Academic journal article Journal of the International Academy for Case Studies

Pandora Investments Wurundi, Inc

Academic journal article Journal of the International Academy for Case Studies

Pandora Investments Wurundi, Inc

Article excerpt

CASE DESCRIPTION

Ever wished you had a case to sensitize students to some of the legal and/or ethical challenges faced by multinational businesses and businesspeople in developing markets like the BRICs (Brazil, Russia, India, and China)? While this case is not from one of the BRIC countries, it does take place in a large developing world country, and it does illustrate very clearly some of the legal and/or ethical dilemmas faced by multinational businesspeople and companies (especially U.S. and/or U.K companies and businesspeople) in developing world markets. The case is appropriate for senior-level undergraduates as well as students in MBA and Executive Development programs. It is designed to be taught in a one hour and a half class session, and is likely to require at least a couple hours of preparation by students.

CASE SYNOPSIS

Mr. Mike Adams is Vice President and General Manager of Pandora Investments Wurundi Inc., the Wurundian subsidiary (Wurundi is a real country in Africa and Pandora is a real company; for purposes of this case study, however, both the country and the company must remain disguised) of a New York Stock Exchange (NYSE) listed U.S. multinational company called Pandora Investments Group, Inc. While it is listed on the NYSE, Pandora Investments Group has very substantial operations in the UK. Pandora Investments Wurundi, Inc. (hence, PIWI) recently completed (under a contract valued at approximately $2,000,000) a gas transportation network code for the parastatal company in Wurundi called Gaseo Wurundi Ltd. (hence, GWL). GWL 's role in Wurundi includes creating the hard and soft infrastructure needed to move natural gas around the country. While all the key stakeholders (management of GWL, management of PIWI, etc.) agree that PIWI has successfully completed the gas transportation network code project and that all the work done by PIWI and its consultants has been truly world-class, GWL has not yet paid PIWI for its work. Earlier today, a senior executive at GWL (his name is Mr. Jonas Ador ande) indicated to Adams that before he (that is, Adorande) signs off on the project (one of the required steps in GWL's payment process), Adams will need to give him (in unmarked bank notes) approximately $50,000.

Additional data and information in the case include:.

1. Regarding the project: an explanation of what a gas transportation network code is, and why a country having natural gas needs one.

2. Regarding the company (PIWI): Because PIWI has in the past operated extremely successfully in a very challenging developing world market (that is, Wurundi), information is provided on PIWI's business model plus the company's past and current performance and factors impacting that performance over the years.

3. Regarding the Wurundian paras fatal (that is, PIWI's customer): Background information, current performance, and factors impacting that performance.

4. Regarding Wurundi: Like China and India and some other developing world markets, even during the current economic crisis, the economy of Wurundi has continued to grow vigorously. To give students a sense of the opportunities available in the developing world, a bit of information is provided on the country disguised as Wurundi and the performance of that country's economy over the last several years.

5. Regarding US and UK laws regarding the overseas behavior of US and UK corporations and executives: Summaries of the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, plus implications of those acts for US and U.K. companies and businesspeople operating overseas, are provided. In addition, a discussion is provided regarding the difference between actions which are legal (or illegal) and actions which are ethical (or unethical).

THE SITUATION

Mr. Mike Adams is Vice President and General Manager of Pandora Investments Wurundi Inc., the Wurundian subsidiary of a New York Stock Exchange (NYSE) listed U. …

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