS) set up operations in China. The aim was to grow the China operations to become TCS second global delivery centre after India, functioning as its offshore IT outsourcing hub for the Asia Pacific region. Chinas growing domestic software market presented an attractive opportunity. In 2007, the company set a target to increase its China-based manpower strength from 800 to 6,000 by 2011. However, the tight supply of IT talent in China was a major challenge and in early 2010, TCS manpower strength reached 1,100. The company set a new target to quadruple manpower strength to 5,000 by 2014. What steps should TCS take to tap the rising demand for outsourcing services while tackling the problems of achieving service excellence in execution in a resource-tight situation?

Hyfl ux Limited and Water Sustainability Treading Blue OceansBy Wee Beng Geok and Ivy Buche with Mark Kroll and Timothy Chua

Publication reference no: ABCC-2009-003Issues: Capability building, business development,

strategic growth in new markets, entrepreneurship.

Teaching Note Available

Abstract:Entrepreneur Olivia Lum, set up Hyflux Ltd in 1989 as a trading company, distributing water treatment equipment. By 2009, the company became one of Asias leading water treatment companies providing integrated solutions mainly for the municipal and industrial sectors. Despite the 2008 global recession, Hyfluxs municipal business remained strong as the company succeeded in securing high value projects in new markets. The challenge was to grow its organisational capabilities to compete as a global water treatment player.


National Kidney Foundation of Singapore (A) Anatomy of a CrisisBy Wee Beng Geok & Yvonne Chong

Publication reference no: ABCC-2009-002AIssues: Fund-raising strategies and the values

embedded in charitable giving; governance of charities and the VWO leadership; the board-CEO partnership; the roles and responsibilities of crisis leadership; and crisis management crisis communications and management of stakeholders and other actors in the external environment.

Abstract:This case study is about the National Kidney Foundation of Singapore (NKF), a major voluntary welfare organisation (VWO) and examines the issues leading to a leadership crisis in the organisation in 2005. It explores the initiatives taken by its CEO to build the NKF brand and reach from 1992 to 2005. It examines the impact of NKFs innovative fund-raising model and strategies on the organisation and its external environment, pre-crisis relationships and post-crisis responses, and actions taken by key stakeholders in managing the leadership crisis.

National Kidney Foundation of Singapore(B) Leadership and ChangeBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2009-002BIssues: Leadership of VWOs; leading and managing

change in organisations; VWO leaders as change agents managing multiple stakeholders interests.

Abstract:This case is about the pre and post-crisis leadership at a voluntary welfare organisation (VWO), the National Kidney Foundation of Singapore (NKF), tracing its growth into one of the largest charities in Singapore and the impact of this on its leadership and stakeholders. It examines the issues of change management at the VWO as its leaders take action amidst an increasingly complex and changing external environment. The case also explores the challenges confronting the post-crisis leadership team in managing change inside the VWO after the exit of a charismatic leader, while taking action to meet the change expectations of external stakeholders.

Tata Consultancy Services of India (B): Building an Offshore IT Software Outsourcing Hub in ChinaBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2008-004BIssues: Building competitive advantage through

people, Talent acquisition in a new market.Teaching Note available

Abstract:In 2006, TCS articulated its near market strategy and announced a new service delivery model - Global Network Delivery Model (GNDMTM), underlining the global scale of its business operations. In 2002, TCS established operations in China, following multinational clients who were setting up large scale operations there. By February 2007, TCS China employed nearly 800 IT consultants and served more than 25 clients in the Asia Pacific region. TCS goal was to build the China operations into the companys second global delivery centre after India. To give the initiative a kick start, it had to increase its workforce strength in China to 6,000 by 2010/11. In April 2008, TCS China faced major challenges in talent acquisition and development. What should the company do to meet its manpower target in China for 2010/11?

Sri Lankas Aitken Spence Hotel Holdings: Competitive Strategy and Sustainable Tourism (A)By Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2008-007AIssues: Sustainable tourism, Brand equity, Managing

hotels in a war-torn context.

Abstract:Aitken Spence Hotel Holdings PLC (ASHH), a leading Sri Lanka hotel group was well known for the iconic resorts, including Heritance Kandalama, a resort which had won many international awards for its ecological and environmental practices. At the end of 2008, the groups key strategic overseas thrusts were: (a) Expanding the groups premium Heritance brand of hotel properties in India and Oman and (b) Growth through hotel management contracts in India and the Middle East. A key challenge was to successfully and profitably export its Heritance brand without diluting the current brand equity. Could the hotel groups sustainable development philosophy be successfully deployed overseas? What were the challenges and how could they be overcome?


Sustainable Tourism: Heritance Kandalama Resort of Sri Lanka (B)By Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2008-007BIssues: Sustainable tourism in an Asian context,

Organisational culture, HR practices and the service delivery model.

Teaching Note available

Abstract:In 1992, when ASHH announced its intentions to build a tourist resort, Heritance Kandalama, in Sri Lankas Cultural Triangle, the local communities and environmentalists were apprehensive. In response, ASHH embarked on sustained environmental, social and community development programmes. This case examines (a) the environment management and social and community development programmes at Heritance Kandalama (b) the emergence of an organisational culture among employees anchored on sustainable development (c) HR practices that engendered and reinforced employees commitment to implement sustainable tourism practices and strong employee support for the customer service delivery model.

Developing Sustainable Fertilization: Is NFL Ready for the Challenge?By Ritu Narang

From the Asian Case Collection Publication reference no: ABCC-2008-003Issues: Challenges of promoting balanced

agricultural fertilization in India. Addressing the needs of a huge market with an incomplete product portfolio.


Abstract:The case is based on a public sector undertaking, National Fertilizers Limited (NFL), Indias second largest producer of nitrogenous fertilizers. Indiscriminate usage of fertilizers by farmers had caused nutrient depletion in the soil leading to decreased yields. Mr. Subodh Gawande, Dy GM was confronted with the challenge of promoting balanced fertilization among farmers. Gawande was constrained by NFLs incomplete product portfolio but also had to address the needs of a huge potential market. He drafted a two-pronged proposal to handle this scenario. As decisions were taken very slowly in public sector undertakings, would NFL be able to respond quickly to meet the current challenges?

Indias Insurance Industry: Liberalization, Deregulation and Private Sector OpportunitiesBy Ashish Lall & Shirley Koh

Publication reference no: ABCC-2008-002Issues: Liberalization of Indian insurance industry.

Abstract:Since 1999, Indias insurance industry had been undergoing transformation brought about by liberalization and detariffication. Liberalization had opened the former government-operated insurance industry to private competition and foreign minority ownership. Macroeconomic factors especially high GDP growth rates were fostering growth in the industry. While the incumbent insurers still dominated the market, private insurers were meeting the competition with new products and distribution channels in the brave new world of post-detariffication.

A Tale of Two Shipyards Strategies for Competing on the EdgeBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2007-002Issues: The strategic challenge of change, Strategies

for survival/performance in dynamic environments, Innovation and adaptation

Case Supplement available

Abstract:In 2006, Keppel Offshore & Marine and SembCorp Marine, two Singapore-based marine engineering groups, were leaders in the global market for the construction of offshore drilling platforms and vessels. The last four decades had been characterised by high velocity and unpredictable changes. The ongoing challenge was to stay flexible, continually adapting their strategies and reinventing themselves to manage the disruptive changes in the business environment. However as more international competitiors moved in to carve their share of the offshore construction market, the race was on as to whether the two could hold on to their leadership positions.


DBS Bank Ship Financing Challenges in AsiaBy Wee Beng Geok, Thomas Gleave & Ivy Buche

Publication reference no: ABCC-2006-003Issues: Organizational design, Strategy

implementation, Knowledge networks, Managing complexity, Organigraphs


Abstract:The move from being a Singapore-centric bank to one anchored in Asia, saw DBS extending its presence in Asian markets and increasing the depth and breadth of its services across the region. The success of the banks strategic thrust into Asias ship financing market would depend on its ability to build a portfolio of shipping clients by leveraging on the knowledge networks and other invisible links across the extended group. The case focuses on the issues of organisational design, its impact on strategy implementation and developing knowledge networks in geographically distributed organisations, especially in the highly specialized and competitive business of ship financing.

HTL International: Manufacturing for DesignBy Wee Beng Geok, Ivy Buche & Seow Jia Min

Publication reference no: ABCC-2006-002Issues: Design as an integral part of business

strategy, Strategic Alliances, Vertical Integration, B2B Business Model

Chinese translation available

Abstract:The case traces the evolution of a Singapore-based leather sofa manufacturer, HTL International Holdings Ltd, from an Original Equipment Manufacturer (OEM) for global furniture wholesalers and retailers to become one of the largest Original Design Manufacturer (ODM) in Asia. The companys concept of Manufacture for Design was the central attribute of their B2B business model. Design featured strongly in terms of the strategic choices made by the company with regard to: the alliances formed with international players, their value chain model, the key markets they served and building core competence within the company. In 2005, the key challenge facing Y T Phua, the co-founder and Group Managing Director, was to find a niche between low-cost manufacturers and the high-end design furniture players and to build a unique HTL identity in leather sofa design.

Kaiten Sushi (Thailand) Company Limited: Battling for GrowthBy Chan Teng Heng & D. G. Allampalli

Publication reference no: ABCC-2005-019Issues: Marketing and sales management, financing

growth and business strategyIndustry Note availabe

Abstract:In 2000, Kaiten Sushi (Thailand) Company Limited (KST) opened its first franchised sushi restaurant in Bangkok. The company opened three more outlets in the next four years so as to enjoy economies of scale. While the outlets initially attracted large crowds, customer arrivals and sales declined with time. Price discounts, loyalty programmes, new menu items and joint promotions with shopping malls were some of the measures that were introduced to sustain customer arrivals, albeit with limited success. In the first 10 months of 2004, the chains daily sales declined from a range of 10 to 47 percent and its operations suffered losses. BL Van, director of KST had to decide how he could boost customer arrivals and turn around the chains operations.

JTJB Advocates and Solicitors: Growing the International Client Base through Competitive PositioningBy Wee Beng Geok & Shirley Tan

Publication reference no: ABCC-2005-001Issues: Expanding client base, Strategy

Abstract:In 2000, Joseph Tan Jude Benny (JTJB), a law practice in Singapore, had opened its first overseas office in Greece. It was the first Singapore law practice as well as the first Asian law firm to set up an office in the ancient port city of Piraeus. At that time, Jude Benny, a senior partner, knew very few people in the shipping community in Greece. He remembered making the rounds and knocking on the doors of Greek shipowners, many of whom were unaware of the law firm from Singapore. Four years on, he and his collegues could count many Greek shipowners as friends or close associates. Since then, the firm handled a steady flow of legal work from Greek clients.


IMC Pan Asia Alliance Building Strategic Resilience Through Organisational TransformationBy Wee Beng Geok, Chung Chee Kit & Yang Lishan

Publication reference no: ABCC-2005-006Issues: Organisational/cultural change, strategic

resilience

Abstract:In late 2004, managers from the Asian shipping group, IMC Pan Asia Alliance (Pte.) Ltd., had just completed a four-day management retreat. Forty managers from various divisions of the Group had huddled together at a training facility in a university campus at the western end of Singapore, far from IMCs corporate office in the city centre. The four-day session was to discuss the implementation of IMCs business strategy for the coming decade, and in particular, to identify the key organisational capabilities that would be essential if the Groups new business strategy was to succeed.

Starwood Hotels & Resorts Worldwide Inc.: Asia Pacifi cBy Leong Choon Chiang & D.G. Allampalli

Publication reference no: ABCC-2004-002Issues: Merger and Acquisition in the Hotel

industry, Entrepreneurship and Strategic Planning

Teaching Note available Chinese translation available

Abstract:The case describes how Starwood Hotels and Resorts Worldwide Inc., founded in 1991, grew under the visionary leadership of Barry Sternlicht, its founder and CEO. It documents how Sternlicht acquired, financed and integrated two leading hotel brands - Westin and ITT Sheraton during 1997, to become a globally diversified leading hotel chain. However, Starwoods operations were severely impacted by the September 11 terrorist attacks and weaknesses in the global economy. When business and leisure travel in North American and European markets entered a downturn, it leaned towards Asia for future growth. However, the regions recovery prospects deteriorated further due to the 2002 Bali terrorist attacks and the 2003 Iraq war. For Miguel Ko, Starwoods newly appointed president of Asia Pacific, boosting the share of operating profit from 10 to 25 percent by 2007, was a tough challenge.

Singapore Airlines 2004 Managing Organisational Change in a Turbulent EnvironmentBy Wee Beng Geok & Shirley Koh

Publication reference no: ABCC-2004-004Issues: Managing change and high performance

work systems in a turbulent business environment

Teaching Note availableChinese translation available

Abstract:In early 2004, the emergence of low cost carriers in Asia was a threat to Singapore Airlines (SIA) proven and successful business model, based on premium fares for premium services. To maintain acceptable returns for the airlines shareholders while continuing with its well-developed and highly effective work processes and systems, the company had to make deeper cost cuts in its operations. Consequently, carefully nurtured and well-established relationships between employees and management were badly strained. The challenge for CEO Chew Choon Seng was to balance the different and sometimes conflicting needs of various stakeholders while effectively managing the imperatives of the massive changes taking place in the airline industry in Asia.

SingTel and Cable & Wireless OptusBy Andrew Inkpen & Chung Sang Pok

Publication reference no: ABCC-2004-001Issues: Merger and acquisitions, strategic fit and

rationaleChinese translation available

Abstract:With a market capitalisation of S$28.1 billion in March 2001, Singapore Telecommunications Limited (SingTel) was the largest listed company in Singapore. In late April 2001, SingtTel was finalising their position on the proposed acquisition of Cable & Wireless Optus Limited, the second-largest telecommunications company in Australia. This would help it to become the leading integrated communications service provider in the Asia Pacific region. SingTels proposed bid was expected to be approximately A$15 billion in a cash-and-share offer for a 53 percent stake in Optus. In order to convince Optus shareholders, it was essential to identify a compelling strategic rationale for the deal and the significant benefits for both SingTel and Optus.


The Port of Kaohsiung: Competing to be the Global Logistics Hub in the EastBy Chen Shao Xiang & Shirley Tan

Publication reference no: ABCC-2003-001Production & Operations ManagementIssues: Port Strategy, Strategic Analysis, Global

Logistics, Supply ChainChinese translation available

Abstract:In 2001, the port of Kaohsiung in Taiwan was the largest international harbour in the country and the fourth largest container port in the world. Huang Ching-Tern, Director of Kaohsiung Harbour Bureau, was reviewing recent events and considering some fundamental questions critical in formulating port strategies. After its ascension to WTO, the emergence of China created many strategic opportunities, as well as threats. Huang had to consider how to respond to these and what other strategies were needed to transform the port into a global logistic hub.

Telenor Asia (A): Mobile Data ServiceBy A. Lee Gilbert & D. G. Allampalli

Publication reference no: ABCC-2003-007Issues: Industry and Competitor Analysis, Business

Strategy

Abstract:Entering the Asian market in 1998, Telenor Mobile, the mobile arm of the Norwegian company, Telenor ASA, acquired controlling stakes in mobile operators in Bangladesh, Philippines, Thailand and Malaysia. It evaluated each opportunity on a stand-alone basis. The market potential for voice and data, wireless penetration and the degree of deregulation in the region differed widely. However, voice and data traffic between Singapore and Malaysia offered some common ground to harness operational synergies. Concerned about the medium-term outlook of Asia, Telenor Mobile had to review its medium-term strategy and decide on the introduction of mobile data services only in Malaysia and/or Singapore.

Knowledge Flows and the New Comprador: A Mini Case on the Pearl River DeltaBy A. Lee Gilbert

Publication reference no: ABCC-2002-003Issues: Knowledge Management, Entrepot trade

Abstract:In our post-industrial economy, effective knowledge management is viewed as a key factor for the success of individuals, firms and nations. The key insight is that stocks of knowledge, however comprehensive and specific, are quite useless unless there is a way to ensure their availability to the decision-making process. As decision-makers are rarely omniscient, this demanded a knowledge delivery system, which might take either a human or technological form. To illustrate such a system in action, this mini-case explores the evolution of knowledge flows in the late eighteenth century entrepot trade, from the perspective of Chinas Pearl River Delta region, which for many years was the economic growth engine of southern China.

The IOP Institute of Printing (Asia Pacifi c)By Wong Wai Mong

Publication reference no: ABCC-2001-008Issues: Strategic planning, Porters Five Forces,

Niche serviceTeaching Note available

Abstract:On 23 March 2001, Major (NS) Wong took over the presidency of the Institute of Printing (IOP), the professional organisation for printers and others in printing-related trades in the Asia-Pacific. He realised that the IOP was capable of increasing its contributions to the printing industry in Singapore, particularly in manpower skills development. Having identified vocational training as a niche service that the Institute could lend its leadership, Major Wong pondered over a host of other roles that the IOP could provide. He had to quickly prepare a strategic plan on the vision and the directions of the Institute before the first meeting of the new executive committee in a months time.


Singapore Airlines (A) 2001By Toh Thian Ser & D.G. Allampalli

Publication reference no: ABCC-2001-004AIssues: Corporate Strategies, Business Strategies,

Alliances, International AviationTeaching Note availableChinese translation available

Abstract:Singapore Airlines evolved from a fledgling player in the 1960s into an industry leader. In the process, SIA rewrote the rules for competition and earned accolades for its excellent aviation record, constantly modernizing its fleet of planes and a reputation for delighting customers. Bilateral air service agreements negotiated between individual nations limited the routes of a given airline and hence the airlines growth. The global airline industry had responded to this challenge with a mix of acquisitions, strategic alliances and related diversification strategies. But would these strategies be sustainable in the near future? What course of action should SIA undertake?

Singapore Airlines (B) 2001By Toh Thian Ser & D.G. Allampalli

Publication reference no: ABCC-2001-004BIssues: Business Strategies, Organizational

Development, Organizational Culture, Core Values


Abstract:Singapore Airlines achieved excellence in its service orientation, won dozens of industrial awards and accolades, and beat industry downturns thrice in the last three decades. By 2000, as international expansion and operations grew, it became necessary for SIA to define a set of core values that would apply across cultures and geographical boundaries. Described as the software of SIAs award-winning organisational culture, the case documents how core values enabled it to achieve sustainable business excellence.

NTUC Income: Managing Social Mission and Business Goals in a Market-Driven EconomyBy Wee Beng Geok, Robert Lian & Shirley Koh

Publication reference no: ABCC-2001-002Issues: Cooperatives in Singapore, Business

Strategies, Organisational Development, Financial Liberalization


Abstract:This case traces the corporate history and development of NTUC Income (INCOME), the only insurance cooperative in Singapore. Since 2001, the local insurance industry had undergone major changes in the form of new regulations following the Monetary Authority of Singapores liberalization of the financial services industry.The liberalization was also expected to attract new players to the insurance market. With new challenges posed by the liberalization, what would the future hold for INCOME? INCOME had enjoyed tremendous growth and had emerged from the Asian Crisis relatively unscathed. Could its previous success help pave the way for continued prosperity? Facing greater competition, how should INCOME continue to meet social objectives without neglecting or giving up some of its business goals?

ASM Pacifi c Technology LimitedBy Tang Hung Kei

Publication reference no: ABCC-2001-001Issues: Corporate History, Organizational

Development, Research and Development, Singapore and Hong Kong Business Environments


Abstract:The case traces the corporate history and development of ASM Pacific Technology Limited, a public-listed technology firm in Hong Kong. It was founded in 1975 as a two-man outfit that sold encapsulation equipment from the Netherlands and materials from the US. In 1998, the firm developed and mass-manufactured its own award-winning semiconductor products, and spun-off operations in China and Singapore. The case focuses on technological and organisational challenges facing the firm, the strategies that could be implemented to meet these challenges and contrasts the working styles of employees in Hong Kong and in Singapore.

10

Accounting

*New* Charities Accounting Standards 2011 Implications for Singapore Charities By Chan-Ng Ai Lin, Wee Beng Geok and Ivy BuchePublication reference no: ABCC-2011-007Issues: Accounting standards for Singapore charities

Abstract:With the issuance of the Singapore Charities Accounting Standard (CAS) on 24 June 2011, charities in Singapore that were already complying with the Singapore Financial Reporting Standards (FRS), were presented with a choice should they continue to comply with FRS or switch to CAS? On the other hand, charities that were complying with the Recommended Accounting Practice 6 (RAP6) (Revised 2006), which would be withdrawn, had to adopt a new accounting standard. Would it be FRS or CAS?

Olam International Managing Growth and Business RisksBy Foo See Liang & D. G. Allampalli

Publication reference no: ABCC-2009-001Issues: International merger and acquisitions,

leveraged financing of growth and risk management

Abstract:In 2005, Olam International Limited, a Singapore-based global agri-business trader and supply chain manager complemented its organic growth strategy with mergers and acquisitions (M&A).To build its M&A capabilities, Olam developed guidelines for its four business group heads to identify and evaluate businesses for investment, and integrate them to realise targeted synergies. Recognizing the risks of global trading operations, it built a robust risk management system (RMS). By 2008, the strategic shift in business growth had thrown up new challenges for Olam in managing its RMS and performance.

Jet Airways (India) Limited Brand Building and ValuationBy Asheq Razaur Rahman & D. G. Allampalli

Publication reference no: ABCC-2007-003Issues: Trademark and brand ownership, cross-

holding of ownership, business and brand valuation.

Teaching and Industry Note available

Abstract:In 2005, Jet Airways priced its initial public offering aggressively but investors feedback called for brand and trademark ownership, which it licensed from Jet Enterprises Limited. The carrier hoped that its Mumbai-based auditor would arrive at a formula to value the brand and trademark, and complete its transfer in six months time. However, the trademark registration in some countries hit a snag. This case study provides students with an opportunity to appreciate the business setting of an emerging market system and analyse economic, regulatory, management, marketing, financing, accounting and valuation issues, and their interrelationships affecting the case company.

Olam International Singapore Building a Risk Resilient EnterpriseBy Foo See Liang & D. G. Allampalli

Publication reference no: ABCC-2006-011Issues: Enterprise risk management, risk audit

and documentation, and management of oversight risk.

Industry Note available

Abstract:The case delineates how Olam International Limited (Olam) became a global supplier of 14 agro-products. With wholly-owned subsidiaries in 36 countries, Olam supplied agro-products from producers farm gates to factory gates of over 3,300 customers in 40 markets and achieved organic growth by seizing on adjacent business opportunities. Against the backdrop of agricultural crop seasonality, industry deregulation and cyclicality, and trade liberalisation, Olam weathered fluctuations in demand, supply and price with origination (procurement), integrated supply chain and marketing capabilities, which were supported by a risk management system. As Olam embarked on a growth-by-acquisition model, in addition to its organic growth model, the company had to reassess the need to adjust its present risk management system.

11

Accounting

United Test and Assembly Center Limited, SingaporeBy Foo See Liang & D. G. Allampalli

Publication reference no.: ABCC-2005-013Issues: Managing economic cycles, business risks

and growthIndustry Note available

Abstract:In April 2004, Lee Joon Chung (JC Lee), CEO of United Test and Assembly Center Limited, Singapore (UTAC), announced the acquisition of UltraTera Corporation (UTC), a Taiwan-based semiconductor test business. The managements valuation of UTC at US$476 million and the share swap ratio (1.6 UTAC shares for every UTC share) was based on UTCs 2004 profit estimates. Three months after the announcement, UTC issued a performance alert. By July 2004, when management of both companies agreed to revise the terms of the acquisition, the semiconductor industry had entered a downturn and Taiwanese semiconductor assembly and test services (SATS) players began to migrate to China. With UTAC operating in a highly cyclical industry, its management pondered over options to manage business risk and growth.

DMX Technologies: Assessing the Risks Amidst Rapid Expansion By Foo See Liang & Chung Sang Pok

Publication reference no.: ABCC-2003-011Issues: Risk Management, Corporate governance

Abstract:At the end of 2002, Mr Giang Phung, the Chief Executive of DMX Technologies was assessing the opportunities and the risk exposure of the company he established. Focusing on developing its proprietary e-solutions, the company was founded on the philosophy that it should be capable of selecting the best products from different vendors and integrating these into its own value-added software solutions for the benefit of its clients. Amidst all these exciting developments, Phung was concerned about the risk exposure associated with rapid regional expansion. Despite healthy revenue, the company required a substantial cash infusion to fund its R&D efforts and ambitious regional expansion plan. The proposed IPO that aimed to raise S$9.4 million which would benefit both endeavours.

12

Business Communication

*New* Singapore Chinese Orchestra (B): Developing Corporate PartnershipsBy Yang Mei Ling

Publication reference no: ABCC-2011-005BIssues: Communicating with sponsors; Cause-related marketing; Corporate sponsorship; Arts sponsorship; Fundraising by a non-profit organisation; Developing a communication plan

Abstract:The case discusses efforts by the Singapore Chinese Orchestra Company (SCO) to review its fundraising and corporate sponsorship programmes. SCOs aim was to forge more corporate partnerships by leveraging on its brand name and services to effectively support its marketing efforts. In 2010, the SCO set about to explore ways to persuade potential corporate partners to use SCO as a marketing or branding partner to reach their customers and target audience, or to boost their reputation in the community.

Flesh Imp Street Wear: Breaking New Ground in SingaporeBy Elizabeth ONeil & Irene Wong

Publication reference no.: ABCC-2003-010Issues: Corporate CommunicationsTeaching Note available

Abstract:Nicholas Cho and Vincent Quek, two young Singaporean entrepreneurs, were ready to extend their line of street wear, Flesh Imp. After two years of steadily increasing sales, the team felt the time was right to create the breakthrough retail environment that would fuse fashion, lifestyle, culture and art and bring the street movement to life. This lifestyle boutique would feature the Flesh Imp brand exclusively. The only remaining question was how to convince a group of financiers of the power of street culture, of the scale of their idea, and of the viability of their business entity, despite their youth and the trendy crowd to whom their products appeal.

InterContinental Resort BaliBy Priscilla Rogers & Gunter Dufey

From the Asian Case CollectionPublication reference no.: ABCC-2003-002Issues: Crisis ManagementTeaching Note available

Abstract:The two bomb blasts that went off in Bali in October 2002 not only had devastating effects on human lives, but also had a far-reaching impact on the tourism industry in Bali. The case focuses on the InterContinental Resorts management and the actions and decisions it made during the aftermath of the bomb blast in ensuring the safety of hotel guests and the future job security of hotel employees.

13

Business Communication

Flying Through Turbulent Times: Cathay Pacifi cBy Joan C. Henderson

Publication reference no.: ABCC-2002-010Issues: Crisis management, CommunicationTeaching Note available

Abstract:After recovering from the Asian financial crisis at the end of the 1990s, Cathay Pacific was to confront a number of difficulties in 2001. Amid the growing competition amongst airline carriers worldwide, a long-standing dispute between the company and its pilots surfaced again in the middle of the year and resulted in flight delays and cancellations. Terrorist attacks in the USA in September 11 then had dramatic consequences for global air travel, leading to a fall in demand and revenue. The case outlines these events and their consequences for Cathay Pacifics management and describes its responses, providing an insight into some of the challenges of airline operation in a period of uncertainty and its vulnerability to internal and external pressures.

Singapore Airlines and Flight SQ006: Managing an Airline CrisisBy Joan C. Henderson

Publication reference no.: ABCC-2002-007Issues: Media communication, Crisis Management,

Organisational LearningTeaching Note availableChinese translation available

Abstract:Flight SQ006, operated by Singapore Airlines (SIA), crashed on 31 October 2000. The accident was the first with fatalities in the 28-year history of the airline, although everyone on board a plane of its wholly-owned subsidiary (SilkAir) had died in a crash three years earlier. More accustomed to favourable reports associated with its successes, the airline now confronted the challenges of managing a fatal accident and adverse publicity potentially damaging to its image and reputation. After dealing with the immediate consequences of the crash in the period up until 6 November, when final casualties were confirmed, there was an opportunity for the company in general and the Public Affairs Department in particular to pause and review the situation.

14

Economics

Monetary Authority of Singapore: Its Establishment, Growth and Changing Role By Ramin Cooper Maysami & Shirley Tan

Publication reference no.: ABCC-2003-014Issues: Central bank independence, banking reforms

Abstract:The Monetary Authority of Singapore (MAS) was established in 1971 to perform essentially all the functions of a central bank except currency issuance that remained under the jurisdiction of the Board of Commissioners of Currency. It was responsible for implementing monetary policies, supervising financial activities in the country, and being adviser, banker, and financial agent to the Singapore government. In October 2002, the Board of Commissioners of Currency was integrated into MAS as its currency department. This case documents the rationale for the establishment, growth and development of MAS and delineates its changing role during the last three decades in the face of rapid financial liberalisation and banking reform in Singapore.

Singapores Exchange Rate Management System By Ramin Cooper Maysami & Shirley Tan

Publication reference no.: ABCC-2003-013Issues: Exchange rate management, Exchange rate

policy

Abstract:Traditionally, in an era of limited capital mobility, where the domestic financial markets were still relatively undeveloped, the Monetary Authority of Singapore (MAS) relied on direct control measures as the main instruments of monetary policy. From 1965 to the early 1970s, monetary control policies were mainly targeted to reduce growth in bank deposits and limit the availability of foreign assets in domestic banks. In the late 1970s, the traditional instruments of monetary policies - interest rate regulations and direct capital controls - were found to be incompatible with the overall economic thrust of developing a global and sophisticated financial centre in Singapore. Since 1981, MAS had formulated a unique exchange rate policy to achieve the ultimate target of low inflation. This case documents the evolution of Singapores monetary policy over the last three decades and allows students to explore the reasons and possible consequences of this monetary policy.

15

Entrepreneurship

Ezra Holdings: Entrepreneurship and Capability Building From Regional Operator to Global Offshore ServicesBy Wee Beng Geok, Yvonne Chong and Rajeev Batra Publication reference no: ABCC-2009-007Issues: Assembling resources - financial and human

capital; Organisational culture; Linking human capital management and business strategy

Abstract:This case discusses the growth path of a Singapore-based marine services company. Started in 1992, the entrepreneurs were able to leverage on in-house competencies and knowledge of the Oil& Gas (O&G) sector to grow Ezra into a global offshore support services company with market capitalization of US$1.2 billion by mid-January 2010. As Ezra faced new challenges from established O&G service providers, how should it go about acquiring capabilities for its growth strategy?

Nanyang Optical: Beyond Product Design From Idea to LaunchBy Wee Beng Geok & Nigel Goodwin

Publication reference no: ABCC-2006-004Issues: New product development, combining

innovation with business processes like production, product launch and outsourcing


Abstract:This case illustrates the process and challenges of designing a new product and then making it a reality. Yang Wah Kiang had innovative ideas for spectacle frames and created two unique new product designs. But Yang was not just a product designer he was also a practical, hands-on entrepreneur who owned and operated a medium-sized company. He was not content to leave his ideas on the drawing board; instead, he would do whatever it would take to make his designs become real products, ready for the market. This involved both creative and practical challenges. The case examines product development, manufacturing and launch issues. from two perspectives, that of a product designer and that of an entrepreneur and business owner.

MarkPlus&Co (A): Managing for GrowthBy Nigel Goodwin & Hooi Den Huan

Publication reference no: ABCC-2004-011AIssues: Organisational design, SustainabilityTeaching Note available

Abstract:MarkPlus&Co (A) tells the story of a small professional services firm on the verge of expansion. What had begun as a think tank and a boutique research, consulting and training firm in the area of marketing strategy was now receiving heightened publicity and rapidly increasing demand. The founder, thought leader and principal consultant could not respond to all of the current and potential clients personally but they expected his level of expertise. As an additional challenge, the founders own name or brand was more prominent than the firms. The founder therefore had to raise staff levels, institutionalise his own knowledge and values among his people and reposition the firms brand relative to his own.

MarkPlus&Co (B): Expanding in Southeast AsiaBy Nigel Goodwin & Hooi Den Huan

Publication reference no: ABCC-2004-011BIssues: Regional expansion in SE Asia, SustainabilityTeaching Note available

Abstract:MarkPlus&Co (B) presents a company that is a leader in its national market and asks how this company might replicate its success at the regional level. MarkPlus&Co, a consulting, research, corporate training and publishing company with expertise in marketing and corporate strategy, was Indonesias leading domestic consulting firm. With regionalisation and globalisation creating new opportunities throughout Southeast Asia, the firm looked to Singapore and other markets for expansion. The case examines the firms sustainability, go-to-market strategy and entrepreneurship.

16

Entrepreneurship

BreadTalk: Managing Expansion Through FranchisingBy Foo See Liang & Chung Sang Pok

Publication reference no: ABCC-2004-009Issues: Franchising, financial risk

Abstract:When BreadTalk made its debut on the Singapore stock exchange in late 2002, George Quek, the founder and Managing Director of the bakery chain, was assessing the opportunities and risks facing the company. BreadTalk had made progress in establishing its brand name and expanding into emerging markets like China and Indonesia. BreadTalk brought in a famous Taiwanese dumpling restaurant to Singapore through a franchise agreement. As its business growth gained momentum, the company sought to assess the risks associated with its growth by franchising model in the overseas markets.

Singapore Mobile Company: Managing for Profi table GrowthBy Chan Teng Heng & Shirley Tan

Publication reference no: ABCC-2004-008Issues: Growth strategies, entrepreneurial

personality, human resource management

Abstract:Singapore Mobile Company was established in 2000 with a mission to develop and provide innovative applications for mobile phones. In late 2003, Marcus Lee, Chief Executive Officer, found himself confronted with a tough challenge in growing his company. Market rivalry had increased with the advancement of bigger phone manufacturers into the industry as they sought new growth avenues. Given the new market pressures, he had to evaluate his current business strategies and make several key decisions. What kind of people would he need to recruit to support the companys future expansion? Were there other measures that he should take in the area of organisational design? Lee had to address these issues.

Intertainer Asia (A): Programming and Distributing Hollywood Movies Online in the Asia Pacifi c Countries By Olaf Rieck & Shirley Tan

Publication reference no: ABCC-2003-015Issues: Telecommunications value chain, business

model

Abstract:Intertainer Asia was set up in 1998 in the business of home video distribution. The company licensed its basic video-on-demand (VOD) platform technology from Intertainer, Inc., the forerunner of VOD services based in Santa Monica, USA, but negotiated separate content deals directly with the studios. Over the next two years, Intertainer Asia developed itself into a leading entertainment-on-demand-company, streaming Hollywood movies online to homes in Hong Kong, Singapore, Taiwan and later, in China, Australia, New Zealand and Korea. In October 2002, Intertainer, Inc. announced the suspension of its service in the USA after filing an anti-trust lawsuit against the studios. Although the service suspension did not affect the management and business operations of Intertainer Asia, it triggered some questions, which Andrew Yap, CEO and Executive Vice Chairman had to address.

iProperty.com: Creating an Internet VentureBy Michael Heng & D G Allampalli

Publication reference no: ABCC-2003-006Issues: Financing the BusinessTeaching Note available

Abstract:Tracking the start-up and growth of a new Internet venture at the start of the industrys boom in mid-1999, the case delineates the experiences of two entrepreneurs: Alex Koo and David Leong, who set-up a B2C portal for the real estate industry (REI). They drew up aggressive growth plans, which included setting-up a B2B network for the Asian region and listing on the Stock Exchange of Singapore. By March 2000, after two rounds of financing from angel and private investors, it was on course to achieving the initial public offering (IPO) goal. But the Internet industry bubble started to burst and dotcom stock valuations crashed. By July 2000, Leong and Koo had spent nearly S$300,000 on IPO preparations. Facing a bleak business environment and uncertain outcome of the IPO, Leong and Koo wondered as to how to proceed: to list or not to list?

17

Entrepreneurship

The Shiatsu School (A) By Wee Beng Geok & Tom Gleave

Publication reference no: ABCC-2002-008AIssues: Business Strategy, Decision Making,

Competitive AnalysisTeaching Note available

Abstract:In December 1996, Terry Liew set up the Shiatsu School. This was a considerable challenge for the fledgling entrepreneur, requiring significant personal investment. Liew made a considerable effort to develop the business; however, in December 1999, he was unexpectedly served an eviction notice demanding that he vacate the premises within four months. This meant he had to scramble to find a new location that could accommodate the growing business, as well as appeal to his existing and future customer base. After three months of searching, the choice of where to relocate boiled down to two properties: a shophouse in a commercial district on River Valley Road or a private residence in the affluent neighbourhood of Stevens Close. The decision was critical because of the important implications it had on the companys finances, market positioning and future growth prospects.

The Shiatsu School (B) By Wee Beng Geok & Tom Gleave

Publication reference no: ABCC-2002-008BIssues: Sustaining and growing the revenue share

for a new business; Surviving an economic slowdown


Abstract:In March 2000, Terry Liew, decided to relocate his Singapore-based business from a traditional Chinese shophouse on Devonshire Road to similarly styled property on nearby River Valley Road. Liew was confronted with a variety of new challenges, all of which he was able to resolve with reasonable success. The need to develop other revenue streams took on greater urgency after the events of September 11, 2001. Liew was forced to cancel classes that had been scheduled for October and November 2001 because the international students decided to stay at home. By mid-December 2001, the situation had become dire, as the level of international travel remained depressed, with no major upsurge in sight over the next several months. This left Liew pondering what types of revenue streams he should quickly develop in order to ensure the Schools continued success.

The Silkroute Group: Achieving Success in the Internet AgeBy Harminder Singh & Christina Soh

From the IMARC Case Series, Publication reference no: I-00-006Issues: Internet Strategy, Technopreneurship,

Business Development

Abstract:In Asia, as elsewhere around the world, many dot.coms arrived on the business map in a blaze of publicity but had to scale down their expectations and promises. This case studies one such Internet business the SilkRoute Group from Singapore. Its striking feature had been its atypical profitability since it began operations in 1994. It had matured into a holding company of a whole range of Internet firms, running the gamut from financial services to website development to business-to-business networks. Its founder, Wong Toon King, was held up as an example of the breed of entrepreneur that Singapore needs. The case explores the stages through which the business developed and explains the strategic decisions that Wong had to make.

18

Finance

The Demerger of Six Continents PLC(B): Intercontinental Hotels Group and Mitchells & ButlerBy Siriwan Chutikamoltham & Yvonne Chong

Publication reference no: ABCC-2010-006BIssues: M&As; Financial analysis and outcomes of

a demerger; Shareholder value creation; Business strategy.

Abstract:InterContinental Hotels Group (IHG) and Mitchells & Butlers (MAB) were demerged from hospitality conglomerate Six Continents to better pursue their own growth strategies. In 2007, IHG was the worlds largest hotelier with nearly 4,000 hotels while pub owner MAB had evolved into one of Europes most successful foodservice operators. This case examines the demergers financial outcomes; with a focus on shareholder value that the spinoff might have created.

Kingfi sher Airlines - Acquisition of Air Deccan: Indias First Low-Cost CarrierBy Mahmud Hossain & D. G. Allampalli

Publication reference no: ABCC-2009-004Issues: Valuation of low-cost carrier; merger and

integration; growth of airline businesses.

Abstract:In 2007, Vijay Mallya, the founder of Kingfisher Airlines, a premier full service carrier (FSC) was forced to acquire Air Deccan as the low-cost carrier (LCC) competed vigorously with low and unsustainable fares. The case highlights the difficulties of valuing a loss-making new airline business model and its post acquisition integration challenges for the two airlines managements due to contrasting business models, leadership and management styles, brand and company cultures.

Reliance Industries Limited Unlocking Shareholder Value Through DemergerBy Nilanjan Sen, Ho Kim Wai & D. G. Allampalli

Publication reference no: ABCC-2007-005Issues: Valuation of a diversified large business,

demerger of corporate assets and investor value creation.

Abstract:The case depicts how Dhirubhai Ambani founded the Reliance Group with only Rs. 50,000 in late 1950 and grew it into an US$17 billion conglomerate in a span of fifty years. The founder completed large expansion projects in record time, acquired related businesses and ventured into new businesses to create the Reliance Group. In 2005, Reliance Industries Limited (RIL) announced the break-up of the groups businesses to unlock its value and offer stakes to investors in the new businesses. However, analysts were wary to hazard a guess on the size of returns to investors due to uncertainty of the drop in RILs value and valuation of an unlisted telecom firm in the Group.

Air Sahara: Implementing the Acquisition Bid of Jet AirwaysBy Nilanjan Sen, Ho Kim Wai & D. G. Allampalli

Publication reference no: ABCC-2007-004Issues: Due diligence and valuation of an

acquisition target, Implementation of merger bid and business ethics.

Abstract:Jet Airways made a successful bid to acquire Air Sahara in 2006. To implement the merger, the two airlines formed a joint management group (JMG) and set March 2006 as the deadline for the completion of the merger. As more time was required to sort out financial issues and structure the merger deal, apply for regulatory clearances and prepare documents for ownership transfer, the JMG extended the deadline. On 20 June 2006, a day before the expiry of the extended deadline, Alok Sharma, President of Air Sahara informed the media that Jet Airways wanted to renegotiate its US$500 million acquisition price. Sharma was left to mull over the options for bailing out Air Sahara.

19

Finance

Tata Steel Acquisition of Natsteel Impact on Economic Value AddedBy Nilanjan Sen, Ho Kim Wai & D. G. Allampalli

Publication reference no: ABCC-2006-010Issues: Economic value added (EVA) analysis,

international business valuation and overseas acquisition.

Abstract:In August 2004, Tata Steel, India, made an unsolicited offer to acquire the steel business of the National Iron and Steel Company, Singapore (NatSteel). Valued at US$289.50 (S$486) million, the acquisition was Indias second largest in that year. Although the deal looked inexpensive as compared to setting up a new integrated steel plant of a similar size, successful cross-border acquisition management remained a key challenge.

Financing Structures in the Shipping Industry: Singapores Pacifi c Shipping TrustBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2006-008Issues: Ship financing alternatives, Shipping TrustChinese Translation Available

Abstract:Singapores first shipping trust Pacific Shipping Trusts (PST) initial public offering (IPO) launched in May 2006 presented an alternative source of funding for ship owners and operators. Six months later, after announcing a higher than promised yield to its investors, the trust manager - PST Management Pte Ltd was eager to enhance and diversify both its assets as well as its customer base. However, over this period, the share price had fallen below the IPO price and trading volumes were relatively low. The case describes the challenges faced by PST Management in growing the trust what steps could be taken to generate awareness about the business of shipping and the role of shipping trusts? How could they improve market perception and enhance investor confidence in PST as an attractive investment option?

Bobby Financial Associates: The Australian DollarBy K. Chandrasekhar & D.G. Allampalli

Publication reference no.: ABCC-2004-003Issues: Investment risk analysis & managementTeaching Note available

Abstract:The case presents the predicament of an investor and day trader who speculates in the global currency markets. It also illustrates the popular stock market maxim - timing is the essence of investing. However, no investor has an unfailing skill in prediction. Bobby, anticipating a cut in the interest rate, entered the currency spot market in Australia and punted with a short position of A$200,000, a day before the Reserve Bank of Australia (RBA) was scheduled to meet to discuss the economic and monetary policy in July 2003. While Bobby thought he had timed the entry into the Australian dollar spot market, the anticipated interest rate cut by the RBA on the following day did not occur. As a result, the Australian dollar appreciated against the US dollar. Wrong-footed, Bobby faced a paper loss of A$1,971. What are his options?

20

Finance

Pidemco Land and Orchard Parade Holdings Medium-Term NoteBy Low Buen Sim

Publication reference no: ABCC-2002-011 Issues: Decision-makingChinese translation available

Abstract:In 1998, a year after the Asian currency crisis, a Singapore-based property developer, Pidemco Land, was presented with a proposal by a merchant bank, Credit Agricole Indosuez (Asia). The bank was arranging for another developer, Orchard Parade Holdings (OPH) to issue a S$90 million, 5-year medium term note through a subsidiary, OPH (Orion) which was set up to hold a piece of prime land in Singapore. As a result of the slump in the property market in Singapore, there was a credit squeeze for the property sector and the outlook for a successful issue of the 5-year medium-term notes was bleak. Under the deal, Pidemco Land would provide an option to Orion and the holders of Orions medium-term note. Exercising the option would enable Orion and the note holders to sell their shares and notes to Pidemco Land. In return, Pidemco Land would receive an upfront undertaking fee. To OPH, the option could provide much needed credit support for the medium-term note and enhance the probability of a successful subscription of the note.

Building Financial Market Institutions in Emerging Economies: The Government Pension Fund of ThailandBy Gunter Dufey, Katja Funke & Georg Stadtmann

From the Asian Case Collection Publication reference no: ABCC-2002-004Issues: Financial Institutions & Markets,

International InvestmentsTeaching Note available

Abstract:The case reviews the history and foundation of the government pension fund (GPF) of Thailand. Established just before the Asian crisis, the story of GPF introduces students to various pension arrangements and illustrates the challenges and opportunities confronted by such a capital market institution in the financial market environment of a developing country.

21

Human Resource Management

Eastport Maritime Pte Ltd: Building Essential Competencies for Sustainable Growth and DevelopmentBy Wee Beng Geok, Ivy Buche and Yvonne Chong

Publication reference no: ABCC-2009-006Issues: Role of shipbroker in the maritime industry;

Shipbroking as a career; Changing context of shipbroking; Employee attraction and enagement, training and development

Abstract:In a highly specialised and relationship-intensive business, shipbrokers acted as intermediaries between shipping companies and their customers. In 2010, Eastport Maritime, a Singapore-grown international shipbroking group was keen to develop its talent pool. In a constantly evolving and competitive global maritime service environment, how could Eastport shape its employer value proposition to attract and to develop the skills of the younger generation of shipbrokers and ensure the firms success in the long run?

Dove Financial Services and Customer-Relationship Management Systems or People?By V.Padhmanabhan

Publication reference no: ABCC-2010-005Issues: Work culture; Turnover; Customer

relationship management; Management style

Abstract:The case is based on a CRM crisis faced in a branch operation of Dove Financial Services. It discusses about the contemplation of the branch manager Mr. Raj on the impact of a service culture, which was carved and customised by a former relationship manager Mr. Shankar, on the company. The case narrates how Shankars successors, after his transfer, face turmoil in adhering to the service culture framed by him beyond organisational formal service culture. The case also provides the scenario about a successive branch managers failed attempt to upgrade the CRM system without understanding the existing style of operation. Finally, the case leaves current branch manager Mr. Raj with questions in his mind like how an individual can create an image larger than the organisation? What is the sustainability of a work culture created by an individual beyond his/her tenure? Can a new system be upgraded without understanding the existing style of operation?

HCA Hospice Care Services (B): The Design of the Home Hospice WorkBy Wee Beng Geok and Ivy Buche

Publication reference no: ABCC-2010-003BIssues: Delivery of palliative care; Work & job

design - impact on capacity building; Analysis of key competencies

Abstract:HCAs multidisciplinary team, comprising of doctors, nurses, social workers, counsellors and volunteers, provided home-based hospice care to needy patients with terminal illnesses. The case focuses on the design of hospice home care services provided by HCA, in particular, the work performed by two groups of professionals (doctors and nurses) in the delivery of palliative care. The key competencies required of such workers and job-specific context of home hospice care are also discussed.

Singapore International Airlines Moving to a Flexi-Wage System during Volatile TimesBy Hesan Quazi & D. G. Allampalli

Publication reference no: ABCC-2008-008Issues: Human resource management, Wage

reforms and restructuring

Abstract:From 2001 to 2003, Singapore International Airlines (SIA) faced triple disasters: the 9/11 terrorist attacks, SARS epidemic and the Iraq war, which forced it to reduce capacity, reform and restructure its wages. Having managed costs like a tight ship, SIA found it difficult to negotiate wage restructuring and retrenchments with its unions. Operating in a rigid regulatory and business environment, SIAs management found it challenging to tweak the Seniority-based Wage System, and migrate to a more flexible and competitive compensation structure. With lower yield, high-cost branding and intense competition from the full-service global and low-cost carriers, SIAs management explored ways to balance its strategic elements, attain flexibility and sustain wage and cost competitiveness to earn double-digit returns for its shareholders.

22


Changi General Hospital: Balancing Work-Life in a Healthcare OrganisationBy Tan Joo Seng & D. G. Allampalli

Publication reference no: ABCC-2008-006Issues: Work-Life balance, attrition and retention,

human resource management.Background Note available

Abstract:Changi General Hospital (CGH) implemented work-life programmes (WLPs) and family-friendly support programmes for their staffs physical, social and emotional well-being from 2003 to 2005, and aimed to become an employer of choice. CGH found that WLPs contributed to the overall improvement in the hospitals key performance indicators. However, operating in a tight labour market for skills in the healthcare sector, CGH needed to deal with the higher attrition rates and absenteeism in a critical department.

Tata Consultancy Services of India (A): Human Capital Management as Competitive StrategyBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2008-004AIssues: Systems thinking in training and

development.Teaching Note available

Abstract:Tata Consultancy Services Ltd (TCS), Indias largest IT service provider crossed the 100,000 employees mark in October 2007. Based on a business model heavily reliant on low-wage software engineering talent, TCS tapped Indias large pool of engineering graduates, with great success. These software project consultants formed the backbone of the companys service delivery system and the lynchpin of TCS growth as a global IT company. However, as TCS followed its multinational clients and set up operations in developing countries, governments required TCS to tap local engineering talent. The challenge for TCS was whether its essentially India-based talent development and management model could continue to be a major source of competitive advantage in these developing countries.

Evaluating the Worth of Human Capital: The Raffl es Swisstel Merger and Acquisition of 2001 (A)By Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2009-008AIssues: Due diligence stage of the M&A process,

Human capital issues.

Abstract:This merger and acquisition (M&A) event is used to explore the key human capital issues that should be addressed as part of an M&A due diligence exercise to: i) Enable the company to make an informed assessment of the human capital assets and liabilities of the company being acquired. ii) To anticipate key people issues that might arise during the integration stage of the M&A, and which could affect the value creation goal for the acquisition.

The Raffl es Swisstel Group M&A of 2001 (B): Integration IssuesBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2007-010BIssues: Integration planning and implentation,

achieveing balance between strategy implementation and HR integration .

Abstract:On 5 June 2001, Singapore-based hotel group, Raffles Holdings Limited, owner of Raffles Hotels and Resorts, announced that it had purchased Swisstel Hotels and Resorts. As the merger moved into the integration planning and implentation stage, the immediate challenge for Raffles management was the integration of over 6,000 employees from the Swisstel group into the new organisation. For the merger to achieve its strategic potential, Raffles management had to examine the strengths of both hotel chains, to maximise synergies and secure specific areas of cost-savings and revenue enhancement. Over a six-month period, Raffles management strived to achieve a balance between the desired pace of strategy implementation and that of human resource integration, given the human dynamics confronting the post-merger situation.

23


Philips Singapore: Creating Value Through Human Resource Shared Services CentreBy Hesan Quazi & D. G. Allampalli

Publication reference no: ABCC-2006-006Issues: Sharing HR services and outsourcing, value

creation and cost reduction in delivering HR services, strategic HR in global organisations.

Abstract:In 2003, Philips Electronics Private Limited, Singapore (Philips Singapore), launched Philips People Services (PPS), a shared services centre to provide various standardised human resource services to its 3,500 employees at an annual service fee of S$550 per employee. With centralisation and value creation, and outsourcing of HR activities, Dr Martin, Executive Director, Country Management and Vice-President of Human Resource was able to demonstrate that PPS reduced the cost of business support function and improved decision-making related to recruitment and retention activities. At the end of 2004, just when PPS performance improvement had gathered pace to raise its value proposition to customers, Dr Martin had to mull over a product division heads expectation of a lower annual service fee.

Setting the Stage for Service Drama-Based Workshops for Soft Skills DevelopmentBy Wee Beng Geok & Ivy Buche

Publication reference no: ABCC-2006-005Issues: Hotel/Retail Service, Drama Based Training,

Building Soft Skills

Abstract:In 2004 and 2005, The Theatre Practice (TTP), an established theatre company in Singapore conducted a series of drama workshops for service staff of InterContinental Singapore. The workshops focused on liberating the individuals energy blocks that inhibited self expression and limited his capacity for enjoyment and engagement in his work life. Compared with other skills development programmes, these workshops seemed unstructured and almost random in the instructional approach. TTP hoped to extend the programme to other hotels/firms in the service industry. To do so, TTP needed to convince the managements of service firms that theatre techniques could help in building the soft skills critically needed by many service workers in Singapore.

Nemo Holdings Singapore: Promotion BluesBy Klaus-J. Templer & D. G. Allampalli

Publication reference no: ABCC-2005-012Issues: Senior Management Recruitment, Succession

Planning, Performance Evaluation, Leadership

Abstract:The case describes the business growth of Nemo Holdings Private Limited (NHPL) from 1992 to 2003, an electronic component distribution and marketing firm, under CEO Bruce Poon. In mid-1997, Poon appointed Ben Tan, a friend and former colleague as the sales manager for NHPL and promoted him to senior sales manager in 1999. In 2000, affected by slowdown in the electronics sector, NHPLs growth slowed. NHPL bought controlling stakes in three businesses in the non-electronics sector and promoted Tan as GM of the new joint ventures. The number of staff reporting to Tan rose from 2 to 40. By mid-2003, NHPLs growth had declined, an Enterprise Resource Planning project was delayed, the company lost a contract in the Philippines and a supply agreement for a large Shanghai MNC. Faced with these setbacks, Tan resigned in November 2003, a move which stunned Poon.

TEL Systems and Engineering Singapore Managing Employee TurnoverBy Hesan Quazi & D.G. Allampalli

Publication reference no: ABCC-2005-007Issues: Sustaining business growth, managing

employee turnover and compensation

Abstract:TEL Systems and Engineering (TEL) a fast-growing Singapore-based information technology (IT) and industrial automation (IA) services company overcame the small domestic market and tight labour market conditions during the mid-to-late 1990s by internationalisation. It experienced high manpower turnover, particularly in the cadre of fresh engineers and junior executives from 1995 to 1997. While the national average of employee turnover in the IT sector from 1996 to 1997 remained around 16-17 percent, TELs employee turnover grew from 36 to 43 percent during the same period. Although TELs management implemented an employee stock option scheme (ESOS) in two stages in 1997 and early 1999, Daniel Lee, the head of the HR pondered over the options to halt the exodus of young engineers.

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DCrypt Private Limited: Managing Talent in a Techno-Centric OrganisationBy A Ahad M. Osman-Gani & D.G. Allampalli

Publication reference no: ABCC-2004-006Issues: Managing technical Professionals, Sustaining

Employee Motivation

Abstract:The case describes the challenges of a technology dominant start-up business that aimed to develop products for the information security assurance industry in Singapore in early 2000. Two technopreneurs, Antony Ng and Chew Hwee Boon, identified, attracted and selected technical professionals to build DCrypt, a cryptographic design and development house in Singapore, where cryptographic and technical professionals more disposed to learning, were in short supply. While its intellectual property (IP) and technological capability increased, the technical professionals behavioural differences became an organisational concern. When Ng was mulling on ways to motivate and lead a techno-centric organisation to the next stage, Glenda Tan, the HRD manager confirmed that Lionel Teo, a programmer in Crypto Products Group had failed to submit the signed IP agreement despite several deadlines. As Ng pondered on the options, the IP risk burgeoned.

GMP Recruitment Services: Recruitment Tracking System By Klaus J. Templer & D.G. Allampalli

Publication reference no: ABCC-2005-003Issues: Computerisation of recruitment services,

competition in online recruitment servicesIndustry Note available

Abstract:The arrival of corporate recruitment websites in the mid-1990s and the onslaught of new entrants, such as job portals and foreign online recruitment companies in the late 1990s impacted the Singapore recruitment services industry and altered the basis of competition. Tracking the development and growth of GMP Recruitment Services (S) Private Limited, a recruitment services company in Singapore, the case describes implementation of its three stages of computerisation from 1994 to 2003. However, this was inadequate to cope with its growth and competition from job portals. What should GMP do to compete in the new environment? What should its recruitment business model be?

25

International Business

Global Shipbroking New Challenges to Communities of Practice By Wee Beng Geok, Yvonne Chong

Publication reference no: ABCC-2009-009Issues: International shipping; Maritime industry;

Global shipbroking; Financial derivatives; Organisational learning; Communities of practice

Case Supplement Available

Abstract:This case describes the emergence of the global shipbroking community from its origins in London 200 years ago and how brokers were able to evolve and stay relevant despite the threat to their traditional middlemen role. As shipbrokers diversified into financial services, the growth of freight derivatives trading and the shipping boom in 2004-2008 attracted new market players into the sector. How would these changes impact the future role of shipbrokers as dealmakers in the shipping industry?

Freight Derivatives By Low Buen SinPublication reference no: ABCC-2009-009CSIssues: International shipping; Maritime industry;

Global shipbroking; Financial derivatives; Organisational learning; Communities of practice

Abstract:The paper provides an overview of freight forward agreements and freight options, as well as developments in the freight derivatives market in early 2010. Derivative contracts refer to contracts that trade the underlying asset in a manner that differs from a normal spot transaction. In May 1985, the Baltic Exchange through the Baltic International Freight Futures Exchange, launched a freight forward contract written on the Baltic Freight Index. The trading of the freight derivatives in the over-the-counter markets (OTC) began in the early 1990s. Basically there are two main types of freight derivatives - freight forward contracts and freight option contracts. The underlying asset for freight derivatives is the future levels of freight rates for a specific trade route or for a basket of trade routes. A freight rate refers to the price at which a certain cargo is delivered from one point to another.

Hotel Wuxi International: Expansion into ChinaBy Leong Choon Chiang

Publication reference no: ABCC-2007-006Issues: Market and financial analyses; project

costing and hotel operations.Teaching Note available

Abstract:In December 2006, Sinchong Property Investment Pte Ltd (SPIPL), a Singapore-based property investment firm, signed a letter of intent to take over a partially completed hotel project from the Wuxi City Authority for consideration of a sum of RMB45 million. The original property development called for a 22-storey three-star hotel building with 220 rooms and a four-storey staff building. The concrete structure had already been built, but due to financial difficulties, the Chinese owner had to relinquish the project. Within sixty days prior to the signing of the final agreement to take over the project, SPIPL was keen to ensure that the project was feasible and that the new hotel, its first such project in China, would succeed. During this period, Liang Chee-Sian, the Chief Executive Officer of SPIPL must assess the business challenges of developing and operating the new Hotel Wuxi International.

The MV Petro Ranger Arbitration:A Post-Mortem AnalysisBy Tan Lay Hong, Wee Beng Geok &Ivy Buche

Publication reference no: ABCC-2006-009Issues: Defence of frustration and excepted peril

of arrest or restraint by public authority. Pitfalls of arbitrating in a third country forum.

Abstract:MV Petro Ranger was hijacked by pirates in the South China Sea on 17 April 1998. She was then detained by the Haikou authorities on charges of attempted smuggling. On 28 May 1998, the Haikou authorities released the ship but auctioned off the remaining cargo for US$1.1 million. Petec, the cargo owner, brought arbitration proceedings against Petroships, the ship owner, for breach of contract. Petroships lost the case. This case explores in depth the ship owners defence of frustration and excepted peril of arrest or restraint by public authority under Section 4(2)(g), The Carriage of Goods by Sea Act, 1936 (US) as well as the pitfalls of arbitrating in a third country forum.

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International Business

Citigroup: Private Banking in AsiaBy Nigel Goodwin & A. Lee Gilbert

Publication reference no: ABCC-2005-015Issues: Capturing the HNW segment, branding,

private bankingTeaching Note available

Abstract:Citigroup was a leader in private banking the provision of investment products and wealth management services to affluent and high net worth individuals. The private banking sector was growing rapidly in Asia, fuelled by the regions economic development and the subsequent accumulation of personal wealth. Clients were becoming more sophisticated and demanding and market liberalisation fostered competition between domestic and foreign private banks. Against this backdrop, Citigroup attempted to expand its private banking market share in the key markets of mainland China, South Korea and India. This case examines a fragmented market split between global giants and domestic champions. Key issues include market segmentation, strategic positioning, international expansion, market entry barriers, industry regulation, corporate governance, channel distribution, and a choice between organic growth versus acquisitions and alliances.

Pacifi c International LinesBy Wee Beng Geok, Yang Lishan & Ivy Buche

Publication reference no: ABCC-2005-010Issues: Family Owned Business, Corporate life-

cycles, Succession, Business Strategy, Asian Shipping

Abstract:Pacific International Lines (Private) Limited (PIL) was ranked the 20th leading container shipping company in the world in 2005. The growth of this privately-held, family-owned shipping firm was achieved against several odds in the political and economic environment faced by many Singapore-based shipping firms that emerged in the 1960s. The first generation entrepreneur had been able to carve out niche strategies by identifying market segments where competition was unlikely to be very strong. In the 21st century, the baton had been passed on to the second generation and the key challenge was to achieve sustainable growth so as to maintain the companys position among the top twenty container shipping lines in the world.

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Infocomm/IT & e-Commerce

Asia-Pacifi c Strategy for Online Hotel Reservations: Cendant Travel Distribution ServicesJudy A. Siguaw & Nigel Goodwin

Publication reference no: ABCC-2005-017Issues: Could a business model that was originally

developed for the United States be applied to the Asia-Pacific?

Teaching and Backgroud Note available

Abstract:This case describes one of the worlds leading online hotel reservation companies and presents its prospects in the emerging Asia-Pacific markets. Cendant Travel Distribution Services had acquired a number of online hotel distribution businesses around the world and was in the process of integrating them and leveraging their assets across the entire portfolio. The case examines how Cendant TDS might overcome the industrys cultural, structural, technological, strategic and competitive challenges to become the regions number one player.

The Worlds First Web Services Community Portal: Bigtrumpet.com of NTUC Income, Singapore By Neerja Sethi & D. G. Allampalli

Publication reference no: ABCC-2005-011 Issues: Web Services Technology, Portal

Development and IT Project Management

Abstract:The case describes the successful creation and Phase One launch of the worlds first web services, technology-based portal BigTrumpet.com in October 2002 by the NTUC Income Insurance Cooperative Limited Singapore (NTUC Income). With its ability to glue disparate systems, savings in integration and middleware costs and interoperability, the web services technology was a new lifeline for obsolete mainframes. Set to launch in seven months, James Kang, CIO of NTUC Income overcame the challenges of new technology, multi-agency coordination and tight deadlines. Kang wondered what options were available to improve the portals take-up rates by other service providers and value proposition to its customers.

NTUC Income of Singapore: Re-Architecting Legacy SystemsBy Neerja Sethi & D. G. Allampalli

Publication reference no: ABCC-2005-002 Issues: Integration of Legacy Systems, Web Services

Technology and IT Outsourcing

Abstract:The case describes various information technology (IT) initiatives undertaken by NTUC Income Insurance Cooperative Limited, Singapore, from 1980 to 2002 to be a leading player in a highly competitive market. Although the cooperative attained a state-of-the-art front-end and a low- cost service delivery model, its back-end legacy applications and architecture were still antiquated in 2002. Lack of flexibility, poor connectivity to the Internet and new devices, lack of maintenance support for the hardware and software, and frequent breakdowns of the mainframe forced the Chief Information Officer (CIO) to mull over a re-architecting project in mid-2002. He had three options: build in-house, outsource, or buy a ready package to customise. Describing the pros and cons of these options, the case provides comparative profiles of two bids: one by a local vendor to build a new system and the other an international vendor, eBao, a young upstart from China, to buy a ready package and customise it.

Enabling Digital Government through E-Services: Second-Wave Re-engineering in the Inland Revenue Authority of SingaporeBy Neo Boon Siong & Sia Siew Kien

Publication reference no: ABCC-2003-009 Issues: Business Process Re-engineering, Systems

ImplementationTeaching Note availableChinese translation available

Abstract:IRAS successfully managed an IT-enabled transformation to achieve improvements in tax collection, increased taxpayer satisfaction, and enhanced effectiveness of taxpayer compliance. Phase 1 (1993-1998) saw massive reengineering through cross tax type integration and the implementation of a $69m mass-production Inland Revenue Integrated System (IRIS) under the leadership of Commissioner Koh Yong Guan. Under the new Commissioner Koh Cher Siang, Phase 2 (1998 onwards) began with an imperative to sustain the early success. However, two years into stable operations, the trade-offs related to the earlier success resurfaced.

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Infocomm/IT & e-Commerce

Lite-On of Taiwan: Towards a Leading Global Technology CorporationBy Tang Hung Kei & Chung Sang Pok

Publication reference no: ABCC-2003-003Issues: Value-chain analysis, Investment in China,

Corporate strategyChinese translation available

Abstract:This case study traces the development of Taiwans

Nanyang Case

Documents

Transcript of Nanyang Case