African Tiger (A)
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South Africa;Poland;Germany;United States, Large
International Strategy; Global Strategy; Strategic Scope; Core Competence; Developing Countries; Planning; Growth Strategy; Diversification; Corporate Strategy, Entrepreneurship, General Management/Strategy, International, Manufacturing
AWARD WINNING CASE - This case series won top prize in the 2010 Association of African Business Schools (AABS)/EMERALD case competition. In early 2005, South African company Tiger Wheels Limited (Tiger) had established a global footprint in the manufacture of aluminum alloy wheels with customers comprising several high-end automotive producers. It was the 10th largest alloy wheel company in the world with a solid balance sheet and net current assets of $42 million. Tiger had a chance to expand and grow with the potential purchase of a new world-class alloy wheel facility in Kentucky, United States for half of its estimated value. The Kentucky plant came with a significant long-term Ford contract to supply aluminum wheels at attractive prices. To Tiger's chairman, it seemed an attractive offer, but the pros and cons of purchasing the plant would have to be carefully evaluated by the board of directors. An African Tiger Case A is a part of An African Tiger case series, which includes A and B cases. The series can be taught in the main strategy course of an MBA program to focus the discussion on the portfolio of competences within the resource-based view of the firm. The cases are also ideal for teaching an elective course on global strategy in MBA and executive programs. Ideally, case A and case B should be used in sequence over two sessions. In programs with time constraints, instructors could choose to use only case A, as there is enough material in case A to cover the main themes. The important learning themes of case A are:1) the need to evaluate the dynamics of five forces in different industry segments as the company plans to expand into larger size and higher growth segments, 2) the importance of country differences in global strategy, 3) the need to incorporate new competences as a criterion in evaluating global opportunities, 4) the compulsions on growth as a company becomes a member of a globalizing industry where its customers are global entities and 5) the need for a new business model as the strategy becomes complex to incorporate numerous businesses and competences in many countries.