Professor Kennedy comes to Ivey following a 10-year career at the University of Michigan’s Ross School of Business where he has served in multiple roles that include Executive Director of the William Davidson Institute, Director of the Ross School Global Initiative, and the Tom Lantos Professor of Business Administration.

At Ross, Professor Kennedy published more than 50 cases and notes used in the school’s international business curriculum. Prior to his tenure at Michigan, Kennedy was a member of faculty at the Harvard Business School from 1995 through 2003. During that time, he published more than 60 case studies and notes on business issues in emerging markets.

Hon Chuan Group: In-house Supplier of Beverage Packaging Materials (Simplified Chinese version)
by Shih-Fen Chen , Chiung-Hui Tseng

Hon Chuan, a leading producer of polyethylene terephthalate (PET) bottles in Taiwan, has developed a unique production setup to serve its Asian clients. The company has established production facilities at clients’ sites, using its in-house, in-line operation, which has won over beverage companies across Asia. This new operation model allows beverage companies to reap the advantages of outsourcing without incurring any related drawbacks. The beverage companies enjoy the benefits of vertical integration without bearing the associated costs. The case highlights this operational innovation, which helped Hon Chuan grow from a small family-owned business serving mostly Taiwanese clients to a publicly traded company controlling dozens of production plants across Asia.

Learning Objectives:

The case can be used in a strategic management course at the MBA or undergraduate level. It provides a unique setting for students to analyze the choice of integration versus outsourcing from the perspective of beverage companies. The in-house, in-line operation model created by the packaging manufacturer to better serve its clients can be treated as a hybrid of two choices: PET bottles outsourced from an independent supplier are made at an adjacent integrated plant. This operational innovation represents the packaging manufacturer’s strategic move to become a dominant maker of PET bottles in Asia.

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