Walker, Gordon. “Modern Competitive Strategy” 1st Edition (McGraw-Hill/Irwin, U.S.A., 2004) The Case Mate matches the chapters in this textbook with cases from the current case collection of the Richard Ivey School of Business available through Ivey Publishing (http://www.ivey.ca/cases/ <http://www.ivey.ca/cases/> ). Prepared by Jianyun Tang, Ph.D. Candidate (General Management) Chapter and Title Chapter Matches: Case Information PART ONE INTRODUCTION (Chapter 1) Chapter 1: What Is Strategy? Study Objective: Form a basic understanding of “what is strategy?” Case# 9B02M020 MGAMES Morrison A ; Hill S Teaching Note: 8B02M20, 9 page(s) mGames is a manufacturer of game-based software for portable computers, PDAs and cell phones. The company's new chief executive officer has just been informed of a potential hostile takeover of the company by a major PDA manufacturer. At the same time he receives a phone call from a senior executive at a Scandinavian telecommunications company expressing interest in forming a partnership. With all of this happening, the chief executive officer faces growing pressure from the company's chairman to address ongoing performance problems. In a complex and changing environment he must make a strategic choice as to which group of customer groups (traditional handheld gaming device manufacturers, telecom manufacturers or PDA manufacturers) the company should focus on. Industry: Issues: Setting: Level of Difficulty: Length: Amusement and Recreation Services Corporate Strategy, General Management, Personal Values, International Business USA, medium organization, 2002 MBA and Undergraduate 16 page(s) PART TWO BUILDING COMPETITIVE ADVANTAGE (Chapter 2-5) 1 Chapter 2: Competitive Advantage Study Objective: Understand how competitive advantage is built and sustained. Case# 9B01M019 MEUBLES CANADEL: LOOKING TOWARDS THE FUTURE Hebert L ; Crossan MM ; Mark K Teaching Note: 8B01M19, 7 page(s) Canadel is Canada's leading manufacturer of casual dining room furniture. Following Canadel's entry into the U.S. market in 1992, sales had multiplied eight-fold and were expected to reach $125 million in 2000. The three brothers that made up the company's top management team were discussing recent sales results and future orientation of the firm. Questions that surfaced included growth in existing and new markets, and competition from established industry giants and new upstarts. The brothers were determined to assess these opportunities and threats in the upcoming weeks. Industry: Issues: Setting: Level of Difficulty: Length: Furniture and Fixtures Core Competence, Competition, Growth Strategy, Strategy Development Canada, large organization, 2000 MBA and Undergraduate 13 page(s) Case# 9B01M017 GRAND & TOY: STAPLES' COMPETITIVE THREAT Crossan MM ; Mark K Teaching Note: 8B01M17, 5 page(s) Grand & Toy is one of Canada's largest commercial suppliers of office stationery. The president of Grand & Toy is wary of the competitive threat posed by Staples, a well-known U.S. office supply company, and is reviewing his company's budget forecast to plan for a meeting with senior managers. He wants to use this opportunity to rethink the company's strategy and ensure all competitive threats and opportunities have been considered. Industry: Issues: Setting: Level of Difficulty: Length: Business Services Strategic Planning, Competitiveness, Core Competence, E-Commerce Canada, large organization, 2000 MBA and Undergraduate 16 page(s) 2 Chapter 3: Industry Analysis Study Objective: Understand how industry structure determines a firm’s economic performance. Case# 9B03M001 NOTE ON THE CUBAN CIGAR INDUSTRY Beamish PW; Kapoor A Teaching Note: 8B03M01, 19 page(s) The cigar industry in Cuba has a mythical aura and renown that give it unparalleled recognition worldwide. The relationship between Cuba and the United States makes the situation in this industry particularly intriguing. Cuban cigars cannot currently be sold in the United States, even though it is the largest premium cigar market in the world. This note provides an opportunity for a structured analysis using Porter's five forces model and to consider several scenarios including the possible lifting of the U.S. embargo and the relaxation of Cuba's land ownership laws. Industry: Issues: Setting: Level of Difficulty: Length: Tobacco Industry Analysis, Government and Business, International Business, Internationalization Cuba/USA/Canada, large organization, 2002 MBA and Undergraduate 23 page(s) 3 Case# 9A99M040 MONSANTO AND THE GLOBAL WATER TREATMENT INDUSTRY Crossan MM; Vera D Date Revised: 07/17/2000 Teaching Note: 8A99M40, 21 page(s) Monsanto, a biotechnology giant highly committed to sustainable development efforts, needs to assess the attractiveness of the drinking water treatment industry before deciding its entry to it. Four dimensions of the global water treatment industry are described: types of products and services, applications, end-users and geographical markets. The drinking water treatment segment, which is classified into municipal drinking water treatment and residential drinking water treatment, is examined in depth. Players in these two categories produce the chemicals and equipment necessary to purify tap water supplied to consumers and residential water purification devices. The bottled water industry is considered a substitute of the drinking water treatment segment. The primary objective of the case is to answer the question "Is the industry attractive?" and to introduce students to industry analysis and industry segmentation. Industry: Issues: Setting: Level of Difficulty: Length: Electric, Gas and Sanitary Services Industry Analysis, Environmental Business Management USA, large organization, 1999 Undergraduate and MBA 21 page(s) 4 Case# 9A99M031 THE CHINESE FIREWORKS INDUSTRY Beamish PW ; Jiang R Date Revised: 09/12/2000 Teaching Note: 8A99M31, 15 page(s) The Chinese Fireworks Industry case illustrates an industry that is experiencing intensifying competition and regulation. The Chinese fireworks industry thrived after China adopted the "open door policy" in the late 1970s, and grew to make up 90 per cent of the world's fireworks export sales. However, starting from the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. Students are asked to undertake an industry analysis, estimate the industry attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor's point of view. Industry: Issues: Setting: Level of Difficulty: Length: Miscellaneous Manufacturing Industries Industry Analysis, Exports, Market Analysis, International Marketing China, 1999 Undergraduate and MBA 15 page(s) 5 Chapter 4: Competing over Time: Industry and Firm Evolution Study Objective: Understand how firms keep competitive advantage over time. Case# 9B01M002 NAPSTER AND MP3: REDEFINING THE MUSIC INDUSTRY Crossan MM ; Wilkinson MA ; Perry M ; Hunter T; Smith T Date Revised: 06/28/2001 Teaching Note: 8B01M02, 21 page(s) The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files -which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital. Industry: Issues: Setting: Level of Difficulty: Length: Amusement and Recreation Services Industry Analysis, Strategic Change, ECommerce, Intellectual Properties Global, 2000 MBA and Undergraduate 22 page(s) Case# 9A99M030 WALL STREET JOURNAL: PRINT VS. INTERACTIVE Hillman AJ Date Revised: 10/04/2001 Teaching Note: 8A99M30, 11 page(s) One of Dow Jones & Company's most respected brands, The Wall Street Journal, is threatened by Internet news providers, including their own Interactive Edition. The company is unsure whether the Interactive Edition will be a substitute or a complement to the Print Edition. The case focuses on changing industry boundaries, new technology, potential cannibalization, and a threat to the company's traditional business model. Industry analysis of both print and interactive publishing is discussed, as is resource leveraging across the two formats. Industry: Issues: Setting: Level of Difficulty: Length: Printing, Publishing & Allied Industries Industry Analysis, Business Policy, Product Strategy, Internet USA, large organization, 1999 Undergraduate and MBA 15 page(s) 6 Chapter 5: Strategy Execution Study Objective: Understand the key role resources and capabilities play in producing superior economic performance. Case# 9B02M038 PARAGON INFORMATION SYSTEMS Rowe WG ; Phillips JR Date Revised: 06/09/2003 Teaching Note: 8B02M38, 7 page(s) Paragon Information Systems is a small business unit owned by NewTel Enterprises Limited that manufacturers hardware for information technology and systems integration. The newly appointed chief executive officer is faced with a crisis. Days after his appointment, two vicepresidents resign and start a new company. The new company recruits the entire sales team, members of the technical unit and support staff from Paragon Information Systems, a loss of almost one third of Paragon's staff within two months. The new chief executive officer must meet short-term stakeholder needs, assess, formulate and implement long-term strategies, deal with the competitive threat of the new company, and consider the leadership style and control systems required to make the necessary level of change. Industry: Issues: Setting: Level of Difficulty: Length: Business Services Leadership, Organizational Change, Strategy Implementation, Strategy Development Canada, small organization, 1996 MBA and Undergraduate 10 page(s) 7 Case# 9A99M033 FIRST PACIFIC (A): RESPONDING TO THE ASIAN CRISIS Delios A Teaching Note: 8A99M33, 14 page(s) The managing director of First Pacific Company Limited was reviewing the performance of the large Hong Kong-based conglomerate. In the first few months since the onset of the Asian Economic Crisis, the company's financial performance had been hit hard. The managing director, concerned about First Pacific's performance, was working with the company's directors to formulate a restructuring plan for the company. This case is part of the First Pacific case series. The other two cases in the series are First Pacific (B): Restructuring After Crisis (9A99M034), and First Pacific (C): The Indofood Acquisition (9A99M035). Industry: Issues: Setting: Level of Difficulty: Length: Holdings and other Investment Companies Corporate Strategy, Crisis and Change, Strategic Planning, Strategy Implementation Hong Kong, large organization, 1997 MBA and Undergraduate 21 page(s) PART THREE MANAGEING THE BOUNDARIES OF THE FIRM (Chapter 6-7) 8 Chapter 6: Vertical Integration and Outsourcing Study Objective: Understand the current approaches to explaining vertical integration, including transaction costs and property rights. Case# 9A98M017 TAIWAN'S UNITED MICROELECTRONICS CORPORATION (UMC) Frost TS ; Tsai T ; Cheng B; Zhou C Date Revised: 02/03/2000 Teaching Note: 8A98M17, 12 page(s) Taiwan's United Microelectronics Corporation (UMC), one of the world's leading semiconductor foundries, has grown dramatically in 16 years. UMC pursued a strategy of vertical disintegration as part of the chairman's vision of turning UMC into a "pure-play" foundry. This case discusses the major technological and competitive forces affecting the industry and looks at UMC's restructuring through the eyes of the chairman. The case provides enough detail to engage the class in a discussion of the merits of UMC's vertical disintegration strategy and the possible pitfalls of this approach going forward. Industry: Issues: Setting: Level of Difficulty: Length: Electric & Electronic Equipment Supplies Vertical Integration, Joint Ventures, Competitiveness Taiwan, large organization, 1996 MBA and Undergraduate 12 page(s) Case# 9B04M005 PALLISER FURNITURE LTD.: THE CHINA QUESTION Beamish PW ; Tang J Teaching Note: 8B04M05, 7 page(s) Palliser is Canada's second largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company had faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow, should it be an investment, either wholly or partly owned, or should it be through subcontracting? Industry: Issues: Setting: Level of Difficulty: Length: Furniture and Fixtures Expansion, Plant Location, Imports, Outsourcing Canada/Mexico/China, medium organization, 2003 MBA and Undergraduate 14 page(s) 9 Chapter 7: Partnering Study Objective: Understand the reasons for the rise in partnership activity and its costs and benefits. Case# 9B03M002 GENERAL MOTORS DEFENSE Beamish PW; Chung C Date Revised: 02/14/2003 Teaching Note: 8B03M02, 9 page(s) General Motors Defense, a division of General Motors, one of the world's largest automobile manufacturers, designs and manufactures light armored vehicles. The company is approached by General Dynamics to jointly pursue the U.S. Army's Brigade Combat Team program. However, General Dynamic made it clear that they would also submit a bid on their own. Contrary to past practices, the chief of staff of the U.S. Army planned to award the multi-billion dollar contract within only 11 months. The executive director of General Motors Defense has to decide whether the company should bid-it-alone or submit a joint venture bid with General Dynamics. Industry: Issues: Setting: Level of Difficulty: Length: Transportation Equipment Political Environment, Joint Ventures, Leadership, Doing Business in the U.S. Canada/United States, large organization, 1999 MBA and Undergraduate 13 page(s) 10 Case # 9A99A037 BEN & JERRY'S - JAPAN Hagen JM Date Revised: 10/31/2001 Teaching Note: 8A99A37, 6 page(s) The CEO of Ben & Jerry's Homemade, Inc. needed to give sales and profits a serious boost; despite the company's excellent brand equity, it was losing market share and struggling to make a profit. The company's product was on store shelves in all U.S. states, but efforts to enter foreign markets had only been haphazard with non-U.S. sales accounting for just three per cent of total sales. The CEO needed to focus serious attention on entering the world's second largest ice cream market, Japan. An objective of Ben & Jerry's was to use the excess manufacturing capacity it had in the U.S., and it found that exporting ice cream from Vermont to Japan was feasible from a logistics and cost perspective. The company identified two leading partnering options. One was to give a Japanese convenience store chain exclusive rights to the product for a limited time. The other was to give long-term rights for all sales of the product in Japan to a Japanese-American who would build the brand. For the company to enter Japan in time for the upcoming summer season, it would have to be through one of these two partnering arrangements. Industry: Issues: Setting: Level of Difficulty: Length: Food and Kindred Products Market Entry, Corporate Strategy, International Marketing, Strategic Alliances Japan/USA, medium organization, 1997 Undergraduate and MBA 22 page(s) PART FOUR EXPANDING THE SCOPE OF THE FIRM (Chapter 8-10) 11 Chapter 8: Competing in Global Market Study Objective: Understand how firms get competitive advantage in global market and why geographic factors such as region and country matter. Case # 9B04M001 VINCOR AND THE NEW WORLD OF WINE Beamish PW ; Celly N Teaching Note: 8B04M01, 8 page(s) Vincor International Inc. was Canada's largest wine company and North America' fourth largest in 2002. The company had decided to internationalize and as the first step had entered the United States through two acquisitions. The company's chief executive officer felt that to be among the top 10 wineries in the world, Vincor needed to look beyond the region. To the end, he was considering the acquisition of an Australian company, Goundrey Wines. He must analyze the strategic rationale for the acquisition of Goundrey as well as to probe questions of strategic fit and value. Industry: Issues: Setting: Level of Difficulty: Length: Food and Kindred Products Acquisitions, Market Entry, Growth Strategy, Internationalization Canada/Australia/USA, large organization, 2002 MBA and Undergraduate 20 page(s) 12 Case# 9B04M012 LARSON IN NIGERIA Beamish PW; Litvak I; Cheung H Teaching Note: 8A95G08, 11 page(s) The vice-president of international operations must decide whether to continue to operate or abandon the company's Nigerian joint venture. Although the expatriate general manager of the Nigerian operation has delivered a very pessimistic report, Larson's own hunch was to stay in that country. Maintaining the operation was complicated by problems in staffing, complying with a promise to increase the share of local ownership, a joint venture partner with divergent views, and increasing costs of doing business in Nigeria. If Larson decides to maintain the existing operation, the issues of increasing local equity participation (i.e. coping with indigenization) and staffing problems (especially in terms of the joint venture general manager) have to be addressed. Industry: Issues: Setting: Level of Difficulty: Length: Electric & Electronic Equipment Supplies Subsidiaries, Staffing, Third World, Government Regulation Africa, large organization, 2003 MBA and Undergraduate 8 page(s) 13 Chapter 9: New Business Development Study Objective: Understand how new businesses are created and how they are integrated into the rest of the corporation. Case# 9B03M054 PINNACLE TECHNOLOGIES - MIDDLE EAST Morrison A Teaching Note: 8B03M54, 12 page(s) Pinnacle Technologies is an unusual company in that it acts essentially as a subsidiary of U.K.-based Psion Teklogix although it is 100 per cent independent. Psion Teklogix manufacturers wireless data communication devices that are used primarily in inventory management activities performed in warehouses, ports, factories and airports. In the mid 1990s, Psion gave Pinnacle Technologies exclusive Middle Eastern rights to the Teklogix technology and product line. It also assisted in training Pinnacle's development staff, programmers and sales representatives. By 2002, Pinnacle was prospering and was thinking of diversifying into related and unrelated software services. The chief executive officer must decide to what degree Pinnacle should diversify from its core business and determine what financial and managerial resources are required for the diversification. (A 27-minute video is available featuring a discussion with the chief executive officer of Pinnacle, product 7B03M054.) Industry: Issues: Setting: Level of Difficulty: Length: Communications International Business, Core Competence, Management in a Global Environment, Inventory Planning/Control United Arab Emirates, large organization, 2002 MBA 21 page(s) 14 Case# 9B01M032 STRATEGIC INTELLIGENCE PTE. LIMITED (A) Beamish PW ; Gleave T Date Revised: 04/30/2002 Teaching Note: 8B01M32, 14 page(s) Strategic Intelligence Pte. Limited is a research and new-media company that provides Asian-based economic and political information. The managing editor is facing several challenges in building a new online business intelligence service that focuses on Asia's new economy. As the person responsible for the company's first Internet related initiative, he is expected to design, manage and help market the new initiative that will be independent from, yet complementary to, the company's existing eventsoriented and research services. Although he is satisfied with the content that has been developed, he still needs to resolve several issues regarding target audience, pricing policy, revenue diversification options and service awareness. A sense of urgency pervades the situation, since he is expected to ensure that the new service will contribute 25 per cent of total company revenues within the next year. Industry: Issues: Setting: Level of Difficulty: Length: Communications Growth, Consumer Research, Pricing Strategy, Sales Strategy Hong Kong/Singapore, small organization, 2000 MBA and Undergraduate 19 page(s) 15 Chapter 10: Managing the Multibusiness Firm Study Objective: Understand how a multibusiness firm can add value to its business unit. Case # 9A98M012 SANDVIK AB (A) White RE ; Teigland R; Birkinshaw J Teaching Note: 8A98M12, 8 page(s) The CEO of the Sandvik Group is reviewing the initiatives he implemented to increase the synergies between the six disparate businesses of the Sandvik Group. Specific measures taken by Sandvik's management to increase the level of synergy between the businesses are outlined. In search for synergy, management has experienced many problems and challenges. The main challenge is how to avoid a re-centralization of power while at the same time encouraging employees to act with regard to both their business and the group. The case closes with the CEO wondering how further changes could be made to expand and sustain the search and exploitation of synergies within the Sandvik group. This case can be used as an advanced corporate strategy case, to illustrate concepts such as diversification, synergies, and parenting advantage. It can also be used as a management of change case by putting emphasis on the actions the CEO can take to achieve his stated goals. A follow-up case (9A98M013) is available. Industry: Issues: Setting: Level of Difficulty: Length: Primary Metal Industries Diversification, Synergy, Strategic Scope, Change Management Sweden, large organization, 1996 MBA 29 page(s) Case # 9A98M013 SANDVIK AB (B) White RE ; Teigland R; Birkinshaw J Teaching Note: 8A98M12, 8 page(s) As a follow-up to the Sandvik AB (A) case (9A98M012), the (B) case outlines the organization changes undertaken in the pursuit of synergies. Students can be asked to evaluate the magnitude and appropriateness of the changes and propose other ideas. The case allows for consideration of how the CEO of a large complex organization actually accomplishes strategic change. Industry: Issues: Setting: Level of Difficulty: Length: Primary Metal Industries Strategic Change, Organizational Structure, Implementation Sweden, large organization, 1997 MBA 8 page(s) PART FIVE 16 GOVERNING THE FIRM (Chapter 11-12) Chapter 11: Corporate Governance Study Objective: Understand the role of the top management team and the board of directors. Case# 9B03M032 PRONIX, INC. Croke P ; Wesley D Teaching Note: 8B03M32, 10 page(s) After an ill-fated acquisition of a Linux development company, Pronix finds itself in a financial crisis that could lead to bankruptcy. The board has decided to recruit a new chief executive officer from outside the company who has experience turning around enterprise software companies and strategic business units. Despite its flagging performance, Pronix produced some of the most advanced enterprise software available and was one of the few suppliers of real-time software capable of integrating entire corporations. By refocusing software development on a single integrated platform, the new chief executive officer hoped to transform the company's prospects. Others, however, were less enthusiastic. Some recommended that the entire Pronix product line be sold piecemeal. The case describes the process of implementing a turnaround during an economic downturn and the leadership issues associated with managing resistance to change among senior members of a management team. Industry: Issues: Setting: Level of Difficulty: Length: Business Services Crisis Management, Leadership, Board of Directors, Management Information Systems United States, small organization, 2001 MBA and Undergraduate 17 page(s) 17 Case# 9B00M043 TELOPTICS CORPORATION AND JOHN BEAMISH Tapp LG ; Robertson G Teaching Note: 8B02M43 The chief executive officer of a telecommunications company has been managing the company while residing out of the country. The board of directors has concerns about this and has asked him to move, but his resulting compensation demands are surprisingly high. The board of directors must decide whether to meet his demands or to look for a new CEO. Questions regarding types of management compensation, value measurement and comparability within industry are raised, as well as a discussion of the cost of a change in senior management to the company and its shareholders. Industry: Issues: Setting: Level of Difficulty: Length: Communications Succession Planning, Corporate Governance, General Management, Compensation Canada/United States, large organization, 2000 MBA and Undergraduate 3 page(s) 18 Chapter 12: Strategic Planning and Decision Making Case # 9B03M007 HARLEQUIN ENTERPRISES: THE MIRA DECISION White RE ; Crossan MM ; Mark K Teaching Note: 8B03M07, 16 page(s) Study Objective: Understand how firms develop strategic plans to improve performance. Harlequin Enterprises is a well-known publisher of series romantic fiction and is facing threats to its leading position as the world's largest romance publisher. This threat comes from the growing popularity of single title women's fiction novels. While Harlequin was the dominant and very profitable producer of series of romance novels, research indicated that many customers were reading as many single-title romance and women's fiction books as series romances. Facing a steady loss of share in a growing total women's fiction market, Harlequin convened a task force to study the possibility of re-launching a single title women's fiction program. (A video is available, product 7B03M007, that features four senior managers discussing the challenges the company faced.) Industry: Issues: Setting: Level of Difficulty: Length: Printing, Publishing & Allied Industries Product Design/Development, Strategy Development Canada, large organization, 1993 MBA and Undergraduate 18 page(s) Case# 9B00M036 WESTJET LOOKS EAST Fry JN ; White RE Date Revised: 09/12/2001 Teaching Note: 8B00M36, 16 page(s) The management team at WestJet was reviewing its growth plans in light of an anticipated merger of Air Canada and Canadian Airlines. The merger would result in a near monopoly of domestic air travel in Canada and a new set of opportunities and challenges for the handful of smaller airlines in the country. Under the circumstances, WestJet was considering whether it should shift from its focus of building on its success in Western Canada and expand into the East. The management team must analyze how fast and how significant an entry would be necessary from a competitive standpoint, how fast and how significant an entry the company could digest, and in the longer term, WestJet's prospects when competing against Air Canada and others. Industry: Issues: Setting: Level of Difficulty: Length: Transportation Services Strategic Planning, Competition, Strategic Scope Canada, medium organization, 1999 MBA and Undergraduate 17 page(s) 19 Case # 9B01M001 GURU.COM: POWER FOR THE INDEPENDENT PROFESSIONAL Crossan MM Teaching Note: 8B01M01, 7 page(s) Guru.com intended to transform the global labor market by creating the world's largest online marketplace for independent professionals (IPs) freelancers, consultants, "knowledge workers" and "hired guns" - known as gurus. Their goal was to build a home on the Web for independent professionals, providing the essentials for running a guru business. One month into the launch of its preview site, and preparing for its first major release scheduled in three months, priorities had to be set for product development. The co-founders of Guru.com believed that catering to the needs of the gurus was the key to achieving market leadership and revolutionizing the traditional contingent staffing business. A recently hired team member was asked for her opinion on Guru.com's product strategy. Her extensive consulting experience prompted her to link product with business strategy. Industry: Issues: Setting: Level of Difficulty: Length: Business Services E-Commerce, Uncertainty, Stakeholder Analysis, Action Planning and Implementation United States, small organization, 2000 MBA and Undergraduate 21 page(s) 20
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