Sales Compensation at Nirala

Wasif M. Khan

In 2000, Faisal Farooq, the young head of Nirala Sweets wanted to design a new reward system for his salesforce, as part of his effort to professionalise the firm. Nirala Sweets, a 52 year-old firm, founded by Faisal’s grandfather was the leading purveyor of traditional sweetmeats in Lahore, Pakistan. The national culture, the informal manner in which the firm had been run, weak management information systems, and the behavioural complexity of his growing firm are some of the challenges he faced. He needed to think carefully about how these would impact the design and implementation of an effective salesforce reward system.

Chemsafe (HK) Ltd

Terence Tsai, Jonathan Lee, Catina Siu Pui Pui, Michael Ma Chun-Fu, Christianne Lam and Meg Li Sze Ming

This case study explores the unique challenges confronting a small-sized Hong Kong enterprise in the wake of the "Green Revolution". The founder Mr. Peter Chan, possessed of a zest to protect the natural environment, sought to combine profit for the company with environmental protection. The science and technology behind the development of PestControl®, an organic and environmentally friendly pesticide, was clearly superior to that of its closest competition. However, despite an impressive growth rate in the 1990s, Chan was concerned about his firm's ability to sustain growth. The case is a classic example of entrepreneurship fighting for survival in rapidly changing society.

Nokalb Genetics (Pakistan) Limited: Supply Chain Management

Arif Iqbal Rana

This case is about the Supply Chain of a pesticides producer (disguised a hybrid seeds producer) that imported the raw material for its pesticides from its mother company in Switzerland, formulated and packed it in Karachi, and sold it throughout Pakistan. The company had two large warehouses in the country, many regional warehouses, and a chain of retail outlets throughout the country.  The company has been steadily losing market share to cheaper "generics" in the last 15 years.  The company had also changed hands a few times in the last ten years and had been under pressure to reduce working capital requirements. The case looks at the typical challenges in supply chain management.

Revenue Management at Prego Italian Restaurant

Sheryl E. Kimes and Jochen Wirtz

After the busy lunch hours on a weekday afternoon, John, Prego’s restaurant manager, was looking at the half-empty restaurant. He felt that it was in total contrast to the lunch and dinner hours, especially during the weekends, when they had to turn away customers.  If seats were occupied during the off-peak hours, more revenue could be generated.  During the peak periods, when customer demand exceeded the supply of tables and diners were unwilling to wait for long, Prego was losing revenue and perhaps, even future business. John thought that there should be better strategies in which the revenue could be increased.  John hired a consultant to help develop a revenue management strategy that would increase revenues without jeopardizing diner satisfaction. The case deals with the typical challenges in demand and supply in capacity management in the restaurant business and services management.

Competing or Complementing: AES Entry into the Chinese Power Generation Market

Lena Croft

This case study used longitudinal data to test the applicability of a western theory to a socialist market economy. Traditional theories assert that on entering a foreign market, firms must possess some ownership-specific advantages (e.g. access to sources of finance and advanced technology) in order to compete with indigenous firms (Hymer, 1976; Dunning, 1985; Buckley and Casson, 1991). The theories were subjected to debate when applied to the entry of the AES Corporation (AES), a United States power generation firm, into the People's Republic of China where socialist economic system is in practice. The case method was used to collect information rich qualitative data so as to analyse the firm behaviour of AES in China when the firm was exposed to the context of different fundamental values and institutional orders. Secondary data was collected from archives. In-depth interviews were conducted to gather data for later analysis.

The study concluded that access to finance was the major ownership advantage constituting the successful entry of AES into China. This advantage complemented the deficiencies of its Chinese partners. Yet, the complementary relationship may not extend to some quasi state-owned firms which are nurtured under the Chinese government policies to become the "National champion teams". With the emergence of the "National champion teams", AES would have to apply a new set of strategies to meet the challenge.

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