Case Teaching Package
A case teaching package, written by Bill Bygrave, is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.
Length
This case is 38 pages in length and its case teaching package is 6 pages.
Abstract
The case focuses American Financial System's (AFS's) efforts to enter the international market. After unsuccessful attempts to sell the product in Japan and Britain, and an aborted joint venture, AFS finds a client in Argentina. The case illustrates the difficulty encountered by a small company as it tries to grow by entering the overseas market. The company is in a very specialized market niche: Supplemental Executive Retirement Plans (SERPs) based on corporate-owned life insurance (COLI). It has basically two sources of revenue: (1) sales and maintenance of software for designing COLI-funded SERPs, and (2) casework in which it customizes COLI-funded SERPs for clients. The company, founded in 1984, sells its products almost entirely in the domestic U.S. market. The AFS can be used toward the end of a New Ventures class or in a Managing Growing Businesses class.
- Location of the company: Boston, Massachusetts & Buenos Aires, Argentina
- Years spanned by the case: 1984 through 1995
- Industry segment: Software and casework for designing supplementary retirement plans funded with life insurance
- Stage of the company: Early and later growth
- Age of the entrepreneurs: 30s and 40s
Study Questions
- Why is AFS pursuing international business?
- Does it make sense at this stage?
- Evaluate Dan Johnson's strategic approach to going international, beginning with his first attempt in 1990.
- Why is AFS now trying to establish itself in Argentina? Is it a wise choice?
- What advice would you offer Johnson and Brett on April 11, 1995?
Key Words
starting and growing a business, hiring employees, strategy evolution, developing software, joint venturing, entering international markets, government regulations, tax policy, legal systems
The downloadable file for this case is an self-extracting WinZip file. After downloading, find AmFinSys.exe in Windows® Explorer and double-click the file to decompress. The case file itself is in Microsoft® Word 7.0 for Windows®.
If you do not have Microsoft Word, you can download the free Microsoft® Word Viewer 97 right here: For Windows 3.x For Windows 95
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