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Article Slater, Stanley F.; Olson, Eric M. "Create shareholder value" has become management’s mantra. Managers have developed an extensive set of tools for determining which parts of their businesses add to or subtract from shareholder value. Unfortunately, merely applying the HBS Number: BH011 Type: Business Horizons Article Publication Date: 9/15/96 Subjects: Corporate strategy; EVA; Goal setting; Strategic planning; Strategy implementation Publisher: Business Horizons/Indiana University
Article Crawford, Frederick C.; Dyer, Davis Throughout his career, Frederick Crawford has used an approach to human resources that made first Thompson Products then TRW famous. Well before anyone had coined the terms "empowerment" or "human capital," Crawford stressed communications with workers. Says Crawford, "The best thing you can do with your employees is to tell them everything." HBS Number: 91604 Type: Harvard Business Review Article Publication Date: 11/1/1991 Subjects: Human resources management; Interviews; Labor relations; Leadership; Machinery; Management communication
Case Robert R. Edwards, Arkansas Tech University David W. Roach, Arkansas Tech University The Lacustrine Plant has just completed a reduction in force (RIF) that eliminated 10 percent of its production workers. Workers were selected for termination through an unscheduled performance appraisal supposedly conducted for employee development purposes. Although he had no involvement in their selection, Kyle Gregory, a middle-level manager in the Human Resources Division, is troubled by the methods used to identify the individuals who were terminated. As the case ends, Kyle is asked by his supervisor to discuss the reduction in force with a newspaper reporter. He realizes that answering the reporter’s questions truthfully is likely to displease his superiors. Source: The Society for Case Research, Annual Advances 1998, Copyright 2000. Topics: Human Resources; Business Ethics
Article Wilson, Gary; Willigan, Geraldine E. In this interview, Gary Wilson, executive vice president and CFO of the Walt Disney Co., discusses combining financial sophistication with an imaginative, strategic approach to business. Interviewer: Geraldine E. Willigan. HBS Number: 90115 Type: Harvard Business Review Article Publication Date: 1/1/1990 Subjects: Corporate strategy; Creativity; Entertainment industry; Executives; Financial management; Interviews
Case Author(s): Perold, Andre F. Publication Date: 09/10/1998 Product Type: Case (Field) Product Description: Since the beginning of 1997, Vanguard’s assets under management have increased more than 60% from $240 billion to almost $400 billion, making it second in market share only to Fidelity Investments. Vanguard views this success as another vindication of its low-cost strategy of no-load funds, small expense ratios, candid client communication, high quality service, and predictable performance. But the organization also is mindful of the unprecedented changes occurring in the financial services industry. Financial institutions have been rapidly consolidating, with firms such as Citigroup, UBS, and Merrill Lynch each now holding customer and other assets in excess of a trillion dollars. And technology — especially the Internet -- is dramatically altering the creation, pricing, and delivery of financial services. Vanguard has to carefully consider its future, and faces key decisions such as expanding its range of products and offering asset management services in other countries. Teaching Purpose: To understand the importance of cost savings and service in investment management and the demand for mutual fund products and competition within the mutual fund industry. HBS Number: 9-299-002 Geographic Setting: PennsylvaniaIndustry Setting: mutual fund Event Year Start: 1998Event Year End: 1998 Subjects: Financial planning; Investment management; Mutual funds; Service management; Strategic planning Academic Discipline: Finance
Case Edwin C. Leonard, Jr., Lisa D. LeonardThis case describes the difficulties facing a family-owned pharmacy attempting to survive in a mature, highly competitive industry. Source: The Society for Case Research, Annual Advances in Business Cases, Fall 1993, Vol. 1, Issue 1. Copyright 1993. Courses: Business Policy/Strategy; Marketing Topics:
Article Author(s): Galinsky, Adam D.; Maddux, William W.; Ku, Gillian Publication Date: 03/01/2006 Product Type: Negotiation Article Product Description: The better able you are to “get inside the head” of your opponent, the better your negotiated outcomes are likely to be. But very few of us are born with the ability to take on the perspective of others effectively. Fortunately, this skill can be learned. The authors of this article show you how to use perspective taking — the active consideration and appreciation of another person’s viewpoint, role, and underlying motivations -- to understand your counterpart better and improve the quality of your deals. HBS Number: N0603A Subjects: Communication; Interpersonal behavior; Interpersonal relations; Negotiations; Psychology Academic Discipline: Negotiations
Article Langeler, Gerard H. As the executive responsible for vision at Mentor Graphics, Gerard Langeler discovered that vision has the power to weaken a strong company. In its early days, Mentor’s motto was Build Something People Will Buy. When clear competition emerged from Daisy Systems, Mentor‘s watchword became Beat Daisy. Both of these visions were pragmatic and immediate, giving Mentor a sense of purpose as it gained momentum. Once Daisy was beaten, however, company vision began to self-inflate. The final escalation came when Mentor Graphics decided to Change the Way the World Designs. The company had stopped making products and was making poetry. Finally, in 1991, Mentor went back to basics. HBS Number: 92204 Type: Harvard Business Review Article Publication Date: 3/1/1992 Subjects: Competition; Computer industry; Corporate strategy; Management communication
Case Author(s): Kuemmerle, Walter; Coughlin, William J. Publication Date: 03/31/2000 Revision Date: 04/05/2004 Product Type: Case (Field) Product Description: Describes a potential trans-Atlantic merger between two young companies in the Internet space. VacationSpot.com, based in Seattle, and Rent-A-Holiday, based in Brussels, both offer on-line listings and reservations for independent leisure lodging (i.e., villas, apartments, and bed & breakfast places) around the world. Both companies were started in 1997. At the time of the case (April 1999) the two companies are world-market co-leaders and discussing a merger. While the lodging inventory of both companies is very similar, their most recent post-money valuations have a ratio of approximately 9: 1. Merger negotiations have come to a standstill over the valuation issue. Both sides need to decide whether to restart negotiations and what terms to propose. Teaching Purpose: Valuation of Internet start-up firms; assessing the feasibility of a cross-border merger of start-ups; negotiating a merger. HBS Number: 9-800-334 Geographic Setting: United States/BelgiumIndustry Setting: services, tourismNumber of Employees: 60Gross Revenues: $1.6 million revenues Event Year Start: 1999Event Year End: 1999 Subjects: Europe; International entrprnl finance; Internet; Mergers & acquisitions; Negotiations; Tourism; Valuation Academic Discipline: Entrepreneurship Supplementary Materials: Teaching Note, (5-803-057), 19p, by Walter Kuemmerle
Case Author(s): Hill NF; Thomas G Description: A newly hired advisor to the president and principal of Valan must recommend ways to improve the company’s dismal financial performance. The advisor must take into account the complexity involved in devising and implementing control systems in asmall business and the need for control systems to be internally consistent with both themselves and the goals and objectives of the organization. Ivey Number: 9A85B006 Publication Date: 1/1/85 Revision Date: 5/20/2003 Geographic Setting: Canada Industry Setting: Special Trade Contractors Company Size: Small organization Event Year Start: 1984 Subjects: Control Systems; Incentives Level of Difficulty: Undergraduate/MBA
Case Ettington, Deborah R. This $800 million company is one of two major competitors that produce free-standing inserts and coupon booklets for Sunday newspapers throughout the United States. Valassis must address the threat of substitute coupon delivery and the opportunity provided by the growth of the Internet economy. Should it launch an e-commerce strategy for couponing? What other strategic options should be considered? Publication Date: 2004 Geographic Setting: Michigan Industry Setting: Printed and Online Coupons Event Year Start: 2000 Event Year End: 2000 Courses: Business Policy; e-Commerce Course Sequence: Business Strategy; e-Commerce Subjects: Business Policy; Electronic Commerce Supplementary Material: Teaching Note
Case Author(s): Stevenson, Howard H.; Turner, James Z. Publication Date: 03/26/1986 Revision Date: 11/20/1990 Product Type: Case (Field) Product Description: Presents interviews and conversations with a woman who recently started a publishing house. Primarily concerns her immediate future regarding harvesting options: IPO, sell out, step up to chairman, venture capital, etc. Also deals with the excitement and thrill of having your own business dream; i.e., the thrill of doing. HBS Number: 9-386-164 Geographic Setting: MassachusettsIndustry Setting: publishingCompany Size: start-up Event Year Start: 1985Event Year End: 1985 Subjects: Development stage enterprises; Entrepreneurship; Financial strategy; Management of change; Publishing industry Academic Discipline: Entrepreneurship Supplementary Materials: Case Video, (9-392-507), 18 min, by Michael J. Roberts; Teaching Note, (5-389-042), 6p, by Michael J. Roberts
Teaching Note For use with 9-386-164 HBS Number: 5-389-042 Subjects: Development stage enterprises; Entrepreneurship; Financial strategy; Management of change; Publishing industry
Case Author(s): Sahlman, William A.; Heath, Dan Publication Date: 09/21/2004 Product Type: Case (Field) Product Description: Discusses a new approach to the due diligence process introduced by the Valhalla Partners venture capital firm. Features an extended excerpt from an internal due diligence report prepared by Valhalla. The report analyzes Telco Exchange, a startup company in the IT software space. Examines the trade-offs involved in the new due diligence process and whether Valhalla should invest in Telco Exchange. Teaching Purpose: To give students real-world insight into the process of due diligence and the way it is used to manage risk. HBS Number: 9-805-033 Geographic Setting: Mid-Atlantic United StatesIndustry Setting: venture capitalNumber of Employees: 10 Event Year Start: 2003Event Year End: 2003 Subjects: Business plans; Entrepreneurial finance; Entrepreneurship; Investment management; Investments; Risk management; Telecommunications; Telecommunications industry; Venture capital Academic Discipline: Entrepreneurship
Case Piekkari, R; Toiminen, J Publisher: Helsinki School of Economics Distributor: ecch (www.ecch.com) Reference: 301-126-1 Language: English Category: Strategy and General Management Data source: Field research Product Year: 2001 Geo location: Finland Industry: Dairy Size: FIM 7.8 billion turnover Timing: 1996 Topics: Growth strategy; Consumer products; Internationalisation; Finnish dairy business Abstract: In 1996 the Vice President (VP) of Valio Fresh Products looked back on the highlights of Valio’s internationalisation process and international expansion. Valio was the largest dairy products company in Finland, which had been safe and secure until the European Union membership of its home country. VP thought of the impacts of this changing competitive environment both internationally and domestically, and contemplated on the strategies needed to overcome these.
Case Gasiorowska, A; Lievonen, J Publisher: Helsinki School of Economics Distributor: ecch (www.ecch.com) Reference: 604-058-1 Language: English Category: Production and Operations Management Data source: Field research Product Year: 2004 Geo location: Finland, EU (European Union) Industry: Mining, gold Size: Small Timing: 2003, time independent Topics: Project management; Feasibility study; Goldmining operations; Risk evaluation; Uncertainty, diversified; Cash flow; Real options; Mining operations; Capital cost and structure; Geology; Environmental considerations; Ethics; Price fluctuations; Investment Abstract: Valkeavaara gold deposit located in northern Finland looks promising to Jackpot Mining Oy based on initial findings. The managing director of Jackpot Oy should recommend to the CEO (Chief Executive Officer) of Jackpot Mining Ltd, John Sniffgold III, whether to open the Valkeavaara mine. He has the information needed but there are uncertainties involved, including the gold price fluctuations, euro/US dollar exchange rate, and the gold content of the ore. To make matters more complicated, Mr Karjalainen’s decision has political implications as well. Unemployment in the area is very high and the Finnish state is ready to grant a subsidy to the mining operation. If Mr Karjalainen turns this offer down, will he still be invited to the Prime Minister‘s crayfish party in the future? The case is a feasibility study of a project to be solved with free cash flow analysis. It can also be analysed using real options. An example solution based on simulation is included together with a traditional cash flow analysis. Sensitivities are the key to the recommendation. Equally important are parameters such as the gold content of the ore, the gold recovery rate, and the portion of high-grade concentrate to low-grade concentrate, and open pit versus underground min Source: ecch
Case Lane HW; Simpson DG Valley Farms International (VFI) describes some of the problems and issues involved in selling and exporting dairy cattle to a middle-east country. The decision that John Roberts of VFI must make is whether or not to employ the services of a“middleman” in that country, a practice which is against the law of that country. This case is the first in a series of cases bearing the same name, cases 9A89C006 through 9A89C011. Ivey Number: 9A89C006 Publication Date: 1/1/1989 Revision Date: 6/8/1999 Geographic Setting: Middle East Industry Setting: Agricultural Production - Livestock Company Size: Medium organization Event Year Start: 1984 Subjects: Ethical Issues, Intercultural Relations, Exports, International Trade Functional Area: Human Resource Management
Case Author(s): Henry W. Lane; Don G. Simpson Ivey ID: 9A89C007 Publication Date: 1/1/1989 Revision Date: 8/6/1999 Product Type: Case Teaching Note: 8A89C06 Geographic Setting: Middle East Industry Setting: Agricultural Production - Livestock Size: Medium Year of Event: 1984 Level of Difficulty: 4 - Undergraduate/MBA Subjects: International Trade; Intercultural Relations; Exports; Ethical Issues Major Disciplines: Human Resource Management; International Product Description: The partner describes some of the problems and issues involved in selling and exporting dairy cattle to a middle-east country. He must decide whether or not to employ the services of a "middleman" in that country, a practice which is against the law of that country. The case describes John Roberts’ decision on the issue in the Valley Farms International (A) case. This is the second in a series of cases bearing the same name, cases 9A89C006 through 9A89C011.
Case Lane HW; Simpson DG The partner continues to export cattle to a middle-eastern country but must decide whether to give in to the demands of an airline crew. They are demanding a cash payment as “danger pay” in order to take off with the load of cattle, however, thispayment is outside the terms of the contract. This case is the third in a series of cases bearing the same name, cases 9A89C006 through 9A89C011. Ivey Number: 9A89C008 Publication Date: 1/1/1989 Revision Date: 6/8/1999 Geographic Setting: Middle East Industry Setting: Agricultural Production - Livestock Company Size: Medium organization Event Year Start: 1987 Subjects: Ethical Issues, Intercultural Relations, Exports, Transportation Functional Area: Human Resource Management
Case Lane HW; Simpson DG Valley Farms International continues to export cattle to a middle-eastern country. This case describes some of the issues and problems associated with negotiating the contract, transportation and financing arrangements. The decision facing JohnRoberts in this case is whether to give in to the demands of an airline crew who are demanding a cash payment as “danger pay” in order to take off with the load of cattle. This payment is outside the terms of the contract. This case describes John Roberts’ decision on the issue in Valley Farms International (C), case 9A89C008. This is the fourth in a series of cases bearing the same name, cases 9A89C006 through 9A89C011. Ivey Number: 9A89C009 Publication Date: 1/1/1989 Revision Date: 6/8/1999 Geographic Setting: Middle East Industry Setting: Agricultural Production - Livestock Company Size: Medium organization Event Year Start: 1987 Subjects: Ethical Issues, Intercultural Relations, Exports, International Trade Functional Area: Human Resource Management
Case Lane HW; Simpson DG The partner continues to face and solve problems regarding the transportation of exported cattle. The cattle inspectors from the middle-eastern country have been called home and the cattle are on a ship at sea. The inspectors left, however, withoutsigning all the necessary documents, however, the partner has their signatures on some blank forms. Should he use these in order to collect on the letter of credit? This is the fifth case in a series of cases bearing the same name, cases 9A89C006through 9A89C011. Ivey Number: 9A89C010 Publication Date: 1/1/1989 Revision Date: 6/8/1999 Geographic Setting: Middle East Industry Setting: Agricultural Production - Livestock Company Size: Medium organization Event Year Start: 1988 Subjects: Ethical Issues, Intercultural Relations, Exports, Transportation Functional Area: Human Resource Management
Case Lane HW; Simpson DG The partner continues to export cattle and to face and solve problems regarding transportation. The cattle inspectors from the middle-eastern country have been called home and the cattle are on a ship at sea. The inspectors left without signing allthe necessary documents, however, he has their signatures on some blank forms. Should he use these in order to collect on the letter of credit? The case describes John Roberts’ decision on the issue in Valley Farms International (E), case 9A89C010.This is the sixth in a series of cases bearing the same name, cases 9A89C006 through 9A89C011. Ivey Number: 9A89C011 Publication Date: 1/1/1989 Revision Date: 6/8/1999 Geographic Setting: Middle East Industry Setting: Agricultural Production - Livestock Company Size: Medium organization Event Year Start: 1989 Subjects: Ethical Issues, Intercultural Relations, Exports, International Trade Functional Area: Human Resource Management
Case Edward L. Felton, Jr., Robert W. Service Source: The Society for Case Research, Annual Advances 1997, Copyright 1998. Topics: Business Ethics; Business Policy/Strategy; Business and Society; Organizational Behavior
Case Roger, M — Groupe CPA Decroix, P — Groupe CPA Distributor: ecch (www.ecch.com) Reference: 698-050-1 Language: English Category: Production and Operations Management Data source: Field research Product Year: 1998 Geo location: France Industry: Tubing manufacture Size: Turnover FF 6.6 billion Timing: 1992 Topics: Shortening of lead times in manufacturing; Manufacturing process Abstract: A market-leader in its sector, VALLOUREC is a specialist recognised across the world for its production of high quality seamless tubing. Until recently, the company has managed to keep its customers satisfied with average delivery lead times of 14 to 16 weeks for large orders connected with the installation of new facilities (electric and thermal electric power stations). The market has now moved towards the maintenance of existing power stations. When a power station is shut down for overhaul, it is essential to start it up again as soon as possible. In 1991, management decided to improve their lead times in order to better satisfy the American market for boiler tube maintenance. A working group was set up for this purpose. Items included in this study will help in: (1) the study of the manufacturing process and its operation over time; (2) critical analysis of actions taken to halve manufacturing lead times; (3) definition of conditions for the success of the project to shorten lead times; and (4) the study of possible extensions to the project.
Case Christensen, Clayton M. Vallourec, a leading maker of seamless tubing, developed a radically new technology that used steel powders to create the tubes. To ensure a supply source, Vallourec ultimately had to acquire its supplier of metal powder, and then, to build the volume required to reduce its cost, Vallourec had to create other markets for its powders. One of these was the injection molding of powdered metal parts. Vallourec first sought licensees for its process, and finding none, had to integrate into making molded parts themselves. The case describes how Vallourec developed its technology and then built a business to explain it. Teaching Purpose: To help students learn how to think about the question of whether they can outsource certain pieces of the puzzle when managing innovation, or whether they will need to perform the activity in-house. HBS Number: 9-697-001 Type: Case (Field) Publication Date: 11/25/1996 Revision Date: 3/4/1998 Geographic Setting: France Industry Setting: metal injection molding (steel) Number of Employees: 150 Gross Revenues: $40 million revenues Event Year Start: 1991 Event Year End: 1995 Subjects: Diversification; France; Innovation; Licensing; Metals; Technological change; Vertical integration Supplementary Materials: Teaching Note, (5-698-002), 9p, by Clayton M. Christensen
Case Leenders, M; Silvennoinen, R Publisher: Helsinki School of Economics Distributor: ecch (www.ecch.com) Reference: 401-013-1 Language: English Category: Human Resource Management and Organisational Behaviour Data source: Field research Product Year: 2001 Geo location: China Industry: Paper mill construction Timing: 1996 Topics: Human resources; Expatriates; Cross-cultural preparation Abstract: In May 1996, at Valmet Finland, the General Manager of Projects at Valmet Paper Finishing division, was concerned about the apparent lack of teamwork among the two dozen Finnish management and technical specialists working on the greenfield paper mill project in Suzhou, China. Valmet was the leading supplier of paper machines in the world with the corporation’s net sales amounting to FIM 8,574 million. Determined to maintain and expand its market leader position, Valmet was very active in exploring and entering new markets in Asia and South America, and the project at hand was to be followed by others in China, so intervention was needed. This short case is a helpful tool in triggering discussion in the field of cross-cultural management or human resources management. It can also be used to draw out the theoretical concepts related to expatriate selection and training as well as teamwork/group dynamics issues in an organisation.
Case Author(s): Eades, Kenneth M.; Caver, Jay; Hill, Jennifer Darden ID: UVA-F-1191 Published: 10/27/1997 3: 30: 00 PM Revised: 2/25/2004 Copyright Year: 1997 Subject Area: Finance Keywords: financial policy; financing capital investments; economic value added; Value-Based Management Teaching Note: UVA-F-1191TN Student Spreadsheet: UVA-S-F-1191 Faculty Spreadsheet: UVA-S-F-1191TN Abstract: This case is designed to be an introduction to the concept of economic value added (EVA). The student is placed in the position of Valmont’s CFO to decide whether EVA can live up to its promise to motivate managers to act like shareholders and ultimately lead them to make value-enhancing decisions that can reverse Valmont‘s weak earnings and lackluster stock-price performance. The case works best if students are acquainted with the concepts of cost of capital and net present value.
Case Author(s): Eades, Kenneth M.; Caver, Jay; Hill, Jennifer Darden ID: UVA-F-1191 Published: 10/27/1997 3: 30: 00 PM Revised: 2/25/2004 Copyright Year: 1997 Subject Area: Finance Keywords: financial policy; financing capital investments; economic value added; Value-Based Management Teaching Note: UVA-F-1191TN Student Spreadsheet: UVA-S-F-1191 Faculty Spreadsheet: UVA-S-F-1191TN Abstract: This case is designed to be an introduction to the concept of economic value added (EVA). The student is placed in the position of Valmont’s CFO to decide whether EVA can live up to its promise to motivate managers to act like shareholders and ultimately lead them to make value-enhancing decisions that can reverse Valmont‘s weak earnings and lackluster stock-price performance. The case works best if students are acquainted with the concepts of cost of capital and net present value.
Case Renneboog, L — Tilburg University Ultee, E — Tilburg University Distributor: ecch (www.ecch.com) Reference: 107-039-1 Language: English Category: Finance, Accounting and Control Data source: Generalised experience Product Year: 2007 Geo location: Europe Industry: Airline Size: Large Timing: 2007 Topics: Valuation; Real options; Net present value (NPV); Cost of capital; Certainty equivalent; Managerial flexibility; Strategic NPV; Quanitfying strategy; Monte Carlo simulation; Stochastic processes; Airline business Abstract: This case deals with the valuation of a corporate expansion scenario into new markets. This problem is applied to the airline industry: to a hypothetical move by Ryanair into Turkey if Turkey were to join the EU (European Union) (which would alter the regulatory framework for EU airlines interested in servicing the Turkish market). The case offers different levels of valuation complexity. Part (A) uses a static discounted cash flow valuation, net present value (NPV). It also elaborates on the cost of capital and shows how the certainty equivalent valuation works. Real data from the airline industry is used. These static valuations are used as a platform for further analysis in part (B), which introduces real option valuation. The spreadsheets provided with the case contain pre-set formulae with stochastic processes for specific variables that capture most uncertainty in the airline industry. An environment of high uncertainty and managerial flexibility can make real options very valuable as management can take advantage of opportunities (call options) or cut losses (put options) when more information becomes available over time. The case shows how Monte Carlo simulation works and how real options can be built into spreadsheets. The case is conceptually challenging but does not require technical knowledge on stochastics, simu Source: ecch
Case Achleitner, A K — TUM Business School Jarchow, S — TUM Business School Schraml, S — TUM Business School Distributor: ecch (www.ecch.com) Reference: 807-063-1 Language: English Category: Entrepreneurship Data source: Field research Product Year: 2007 Version Date: February 2007 Geo location: Europe, Switzerland Industry: High-technology Size: 13 employees Timing: 1999-2007 Topics: Valuation; Intangibles; Intellectual property; Commercialisation; Platform technology; Young company / start-up; Intangibles company; Exploiting intellectual property; Managing intellectual property; Patenting; Licensing; Sweat equity; Exit strategies; Equity investor; Financing Abstract: The case study provides students with a deep understanding of the challenges an intellectual property based company faces. It gives profound insight into the valuation and strategic management of this specific company type. Anchorus SA offers an ideal example for a real life scenario of an intellectual property (IP) based company. It is an innovative company which bases its business model mainly on intangible assets. Its core technology has a platform nature and is applicable to various industries. Anchorus generates profits through out-licensing the patented technology to several licensees.The case focuses on two strategic decisions an IP based company is faced with: firstly, the platform technology based companies have to decide on a suitable commercialisation strategy for their intangible assets. Students learn to analyse the specific sources of value that such an intangibles company has. A special focus lies on the long-term oriented exploitation of a platform technology and its corresponding intangible assets. Secondly, the students have to consider the situation of exiting equity holders. They discuss different exit options and learn which factors influence a Source: ecch
Case Author(s): Healy, Paul Publication Date: 10/31/2007 Product Type: Case (Library) HBS Number: 9-108-041 Subjects: Pharmaceuticals; Valuation Academic Discipline: Finance Product Description: An abstract is not available for this product.
Case Mohanty, P — T.A. Pai Management Institute Saraf, A — T.A. Pai Management Institute Distributor: ecch (www.ecch.com) Reference: 106-035-1 Language: English Category: Finance, Accounting and Control Data source: Field research Product Year: 2006 Geo location: India Industry: Pharmaceuticals Topics: Indian stock market; Knoll Pharmaceuticals Limited; Financial resources; Market share; Trading of brands; Methods of valuing brands; Historical cost, replacement cost; Inter brand method; Brand earnings; Future earnings potential; Incremental value of bra Abstract: This abstract is currently unavailable.
Case Johnson, R M Publisher: London Business School Distributor: ecch (www.ecch.com) Reference: 398-027-1 Language: English Category: Strategy and General Management Data source: Unspecified Product Year: 1998 Topics: Venture capital; Valuation
Article Author(s): Rappaport, Alfred; Mauboussin, Michael J. Publication Date: 03/01/2002 Product Type: Harvard Business Review Article Product Description: Business decisions based on poor valuation practices can create significant losses. Here’s a straightforward set of calculations that will help your company assess the impact of its valuation decisions on shareholder returns. HBS Number: F0203D Subjects: Capital budgeting; Capital costs; Financial analysis; Present value Academic Discipline: Finance
Case Author(s): Harris, Robert S. Darden ID: UVA-F-1007 Published: 8/26/1992 Revised: 8/27/1999 Copyright Year: 1992 Subject Area: Finance Keywords: Financing; Valuation Abstract: This technical note compares two methods of treating debt usage in discounted-cash-flow valuation of investment projects or companies. The note illustrates that the Weighted Average Cost of Capital approach (WACC) and the Equity Residual approach (ER) yield equivalent results if consistent assumptions are used. General features are illustrated with specific examples, including a LOTUS spreadsheet.
Case Author(s): Harris, Robert S. Darden ID: UVA-F-1007 Published: 8/26/1992 Revised: 8/27/1999 Copyright Year: 1992 Subject Area: Finance Keywords: Financing; Valuation Abstract: This technical note compares two methods of treating debt usage in discounted-cash-flow valuation of investment projects or companies. The note illustrates that the Weighted Average Cost of Capital approach (WACC) and the Equity Residual approach (ER) yield equivalent results if consistent assumptions are used. General features are illustrated with specific examples, including a LOTUS spreadsheet.
Case Author(s): Bertoneche, Marc L.; Federici, Fausto Publication Date: 06/06/2005 Revision Date: 11/01/2006 Product Type: Note HBS Number: 9-205-116 Subjects: Debt management; Metrics; Present value; Taxation; Valuation; Value creation Academic Discipline: Finance Product Description: Presents a comprehensive review of the valuation methods based on discounting cash flows or value creation metrics and shows, through simple example and a straightforward “how-to-do” framework, the perfect consistency and identity of their results under similar assumptions.
Technical Note Author(s): Chaplinsky, Susan Darden ID: UVA-F-1471 Published: 6/8/2005 Copyright Year: 2005 Subject Area: Finance Keywords: Valuation Early Stage Company venture capital investments investors; Abstract: This note covers several frequently used methods to value early-stage companies and discusses some of the issues and difficulties encountered more generally in valuing privately held assets. The basic assumptions underlying the venture capital and the discounted cash flow methods of valuation are discussed in detail. In addition, the note attempts to provide some direction in making the appropriate trade-offs between the guidance provided by financial theory and the practical limitations posed by an illiquid asset class. A numerical example is given to highlight the key differences between the techniques.
Technical Note Author(s): Chaplinsky, Susan Darden ID: UVA-F-1471 Published: 6/8/2005 Copyright Year: 2005 Subject Area: Finance Keywords: Valuation Early Stage Company venture capital investments investors; Abstract: This note covers several frequently used methods to value early-stage companies and discusses some of the issues and difficulties encountered more generally in valuing privately held assets. The basic assumptions underlying the venture capital and the discounted cash flow methods of valuation are discussed in detail. In addition, the note attempts to provide some direction in making the appropriate trade-offs between the guidance provided by financial theory and the practical limitations posed by an illiquid asset class. A numerical example is given to highlight the key differences between the techniques.
Case Author(s): Conroy, Robert M.; Eades, Kenneth M. Darden ID: UVA-F-1121 Published: 7/27/1998 Revised: 2/5/2007 Copyright Year: 1997 Subject Area: Finance Keywords: interest rates, swaps Abstract: This note takes students step by step through the valuation of an interest rate swap. It assumes students have a strong grounding in the concepts of forward rates and spot rates.
Case Author(s): Conroy, Robert M.; Eades, Kenneth M. Darden ID: UVA-F-1121 Published: 7/27/1998 Revised: 2/5/2007 Copyright Year: 1997 Subject Area: Finance Keywords: interest rates, swaps Abstract: This note takes students step by step through the valuation of an interest rate swap. It assumes students have a strong grounding in the concepts of forward rates and spot rates.
Case Author(s): Healy, Paul M.; Palepu, Krishna G. Publication Date: 01/22/2004 Revision Date: 03/08/2005 Product Type: Case (Library) Product Description: Examines factors underlying differences in valuation multiples (price-earnings and price-to-book) across four firms in the restaurant industry. Teaching Purpose: To have students match the firms with multiple values, providing a basis for discussing the primary drivers of multiples. HBS Number: 9-104-066 Event Year Start: 2002Event Year End: 2002 Subjects: Accounting; Restaurants; Service industries; Valuation Academic Discipline: Accounting & control Supplementary Materials: Teaching Note, (5-105-056), 5p, by Paul M. Healy
Case Author(s): Stevenson, Howard H.; Roberts, Michael J. Publication Date: 01/18/1984 Revision Date: 08/18/1988 Product Type: Note Product Description: Describes several approaches to valuation of a going concern: assets, earnings, and cash flow. HBS Number: 9-384-185 Subjects: Entrepreneurship; Valuation Academic Discipline: Entrepreneurship
Case Author(s): Roberts, Michael J. Publication Date: 10/24/2005 Revision Date: 12/20/2006 Product Type: Note HBS Number: 9-806-058 Subjects: Capitalization; Development stage enterprises; Entrepreneurial finance; Entrepreneurship; Financing; Valuation; Venture capital Academic Discipline: Entrepreneurship Product Description: Explains the concept of implied valuation — i.e., the valuation that can be inferred from a financing event — and how such valuations and financings are represented in a “cap” or capitalization table for a new venture.
Article Author(s): Rogers, Paul; Holland, Thomas P.; Haas, Da Publication Date: 06/01/2002 Product Type: Harvard Business Review Article HBS Number: R0206F Subjects: Accounting & control; Asset management; Business processes; Earnings; Financial analysis; Return on investment; Shareholder relations; Strategic planning Academic Discipline: Competitive strategy Product Description: The most successful private-equity firms regularly spearhead dramatic business transformations, creating exceptional returns for their investors. To understand how those firms do it, the authors studied more than 2,000 PE transactions over the past 10 years and discovered that the top performers’ success stems from the rigor with which they manage their businesses. This article describes the 4 management disciplines vital to the success of the best PE firms. First, for each business, they define an investment thesis: a brief, clear statement of how to make the business more valuable within 3 to 5 years. The thesis, which guides all actions by the company, usually focuses on growth. PE firms know that the demonstration of a path to strong growth produces the big returns on investment. Second, they don‘t measure too much. They zero in on a few financial indicators that most clearly reveal the business's progress in increasing its value. They watch cash more closely than earnings and tailor performance measures to each business, rather than impose 1 set of measures across their entire portfolio. Third, they work their balance sheets, mining undervalued assets, turning fixed assets into sources of financing, and aggressively managing their physical capital. Last, they make the center the shareholder. Corporate staffs in PE firms make unsentimental investment decisions, buying and selling businesses when the price is right and bringing in new management when performance falters. These firms also keep their corporate centers extremel Source: Harvard
Case Jahns, C — European Business School Germany Moser, R — European Business School Germany Schober, H — European Business School Germany Lockstroem, M — European Business School Germany Distributor: ecch (www.ecch.com) Reference: 607-005-1 Language: English Category: Production and Operations Management Data source: Field research Product Year: 2007 Geo location: Europe Industry: Airline catering Size: 10,000 employees Timing: 2005 Topics: Sourcing; Outsourcing; Buying; Sourcing strategy; Operations management Abstract: This case study provides students with basic insights into make-or-buy decisions and cost analysis. Students learn to analyse different cost factors such as labour, infrastructure, machinery or material and to think in value adding activities in the airline catering business. Students take over the role of Tom Jones, a supply professional at AIR Catering Chefs, who is challenged to analyse whether outsourcing specific activities along the value chain might improve AIR Catering Chefs competitive position.
Case Pesenti, S; Johnson, R M Publisher: London Business School Distributor: ecch (www.ecch.com) Reference: 395-088-1 Language: English Category: Strategy and General Management Data source: Field research Product Year: 1995 Geo location: UK Industry: Computer services Timing: 1980-1988 Topics: Entrepreneurship; Opportunity assessment; Starting-up; Financing Abstract: This is the first of two stand-alone cases (395-088-1 and 395-089-1) examining starting-up and financing issues. A business established to supply computer systems to doctors in general practice has embarked on a new, ambitious project to build a medical research database. The business’s track record to date has been mixed, the doctors‘ market has been difficult, and the company's current backers are either not interested in or unable to make an additional investment. Building the database will incur large costs and require a major injection of capital, although the returns potentially could be huge. The case investigates the process and problems involved in starting a business, and asks whether a new venture capital investor should back the business.
Case Pesenti, S; Johnson, R M Publisher: London Business School Distributor: ecch (www.ecch.com) Reference: 395-089-1 Language: English Category: Strategy and General Management Data source: Field research Product Year: 1995 Geo location: UK Industry: Databases Timing: 1988-1991 Topics: Entrepreneurship; Growth, failure; Financing; Valuation Abstract: This is the second of two stand-alone cases (395-088-1 and 395-089-1) examining starting-up and financing issues. Three years on, the company is facing insolvency. Following a financing after the end of the (A) case, the company has built its database. The data sales, though, have been slow to take off, and the equity investors have decided that a trade sale is the best way to secure the company’s future. Meanwhile, a slump in the systems business has created a cash crisis. Mezzanine finance has been raised to bridge the situation during negotiations with a trade buyer. These have now collapsed, and all other options for financial support appear to have been exhausted. The case explores the relationship between the company and its various backers, and asks whether there are any options left for management now.
Case Arroyo Lopez, M d; Carcamo Solis, M d Publisher: Tecnologico de Monterrey Distributor: ecch (www.ecch.com) Reference: C18-10-001 Language: Spanish Category: Economics, Politics and Business Environment Data source: Generalised experience Product Year: 2007 Version Date: 9 October 2007 Geo location: Tlaquepaque, Jalisco, Mexico Industry: Hand crafts Timing: 1986 Topics: Outsourcing and the value of logistics in customer service and a company’s competitiveness Abstract: Tonala and Tlaquepaque are in one of the most important handcraft production zones in Mexico. The international clients, mainly from the US, who acquire great quantities of handcrafts, use companies called consolidators for their export processes. The basic services they offer are provisional warehousing, payment to suppliers, negotiation with and supervision of transport companies and customs brokers, and to do the necessary paper work for the merchandize being exported. The owner and general manager of one of these consolidated companies faces the dilemma of modifying her basic service package to offer more to the client. With this, she can achieve differentiation and increase earnings for her services. But this would mean developing new abilities to re-orient her services towards customized ones and of greater value.
Article Author(s): Bendoly, Elliot; Soni, Ashok; Venkataramanan, M.A. Publication Date: 03/15/2004 Product Type: Business Horizons Article Publisher: Business Horizons/Indiana University Product Description: Competition is no longer limited to the realm of the enterprise. Entire value chains are now starting to act as formidable entities, competing against each other for similar markets. The structures of these partnered communities are both increasingly idiosyncratic and hard to duplicate, which strengthens the sustainability of the competitive advantages of their constituents. But their effectiveness is only as good as the capabilities supported by interfirm information technologies. ERP is at the core of these extended systems, though in reality their architectures reach far beyond that. Modern management now requires the consideration of novel Value Chain Resource Planning concepts to sustain forward momentum. HBS Number: BH102 Subjects: ERP; Information technology; Operations management; Supply chain Academic Discipline: Operations management
Case Alos, A J — Lagos Business School Anyakora, C — Lagos Business School Distributor: ecch (www.ecch.com) Reference: 806-063-1 Language: English Category: Entrepreneurship Data source: Field research Product Year: 2006 Geo location: Nigeria Industry: Small to medium-sized enterprises (SMEs) Size: Medium Timing: June 2006 Topics: An opportunity; Market; Competition; WSI Worldwide Inc; WSI Franchise; Kola’s Fears; Financial projection; Decision Abstract: In an attempt to solve the problem of a young son regarding the ethical use of the Internet, Kola Olusola discovered a great business opportunity in the growing Internet market in Nigeria. He had no background in information technology. He had worked as a marketer for a multinational for several years and afterwards set up his own marketing firm which was doing quite well, but the Internet business was irresistible to him. Teaming up with his old friend they set up Value Communications Ltd. Since neither have any experience in this business they weigh up the option of buying a franchise.
Case Baker, George P.; Jensen, Michael C.; Wruck, Karen H.; Fagan, Perry L. Asks students to value a strategic plan while considering the capital investment required to complete the plan. Cummins Engine is used as an example. HBS Number: 9-898-185 Type: Case (Library) Publication Date: 3/3/98 Geographic Setting: United States Subjects: Capital investments; Stock offerings; Strategic planning; Valuation
Case Author(s): Dietl, Helmut; Royer, Susanne; Stratmann, Uwe Publication Date: 05/01/2009 Product Type: Case (Field) Publisher: California Management Review HBS Number: CMR426 Geographic Setting: Europe Industry Setting: Automotive industry Subjects: Competitive advantage; Corporate strategy; Industry structure; Organizational design Academic Discipline: Operations management Product Description: In many industries, disintegration processes have drastically changed the overall industry structure as well as the organization of value creation processes and actors. Highly integrated production and distribution systems have been replaced by devolved organization architectures. This article introduces the concept of value creation architectures, a term that describes the structure and relationships of all the value-adding activities that are carried out by various actors and companies to bring a particular product or service to market. Analyses of business firms tend to overlook the relationship between competitive advantage and the architecture of value creation. This article investigates how different architectures of value creation affect the competitiveness of individual firms. The new concept is illustrated by an in-depth case study of the European automobile industry.
Case Schubert, S — AUDENCIA Nantes Ecole de Management Distributor: ecch (www.ecch.com) Reference: 302-118-1 Language: English Category: Strategy and General Management Data source: Published sources Product Year: 2002 Geo location: Europe Industry: Airline industry Timing: 1985-2002 Topics: Resources; Capabilities; Competitive advantage; Value creation; Low cost airlines; British Airways; Ryanair; EasyJet Abstract: The September 11 attacks accelerated the downturn in which the European airline industry had been engaged in since 1999. But while some flag-carriers like Swissair and Sabena took a nosedive and crashed, thriving low cost carriers like Ryanair and easyJet have found in the downturn a new opportunity for growth. Their sustained high profit margins, contrasting with the razor-thin margins of traditional carriers, are synonymous with real value creation due to a significant competitive advantage. This case study applies a resource-based view by linking competitive advantage to valuable distinctive resources and capabilities. The contrasting evolution of British Airways and its main low cost rivals since the beginning of the 1990s provides insight into how competitive advantage is created, sustained or lost in the European airline industry.
Case Muylle, S; Roodhooft, F; de Vlieger, A K Publisher: Vlerick Leuven Gent Management School Distributor: ecch (www.ecch.com) Reference: 607-007-1 Language: English Category: Production and Operations Management Data source: Field research Product Year: 2007 Geo location: Belgium, France Industry: Packaging Size: Medium Timing: 2000-2005 Topics: Total cost of ownership; Customer value; Extended supply chain; Collaboration; Partnership Abstract: Europal is a family-owned medium sized company supplying packaging logistics solutions to customers in Europe. The company originally focused on the manufacture and selling of corrugated board packaging, but decided in the year 2000 to grow from a mere vendor towards a trusted partner accommodating the packaging logistics needs of its customers. Daikin Europe, the leading manufacturer and seller of air conditioning units, was the first company with whom Europal Logistics developed a close partnership. Thanks to the success of its value-added partnership with Daikin Europe, Europal was able to acquire the confidence of various companies such as Atlas Copco, Barco, Baxter, Mutoh and Tyco, and roll out similar collaboration initiatives at these organisations.
Technical Note Author(s): Harris, Robert S. Darden ID: UVA-F-1164 Published: 1/10/1997 12: 35: 00 PM Copyright Year: 1997 Subject Area: Finance Keywords: capital budgeting; economic analysis; net present value; performance evaluation Abstract: This technical note compares economic-profit (economic value added) and net-present-value techniques for evaluating corporate investments and performance. The note shows the relationship between the two approaches and sets out the conditions under which they yield the same conclusions about value creation. It also discusses the differences in their estimation and use and talks about some of the difficulties of application. The note is useful for students who have already been exposed to net-present-value techniques.
Technical Note Author(s): Harris, Robert S. Darden ID: UVA-F-1164 Published: 1/10/1997 12: 35: 00 PM Copyright Year: 1997 Subject Area: Finance Keywords: capital budgeting; economic analysis; net present value; performance evaluation Abstract: This technical note compares economic-profit (economic value added) and net-present-value techniques for evaluating corporate investments and performance. The note shows the relationship between the two approaches and sets out the conditions under which they yield the same conclusions about value creation. It also discusses the differences in their estimation and use and talks about some of the difficulties of application. The note is useful for students who have already been exposed to net-present-value techniques.
Article Author(s): Johnson, Lauren Keller Publication Date: 11/15/2003 Product Type: Balanced Scorecard Report Article Product Description: If you’re struggling to define more sharply the customer-perspective sector of your Balanced Scorecard, you‘re not alone. A new approach to customer-strategy formulation can help you lay out your value proposition in crystal-clear terms—and get even more out of your BSC. HBS Number: B0311D Subjects: Balanced scorecard; Customer relations; Strategic planning; Strategy formulation; Strategy implementation Academic Discipline: Competitive strategy
Article Kim, W. Chan; Mauborgne, Renee A. Why are some companies able to sustain high growth in revenues and profits—and others are not? To answer that question, the authors, both of INSEAD, spent five years studying more than 30 companies around the world. They found that th HBS Number: 97108 Type: Harvard Business Review Article Publication Date: 1/1/97 Subjects: Competition; Growth strategy; Innovation; Management philosophy; Product introduction; Strategy formulation
Article Author(s): Kim, W. Chan; Mauborgne, Renee Publication Date: 07/01/2004 Product Type: Harvard Business Review Article HBS Number: R0407P Subjects: Competitive advantage; Growth strategy; HBR Classics; Innovation; Market definition Academic Discipline: Competitive strategy Product Description: Why are some companies able to sustain high growth while others are not? To answer that question, Insead professors W. Chan Kim and Renee Mauborgne spent five years studying more than 30 companies around the world. They found that the thinking of less successful organizations is often dominated by the idea of staying ahead of the competition. In stark contrast, high-growth companies pay little attention to matching or beating their rivals. Instead, they seek to make their competitors irrelevant through what the authors call “value innovation.” Conventional strategic logic and value innovation differ along the basic dimensions of strategy. Many companies take their industry’s conditions as given; value innovators don‘t. Whereas many organizations let their rivals set the parameters of their strategic thinking, value innovators do not use competitors as benchmarks. Rather than focus on differences between customers, value innovators look for things that customers value in common. Instead of viewing opportunities through a lens of existing assets and capabilities, value innovators ask, “What if we start anew?” In this classic HBR article, first published in 1997, the authors tell the story of the French hotelier Accor, which discarded the notion of what a hotel is supposed to look like in the interest of delivering what customers really want: a good night's sleep at a low price. And Virgin Atlantic challenged airline industry conventions by eliminating first-class service and channeling savings into innovations for business-class passengers. Those companies didn't set out to build advantages Source: Harvard
Article Author(s): Kim, W. Chan; Mauborgne, Renee Publication Date: 07/01/2004 Product Type: Harvard Business Review Article HBS Number: 7251 Subjects: Competitive advantage; Growth strategy; HBR Classics; Innovation; Market definition Academic Discipline: Competitive strategy Product Description: This is an enhanced edition of HBR article R0407P, originally published in 1997 and republished in July 2004. HBR OnPoint articles include the full-text HBR article plus a summary of key ideas and company examples to help you quickly absorb and apply the concepts. Why are some companies able to sustain high growth while others are not? To answer that question, Insead professors W. Chan Kim and Renee Mauborgne spent five years studying more than 30 companies around the world. They found that the thinking of less successful organizations is often dominated by the idea of staying ahead of the competition. In stark contrast, high-growth companies pay little attention to matching or beating their rivals. Instead, they seek to make their competitors irrelevant through what the authors call “value innovation.” Conventional strategic logic and value innovation differ along the basic dimensions of strategy. Many companies take their industry’s conditions as given; value innovators don‘t. Whereas many organizations let their rivals set the parameters of their strategic thinking, value innovators do not use competitors as benchmarks. Rather than focus on differences between customers, value innovators look for things that customers value in common. Instead of viewing opportunities through a lens of existing assets and capabilities, value innovators ask, “What if we start anew?” In this classic HBR article, first published in 1997, the authors tell the story of the French hotelier Accor, which discarded the notion of what a hotel is supposed to look like in the interest of delivering what customers really Source: Harvard
Article Author(s): Anand, Bharat N. Publication Date: 01/01/2008 Product Type: Harvard Business Review Article HBS Number: F0801E Subjects: Brand management; Product lines; Product portfolio management Academic Discipline: Competitive strategy Product Description: The mantra “Every product must stand on its own bottom line” may no longer be the one to chant. Nowadays, broadening your portfolio can increase both your chances of a big win and the benefit your other products can get from a hit’s popularity.
Case Author(s): Bell, David E. Publication Date: 02/11/1991 Revision Date: 04/06/1994 Product Type: Note Product Description: Gives some simple examples to illustrate the concept of the value of information in decision making. Both perfect and imperfect information are considered. HBS Number: 9-191-138 Subjects: Decision analysis; Decision making; Decision trees; Value of information Academic Discipline: Negotiations
Case Author(s): Farris, Paul W.; Pfeifer, Phillip E.; Johnson, Richard R. Darden ID: UVA-M-0645 Published: 7/16/2001 Copyright Year: 2001 Subject Area: Marketing Keywords: network analysis, technology strategy, valuation, e-business Abstract: The economics of the Internet are often tied to determining the value of a communications network. However, there are several different kinds of communications networks, each with their own method of valuation. These networks are named by the laws that describe their valuation: Sarnoff’s, Metcalfe‘s, and Reed's. This note describes each network type and its method of valuation.
Case Author(s): Farris, Paul W.; Pfeifer, Phillip E.; Johnson, Richard R. Darden ID: UVA-M-0645 Published: 7/16/2001 Copyright Year: 2001 Subject Area: Marketing Keywords: network analysis, technology strategy, valuation, e-business Abstract: The economics of the Internet are often tied to determining the value of a communications network. However, there are several different kinds of communications networks, each with their own method of valuation. These networks are named by the laws that describe their valuation: Sarnoff’s, Metcalfe‘s, and Reed's. This note describes each network type and its method of valuation.
Case Lal, Rajiv; Kristofferson, Mitchell Executive Vice President Durk Jager was convinced that the huge sums being spent on trade and consumer promotion could be put to better use, and that P&G should overhaul its pricing strategy to one of consistent list prices with little, if any, promotional spending. Two category managers (for hand-dishwashing liquids Dawn, Ivory, and Joy, and for Folgers coffee) were considering the potential consequences of putting their products on the "value pricing" bandwagon. Should they implement value pricing? And if so, how much should they reduce list prices for these national brands? Major changes to the original budget and marketing plan would be required, and these changes would have to be accomplished without compromising the profitability of the category. May be used with: (M284B) Value Pricing at Procter & Gamble (B). HBS Number: M284A Type: Case (Field) Publication Date: 02/01/1996 Geographic Setting: Cincinnati, OH Industry Setting: consumer packaged goods Company Size: Fortune 500 Gross Revenues: $24 billion revenues Event Year Start: 1991 Event Year End: 1991 Subjects: Consumer goods; Marketing strategy; Pricing; Restructuring Publisher: Stanford University
Case Lal, Rajiv; Kristofferson, Mitchell The transition to value pricing required changes in product development as well as in the roles of brand managers and the sales force, and coincided with a significant drop in both shipments and sales. In championing such a radical change, Durk Jager had put not only his own job on the line, but also the fate of the entire company. May be used with: (M284A) Value Pricing at Procter & Gamble (A). HBS Number: M284B Type: Case (Field) Publication Date: 02/01/1996 Geographic Setting: Cincinnati, OH Industry Setting: consumer packaged goods Company Size: Fortune 500 Gross Revenues: $24 billion revenues Event Year Start: 1991 Event Year End: 1991 Subjects: Consumer goods; Marketing strategy; Pricing; Restructuring Publisher: Stanford University
Case Author(s): Segel, Arthur I. Publication Date: 07/11/2002 Revision Date: 07/07/2008 Product Type: Color Case HBS Number: 803008 Geographic Setting: Europe Industry Setting: Real estate; Retail industry Event Year Start: 2001 Event Year End: 2001 Subjects: Brands; Real estate Academic Discipline: Finance Supplementary Materials: Teaching Note, (803081), 7p, by Arthur I. Segel, Ani Vartanian Product Description: Scott Malkin, CEO of Value Retail, a developer and operator of European outlet villages serving luxury brands, is planning on developing a 18,503 m2 open-air outlet village to be built 98 kilometers south of Milan on land he was about to acquire for 7.26 million lira. Is this a good investment? What are the risks associated with the project? Could Value Retail pursue its outlet strategy in Italy? Includes color exhibits.
Case Author(s): Segel, Arthur I. Publication Date: 07/11/2002 Revision Date: 07/07/2008 Product Type: Color Case HBS Number: 803008 Geographic Setting: Europe Industry Setting: Real estate; Retail industry Event Year Start: 2001 Event Year End: 2001 Subjects: Brands; Real estate Academic Discipline: Finance Supplementary Materials: Teaching Note, (803081), 7p, by Arthur I. Segel, Ani Vartanian Product Description: Scott Malkin, CEO of Value Retail, a developer and operator of European outlet villages serving luxury brands, is planning on developing a 18,503 m2 open-air outlet village to be built 98 kilometers south of Milan on land he was about to acquire for 7.26 million lira. Is this a good investment? What are the risks associated with the project? Could Value Retail pursue its outlet strategy in Italy? Includes color exhibits.
Case Author(s): Segel, Arthur I. Publication Date: 07/11/2002 Revision Date: 12/17/2003 Product Type: Color Case Product Description: Scott Malkin, CEO of Value Retail, a developer and operator of European outlet villages serving luxury brands, is planning on developing a 18,503 m2 open-air outlet village to be built 98 kilometers south of Milan on land he was about to acquire for 7.26 million lira. Is this a good investment? What are the risks associated with the project? Could Value Retail pursue its outlet strategy in Italy? Includes color exhibits. HBS Number: 9-803-008 Geographic Setting: EuropeIndustry Setting: real estate/retail Event Year Start: 2001Event Year End: 2001 Subjects: Brands; Europe; Italy; Real estate; Real estate developments Academic Discipline: Finance Supplementary Materials: Teaching Note, (5-803-081), 8p, by Arthur I. Segel, Ani Vartanian
Case Author(s): Karri, Chitanya; Landel, Robert D.; Darden ID: UVA-OM-1369 Published: 4/3/2009 Copyright Year: 2009 Subject Area: Operations Management Keywords: Lean thinking; Value Stream Mapping Abstract: This case focuses on the application of Value Stream Mapping as a means of identifying waste in a supplier’s logistics- services activities. Students are given the information needed to construct a Value Steam Map, identify value-added and non-value-added activities, and develop opportunitites for reaching 50% improvement in throughput time. It is based on the case Supplier Development at SysInteg (A) UVA-OM-1355, about a summer intern in the Supplier Development department at XS Inc. who is participating in a two-day Value Stream Mapping (VSM) event at a key supplier‘s facility—SysInteg.
Article Author(s): Hoffmeister, Jan Publication Date: 09/15/2001 Product Type: Balanced Scorecard Report Article Product Description: Over the course of the past decade, Swedish-based Skandia Group has gained worldwide recognition as a leader in the use of nonfinancial measures for both internal purposes and external disclosures. Here, the Collaborative’s David Norton discusses Skandia‘s innovations with Jan Hoffmeister, vice president and learning controller of American Skandia Investment. HBS Number: B0109D Subjects: Balanced scorecard; Corporate strategy; Disclosure; Intangible assets Academic Discipline: Competitive strategy
Case Das, Sanjiv; Lynagh, Stephen Introduces the student to the recently developed concept of value-at-risk (VAR) in risk analysis. By working through a stylized example using spreadsheet tools, the student learns the conceptual framework of VAR and its implementation mechanics. Teaching Purpose: VAR is a new approach to price risk management. Develops students’ awareness of concepts and mechanics. HBS Number: 9-297-069 Type: Case (Gen Exp) Publication Date: 1/31/1997 Revision Date: 7/15/1997 Geographic Setting: Unspecified Subjects: Capital markets; Economic analysis; Portfolio management; Risk management
Article Author(s): Williamson, Peter J.; Zeng, Ming Publication Date: 03/01/2009 Product Type: Harvard Business Review Article HBS Number: R0903E Subjects: Emerging markets; Multinational corporations; Recessions; Value creation Academic Discipline: Competitive strategy Product Description: In tough economic times, some companies have outmaneuvered rivals to become market leaders through value-for-money strategies. That is, they have enabled recession-hit consumers to economize (do less and spend less), become more efficient (do the same for less), or become more effective (do more but spend no more). To implement such a strategy, argue this British professor and Chinese academic, companies must go beyond refining cost-cutting capabilities to develop expertise in cost innovation. That may not be good news for many U.S., European, and Japanese corporations, because multinationals from emerging markets, which have long experience with value-conscious customers, have already built cost-innovation capabilities that are unlocking mass markets in both developing — and developed — countries. Some, like battery maker BYD, have learned to sell high-tech products profitably at mass-market prices through a combination of lower labor costs and manufacturing innovations. Others, like drinks purveyor United Spirits, have dominated industries by blanketing sizable niches in their home markets with a full range of products or customized options. And still others, like appliance manufacturer Haier, have used low-price offerings to turn small, unguarded niches into mass markets in developed countries. In response, the authors argue, Western companies should turn to developing countries for vital lessons in lowering the cost of building brands and developing and manufacturing products. They should enter into alliances with emerging giants to gain cost-innovation capabilities. And they should use their superior finan Source: Harvard
Case Author(s): Lorsch, Jay; Chernak, Alexis Publication Date: 09/19/2007 Revision Date: 10/22/2008 Product Type: Case (Field) HBS Number: 408007 Geographic Setting: United States Industry Setting: Financial institution Event Year Start: 2000 Event Year End: 2003 Subjects: Board of directors; Corporate governance; Investments; Shareholder relations Academic Discipline: Organizational behavior & leadership Product Description: ValueAct, a San Francisco investment firm, makes an investment in PerSe Technologies. The partners of ValueAct build relationships with the PerSe board and management. Eventually ValueAct is given a seat on the PerSe board and is able to influence a significant imprint in PerSe’s performance.
Case Author(s): Lorsch, Jay; Chernak, Alexis Publication Date: 09/19/2007 Revision Date: 10/22/2008 Product Type: Case (Field) HBS Number: 408007 Geographic Setting: United States Industry Setting: Financial institution Event Year Start: 2000 Event Year End: 2003 Subjects: Board of directors; Corporate governance; Investments; Shareholder relations Academic Discipline: Organizational behavior & leadership Product Description: ValueAct, a San Francisco investment firm, makes an investment in PerSe Technologies. The partners of ValueAct build relationships with the PerSe board and management. Eventually ValueAct is given a seat on the PerSe board and is able to influence a significant imprint in PerSe’s performance.
Case Author(s): Lorsch, Jay; Chernak, Alexis Publication Date: 09/19/2007 Product Type: Case (Field) HBS Number: 9-408-007 Geographic Setting: United States Industry Setting: Financial institution Event Year Start: 2000 Event Year End: 2003 Subjects: Board of directors; Corporate governance; Investments; Shareholder relations Academic Discipline: Organizational behavior & leadership Product Description: ValueAct, a San Francisco investment firm, makes an investment in PerSe Technologies. The partners of ValueAct build relationships with the PerSe board and management. Eventually ValueAct is given a seat on the PerSe board and is able to influence a significant imprint in PerSe’s performance.
Case Author(s): Lorsch, Jay; Chernak, Alexis Publication Date: 09/19/2007 Revision Date: 10/22/2008 Product Type: Case (Field) HBS Number: 408007 Geographic Setting: United States Industry Setting: Financial institution Event Year Start: 2000 Event Year End: 2003 Subjects: Board of directors; Corporate governance; Investments; Shareholder relations Academic Discipline: Organizational behavior & leadership Product Description: ValueAct, a San Francisco investment firm, makes an investment in PerSe Technologies. The partners of ValueAct build relationships with the PerSe board and management. Eventually ValueAct is given a seat on the PerSe board and is able to influence a significant imprint in PerSe’s performance.
Article Donaldson, Thomas What should managers working abroad do when they encounter business practices that seem unethical? Should they, in the spirit of cultural relativism, tell themselves to do in Rome as the Romans do? Or should they take an absolutist approach, using the ethical standards they use at home no matter where they are? Many business practices are neither black nor white but exist in a gray zone, a moral free space through which managers must navigate. Levi Strauss and Motorola have helped managers by treating company values as absolutes and insisting that suppliers and customers do the same. And, perhaps even more important, both companies have developed detailed codes of conduct that provide clear direction on ethical behavior but also leave room for managers to use the moral imagination that will allow them to resolve ethical tensions responsibly and creatively. HBS Number: 96502 Type: Harvard Business Review Article Publication Date: 9/1/1996 Subjects: Bribery; Business etiquette; Cross cultural relations; Developing countries; Ethics; International operations; Values
Article Haas, Robert; Howard, Robert Levi Strauss & Co. chairman and CEO Robert Haas says that, because new economic realities place more complex demands on employees, a company’s values are now more important than ever before. At Levi, Haas is using the company‘s values (codified in the Levi Strauss Aspirations Statement) to reinvent occupational roles and responsibilities, performance evaluations, employee training, work organization, and business decisions. HBS Number: 90504 Type: Harvard Business Review Article Publication Date: 9/1/1990 Subjects: Clothing; Ethics; Human resources management; Interviews; Leadership; Organizational change; Organizational development; Values
Technical Note Author(s): Bruner, Robert F. Darden ID: UVA-F-1213 Published: 4/2/1998 Copyright Year: 1998 Subject Area: Finance Keywords: mergers acquisitions; valuation; financial forecasting; computer modeling Student Spreadsheet: UVA-S-F-1213 Abstract: This note describes the structure and potential applications of a “canned” spreadsheet model that values and projects pro-forma results for two merging firms. The model can be used as a course resource in a course on valuation or mergers and acquisitions. In applications at Darden, terms of students are given this model as a resource for projects in mergers and acquisitions.
Technical Note Author(s): Bruner, Robert F. Darden ID: UVA-F-1213 Published: 4/2/1998 Copyright Year: 1998 Subject Area: Finance Keywords: mergers acquisitions; valuation; financial forecasting; computer modeling Student Spreadsheet: UVA-S-F-1213 Abstract: This note describes the structure and potential applications of a “canned” spreadsheet model that values and projects pro-forma results for two merging firms. The model can be used as a course resource in a course on valuation or mergers and acquisitions. In applications at Darden, terms of students are given this model as a resource for projects in mergers and acquisitions.
Case Foerster SR; Karolyi GA This note provides an overview of business valuation techniques. The discounted cash flow method is described in a simple six-step process. A numerical example is also provided. Other valuation methods are briefly discussed, including theprice-earnings approach, break-up value, and an acquisition premium approach. This note is ideally suited for an executive audience. (A more in-depth note in this area can be found in “A Note on Mergers and Acquisitions and Valuation”, case number9A95B023.) Ivey Number: 9A98N026 Publication Date: 15/02/1999 Subjects: Business Valuation, Valuation Functional Area: Finance
Case Author(s): Conroy, Robert M.; Harris, Robert S. Publication Date: 02/05/2007 Product Type: Case (Field) HBS Number: UV0892 Subjects: Arbitrage; Cash flow; Finance; Pricing; Valuation Academic Discipline: Finance Product Description: This note provides an overview of techniques used to value assets, including multiples, arbitrage pricing, and discounted cash flow. The note emphasizes the basic nature of valuation approaches and their logical underpinning, focusing on how techniques are applied to assets that are or might be traded in financial markets. The note sets the stage for specific (and often complicated) applications of the pricing techniques.
Technical Note Author(s): Harris, Robert S.; Conroy, Robert M. Darden ID: UVA-F-1518 Published: 2/5/2007 Copyright Year: 2007 Subject Area: Finance Keywords: valuation, arbitrage pricing, multiples, discounted cash flow, present value, risk and return Abstract: This note provides an overview of techniques used to value assets, including multiples, arbitrage pricing, and discounted cash flow. The note emphasizes the basic nature of valuation approaches and their logical underpinning, focusing on how techniques are applied to assets that are or might be traded in financial markets. The note sets the stage for specific (and often complicated) applications of the pricing techniques.
Case Kester, W. Carl A collection of problems that introduces students to the application of discounted cash flow analysis in the evaluation of capital budgeting problems. Teaching Purpose: To introduce students to discounted cash flow analysis and net present value concepts. HBS Number: 9-298-092 Type: Case (Gen Exp) Publication Date: 12/30/1997 Revision Date: 12/4/1998 Geographic Setting: Unspecified Subjects: Capital budgeting; Cash flow; Present value; Project evaluation
Teaching Note Author(s): Kester, W. Carl Publication Date: 05/19/2004 Product Type: Teaching Note Product Description: Teaching Note to (9-298-092). Must be used with: (9-298-092) Valuing Capital Investment Projects. HBS Number: 5-204-152 >Academic Discipline: Finance
Case Author(s): Kuemmerle, Walter; Braun, Matias Publication Date: 09/25/2002 Revision Date: 04/15/2004 Product Type: Note Product Description: Addresses the question of how to value cash flows in an international context. Focuses on entrepreneurial ventures, but its content applies to finance issues that arise in established multinational enterprises. Addresses cash flows, discount rates, country risk premium, projecting future exchange rates, and other issues. Also contains an extensive example of a software company that exports services to other countries. Teaching Purpose: To introduce students to questions of valuing cash flows in an international context. Can be used in MBA courses on international finance, international entrepreneurial finance, international business, or globalization. Also appropriate for more sophisticated students with prior experience in the field. HBS Number: 9-803-028 Subjects: Cash flow; Country analysis; Entrepreneurial finance; Entrepreneurship; Financial analysis; International entrprnl finance; International finance; Multinational corporations; Valuation Academic Discipline: Entrepreneurship
Case Foerster SR; Chin B An investment advisor with a major brokerage firm gave investment suggestions and helped clients manage their portfolios. Some of her clients had Coca Cola stock in their portfolios and she wondered whether to recommend the stock to any of her newclients or clients that did not currently have Coca Cola in their portfolios. The case can be used to introduce the dividend discount model, capital asset pricing model, and price-earnings models. Ivey Number: 9A97N017 Publication Date: 2/12/1997 Revision Date: 27/01/2000 Industry Setting: Security and Commodity Brokers, Dealers Subjects: Valuation, Investment Analysis, Stock Market, Investments Functional Area: Finance
Case Author(s): Gilson, Stuart C. Publication Date: 12/18/2000 Product Type: Note Product Description: Provides a technical overview of different valuation techniques for use in valuing companies in corporate restructuring. Techniques covered include adjusted present value, WACC, capital cash flow, and discounted cash flow valuation. Specific numerical examples are provided. Teaching Purpose: To provide students with a practical reference guide on corporate valuation techniques. HBS Number: 9-201-073 Subjects: Discounts; Present value; Restructuring; Valuation Academic Discipline: Finance
Case Author(s): Harris, Robert S. Darden ID: UVA-F-1187 Published: 9/10/1997 Copyright Year: 1997 Subject Area: Finance Keywords: acquisitions; present value; valuation Abstract: This technical note provides an overview of a valuation network: multiples, options pricing, specific-asset valuation, and present value. The strengths and philosophies of each approach are discussed in the context of valuing companies. Variations of present-value approaches are also discussed. The purpose of the note is to furnish a conceptual overview rather than to go through the mechanics.
Case Author(s): Harris, Robert S. Darden ID: UVA-F-1187 Published: 9/10/1997 Copyright Year: 1997 Subject Area: Finance Keywords: acquisitions; present value; valuation Abstract: This technical note provides an overview of a valuation network: multiples, options pricing, specific-asset valuation, and present value. The strengths and philosophies of each approach are discussed in the context of valuing companies. Variations of present-value approaches are also discussed. The purpose of the note is to furnish a conceptual overview rather than to go through the mechanics.
Case Author(s): Trigeorgis, Lenos; Smit, Han T. J. Publication Date: 02/01/2009 Product Type: Case (Field) Publisher: California Management Review HBS Number: CMR419 Industry Setting: Airline industry; Airport industry; Asset management Subjects: Asset management; Assets; Cash flow; Corporate strategy; Game theory; Infrastructure; Investments; Options; Privatization Academic Discipline: Competitive strategy Product Description: To understand the recent trend toward privatization of infrastructure assets (e.g., airports), this article proposes a valuation methodology based on real options and game theory analysis that enables assessing when investors might overpay for infrastructure assets over standard discounted cash flow methods and when a premium is justified for their operating flexibility or strategic growth option value. While some infrastructure asset acquisitions may involve financial transactions whose value derives primarily from their expected cash flows, many of these infrastructure investments provide a platform and create the strategic context within which the firm can grow.
Technical note Pesenti, S; Johnson, R M Publisher: London Business School Distributor: ecch (www.ecch.com) Reference: 395-090-6 Language: English Category: Strategy and General Management Data source: Field research Product Year: 1995 Topics: Entrepreneurship; Financing Abstract: A comprehensive discussion of multiple, discounted cash flow and asset valuation methods and the different perspectives of financial and strategic investors. The note considers the interrelation between the methods and shows how a thorough valuation should consider aspects of each method.
Case Author(s): Desai, Mihir; Luchs, Kathleen S. Publication Date: 01/08/2001 Product Type: Case (Field) HBS Number: 9-201-080 Geographic Setting: San Francisco, CA Industry Setting: software Number of Employees: 20 Gross Revenues: $1 million revenues Event Year Start: 1999 Event Year End: 1999 Subjects: Education; Entrepreneurship; Equity capital; Financing; Software; Venture capital Academic Discipline: Finance Supplementary Materials: Teaching Note, (5-201-130), 20p, by Mihir Desai Product Description: Project Achieve is a start-up providing information management solutions for schools. Its founders see a need for software both to manage the volumes of information necessary to administer a school and to connect parents, teachers, and students in a more effective way. Originally funded by angel investors, Project Achieve is raising its first formal round of financing and needs to establish a firm valuation. This case outlines the economics of the business and provides the necessary background figures to build the business model and arrive at a valuation. Explores quantitative considerations of venture financing: 1) value neutrality of equity issuance is illustrated; 2) cost of capital is computed from raw return series, and the appropriate discount rate is selected based on comparables; 3) decision trees are used to highlight the importance of probabilistic thinking; and (4) subscriber models are compared with annual free cash flow models both for determining financial value and as decision-making tools for business choices. In addition, provides a setting to discuss the more qualitative issues involved in choosing investors. In particular, the founders are comparing two options: an infusion of additional capital from current and new investors or an investment from a potential strategic partner. Each option has very different implication Source: Harvard
Case Author(s): Coval, Joshua; Stafford, Erik Publication Date: 01/11/2008 Product Type: Note HBS Number: 208111 Event Year Start: 2007 Event Year End: 2007 Subjects: Debt management; Risk management Academic Discipline: Finance Supplementary Materials: Teaching Note, (208112), 4p, by Joshua Coval, Erik Stafford Product Description: This lesson develops the classical structural approach to pricing and hedging credit risk: Merton’s (1974) contingent claims model of debt and equity claims. This model is used to make investment and risk management decisions in an over-the-counter (OTC) market for distressed bonds.
Case Author(s): Coval, Joshua; Stafford, Erik Publication Date: 01/11/2008 Product Type: Note HBS Number: 208111 Event Year Start: 2007 Event Year End: 2007 Subjects: Debt management; Risk management Academic Discipline: Finance Supplementary Materials: Teaching Note, (208112), 4p, by Joshua Coval, Erik Stafford Product Description: This lesson develops the classical structural approach to pricing and hedging credit risk: Merton’s (1974) contingent claims model of debt and equity claims. This model is used to make investment and risk management decisions in an over-the-counter (OTC) market for distressed bonds.
Case Author(s): Applegate, Lynda M. Publication Date: 01/03/2002 Revision Date: 02/05/2002 Product Type: Case (Library) Product Description: On January 11, 2000 AOL Time Warner announced their intention to merge, creating what AOL CEO Stephen Case and Time Warner CEO Gerald Levin called the 21st century’s first fully integrated communications, media, and entertainment company. This case, prepared from public sources, enables in-depth analysis of the value of AOL Time Warner from the viewpoint of executives and analysts before their merger 6 months later. Teaching Purpose: To discuss the challenges of identifying the value of a company during periods of market, industry, and business turbulence. HBS Number: 9-802-098 Geographic Setting: United StatesIndustry Setting: entertainment telecommunicationsNumber of Employees: 50,000Gross Revenues: $33 billion revenues Event Year Start: 2001Event Year End: 2001 Subjects: Entertainment industry; Information technology; Mergers; Telecommunications; Valuation Academic Discipline: Entrepreneurship Supplementary Materials: Teaching Note, (5-802-232), 47p, by Lynda M. Applegate, Madlen Kadish
Teaching Note For use with 9-802-098 HBS Number: 5-802-232 Subjects: Entertainment industry; Information technology; Mergers; Telecommunications; Valuation
Case Author(s): Meulbroek, Lisa Publication Date: 03/29/2001 Product Type: Note Product Description: The flows-to-equity or equity cash flows valuation method is a discounted cash flow method used to estimate the equity portion of the capital structure. It is closely related to the venture capital/buyout valuation method, which estimates the IRR of the stream of cash flows accruing to equity holders. Both of these methods are likely to result in an estimate of equity value that is too low when the firm’s debt is risky (or, equivalently, an IRR that is too high, depending on the method used to estimate terminal value.) This note describes a method for estimating the size of this bias, drawing upon insight from option-pricing. Teaching Purpose: Can be used in conjunction with cases involving direct estimation of equity value, using a discounted cash flow technique, and with cases employing the venture capital/buyout fund valuation method. HBS Number: 9-201-110 Subjects: Capital structure; Cash flow; Entrepreneurial finance; Leveraged buyouts; Option pricing; Risk; Valuation; Venture capital Academic Discipline: Finance
Case Author(s): Piper, Thomas R.; Magretta, Joan Publication Date: 05/11/2009 Product Type: Case HBS Number: TRP001 Geographic Setting: United States Gross Revenues: $5,296 million Event Year Start: 1995 Event Year End: 1995 Subjects: Computer hardware; Computers; High technology; High technology products; Financial management; Financial strategy; Performance measurement; Performance measurement systems Academic Discipline: Finance Product Description: Dell Computer Corp. manufactures, sells, and services personal computers. The company markets its computers directly to its customers and builds computers after receiving a customer order. This build-to-order model enables Dell to have much smaller investment in working capital than its competitors. It also enables Dell to more fully enjoy the benefits of reduction in component prices and to introduce new products more quickly. Dell has grown quickly and has been able to finance that growth internally by its efficient use of working capital and its profitability. This case highlights the importance of working capital management in a rapidly growing firm. Learning Objective: Integration of a firm’s strategy and its financial characteristics, financial performance, and need for capital.
Case Author(s): Stephen R. Foerster Publication Date: 2/16/2006 Revision Date: 3/22/2007 Product Type: Case Ivey ID: 9B06N009 Geographic Setting: United States Industry Setting: Security and Commodity Brokers, Dealers Size: Large Year of Event: 2006 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Stock Market; Securities; Investment Analysis; Financial Analysis Major Disciplines: Finance Product Description: An investment advisor at a major brokerage is considering whether she should recommend Wal-Mart stock to her clients who do not currently have this stock in their portfolios. Students will be presented with basic valuation concepts including the dividend discount model, price-earnings model and applications of the capital asset pricing model.
Case Author(s): Watkins, Michael D. Publication Date: 12/03/2001 Product Type: Case (Gen Exp) Product Description: Describes the challenges facing Van Bolton, the head of a large airline, as he works with the head of the company’s pilots‘ union to negotiate issues relating to the acquisition of a smaller airline. Bolton must find ways to surmount a history of adversarial relationships between the company and the union. Teaching Purpose: Exploration of key process management decisions in complex negotiations where there is a pre-existing conflict among the parties. HBS Number: 9-902-051 Geographic Setting: airlines Subjects: Acquisitions; Airlines; Collective bargaining; Labor negotiations Academic Discipline: Negotiations
Case Bodewes, W E — Erasmus Universiteit Rotterdam Uhlaner, L — Erasmus Universiteit Rotterdam Groeneveld, B — Erasmus Universiteit Rotterdam Roeleveld, W — Erasmus Universiteit Rotterdam Engelen, D — Erasmus Universiteit Rotterdam Distributor: ecch (www.ecch.com) Reference: 804-021-1 Language: English Category: Entrepreneurship Data source: Field research Product Year: 2004 Geo location: The Netherlands Size: Small to medium Timing: 2002 Topics: Family business; Innovation; Cash flow; Venture capital; Venturing; Product portfolio Abstract: Most cases on new business venturing tend to focus at entrepreneurial success. This case challenges students to analyse an entrepreneurial firm that sailed into rough waters. Van Dam BV has been a family business specialising in sheet metal since 1906. The company has flourished for almost a century. In the last decades its focus has been on innovation, as a result of which it has neglected efficiency and economies of scale. Focussing on a single customer made matters worse, resulting in major cash-flow problems in 2001 and 2002. The year 2002 is the first year the company should benefit from recent innovations, but cash has run out prematurely and the company is in desperate need of a financial injection. Will it obtain the funds it needs to survive?
Case Author(s): Goerzen A Description: Vancity Credit Union is one of the largest credit unions in Canada with $9 billion in assets and 300,000 members. The company’s success was based on three key elements: member experience, employee experience and community leadership. With thepressure of increased competition from financial institutions and changing market characteristics, the chief executive officer must review the corporate strategy and resources to determine how the company can stay competitive and further increaseits members and services. Ivey Number: 9B04M026 Publication Date: 5/4/2004 Geographic Setting: Canada Industry Setting: Banking Company Size: Large organization Event Year Start: 2004 Subjects: Strategic Positioning; Financial Institutions; Managing Industry Change; E-Commerce Level of Difficulty: Undergraduate/MBA Functional Area: General Management
Case (Field) Author(s): Stewart Thornhill; Devkamal Dutta; Diane Friedman Ivey ID: 9B02M035 Publication Date: 11/29/2002 Product Type: Case (Field) Geographic Setting: Canada Industry Setting: Credit Agencies other than Banks Size: Large Year of Event: 1998 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Corporate Strategy; Entrepreneurial Finance; Credit Unions Major Disciplines: Entrepreneurship; General Management Product Description: VanCity has been Canada’s biggest success story in the field of community banking. The board of directors must consider whether the credit union should venture into mezzanine financing, a competitive industry in which the organization has no prior experience. The proposal is favored by a board member who feels that the credit union can re-invent itself in the marketplace by following this route. The decision is troublesome because even if it makes economic sense there is an issue of whether it will achieve organizational fit with VanCity‘s overall culture and employee orientation.
Case Barnes, Louis B. After a dash of cold water in an executive course, Terry Van Der Aa, president of Vancom Transportation (a school bus and public transit company), decides to do something about his social conscience. He establishes an effort to hire "unemployables" from the inner city area of Lawndale and train them to be bus drivers. The case describes how this effort is put into motion. Teaching Purpose: What can businesspeople do about social issues? HBS Number: 9-495-021 Type: Case (Field) Publication Date: 9/29/1994 Geographic Setting: Chicago, IL Industry Setting: transportation Gross Revenues: $175 million revenues Event Year Start: 1993 Event Year End: 1994 Subjects: Community relations; Corporate responsibility; Delegation of authority; Employee empowerment; Employee training; Leadership; Transportation; Women Supplementary Materials: Supplement (Field), (9-495-022), 3p, by Louis B. Barnes
Case Barnes, Louis B. Describes the history and evolution of a school/public bus transit company that has grown rapidly and successfully by (gradually) pushing responsibility and trust as far down the organization as possible. A real test comes however, in two major labor relations issues. Teaching Purpose: To show how an avant garde philosophy must still meet constant challenges which pose new dilemmas and tests. HBS Number: 9-494-127 Type: Case (Field) Publication Date: 4/13/1994 Revision Date: 12/2/1994 Geographic Setting: Chicago, IL Industry Setting: bus transportation Number of Employees: 5,500 Gross Revenues: $140 million revenues Event Year Start: 1993 Event Year End: 1993 Subjects: Employee empowerment; Human behavior; Labor relations; Leadership; Management of crises; Managerial behavior; Transportation Supplementary Materials: Supplement (Field), (9-494-128), 3p, by Louis B. Barnes
Case Author(s): Barnes, Louis B. Publication Date: 04/13/1994 Product Type: Supplement (Field) Product Description: Describes the outcome of the labor relations issues. Must be used with: (9-494-127) Vancom Transportation, Inc. (A). HBS Number: 9-494-128 Subjects: Employee empowerment; Human behavior; Labor relations; Leadership; Management of crises; Managerial behavior; Transportation Academic Discipline: Organizational behavior & leadership
Case Author(s): Elberse, Anita; Anthony, Catherine; Callahan, Joshua Publication Date: 03/21/2007 Revision Date: 10/05/2007 Product Type: Case (Field) HBS Number: 9-507-049 Geographic Setting: Canada Industry Setting: Sports industry Gross Revenues: $1.5 billion Canadian revenues Event Year Start: 2004 Event Year End: 2010 Subjects: Entertainment; Global business; Global economy; Government; Marketing; Social marketing; Sports; Strategic market planning Academic Discipline: Marketing Product Description: It is February 2007, exactly three years before Vancouver hosts the 2010 Winter Olympics. Judy Rogers, City Manager for the City of Vancouver and a member of the Board of Directors for Vancouver’s Organizing Committee (VANOC), is keen to ensure the Games will have a lasting positive impact on the city and on Canada. However, a recent event reveals that significant social tensions could negatively effect the event and Vancouver‘s image across the globe, and Rogers will have to find a way to address the growing concerns. More pressingly, Rogers and her team are faced with the task of creating an Olympic Legacy Reserve Fund that could enable the city to achieve its sustainability goals, but involves a significant tax increase for Vancouver's residents and businesses. With the world watching and the clock ticking, there is a lot at stake. How should Rogers respond to these challenges? Allows for an in-depth examination of critical social marketing issues in the context of one of the world's biggest sports events. Provides rich data on the possible benefits and drawbacks for a variety of constituents, including the International Olympic Committee, the host country and city, its businesses, and local residents, and can serve to illustrate the key tensions as well as best practices in social marketing initiatives.
Case Author(s): Upton, David; McAfee, Andrew Publication Date: 10/29/1996 Revision Date: 04/16/1997 Product Type: Case (Field) Product Description: An ICS consultant considers issues at the start of a full-scale implementation of SAP software for a large client. The enterprise resource planning (ERP) software will integrate previously fragmented business processes and so must be supported by the entire client organization. HBS Number: 9-697-037 Geographic Setting: United States Industry Setting: Industrial goods, machinery & equipment industries; Software industry Number of Employees: 30,000 Gross Revenues: $8 billion revenues Event Year Start: 1996 Event Year End: 1996 Subjects: Change management; Consulting; Data processing; Enterprise systems; ERP; Information systems; Manufacturing strategy; Reengineering; Software Academic Discipline: Operations management Supplementary Materials: Teaching Note, (5-697-063), 16p, by David Upton, Andrew McAfee
Teaching Note For use with 9-697-037 HBS Number: 5-697-063 Subjects: Consulting; Data processing; Enterprise systems; ERP; Information systems; Management of change; Manufacturing strategy; Reengineering; Software
Case Author(s): Perold, Andre F.; Spitz, William T. Publication Date: 12/11/2006 Revision Date: 12/04/2007 Product Type: Case (Field) HBS Number: 9-207-062 Geographic Setting: Nashville, TN Number of Employees: 10 Event Year Start: 2006 Event Year End: 2006 Subjects: Asset management; Derivatives; Hedge funds; Leverage; Portfolio management; Private equity; Risk management Academic Discipline: Finance Product Description: As with many modern-day large pools of capital, the Vanderbilt University endowment is significantly invested in alternative assets such as hedge funds, private equity, real estate, and natural resources. The endowment’s investment committee chair is attempting to understand the complexity of the portfolio and the risks that might be present. How should the risks of these sophisticated strategies be measured? And, in particular, what risks is the endowment exposed to by virtue of the many types of leverage inherent in alternative investment strategies. Finally, did the institution have sufficient resources to manage such a portfolio, and was the investment committee providing sufficient oversight.
Case Author(s): Perold, Andre F.; Spitz, William T. Publication Date: 12/11/2006 Revision Date: 12/04/2007 Product Type: Case (Field) HBS Number: 9-207-062 Geographic Setting: Nashville, TN Number of Employees: 10 Event Year Start: 2006 Event Year End: 2006 Subjects: Asset management; Derivatives; Hedge funds; Leverage; Portfolio management; Private equity; Risk management Academic Discipline: Finance Product Description: As with many modern-day large pools of capital, the Vanderbilt University endowment is significantly invested in alternative assets such as hedge funds, private equity, real estate, and natural resources. The endowment’s investment committee chair is attempting to understand the complexity of the portfolio and the risks that might be present. How should the risks of these sophisticated strategies be measured? And, in particular, what risks is the endowment exposed to by virtue of the many types of leverage inherent in alternative investment strategies. Finally, did the institution have sufficient resources to manage such a portfolio, and was the investment committee providing sufficient oversight.
Case Author(s): Light, Jay O.; Sailer, James E. Publication Date: 10/21/1992 Revision Date: 12/28/1993 Product Type: Case (Field) Product Description: Deals with the general mission and strategy of a large mutual fund complex. May be used with: (9-293-065) Vanguard Group, Inc. (B). HBS Number: 9-293-064 Geographic Setting: PennsylvaniaIndustry Setting: mutual fundsNumber of Employees: 500Gross Revenues: $300 million revenues Event Year Start: 1992Event Year End: 1992 Subjects: Investment management; Mutual funds Academic Discipline: Finance Supplementary Materials: Teaching Note, (5-294-064), 7p, by Jay O. Light, James E. Sailer
Case Author(s): Viceira, Luis M. Publication Date: 06/26/2007 Revision Date: 01/28/2008 Product Type: Case (Field) HBS Number: 9-207-129 Geographic Setting: United States Industry Setting: Mutual fund Number of Employees: 12,000 Event Year Start: 2006 Event Year End: 2006 Subjects: Asset allocation; Asset management; Financial planning; Investment management; Life cycles; Mutual funds; Pension funds; Risk Academic Discipline: Finance Product Description: The Vanguard Group is one of the largest asset managers in the U.S., with over $1 trillion in assets, ninety percent of which are mutual fund assets, and more than 12,000 employees at year-end 2006. Vanguard has built a strong reputation as the manager of reference for low-cost investing and high-quality customer service which always does what it thinks is best for its clients. Vanguard has recently launched a family of life-cycle funds called Target Retirement Funds. Life-cycle funds, which have proven popular both with investors in company-sponsored defined-contribution pension plans and with individual investors, are built on the idea of “age-based investing,” or the notion that investors should allocate more of their long-term savings to stocks when they are young and have longer retirement horizons, and decrease this allocation as they approach retirement. The management at Vanguard is examining the central role of these funds may play in some initiatives aimed at growing Vanguard’s retail, defined contribution and client advisory services. The pending approval of the Pension Protection Act will make it possible for sponsors of defined-contribution plans to take a more active role in advising plan participants, and the assets in individual retirement accounts and defined-contribution pension plans are expected to continue their rapid growth moving forward. Should Vanguard promote these funds Source: Harvard
Case Author(s): Viceira, Luis M. Publication Date: 06/26/2007 Revision Date: 01/28/2008 Product Type: Case (Field) HBS Number: 9-207-129 Geographic Setting: United States Industry Setting: Mutual fund Number of Employees: 12,000 Event Year Start: 2006 Event Year End: 2006 Subjects: Asset allocation; Asset management; Financial planning; Investment management; Life cycles; Mutual funds; Pension funds; Risk Academic Discipline: Finance Product Description: The Vanguard Group is one of the largest asset managers in the U.S., with over $1 trillion in assets, ninety percent of which are mutual fund assets, and more than 12,000 employees at year-end 2006. Vanguard has built a strong reputation as the manager of reference for low-cost investing and high-quality customer service which always does what it thinks is best for its clients. Vanguard has recently launched a family of life-cycle funds called Target Retirement Funds. Life-cycle funds, which have proven popular both with investors in company-sponsored defined-contribution pension plans and with individual investors, are built on the idea of “age-based investing,” or the notion that investors should allocate more of their long-term savings to stocks when they are young and have longer retirement horizons, and decrease this allocation as they approach retirement. The management at Vanguard is examining the central role of these funds may play in some initiatives aimed at growing Vanguard’s retail, defined contribution and client advisory services. The pending approval of the Pension Protection Act will make it possible for sponsors of defined-contribution plans to take a more active role in advising plan participants, and the assets in individual retirement accounts and defined-contribution pension plans are expected to continue their rapid growth moving forward. Should Vanguard promote these funds Source: Harvard
Case Author(s): Viceira, Luis M. Publication Date: 06/26/2007 Revision Date: 01/28/2008 Product Type: Case (Field) HBS Number: 9-207-129 Geographic Setting: United States Industry Setting: Mutual fund Number of Employees: 12,000 Event Year Start: 2006 Event Year End: 2006 Subjects: Asset allocation; Asset management; Financial planning; Investment management; Life cycles; Mutual funds; Pension funds; Risk Academic Discipline: Finance Product Description: The Vanguard Group is one of the largest asset managers in the U.S., with over $1 trillion in assets, ninety percent of which are mutual fund assets, and more than 12,000 employees at year-end 2006. Vanguard has built a strong reputation as the manager of reference for low-cost investing and high-quality customer service which always does what it thinks is best for its clients. Vanguard has recently launched a family of life-cycle funds called Target Retirement Funds. Life-cycle funds, which have proven popular both with investors in company-sponsored defined-contribution pension plans and with individual investors, are built on the idea of “age-based investing,” or the notion that investors should allocate more of their long-term savings to stocks when they are young and have longer retirement horizons, and decrease this allocation as they approach retirement. The management at Vanguard is examining the central role of these funds may play in some initiatives aimed at growing Vanguard’s retail, defined contribution and client advisory services. The pending approval of the Pension Protection Act will make it possible for sponsors of defined-contribution plans to take a more active role in advising plan participants, and the assets in individual retirement accounts and defined-contribution pension plans are expected to continue their rapid growth moving forward. Should Vanguard promote these funds Source: Harvard
Case Buzzell, Robert D. Describes the "Quick Response" program developed by Vanity Fair Mills (VFM), a division of the VF Corp. Beginning in 1989, VFM reorganized its manufacturing systems, invested heavily in computer and telecommunications equipment, and formed "partnership" agreements with major retailers. These changes were designed to improve inventory turnover, reduce markdowns, and cut down on operating expenses in the distribution of intimate apparel. The improved efficiency of the distribution channel would, it was believed, yield benefits for VFM and its retail customers. In early 1993 VFM management reviewed their progress to date in implementing Quick Response. HBS Number: 9-593-111 Type: Case (Field) Publication Date: 05/21/1993 Revision Date: 10/12/1993 Geographic Setting: United States Industry Setting: apparel Company Size: large Gross Revenues: $3.8 billion revenues Event Year Start: 1993 Event Year End: 1993 Subjects: Clothing; Distribution channels; Inventory management; Logistics; Marketing strategy; Sales management Supplementary Materials: Teaching Note, (5-595-095), 4p, by David E. Bell
Teaching Note For use with 9-593-111 HBS Number: 5-595-095 Subjects: Clothing; Distribution channels; Inventory management; Logistics; Marketing strategy; Sales management
Case Author(s): Moon, Youngme; Kiron, David Publication Date: 06/22/2002 Product Type: Case (Field) Product Description: Vans is best known for selling footwear and apparel to skateboarders, surfers, and other alternative sports athletes. In April 2002, Gary Schoenfeld, the CEO, is facing a number of challenges. With respect to footwear, he must decide what to do about two product lines that are struggling—the outdoor line of hiking shoes and the women’s collection. More broadly, Vans is currently embarking on a number of new ventures, some of with which the company has little experience. For example, Vans is in the process of promoting a full-length movie, creating its own record label, and working with video-game developers to develop games based on its sporting events. Teaching Purpose: Traces the up-and-down history of a niche fashion brand in a market in which consumers are notoriously fickle. In recent years, the CEO appears to have revived the brand; however, it is unclear whether the company is in danger of losing its hardcore customer base as it ventures into the consumer mainstream. Allows for an examination of how a brand can evolve over time, as well as a discussion of the conflict that can arise when the growth and popularity of a brand affects its perception of authenticity among its most loyal customers. HBS Number: 9-502-077 Geographic Setting: CaliforniaIndustry Setting: shoes/apparelNumber of Employees: 1,700Gross Revenues: $350 million revenues Event Year Start: 2002Event Year End: 2002 Subjects: Brands; Clothing; Consumer marketing; Footwear; New product marketing Academic Discipline: Marketing Supplementary Materials: Teaching Note, (5-505-008), 24p, by Youngme Moon
Case Beamish PW; Poynter TA Vantage is a family owned firm which has been “led” by an ambitious, entrepreneurial CEO who now wants to take a less active role in the business. The company has been through two reorganizations in recent years, and performance has declined to afour-year low. The case focuses on the organizational and strategic issues which will need to be addressed by a new president. Ivey Number: 9A95G009 Publication Date: 22/11/1996 Revision Date: 13/07/1999 Geographic Setting: USA Industry Setting: Machinery except Electrical Company Size: Large organization Event Year Start: 1992 Subjects: Growth Strategy, Organizational Structure Functional Area: General Management
Case Misra, R; Dhar, S; Johri, S; Jain, M; Dhar, U Publisher: Prestige Institute of Management & Research Distributor: ecch (www.ecch.com) Reference: 405-005-1 Language: English Category: Human Resource Management and Organisational Behaviour Data source: Field research Product Year: 2005 Geo location: Central India Industry: Heavy commercial vehicle industry Size: Large Timing: 2000 Topics: Salary and wages; Negotiation; Unionism; Compensation pattern Abstract: Akshay Motors Pvt Ltd is a company that had two plants, one with 55-60 employees and the other one with 300 employees. This case focuses on the negotiation between workers and management on the pay hike demanded by the small plant that was turned down by management. After some time, the same pay hike was demanded by the workers of the main plant. Due to the presence of a strong union, this negotiation resulted in an agreement to give a raise on the basis of a variable income scheme, which meant that the hike would be proportionate to the individual’s output. The case highlights how management tackled the situation of unrest among the employees who had started feeling that they were not getting fair treatment. The case discusses the various issues pertaining to a negotiation process. The objective of the case is to make participants learn about the variable pay hike system, negotiation mechanism, and industrial relations. The issues in the case are variable pay hike, unionism, negotiation techniques, and leadership style. Participants should have knowledge about salary/wages, and compensation patterns, negotiation, and trade unions. The case should be analysed at individual level first and then at group level.
Case Author(s): Kaplan, Robert S. Publication Date: 10/26/2000 Revision Date: 07/19/2001 Product Type: Note Product Description: Facilitates the teaching of cases on variance analysis and flexible budgeting. Uses algebra, diagrams, and numerical examples to illustrate the calculation of price, quantity, and mix variances for revenues and costs, and a flexible budget for analyzing indirect and support costs. HBS Number: 9-101-039 Subjects: Budgeting; Cost analysis; Cost control; Management accounting; Variance analysis Academic Discipline: Accounting & control
Case Rebmann, A — Middlesex University Distributor: ecch (www.ecch.com) Reference: 291-006-1 Language: English Category: Finance, Accounting and Control Data source: Published sources Product Year: 1991 Geo location: North America Industry: Conglomerate Size: Large Timing: 1991 Topics: Acquisitions and mergers; Capital markets; Financial structure; Financing; Multinationals; Share, stock issues Abstract: The case involves financial restructuring and the change in the country of registration of a multinational conglomerate, with the aim of increasing shareholder value. The company chairman would also like to make a further diversifying acquisition and this may be having a depressing effect on its share price. The purpose of the case is to examine the effectiveness of its strategy to raise shareholders wealth and to derive the circumstances in which it may be successful.
Case Peter M. Bergevin, Valdosta State UniversityW. Kent Moore, Valdosta State University Source: The Society for Case Research, Business Case Journal, Summer-Winter 1997, Vol. 5, Issues 1 and 2. Copyright 2000. Topic: Ethics
Case Author(s): Hardy KG; Little R Publication Date: 3/17/2006 Product Type: Case Ivey ID: 9B06A012 Geographic Setting: Canada Size: Small organization Year of Event: 2005 Level of Difficulty: Undergraduate/MBA Subjects: Social Entrepreneurship, Public Relations, Market Segmentation, Marketing Communication Functional Area: Marketing Product Description: A social entrepreneur undertakes to launch a bank with charitable status itself that could provide financial services to up to 161,000 charities. He has quietly arranged support from major for-profit banks and government officials. The day beforehis press conference to tell all stakeholders about this new bank, he is still struggling with the key words to describe the bank so that it conveys it purposes, but offends as few stakeholders as possible. Students must evaluate his proposed threekey words and propose other descriptors.
Case Patro, S; Kumar, V Publisher: London Business School Distributor: ecch (www.ecch.com) Reference: 308-348-1 Language: English Category: Strategy and General Management Data source: Field research Product Year: 2008 Geo location: India Industry: IT Timing: 2006-2007 Topics: India; Medical transcription; Outsourcing; Business process outsourcing (BPO); IT enabled services (ITES); Information technology; Offshoring; Contract; USA Abstract: The case talks about a medical transcription company, Vasant Scribes and the challenges faced by it in terms of growth. The revenues and company had stagnated and had tried various methods to grow that hadn’t worked. The case highlights the steps that were taken and the options available ahead.
Case Author(s): Eaton, Margaret L.; Wilds, Jennifer ; Pang, Betty Publication Date: 02/15/2005 Product Type: Case (Field) Publisher: Stanford University Product Description: Details the efforts of VaxGen and its president, Don Francis, to obtain approval to conduct Phase III clinical trials in Thailand for AIDSVAX, an experimental vaccine designed to protect against human immunodeficiency virus (HIV), the virus that causes AIDS. Francis must grapple with a host of ethical questions, from how certain he needs to be of the effectiveness of AIDSVAX to warrant the involvement of thousands of subjects in clinical trials to what type of compensation or treatment, if any, to offer to volunteer subjects in developing countries where the standard for AIDS treatment is much lower than in the United States. HBS Number: BME1 Geographic Setting: Thailand Industry Setting: Pharmaceutical industry Subjects: AIDS; Developing countries; Ethics; Medical sciences Academic Discipline: Social enterprise & ethics Supplementary Materials: Teaching Note, (BME1TN), 2p, by Margaret L. Eaton, Jennifer Wilds, Betty Pang
Case Mohanty, P — T.A. Pai Management Institute Ponnappa, K C — T.A. Pai Management Institute Distributor: ecch (www.ecch.com) Reference: 107-008-1 Language: English Category: Finance, Accounting and Control Data source: Field research Product Year: 2007 Geo location: India Industry: Financial sector Topics: VB Bank; ATM (automated teller machine) services; Cost per institution; KD branch; ID branch; NK branch Abstract: This abstract is currently unavailable.
Case Author(s): Piper CJ; Klassen R Description: VBF Tubing, a Dutch firm, is facing increased demand for its products, high inventory levels, and expensive setup costs. In light of these problems, the logistics manager must decide how to respond to a proposal that longer production runs bescheduled. The production, cost and market data supplied permit the students to explore the necessity and implications of changing production batch sizes on these competing priorities. In particular, the application of the traditional EconomicOrder Quantity can be assessed based on other facility-wide operating practices. (An eight-minute video is available with this case, video 7A97D011.) Ivey Number: 9A97D011 Publication Date: 8/28/1997 Revision Date: 3/24/2004 Geographic Setting: Netherlands Industry Setting: Primary Metal Industries Company Size: Medium organization Subjects: Inventory Planning/Control; Operations Management; Economic Order Quantity; Just-in-Time Level of Difficulty: Undergraduate/MBA Functional Area: Production/Operations Management
Case Author(s): Glynn, John W.; Flanagan, Christopher S. Publication Date: 06/21/2001 Product Type: Case (Field) Publisher: Stanford University Product Description: Presents three fictional vignettes exposing the less glamorous side of venture capital and the decisions that venture capitalists have to make when their investments are not performing according to plan. The three vignettes cover venture capitalists that must handle portfolio company underperformance and/or management problems, evaluate acquisition offers in the "forced sale" of a portfolio company, and decide when to put more money in a portfolio company that may have promise but has been unsuccessful in raising capital from other sources. Teaching Purpose: Students must determine what information is needed for a venture capitalist to make a sound decision, how to obtain that information, how to analyze that information, how to garner support from other stakeholders, and what to do when faced with imperfect or conflicting information. Students are then asked to commit to a decision regarding the vignettes. HBS Number: E93 Geographic Setting: CaliforniaIndustry Setting: venture capitalNumber of Employees: 50Gross Revenues: $0-$10 million revenues Subjects: Board of directors; Employee problems; Financing; Valuation; Value of information; Venture capital Academic Discipline: Competitive strategy Supplementary Materials: Teaching Note, (E93T), 6p, by John W. Glynn, Christopher S. Flanagan
Teaching Note For use with E93 HBS Number: E93T Subjects: Board of directors; Employee problems; Financing; Valuation; Value of information; Venture capital
Case Cunningham, J — Market Edge Distributor: ecch (www.ecch.com) Reference: 504-124-1 Language: English Category: Marketing Data source: Published sources Product Year: 2004 Geo location: North America Industry: Retail Timing: 2001 Topics: Strategy; Marketing; Innovation; Critical success factors; Core competence; Cigarettes; Tobacco; Regulation; Social change; Generics; Branding; New products Abstract: This case covers the development of ’low-harm‘ cigarettes by Vector Tobacco, the current descendant of long-time industry firm Liggett. Industry outsider and financier Bennett LeBow acquired the company in 1986 and had early success with cut rate discount cigarette product lines. By 2000, he had significantly stepped outside the industry mainstream by co-operating with the government and developing a revolutionary, genetically modified tobacco plant to eliminate nicotine. Liggett also had the rights to a filter process that significantly reduced the carcinogens inhaled during smoking without altering taste or the 'smoking experience'. By combining both technologies, Vector could market products that were less addictive and less harmful in the long term. These products would be absolutely unique in the market, and seemingly tailored to the social changes overwhelming the industry. Vector Omni takes place in 2001, when the first products are about to hit the market. Fundamental questions exist around staunch opposition by a powerful industry, how the product will be marketed and positioned, and what acceptance the product would have with both consumers and regulators.
Case Larry E. Watkins; John V. Black, Jr. The engagement partner of a major accounting and consulting firm addresses the conflicting desires of a client’s company‘s CFO and the accounting standards of the SEC and the FASB in relation to a contentious corporate acquisition. Because the CFO and the partner are in disagreement on some of the reporting issues related to the acquisition and the SEC filings, students are asked to research these accounting issues. Students must also consider goodwill as a theoretical construct and the international transfer of foreign currency. An opportunity to discuss the independence of the accounting and consulting firm in relation to the client is also presented. Source: North American Case Research Association, Case Research Journal, Volume 22, Issue 3 Subjects: Mergers and Acquisitions; Holding Gain on Investments; Conversion of Debt to Equity; Reporting EBITDA
Case Author(s): Winig, Laura; Margolis, Joshua D.; Marquis, Chris Publication Date: 07/21/2009 Product Type: Case (Field) HBS Number: 410006 Geographic Setting: United States Industry Setting: Liquor Number of Employees: 10 Event Year Start: 2008 Event Year End: 2008 Subjects: Entrepreneurs; Ethics; Leadership; Social responsibility Academic Discipline: Organizational behavior & leadership Product Description: Three pressing challenges (equity split, extent of commitment to social responsibility, and product discoloration) confront VeeV, the world’s first alcoholic beverage infused with acai berries. Brothers Courtney and Carter Reum founded VeeV in 2007 and the firm has experienced rapid growth since then. The case documents the backgrounds of the young founders, details the launch and early phase of the company, and presents three challenges the founders must address: how to split the equity of the new company; how far to go in their efforts to be a “green” and socially responsible brand; and an unexpected potential product quality issue.
Case Coyle, W H; Rao, J Publisher: Babson College Distributor: ecch (www.ecch.com) Reference: BAB013 Language: English Category: Production and Operations Management Data source: Field research Product Year: 1996 Version Date: 6 June 2004 Geo location: Prague Industry: Food retail Size: 500+ employees Timing: 1996 Topics: Supply chain; Performance measures; Teamwork; Incentives and bonus Abstract: Velky Potraviny is a discount grocery store chain in the Czech Republic. The firm strives to be the market leader in providing a wide assortment of grocery products at the lowest possible price. The move towards a market economy has prompted rapid expansion, and the Velky distribution centre is nearing capacity for the 37 outlets it presently serves in the greater Prague area. Velky has realised the need for efficiency in its warehouse operations. Velky further recognises that the distribution centre employees are an integral part of the company and critical for efficient warehouse operations. Hence the need to address the performance measurement and bonus pay of the workers. However, Velky cannot independently address the issue of worker performance measurement and bonus pay without addressing issues that effect its entire supply chain. Students can get a better understanding of compensation for workers and flows within the warehouse if they approach Velky’s problems from a systems perspective and its overall link to the corporate goal. A useful systems tool is the supply chain framework and the warehouse - its process and people - are an integral part of this framework. This case was previously numbered 699-009-1.
Case Author(s): Coyle, William; Rao, Jay Publication Date: 01/01/2004 Revision Date: 06/06/2004 Product Type: Case (Field) Publisher: Babson College Product Description: Velky Potraviny is a discount grocery store chain in the Czech Republic. The firm strives to be the market leader in providing a wide assortment of grocery products at the lowest possible price. The move toward a market economy has prompted rapid expansion, and the Velky distribution center is nearing capacity for the 37 outlets it presently serves in the greater Prague area. Velky has realized the need for efficiency in its warehouse operations. Velky further recognizes that the distribution center employees are an integral part of the company and critical for efficient warehouse operations, hence the need to address the performance measurement system of the workers. Velky cannot independently address the issue of worker performance measurement without addressing the inter-related issues of the warehouse, namely, the layout of the warehouse, flows within the warehouse, capacity expansion, managing deliveries to the outlets, and its overall link to the corporate goal. HBS Number: BAB013 Geographic Setting: Prague, Czech RepublicIndustry Setting: discount grocery chain Subjects: Discounts; Eastern Europe; Food; Incentives; Operations management; Performance measurement; Retailing; Supply chain; Warehousing Academic Discipline: Operations management Supplementary Materials: Teaching Note, (BAB513), 7p, by William Coyle, Jay Rao
Case Author(s): Goodpaster, Kenneth E.; Whiteside, David E. Publication Date: 10/24/1984 Revision Date: 02/16/1989 Product Type: Case (Field) Product Description: The CEO of Velsicol must decide whether or not to continue funding the One World Communication System, a program designed to help prevent the misuse of pesticides in developing countries by using pictograms instead of traditional labels. The case includes reasons for and against funding. The company’s booklet explaining the One World Communication System is included as an exhibit. HBS Number: 9-385-021 Geographic Setting: Chicago, IL Industry Setting: agricultural chemicals Number of Employees: 2,000 Event Year Start: 1983 Event Year End: 1983 Subjects: Agribusiness; Chemicals; Corporate responsibility; Developing countries; Ethics Academic Discipline: Social enterprise & ethics Supplementary Materials: Supplement (Field), (9-385-022), 2p, by Kenneth E. Goodpaster, David E. Whiteside; Teaching Note, (5-385-023), 5p, by Kenneth E. Goodpaster, Scott Cook
Case Author(s): Goodpaster, Kenneth E.; Whiteside, David E. Publication Date: 10/24/1984 Product Type: Supplement (Field) Product Description: Supplements the (A) case. Must be used with: (9-385-021) Velsicol Chemical Corp. (A). HBS Number: 9-385-022 Subjects: Agribusiness; Chemicals; Corporate responsibility; Developing countries; Ethics Academic Discipline: Social enterprise & ethics Supplementary Materials: Teaching Note, (5-385-023), 5p, by Kenneth E. Goodpaster, Scott Cook
Case Berdrow I Velsicol Chemical Corporation, a global company focused on producing specialty chemicals, has formed a joint venture with the Estonian government called Velsicol Eesti AS that would produce benzoic acid. The plant that will produce this chemical waspreviously part of a conglomerate owned and controlled by the Russian government. When Estonia became an independent state this plant was passed on to the country which then privatized and sold a percentage of it to Velsicol. The newly appointedplant manager came from a benzoic plant outside the country and was responsible for government relations, cost management, liaison with the board of directors, performance standards and staffing. He must quickly put together a management team thatwould be familiar with the current operations and capable of working together to achieve the company’s goals. In order to do this, he needed to better understand the employees with whom he was working. A follow-up case, Velsicol Eesti AS (B), isavailable, (product 9B00M008), as well as a cultural note on Estonia, (product number 9B00M014). Ivey Number: 9B00M007 Publication Date: 16/05/2001 Geographic Setting: Estonia Industry Setting: Chemicals and Allied Products Company Size: Medium organization Event Year Start: 1998 Subjects: Organizational Behaviour, Joint Ventures, Leadership, International Business Functional Area: General Management
Case Berdrow I The plant manager at Velsicol Eesti AS, a joint venture chemical plant in Estonia, had faced and overcome many challenges: cultural differences, communicating in a different language, supplier relations with a hostile partner, and high staffturnover. The outcomes were very positive for both the Estonian plant and the U.S. parent company. The Velsicol Eesti AS (A) case, 9B00M007, outlines the starting point to the outcomes presented in this case. A cultural note on Estonia is alsoavailable (product number 9B00M014). Ivey Number: 9B00M008 Publication Date: 16/05/2001 Geographic Setting: Estonia Industry Setting: Chemicals and Allied Products Company Size: Medium organization Event Year Start: 1998 Subjects: Organizational Behaviour, Joint Ventures, Leadership, International Business Functional Area: General Management
Case Author(s): Tagiuri, Renato Publication Date: 03/19/2001 Product Type: Case (Gen Exp) Product Description: The founder and president of the company find it difficult to relinquish control to the next generation. Teaching Purpose: Succession in family companies. HBS Number: 9-901-054 Geographic Setting: United StatesIndustry Setting: textileNumber of Employees: 200 Event Year Start: 1999Event Year End: 1999 Subjects: Family owned businesses; Succession planning; Textiles Academic Discipline: Entrepreneurship
Case Author(s): Kulp, Susan; DeHoratius, Nicole; Kanji, Zahra Publication Date: 09/14/2007 Product Type: Case (Field) HBS Number: 9-108-022 Geographic Setting: United States Industry Setting: Furniture industry Number of Employees: 155,000 Gross Revenues: $6.4 billion revenues Event Year Start: 2006 Event Year End: 2006 Subjects: Quality control; Sourcing; Supply chains; Vendor management Academic Discipline: Operations management Supplementary Materials: Supplement, (9-108-023), 2p, by Susan Kulp, Nicole DeHoratius, Zahra Kanji Product Description: Geoffrey Ryans, a regional department store, faced two major issues relating to its retail furniture line: a large percentage of stock received from East Asian vendors was not in sellable condition, and furniture pieces had high customer return rates. Discusses different options for the Shipment Quality Group, including the use of vendor scorecards and product quality checks in the furniture division. Before agreeing on any particular course of action, the Shipment Quality Group must also consider the implications of any changes on their East Asian vendor core.
Case Author(s): Kulp, Susan; DeHoratius, Nicole; Kanji, Zahra Publication Date: 09/14/2007 Product Type: Supplement HBS Number: 9-108-023 Subjects: Quality control; Sourcing; Supply chains; Vendor management Academic Discipline: Operations management Product Description: An abstract is not available for this product. Must be used with: (9-108-022) Vendor Compliance at Geoffrey Ryans (A).
Case Jha, V S — T.A. Pai Management Institute Cariappa, P — T.A. Pai Management Institute Babu, R — T.A. Pai Management Institute Distributor: ecch (www.ecch.com) Reference: 906-028-1 Language: English Category: Knowledge, Information and Communications Systems Management Data source: Field research Product Year: 2006 Geo location: India Industry: Information technology (IT) Topics: Civil Projects Group (CPG); Proline Technologies; Bill of quantity; Process chart; Tenders; Vendors; Commercial assistants; Turnkey projects; Technical issues Abstract: It was a sunny day and the weather was pleasant. But at Proline Technologies, Mr Ramkumar, Head of Civil Projects Group (CPG), was sweating and he looked a worried man. He had just received another strongly worded letter from the group head about the increased vendor complaints. Rankumar knew that the system in place in his department needed an immediate shakeup and a complete overhaul, as the present system had failed to achieve vendor satisfaction and development. He had received a number of complaints from vendors regarding late payment of their bills. He knew that he needed to do something drastic before the situation got out of hand. At that moment, the telephone rang. It was his old classmate Shivkumar on the other end inviting him to his house for the house warming ceremony. Suddenly a thought flashed across Ramkumar’s mind. He knew that Shivkumar was the Materials Manager in a company that made metal tubes. He knew that Shivkumar could help him improve the system. Ramkumar explained the present situation to Shivkumar. Shivkumar told him to drop in his house in the evening so that they could discuss the best option for the present situation.
Case Author(s): White RW; Fric K Description: In August 1994, Ventra Group Inc. decided to acquire Peerless-Cascade. The Cdn$16 million cash needed would be financed by a Cdn$10 million TD Bank bridge loan and a Cdn$6 million TD Bank loan arranged for Peerless-Cascade. Subsequent to thedecision, Peerless-Cascade bid on contracts for parts being newly outsourced by Ford and were successful in winning contracts. The completion of these contracts would require the expansion of the Russelville plant by a 45,000 square foot additionand 12 new injection molding machines. Should Ventra change its acquisition financing strategy? The key point is to emphasize the need for financial flexibility. Ivey Number: 9A96B018 Publication Date: 5/14/96 Revision Date: 1/8/2002 Geographic Setting: Canada/USA Industry Setting: Transportation Equipment Company Size: Small organization Event Year Start: 1994 Subjects: Financial Strategy; Leverage Level of Difficulty: Undergraduate/MBA
Case White RW; Fric K By the end of June 1995, the recent acquisition of Peerless-Cascade had been fully integrated into Ventra Group Inc.. Dwight Rollins decided that he could now turn his attention to Ventra’s foreign exchange and interest rate exposures as well asVentra‘s debt policy. With future expansions planned, management of the foreign exchange and interest rate exposures had become a central issue. Ivey Number: 9A96B016 Publication Date: 14/05/1996 Revision Date: 12/3/2002 Geographic Setting: Canada/USA Industry Setting: Transportation Equipment Company Size: Small organization Event Year Start: 1995 Subjects: Derivatives, Financial Strategy, Foreign Exchange, Risk Management Functional Area: Finance
Case White RW; Fric K In June 1994, Dwight Rollins, vice-president of finance for Ventra Group Inc. (Ventra), was negotiating the acquisition of Peerless-Cascade, a private company with manufacturing facilities in Windsor, Ontario, and Russelville, Kentucky. Ventra’smain activity was the design and manufacture of parts for the automotive industry in North America and Japan through metal stamping and assembly and plastic injection molding process from facilities in Canada, Mexico and the United States. Rollinsneeded to establish if the asking price of Cdn$26 million met all of Ventra‘s requirements, and if so, how his company could finance the acquisition. Ivey Number: 9A96B017 Publication Date: 14/05/1996 Revision Date: 25/11/1999 Geographic Setting: Canada/USA Industry Setting: Transportation Equipment Company Size: Small organization Event Year Start: 1994 Subjects: Valuation, Financial Strategy, Leverage, Foreign Exchange Functional Area: Finance
Case Kamauff J; Leenders MR; Ager D; Campbell DD After a substantial devaluation in the value of the Mexican currency, a major automaker attempts to reduce the price it is paying to a Mexican based supplier. The supplier (Ventramex) is put in a difficult position because a large portion of itscosts is based in US dollars. The company must decide how to respond to the automaker while considering options that would increase the proportion of its costs that are based in Mexican pesos. Ivey Number: 9A97D013 Publication Date: 2/12/1997 Revision Date: 26/03/2002 Geographic Setting: Mexico Industry Setting: Transportation Equipment Company Size: Small organization Event Year Start: 1995 Subjects: Purchasing, Customer Relations, Pricing, International Business Functional Area: Production/Operations Management
Case Author(s): Applegate, Lynda M.; Collura, Meredith Publication Date: 11/09/2000 Revision Date: 06/28/2001 Product Type: Case (Field) Product Description: Enables a thorough analysis of Ventro (formerly known as Chemdex), which builds and operates multiple B2B marketplace companies. Examines Ventro’s business model and strategy as well as the company‘s operating, technical, and management expertise. Part of the Building-E-Business Online series. Teaching Purpose: Demonstrates the evolution of e-business models, strategy, and organizational capabilities. Enables discussion of the linkages among these three topics as well as future evolution. HBS Number: 9-801-042 Geographic Setting: Mountain View, CAIndustry Setting: B-2-B/InternetNumber of Employees: 354Gross Revenues: $72.3 million revenues Event Year Start: 2000Event Year End: 2000 Subjects: Business models; Business to business; Electronic commerce; Entrepreneurship; Internet; Leadership; Organizational behavior; Silicon Valley Academic Discipline: General management Supplementary Materials: Teaching Note, (5-801-254), 20p, by Lynda M. Applegate, Meredith Collura
Teaching Note For use with 9-801-042 HBS Number: 5-801-254 Subjects: Business models; Business to business; Electronic commerce; Entrepreneurship; Internet; Leadership; Organizational behavior; Silicon Valley
Case Author(s): Applegate, Lynda M.; Collura, Meredith Publication Date: 12/20/2000 Revision Date: 07/24/2001 Product Type: Case (Field) Product Description: Enables a condensed analysis of Ventro (formerly known as Chemdex), which builds and operates multiple B2B marketplace companies. Part of the Building-E-Business Online series. Teaching Purpose: Demonstrates the evolution of e-business models, strategy, and organizational capabilities. HBS Number: 9-801-274 Geographic Setting: Mountain View, CAIndustry Setting: B-2-B/InternetNumber of Employees: 354Gross Revenues: $72.3 million revenues Event Year Start: 2000Event Year End: 2000 Subjects: Business models; Business to business; Electronic commerce; Entrepreneurship; Internet; Leadership; Organizational behavior; Silicon Valley Academic Discipline: General management Supplementary Materials: Teaching Note, (5-801-254), 20p, by Lynda M. Applegate, Meredith Collura
Teaching Note For use with 9-801-274 HBS Number: 5-801-254 Subjects: Business models; Business to business; Electronic commerce; Entrepreneurship; Internet; Leadership; Organizational behavior; Silicon Valley
Case Author(s): Hardymon, G. Felda Publication Date: 03/14/2001 Revision Date: 02/16/2005 Product Type: Case (Gen Exp) Product Description: Presents three fictionalized but realistic situations in which a venture capitalist may find himself. One situation requires crisis intervention to quell a dispute between a vice president of sales and a CEO; another poses the problem of working out the composition of a board of directors; and the third confronts the venture capitalist with the problem of dividing stock among founders. Teaching Purpose: To show students the challenges confronting venture capitalists. HBS Number: 9-801-408 Event Year Start: 2000Event Year End: 2000 Subjects: Board of directors; Management of crises; Stocks; Venture capital Academic Discipline: Entrepreneurship Supplementary Materials: Teaching Note, (5-802-052), 9p, by G. Felda Hardymon, Josh Lerner, Ann Leamon
Case Author(s): Gompers, Paul A. Publication Date: 05/30/2002 Product Type: Case (Library) Product Description: Examines the changes in fund structures proposed by four venture capital firms in 2002: Accel Partners, Battery Ventures, Charles River Ventures, and Kleiner Perkins Caufield & Byers. The venture capital market has experienced a major downturn and these funds are trying to address investor concerns. Teaching Purpose: To explore restructuring incentives in the venture capital industry. HBS Number: 9-202-126 Geographic Setting: United StatesIndustry Setting: venture capital Event Year Start: 2002Event Year End: 2002 Subjects: Investment management; Restructuring; Venture capital Academic Discipline: Finance
Case Gompers, Paul A.; Conneely, Catherine Analyzes the decisions of Niall Carroll, an Irish banker, to start a venture capital fund focused on Ireland. The context of the Irish markets and the nature of Irish opportunities are explored. HBS Number: 9-298-001 Type: Case (Field) Publication Date: 4/28/1998 Geographic Setting: Dublin, Ireland Industry Setting: venture capital Number of Employees: :1 Event Year Start: 1993 Event Year End: 1993 Subjects: Entrepreneurial finance; Europe; International finance; Venture capital Supplementary Materials: Teaching Note, (5-299-075), 13p, by Paul A. Gompers
Case Author(s): Zuckerman, Ezra; Feldstein, Janet Publication Date: 11/05/2001 Revision Date: 09/23/2003 Product Type: Case (Field) Publisher: Stanford University Product Description: Gives an in-depth look at the emergence of venture capital (VC) in Israel—tracking not only the industry itself, but also its many drivers, including high technology and its roots in Israel (government sponsorship, etc.). Examines the VC industry in 2001--professional VC has grown rapidly, with growth driven by internal players capitalizing on local knowledge and experience and by non-Israeli firms, which have come to Israel looking to invest in the next high-tech winner. Proposes the question of what role the Israeli VC firms should take in the future: Will Israeli VC firms be able to survive or will U.S. firms come in and pluck the best deals away? Should Israeli firms partner with U.S. firms and, if so, how? Should and can Israeli firms venture out of the Middle East and attempt to compete with U.S. firms on U.S. soil? Teaching Purpose: Students must consider the strategic implications for Israeli VC firms as the geographic lines that distinguish the marketplace begin to blur and fade away. An additional benefit of the case is to expose students to the international aspects of VC and to the importance of the Middle East in the global VC arena. HBS Number: SM88 Geographic Setting: Israel, California, GlobalIndustry Setting: venture capitalNumber of Employees: 100Gross Revenues: $1 billion revenues Event Year Start: 2001Event Year End: 2001 Subjects: Growth strategy; High technology; International finance; Middle East; Venture capital Academic Discipline: Competitive strategy
Technical note Pesenti, S; Johnson, R M Publisher: London Business School Distributor: ecch (www.ecch.com) Reference: 395-091-6 Language: English Category: Strategy and General Management Data source: Field research Product Year: 1995 Geo location: UK Topics: Entrepreneurship; Venture capital Abstract: This note provides an overview of the origins and development of venture capital in the UK. The paper discusses the evolution of the institutions involved and changes in investment patterns, noting how internal and external factors have shaped the industry. The note ends with a discussion of issues facing the industry in the 1990s.
Article Sahlman, William A.; Janower, Andrew Presents a short problem set designed as an introduction to the venture capital method of problem solving. HBS Number: 9-396-090 Type: Exercise Publication Date: 10/5/1995 Subjects: Entrepreneurial finance; Financing; Valuation; Venture capital Supplementary Materials: Supplement (Exercise), (9-396-106), 3p, by William A. Sahlman, Andrew Janower
Case Author(s): Kuemmerle, Walter Publication Date: 02/26/2002 Revision Date: 10/10/2002 Product Type: Supplement (Exercise) Product Description: Presents the solutions to questions 1 through 4 of the problem set. To be handed out in class. A rewritten version of an earlier supplement. Must be used with: (9-396-090) Venture Capital Method: Valuation Problem Set. HBS Number: 9-802-162 Subjects: Entrepreneurial finance; Financing; Valuation; Venture capital Academic Discipline: Finance
Case Author(s): Robinson, Robert J.; Wasserman, Noam Publication Date: 10/13/1999 Revision Date: 03/02/2000 Product Type: Note Product Description: Introduces students to the challenging negotiations between venture capitalists and entrepreneurs. Explores interests, sources of negotiating power, barriers to reaching agreement, and common contractual terms. Describes how the parties try to reduce information asymmetries, align incentives, control decision making, and protect financial downside. HBS Number: 9-800-170 Subjects: Entrepreneurs; Entrepreneurship; Incentives; Negotiations; Power & influence; Venture capital Academic Discipline: Negotiations
Article Author(s): Naqi, Sayed Ahmed; Hettihewa, Samanthala Publication Date: 07/01/2007 Product Type: Business Horizons Article Publisher: Business Horizons/Indiana University HBS Number: BH243 Industry Setting: Private equity Subjects: Foreign investment; Private equity; Venture capital Academic Discipline: Finance Product Description: Venture capital in Asia has exhibited remarkable growth over the last two decades. Researchers and practitioners have, however, expressed doubts as to whether what is being reported as venture capital in Asia can really be classified as such. Authors of scholarly studies often avoid this debate and, consequently, fail to caution readers about the applicability of their research findings. Through an exploration of the history, development, and composition of venture capital in Asia, not only confirms significant differences between Asian and traditional venture capital, but also finds that venture capital in Asia differs little from what is commonly called private equity. As such, a need exists within the venture capital literature to recognize this peculiarity of the Asian venture capital market. Moreover, venture capitalists considering expansion into Asia must comprehend the nature of the Asian market in order to avoid disillusionment and frustrations which may result from inadequate understanding.
Case Author(s): Sahlman, William A. Publication Date: 08/28/2006 Revision Date: 09/01/2009 Product Type: Exercise HBS Number: 807036 Academic Discipline: Finance Product Description: An abstract is not available for this product. Must be used with: (396090) Venture Capital Method: Valuation Problem Set.
Case Author(s): Sahlman, William A. Publication Date: 08/28/2006 Revision Date: 09/01/2009 Product Type: Exercise HBS Number: 807036 Academic Discipline: Finance Product Description: An abstract is not available for this product. Must be used with: (396090) Venture Capital Method: Valuation Problem Set.
Exercise Author(s): Sahlman, William A. Publication Date: 08/26/2006 Product Type: Exercise HBS Number: 9-807-036 Subjects: Entrepreneurial finance; Financing; Valuation; Venture capital Academic Discipline: Finance Supplementary Materials: Supplement (Exercise), (9-396-106), 3p, by William A. Sahlman, Andrew Janower; Supplement (Exercise), (9-802-162), 7p, by Walter Kuemmerle Product Description: To be used with (396-090). An abstract is not available for this product.
Case Author(s): Leamon, Ann; Hardymon, G. Felda Publication Date: 07/15/2008 Product Type: Case (Gen Exp) HBS Number: 809003 Geographic Setting: United States Industry Setting: Venture capital firms Event Year Start: 2008 Event Year End: 2008 Subjects: Decision making; Equity capital; Private equity; Strategy; Venture capital Academic Discipline: Finance Product Description: These three short vignettes depict investment professionals condiering difficult financings for companies in their portfolios. For one reason or another, each company has under-performed expectations. Should the protagonist recommend that the firm participate or not, or should he try to revise it? Can the firm exercise any influence, and is the potential gains worth the time and effort that will be required
Case Author(s): Robinson, Robert J.; Wasserman, Noam Publication Date: 03/03/2000 Product Type: Note Product Description: Introduces students to negotiations between venture capitalists (VCs) and the limited partners who provide the VCs’ capital. Also discusses negotiations between VCs and other VCs, including those within a VC firm itself. Explores interests, sources of negotiating power, barriers to reaching agreement, and common contractual terms. Describes how the parties try to reduce information asymmetries, align incentives, control decision making, and protect financial downside. HBS Number: 9-800-237 Subjects: Angel financing; Entrepreneurs; Incentives; Negotiations; Power & influence; Venture capital Academic Discipline: Negotiations
Article Author(s): Khosla, Vinod; Wagonfeld, Alison Berkley Publication Date: 12/01/2008 Product Type: Harvard Business Review Article HBS Number: F0812E Subjects: Technological change; Academic Discipline: Competitive strategy Product Description: The promise of clean-energy technologies makes this renowned venture capitalist optimistic about the world’s economic future. He foresees many “cleantech” successes that will pave the way to better times.
Article Author(s): Khosla, Vinod; Wagonfeld, Alison Berkley Publication Date: 12/01/2008 Product Type: Harvard Business Review Article HBS Number: F0812E Subjects: Technological change; Academic Discipline: Competitive strategy Product Description: The promise of clean-energy technologies makes this renowned venture capitalist optimistic about the world’s economic future. He foresees many “cleantech” successes that will pave the way to better times.
Article Author(s): Khosla, Vinod; Wagonfeld, Alison Berkley Publication Date: 12/01/2008 Product Type: Harvard Business Review Article HBS Number: F0812E Subjects: Technological change; Academic Discipline: Competitive strategy Product Description: The promise of clean-energy technologies makes this renowned venture capitalist optimistic about the world’s economic future. He foresees many “cleantech” successes that will pave the way to better times.
Article Author(s): Khosla, Vinod; Wagonfeld, Alison Berkley Publication Date: 12/01/2008 Product Type: Harvard Business Review Article HBS Number: F0812E Subjects: Technological change; Academic Discipline: Competitive strategy Product Description: The promise of clean-energy technologies makes this renowned venture capitalist optimistic about the world’s economic future. He foresees many “cleantech” successes that will pave the way to better times.
Case Author(s): DeLong, Thomas J.; Nanda, Ashish; Landry, Scot Publication Date: 02/24/2000 Revision Date: 03/25/2004 Product Type: Case (Field) Product Description: Craig Johnson, Venture Law Group’s (VLG) chairman, founded VLG in 1993 with a goal of “zero voluntary turnover.” In late 1998, Johnson faces the departure of three important partners, prompting himself to ask what VLG can do in the midst of an ‘’economic hurricane‘' which is luring VLG attorneys to leave and enter dot.com companies. Teaching Purpose: To focus on retention tactics and to highlight the inter-connectedness of a firm's business model, client selection process, and its employee retention results. HBS Number: 9-800-065 Geographic Setting: Silicon Valley, CAIndustry Setting: lawNumber of Employees: 200Gross Revenues: $50 million revenues Event Year Start: 1993Event Year End: 1998 Subjects: California Research Center; Entrepreneurship; Legal services; Loyalty; Professional services; Silicon Valley; Venture capital Academic Discipline: Service management Supplementary Materials: Supplement (Field), (9-800-191), 5p, by Thomas J. DeLong, Ashish Nanda, Scot Landry; Supplement (Field), (9-903-116), 3p, by Ashish Nanda, Kelley Morrell; Teaching Note, (5-902-215), 7p, by Ashish Nanda, Thomas J. DeLong
Teaching Note For use with 9-800-065 HBS Number: 5-902-215 Subjects: California Research Center; Entrepreneurship; Legal services; Loyalty; Professional services; Silicon Valley; Venture capital
Case Author(s): DeLong, Thomas J.; Nanda, Ashish; Landry, Publication Date: 04/27/2000 Revision Date: 02/24/2002 Product Type: Supplement (Field) Product Description: Supplements the (A) case. Must be used with: (9-800-065) Venture Law Group (A). HBS Number: 9-800-191 Subjects: California Research Center; Entrepreneurship; Legal services; Loyalty; Professional services; Silicon Valley; Venture capital Academic Discipline: Service management Supplementary Materials: Teaching Note, (5-902-215), 7p, by Ashish Nanda, Thomas J. DeLong
Teaching Note For use with 9-800-191 HBS Number: 5-902-215 Subjects: California Research Center; Entrepreneurship; Legal services; Loyalty; Professional services; Silicon Valley; Venture capital
Case Author(s): Glynn, John W., Jr.; Kanarowski, Stan ; Zarroug, Manar Publication Date: 01/14/2003 Product Type: Case Publisher: Stanford University HBS Number: E147 Subjects: Assets; Financing; Leasing; Entrepreneurship; Venture capital Academic Discipline: Entrepreneurship Product Description: Offers an overview of venture leasing — what it is, how it works, and who the major players are in the industry. Explains how venture leasing fits into the venture capital puzzle, gives an overview of which entities play a role in a venture lease, and discusses deal flow and deal evaluation. Further highlights venture leasing returns and brings up factors that can affect those returns. Pulls from multiple industry interviews and research, including news stories, the web, and finance textbooks. Also offers examples of a start-up’s capitalization tables with and without venture leasing to give the reader a view of the impact of a venture lease on a company‘s finances.
Case Author(s): Glynn, John W., Jr.; Kanarowski, Stan ; Zarroug, Manar Publication Date: 01/14/2003 Product Type: Case Publisher: Stanford University HBS Number: E147 Subjects: Assets; Financing; Leasing; Entrepreneurship; Venture capital Academic Discipline: Entrepreneurship Product Description: Offers an overview of venture leasing — what it is, how it works, and who the major players are in the industry. Explains how venture leasing fits into the venture capital puzzle, gives an overview of which entities play a role in a venture lease, and discusses deal flow and deal evaluation. Further highlights venture leasing returns and brings up factors that can affect those returns. Pulls from multiple industry interviews and research, including news stories, the web, and finance textbooks. Also offers examples of a start-up’s capitalization tables with and without venture leasing to give the reader a view of the impact of a venture lease on a company‘s finances.
Article Internet entrepreneur Martin Varsavsky applies what he does best—building high-tech companies--to improving education in Argentina. HBS Number: F00406 Type: Harvard Business Review Article Publication Date: 7/1/2000 Subjects: Education & industry; Philanthropy; South America
Case Author(s): Rohan, Dennis ; Magat, Claire Publication Date: 12/01/2008 Product Type: Case Publisher: Stanford University HBS Number: E324 Subjects: Focus groups; Research methodology; Prototypes; Operations research Academic Discipline: Entrepreneurship Product Description: The purpose of the venture viability research process is to identify the key questions underlying the viability of a venture, to facilitate reframing of the venture to enhance its viability, and to provide evidence to support the founders’ answers to those questions. The venture viability research process for entrepreneurs is different than the process for established companies. The questions are much broader and more fundamental, the available resources are fewer, and the time urgency is usually greater. In addition, entrepreneurs often have an incomplete understanding of the market for their product and limited direct experience with potential customers. The recommended process includes: (1) prototyping of venture designs, (2) identifying and answering key viability questions, and (3) iterating between steps 1 and 2 and adding detail to both the venture design and key viability questions in the process. Entrepreneurs invariably operate on limited budgets and condensed time lines; therefore prioritization is critical to every step of the process. Viability research demands constant evaluation of the attractiveness of different prototype designs. This note will illustrate the steps above, using a series of examples. It will also provide guidance around how to answer key viability questions, using tools such as expert interviews and various types of market research.
Case Author(s): Rohan, Dennis ; Magat, Claire Publication Date: 12/01/2008 Product Type: Case Publisher: Stanford University HBS Number: E324 Subjects: Focus groups; Research methodology; Prototypes; Operations research Academic Discipline: Entrepreneurship Product Description: The purpose of the venture viability research process is to identify the key questions underlying the viability of a venture, to facilitate reframing of the venture to enhance its viability, and to provide evidence to support the founders’ answers to those questions. The venture viability research process for entrepreneurs is different than the process for established companies. The questions are much broader and more fundamental, the available resources are fewer, and the time urgency is usually greater. In addition, entrepreneurs often have an incomplete understanding of the market for their product and limited direct experience with potential customers. The recommended process includes: (1) prototyping of venture designs, (2) identifying and answering key viability questions, and (3) iterating between steps 1 and 2 and adding detail to both the venture design and key viability questions in the process. Entrepreneurs invariably operate on limited budgets and condensed time lines; therefore prioritization is critical to every step of the process. Viability research demands constant evaluation of the attractiveness of different prototype designs. This note will illustrate the steps above, using a series of examples. It will also provide guidance around how to answer key viability questions, using tools such as expert interviews and various types of market research.
Case Muylle, S; Croon, E Publisher: Vlerick Leuven Gent Management School Distributor: ecch (www.ecch.com) Reference: 903-001-1 Language: English Category: Knowledge, Information and Communications Systems Management Data source: Field research Product Year: 2003 Geo location: Belgium Industry: MRO supplier Timing: 2001 Topics: Electronic commerce strategy; e-procurement; Digital marketplaces; MRO; Indirect procurement costs; Baudoin Group Abstract: Eric Croon, head of e-commerce at the Baudoin Group, must make decisions about how to adapt his business to the threats and opportunities posed by the Internet. A central issue is how this leading distributor of mechanical maintenance, repair, and operating (MRO) supplies in Belgium, Luxembourg and the Netherlands should deal with: (1) the Internet’s disintermediation threat; (2) large customers upcoming demand for electronic procurement system integration; and (3) the participation of its largest competitor in a digital marketplace initiative for MRO supplies.
Case Agrawal, R; Bhakar, S S; Johari, S; Mishra, P; Srivastara, M Publisher: Prestige Institute of Management & Research Distributor: ecch (www.ecch.com) Reference: 504-091-1 Language: English Category: Marketing Data source: Field research Product Year: 2004 Geo location: Central India Industry: Commercial vehicle industry Size: Large Timing: 2000 Topics: Marketing strategies; Market analysis; Environmental analysis; Product analysis; Marketing mix; Customer analysis Abstract: This case deals with the launch of heavy commercial vehicles (HCVs) in the Indian market by EML. The Indian market is very vibrant with a growth rate of 26 percent. The competition in the market is between two major players enjoying distinct geographical dominance in terms of market coverage. The HCV market is affected by: (1) brand loyalty; (2) high product reliability; (3) detailed pre-purchase comparison; and (4) intermediaries. EML had been manufacturing commercial vehicles since 1986 and was already manufacturing light commercial and medium commercial vehicles. The case explores the market pattern of HCV and lays down the challenges before EML in the launch of HCV.
Case Author(s): Leonard, Dorothy; Kind, Liz Publication Date: 04/10/2001 Revision Date: 07/11/2001 Product Type: Case (Field) Product Description: Scott Rozic, CEO of start-up Verge Software, has just told his board that he is taking the company in a totally new direction, moving from enterprise knowledge management software to Internet direct marketing. This case covers the start-up of the business, Rozic’s mentoring by a key angel investor, and leaves open the question of whether this decision is wise or whether Rozic should go back to the enterprise business, now that venture capital funding preferences have shifted once again. Teaching Purpose: To illustrate the role of a mentor capitalist (angel investor) in a entrepreneurial venture. Also explores the heavy influence of venture capital on business strategy and formulation. Stimulates discussion of the relationship between the CEO and the board of directors. May be used with: (9-601-066) Verge Software (B): XMarkstheSpot. HBS Number: 9-601-065 Geographic Setting: CaliforniaIndustry Setting: softwareCompany Size: start-upNumber of Employees: 20 Event Year Start: 1999Event Year End: 1999 Subjects: Angel financing; Board of directors; California Research Center; Entrepreneurial management; Entrepreneurship; Innovation; Product development; Small business; Software; Strategy formulation Academic Discipline: Entrepreneurship
Case Author(s): Kind, Liz; Leonard-Barton, Dorothy Publication Date: 04/17/2001 Revision Date: 07/11/2001 Product Type: Color Case HBS Number: 601066 Geographic Setting: California Industry Setting: Software industry Subjects: Angel financing; Entrepreneurial management; Entrepreneurship; Innovation; Product development; Small business; Software; Strategy formulation Academic Discipline: Entrepreneurship Product Description: An abstract is not available for this product. May be used with: (601065) Verge Software (A).
Case Author(s): Leonard, Dorothy; Kind, Liz Publication Date: 04/17/2001 Revision Date: 07/11/2001 Product Type: Color Case Product Description: After the Internet bubble has burst, CEO Scott Rozic finds his strategy may be in danger from another swift change in the venture capital preferences. Teaching Purpose: Indicates results of change to Internet strategy from Enterprise when venture capital changes course. Includes color exhibits. May be used with: (9-601-065) Verge Software (A). HBS Number: 9-601-066 Geographic Setting: CaliforniaIndustry Setting: softwareCompany Size: start-upNumber of Employees: 20 Event Year Start: 2000Event Year End: 2000 Subjects: Angel financing; Board of directors; California Research Center; Entrepreneurial management; Entrepreneurship; Innovation; Product development; Small business; Software; Strategy formulation Academic Discipline: Entrepreneurship
Case Author(s): Khurana, Rakesh; Podolny, Joel; Elias, Jaan Publication Date: 02/09/2006 Revision Date: 10/16/2006 Product Type: Case (Field) HBS Number: 9-406-028 Geographic Setting: United States Industry Setting: Aerospace & defense industries; Defense industry; IT industry Company Size: mid-size Number of Employees: 5,000 Gross Revenues: $690 million revenues Event Year Start: 1999 Event Year End: 2003 Subjects: Governance; Leadership; Tender offers; Values Academic Discipline: Organizational behavior & leadership Supplementary Materials: Teaching Note, (5-407-030), 17p, by Rakesh Khurana Product Description: David Langstaff, the CEO of Veridian, a defense company, struggles with the decision of selling the company. Langstaff has concerned himself with inculcalating his organization with the values necessary for superior achievement over the long term. But as a fiduciary, he had to come up with a single value to monetize the reputation the company had built. Langstaff wondered what was best for the firm and its customers and what his other options were. He also was concerned with how the prospect of selling the firm would square with Veridian’s commitment to its constituencies and values-based leadership.
Case Author(s): Datar, Srikant M.; Epstein, Marc J.; Cott, Publication Date: 06/21/2001 Revision Date: 10/19/2001 Product Type: Case (Field) Product Description: In early 2000, Verizon Communications implemented a Human Resources Balanced Scorecard to evaluate the effectiveness of and payoffs from human resource management. This case describes the benefits of the scorecard and the challenges of measurement and implementation. Teaching Purpose: To help students understand: 1) how to implement a Balanced Scorecard, 2) how to measure and improve the effectiveness of support functions, and 3) how to link nonfinancial measures to financial measures of support functions when financial benefits are difficult to quantify. HBS Number: 9-101-102 Geographic Setting: United StatesIndustry Setting: telecommunicationsNumber of Employees: 260,000Gross Revenues: $60 billion revenues Event Year Start: 1996Event Year End: 2000 Subjects: Accounting & control; Balanced scorecard; Employee development; Human resources management; Management controls; Performance measurement; Strategy implementation; Telecommunications Academic Discipline: Accounting & control
Case Author(s): Coughlan, Anne Publication Date: 01/01/2004 Product Type: Case Publisher: Kellogg School of Management HBS Number: KEL037 Geographic Setting: Austria Industry Setting: Building materials Subjects: Conflict resolution; Distribution channels; Logistics; Market analysis; Marketing strategy; Markets Academic Discipline: Operations management Product Description: Verklar is the leading maker of roof windows based in Europe. Its Austrian subsidiary has historically dominated the Austrian market, with about 85% market share. However, at the time of the case, its market share has dropped to about 75%, and many of its dealers have either dropped the line entirely or are buying not from the company, but from the few remaining large dealers who still buy directly from Verklar. This has prompted the president of the subsidiary to devise a new way — called the Quota System — to run the distribution channel in the country to improve performance. Asks the reader to examine the sources of market share decline and whether the proposed Quota System solves the channel’s problems.
Case Author(s): Nanda, Ashish; Mahmood, Takia Publication Date: 02/20/1997 Revision Date: 07/02/1997 Product Type: Case (Field) Product Description: Charles Ferguson has just heard from a venture capital (VC) consortium that it is willing to finance Vermeer Technologies, a company he has co-founded for developing Internet software. The funds are sorely needed, but the VCs have imposed some onerous conditions, including a request that Vermeer’s first CEO be an outsider. Teaching Purpose: Identifies several tasks that need to be performed before a business idea can be realized as a business entity. Highlights the process of early product definition and the key role of employee selection in building an organization. May be used with: (9-397-080) Vermeer Technologies (B): Realizing the Dream; (9-397-081) Vermeer Technologies (C): Negotiating the Future; (9-397-082) Vermeer Technologies (D): Making Transitions; (9-397-085) Vermeer Technologies (E): New Beginning; (9-397-110) Vermeer Technologies (F): FrontPage 97. HBS Number: 9-397-078 Geographic Setting: Cambridge, MA Industry Setting: computer software Company Size: start-up Number of Employees: 10 Event Year Start: 1994 Event Year End: 1994 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital Academic Discipline: Entrepreneurship Supplementary Materials: Supplement (Field), (9-397-079), 3p, by Ashish Nanda, Takia Mahmood; Case Video, (9-899-505), 15 min, by Ashish Nanda
Case Nanda, Ashish; Mahmood, Takia Supplements the (A) case. Must be used with: (9-397-078) Vermeer Technologies (A): A Company Is Born. HBS Number: 9-397-079 Type: Supplement (Field) Publication Date: 2/20/1997 Revision Date: 7/2/1997 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital
Case Author(s): Nanda, Ashish; Levenson, Georgia Publication Date: 05/27/1997 Revision Date: 07/02/1997 Product Type: Case (Field) Product Description: The Vermeer team works day and night to develop its software offering, unforeseen difficulties and internal tensions notwithstanding. In less than a year, the product is ready. The Vermeer team waits anxiously for the market to pronounce its verdict. Teaching Purpose: Exposes students to the intensity of the compressed development process characteristic of start-up companies, especially in the Internet business, in which speed is of the essence. May be used with: (9-397-078) Vermeer Technologies (A): A Company Is Born; (9-397-081) Vermeer Technologies (C): Negotiating the Future; (9-397-082) Vermeer Technologies (D): Making Transitions; (9-397-085) Vermeer Technologies (E): New Beginning; (9-397-110) Vermeer Technologies (F): FrontPage 97. HBS Number: 9-397-080 Geographic Setting: Cambridge, MA Industry Setting: computer software Company Size: start-up Number of Employees: 10 Event Year Start: 1994 Event Year End: 1994 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital Academic Discipline: Entrepreneurship Supplementary Materials: Case Video, (9-899-506), 12 min, by Ashish Nanda; Case Video, (9-899-507), 23 min, by Ashish Nanda
Case Author(s): Nanda, Ashish; Levenson, Georgia Publication Date: 05/27/1997 Revision Date: 07/02/1997 Product Type: Case (Field) Product Description: The success of the Vermeer software offering suddenly transforms the start-up into a sought after company. After arduous negotiations, Vermeer management is faced with the choice of continuing as an independent company or being acquired by Microsoft or Netscape. Teaching Purpose: Requires students to make a critical decision, thus helping them understand the process of strategic decision making. A detailed description of Vermeer management’s approach during acquisition negotiations helps students reflect on negotiations strategy. May be used with: (9-397-078) Vermeer Technologies (A): A Company Is Born; (9-397-080) Vermeer Technologies (B): Realizing the Dream; (9-397-082) Vermeer Technologies (D): Making Transitions; (9-397-085) Vermeer Technologies (E): New Beginning; (9-397-110) Vermeer Technologies (F): FrontPage 97. HBS Number: 9-397-081 Geographic Setting: Cambridge, MA/Redmond, WA Industry Setting: computer software Event Year Start: 1995 Event Year End: 1995 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital Academic Discipline: Entrepreneurship Supplementary Materials: Case Video, (9-899-507), 23 min, by Ashish Nanda; Teaching Note, (5-600-152), 13p, by Steven C. Wheelwright
Teaching Note For use with 9-397-081 HBS Number: 5-600-152 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital
Case Author(s): Nanda, Ashish; Levenson, Georgia Publication Date: 05/27/1997 Revision Date: 07/02/1997 Product Type: Case (Field) Product Description: Microsoft has acquired Vermeer, and Vermeer executives are both excited and concerned as they prepare to move to Redmond. Even though the acquisition has been financially rewarding, the Vermeer engineers worry how well they will adapt to their new home. Meanwhile, Chris Peters, their new boss, is trying to ensure a smooth integration of the Vermeer team into the Microsoft organization. Teaching Purpose: Allows students to examine the opportunities for value creation that effective acquisition integration offers as well as the risk of value destruction that ineffective integration can lead to. By critiquing the Microsoft-Vermeer acquisition process, the students come to appreciate the complexity of the process. May be used with: (9-397-078) Vermeer Technologies (A): A Company Is Born; (9-397-080) Vermeer Technologies (B): Realizing the Dream; (9-397-081) Vermeer Technologies (C): Negotiating the Future; (9-397-085) Vermeer Technologies (E): New Beginning; (9-397-110) Vermeer Technologies (F): FrontPage 97. HBS Number: 9-397-082 Geographic Setting: Redmond, WA Industry Setting: computer software Event Year Start: 1996 Event Year End: 1996 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital Academic Discipline: Entrepreneurship Supplementary Materials: Case Video, (9-899-508), 8 min, by Ashish Nanda; Teaching Note, (5-600-152), 13p, by Steven C. Wheelwright
Teaching Note For use with 9-397-082 HBS Number: 5-600-152 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital
Case Author(s): Nanda, Ashish; Levenson, Georgia Publication Date: 05/27/1997 Revision Date: 07/02/1997 Product Type: Case (Field) Product Description: The Vermeer team is pleasantly surprised by the benefits and hospitality that their new surroundings offer. Their happiness is tempered, however, by discomfort with some elements of the “Microsoft Way.” As the Vermeer engineers embark on a punishing schedule for the next release of their product, the Microsoft executives wonder whether the Vermeer team will be able to deliver on its promise. Teaching Purpose: Along with the (D) case, explores the complexity and promise of acquisition integration. By delineating the ‘’Microsoft Way,’‘ the case also highlights how this extremely successful company has tried to simultaneously achieve scale and speed, and efficiency and entrepreneurship in its operations. May be used with: (9-397-078) Vermeer Technologies (A): A Company Is Born; (9-397-080) Vermeer Technologies (B): Realizing the Dream; (9-397-081) Vermeer Technologies (C): Negotiating the Future; (9-397-082) Vermeer Technologies (D): Making Transitions; (9-397-110) Vermeer Technologies (F): FrontPage 97. HBS Number: 9-397-085 Geographic Setting: Redmond, WA Industry Setting: computer software Event Year Start: 1996 Event Year End: 1996 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital Academic Discipline: Entrepreneurship Supplementary Materials: Teaching Note, (5-600-152), 13p, by Steven C. Wheelwright
Teaching Note For use with 9-397-085 HBS Number: 5-600-152 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital
Case Nanda, Ashish; Levenson, Georgia Vermeer engineers work at the breakneck pace of "Internet time" to develop the next version of their software product, winning accolades from Microsoft management. Even before this version ships, however, they are faced with another pu HBS Number: 9-397-110 Type: Case (Field) Publication Date: 5/27/1997 Revision Date: 7/2/1997 Geographic Setting: Redmond, WA Industry Setting: computer software Event Year Start: 1996 Event Year End: 1996 Subjects: Acquisitions; Business policy; Entrepreneurship; Organizational design; Personnel selection; Software; Venture capital Supplementary Materials: Supplement (Field), (9-397-121), 1p, by Ashish Nanda, Georgia Levenson
Case Meyer, Kathleen; Bollier, David; Somaya, Shilpi In 1989, Vermont National Bank launches the Socially Responsible Banking (SRB) Fund, the first major program to enable conventional banking customers to earmark their deposits for social investing. The fund is an instant success with c HBS Number: 9-996-035 Type: Case (Field) Publication Date: 02/01/1996 Geographic Setting: Vermont Event Year Start: 1989 Event Year End: 1995 Subjects: Banking; Business & society; Consumer marketing; Ethics; Financial services; Marketing strategy; Social enterprise Supplementary Materials: Supplement (Field), (9-996-036), 6p, by Kathleen Meyer, David Bollier, Shilpi Somaya; Teaching Note, (5-996-037), 5p, by Kathleen Meyer, David Bollier; Case Video, (9-996-538), 5 min, by Kathleen Meyer, David Bollier Publisher: Business Enterprise Trust
Case Author(s): Steenburgh, Thomas ; Okike, Nnamdi Publication Date: 05/18/2009 Revision Date: 10/14/2009 Product Type: Case (Field) Publisher: Harvard Business School HBS Number: 509063 Number of Employees: 35 Event Year Start: 2009 Subjects: Sales; Business marketing; Green marketing; Green business Academic Discipline: Marketing Product Description: Verne Global, a pioneering startup created to build the first large-scale data center in Iceland, faces critical challenges regarding its green strategy. Verne Co-Founder Isaac Kato is tasked with evaluating how the company can most successfully market and sell the green components of its service offering. Using only renewable energy in its data center facility, Verne can drastically reduce customers’ carbon emissions, enabling customers to meet emerging government regulations and to capture the financial benefit of public goodwill arising from green initiatives. But how valuable are Verne‘s green benefits, and are they sufficient to compel customers to pay a premium for Verne services? Further, how can Verne best integrate its green strategy into its marketing and sales message? Finally, will Verne's green benefits enable the company to overcome obstacles in the sales process, or will they alternatively overcomplicate an already complex sales message? Kato's decision allows discussion of the emerging role of green marketing and sales and helps identify how a product or service which is good for the environment can also be good for the bottom line.
Article Shapiro, Carl; Varian, Hal R. In this article, University of California at Berkeley professors Carl Shapiro and Hal Varian explain how a "versioning" strategy can enable a company to distinguish its products from the competition and protect its prices from collapse HBS Number: 98610 Type: Harvard Business Review Article Publication Date: 11/1/98 Geographic Setting: : Subjects: Information age; Market segmentation; Marketing strategy; Online information services; Pricing strategy; Product portfolio management; Product positioning
Article Shapiro, Carl; Varian, Hal R. HBR OnPoint Articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, a HBS Number: 4789 Type: HBR OnPoint Article Publication Date: 9/1/00 Subjects: Information age; Market segmentation; Marketing strategy; Online information services; Pricing strategy; Product portfolio management; Product positioning
Case Author(s): Higgins, Robert F.; Kazan, Brent Publication Date: 10/15/2007 Product Type: Case (Field) Publisher: Harvard Business School HBS Number: 808005 Geographic Setting: United States Subjects: Financing; Nonprofit organizations; Philanthropies Academic Discipline: Finance Product Description: In 2001, Vertex Pharmaceuticals Incorporated acquired the San Diego-based biotech company, Aurora Biosciences. The combination of Vertex’s and Aurora‘s technologies would improve the flow of novel drug candidates into development. However, several questions related to the integration of Aurora into Vertex were still unresolved, the most pressing being Aurora's major collaboration with the Cystic Fibrosis Foundation (CFF). Were venture philanthropy and foundation deals an appropriate funding mechanism for a public company like Vertex? How could the board of Vertex and the CFF fundamentally align the objectives of a for-profit company with those of a non-profit institution? Those were the questions faced by the Vertex executives.
Case Author(s): Higgins, Robert F.; Kazan, Brent; LaMontagne, Sophie Publication Date: 10/15/2007 Product Type: Case (Field) HBS Number: 9-808-005 Geographic Setting: United States Industry Setting: Nonprofit; Pharmaceutical industry Subjects: Biotechnology; Financing; Foundations; Nonprofits; Pharmaceuticals; Philanthropy Academic Discipline: Finance Product Description: In 2001, Vertex Pharmaceuticals Incorporated acquired the San Diego-based biotech company, Aurora Biosciences. The combination of Vertex’s and Aurora‘s technologies would improve the flow of novel drug candidates into development. However, several questions related to the integration of Aurora into Vertex were still unresolved, the most pressing being Aurora's major collaboration with the Cystic Fibrosis Foundation (CFF). Were venture philanthropy and foundation deals an appropriate funding mechanism for a public company like Vertex? How could the board of Vertex and the CFF fundamentally align the objectives of a for-profit company with those of a non-profit institution? Those were the questions faced by the Vertex executives.
Case Author(s): Pisano, Gary P.; Fleming, Lee; Strick, Eli Peter Publication Date: 06/10/2004 Revision Date: 06/20/2006 Product Type: Case (Field) HBS Number: 9-604-101 Geographic Setting: Massachusetts Industry Setting: Biotechnology & pharmaceutical industries Number of Employees: 724 Gross Revenues: $161 million (2002) Event Year Start: 2003 Event Year End: 2003 Subjects: Biotechnology; Decision making; Knowledge management; Organizational development; Portfolio management; Project evaluation; R&D; Real options; Resource allocation; Vertical integration Academic Discipline: Operations management Product Description: Vertex Pharmaceuticals, Inc., a drug discovery company that recently decided to pursue a vertically integrated business model, chose to build up its clinical development and commercial capabilities and infrastructure. For the first time in its history, Vertex will select two drug candidates from its internal research portfolio of four projects to develop on its own, without the help of strategic partners. CEO Joshua Boger and President Vicki Sato are grappling with which two projects to select. Focuses on how to select projects and how to manage the process of portfolio selection. Learning Objective: To examine how managers assess development projects with long time lines, several decision points, and multiple sources of risk, some being difficult to quantify. The great costs and high level of uncertainty associated with the drug development process provides students with a challenging scenario for making resource allocation decisions. Also, the fact that Vertex’s “portfolio choice” decision coincides with its shift in business strategy helps students gain insight into how such decisions influence organizational development.
Case Author(s): Gino, Francesca; Pisano, Gary P. Publication Date: 04/25/2006 Product Type: Supplement (Field) HBS Number: 9-606-116 Subjects: Biotechnology; Decision making; Knowledge management; Organizational development; Portfolio management; Project evaluation; R&D; Real options; Resource allocation; Vertical integration Academic Discipline: Operations management Supplementary Materials: Teaching Note, (5-606-145), 16p, by Francesca Gino, Gary P. Pisano Product Description: An abstract is not available for this product. Must be used with: (9-604-101) Vertex Pharmaceuticals: R&D Portfolio Management (A).
Case Author(s): Gino, Francesca; Pisano, Gary P. Publication Date: 04/25/2006 Product Type: Supplement (Field) HBS Number: 9-606-117 Subjects: Biotechnology; Decision making; Knowledge management; Organizational development; Portfolio management; Project evaluation; R&D; Real options; Resource allocation; Vertical integration Academic Discipline: Operations management Supplementary Materials: Teaching Note, (5-606-145), 16p, by Francesca Gino, Gary P. Pisano Product Description: An abstract is not available for this product. Must be used with: (9-604-101) Vertex Pharmaceuticals: R&D Portfolio Management (A).
Case Walsh, P — University of Surrey Todeva, E — University of Surrey Distributor: ecch (www.ecch.com) Reference: 306-482-1 Language: English Category: Strategy and General Management Data source: Published sources Product Year: 2006 Geo location: Global, Europe Industry: Energy, utilities Timing: 1990-2005 Topics: Energy sector; Utilities; RWE (Rheinisch-Westfalisches Elektrizitatswerk Aktiengesellschaft’s); Business network structure; Internationalisation; Deregulation; Business segments; Thames Water; Asset growth; Return on equity; Debt/equity ration; Cashflow; Abstract: The challenge of identifying synergies from a diversified portfolio of operations is greater than ever. The liberalisation of the utilities created enormous opportunities for established firms for a vertical and horizontal integration across different parts of the value chain and across different markets. RWE (Rheinisch-Westfalisches Elektrizitatswerk Aktiengesellschaft‘s) led the market with its investments worldwide not only in the gas and energy sectors, but also in water and environmental technologies. However, the wide spread of investments of the energy giant RWE lead to a stretching of its resources beyond the safe levels that ensure enhanced performance. A balance between diversification and refocusing where its specialisation lies appears to be the strategic choice that the firm has made as a global player in the energy market. Data on its portfolio of activities, and the most recent history of performance support such a strategic decision as the divestment from Thames Water and American Water facilities.
Article Author(s): David W. Large; Terry Conrod Publication Date: 01/05/2003 Product Type: Article Ivey ID: 9B03TC08 Subjects: None specified Major Disciplines: General Management Product Description: Making the transition to Vertical Solutions Marketing is an appealing option for growing revenues. Managers would do well to read this article before choosing this option. Vertical Solutions Marketing is an appealing option for growth, especially in an era in which organization have already been pared to the bone. But managing the evolving tension between the company’s old and new business structures and sharing and transferring resources among the solutions units must be done carefully if the move to VSR is to succeed. These authors suggest 11 best practices.
Case Author(s): Narayandas, Das Publication Date: 11/02/1999 Revision Date: 06/27/2000 Product Type: Case (Field) Product Description: VerticalNet, a leading creator of targeted business-to-business vertical trade communities on the Internet, is trying to expand its model to facilitate e-commerce as well. Mark Walsh, the CEO of VerticalNet, has to decide how far he can extend the firm’s business model without affecting his current franchise negatively. Teaching Purpose: To illustrate the various business-to-business e-commerce models that exist today. HBS Number: 9-500-041 Geographic Setting: Philadelphia, PA Industry Setting: Internet Number of Employees: 7,300 Gross Revenues: $25 million revenues Event Year Start: 1999 Event Year End: 1999 Subjects: Business models; Business to business; Electronic commerce; Internet; Online information services Academic Discipline: Marketing Supplementary Materials: Teaching Note, (5-501-060), 13p, by Das Narayandas
Teaching Note For use with 9-500-041 HBS Number: 5-501-060 Subjects: Business models; Business to business; Electronic commerce; Internet; Online information services
Case Singh, H; Soh, C Publisher: Asian Business Case Centre Distributor: ecch (www.ecch.com) Reference: 302-174-1 Language: English Category: Strategy and General Management Data source: Published sources Product Year: 2002 Geo location: North America Industry: Computer software and services Size: Large Timing: 2001 Topics: IT (information technology); e-Commerce; e-Strategy; Technology; Infrastructure; B2B (business to business) strategy Abstract: After the fall from grace of Internet-based retailers, the business-to- business (B2B) industry was enthusiastically promoted as the next beneficiary of the diffusion of the Internet in business. Among the many firms that were founded to take advantage of this wave of goodwill was VerticalNet. Although it was not the first B2B dotcom to be founded, it became a highly visible success story and within three years, it had opened twenty-four ’verticals‘ or industrial communities. This case study traces the evolution of its strategy, as it progressed and enhance their links with their partners. As it expanded the scope of its activities, VerticalNet faced a fast-shifting competitive landscape and its responses to these challenges are detailed in the case in an effort to understand the mechanics of its strategy-making process, as well as provide some guidance on its future trajectory.
Case Author(s): Jeffrey Gandz Publication Date: 1/7/2008 Revision Date: 9/18/2008 Product Type: Case Ivey ID: 9B08C003 Geographic Setting: United States; Canada Industry Setting: Business Services Size: Medium Level of Difficulty: 4 - Undergraduate/MBA Subjects: Productivity; Performance Metrics; Performance Measurement; Employee Relations Major Disciplines: Human Resource Management; International Product Description: New metrics have been introduced to a software technical support call center operation. These metrics have revealed a wide range of performance between employees both for time taken to answer customers’ questions and the customer‘s perceived quality of service. The call center manager is wondering how to make use of these metrics. He is inclined to "go public" with them, whereas the head of human resources believes that this could be damaging to employee morale and will also make it more difficult for the company to recruit in a market experiencing labor shortages.
Case Jenster, P V; Callarman, T; Yiting, C Publisher: China Europe International Business School Distributor: ecch (www.ecch.com) Reference: 308-241-1 Language: English Category: Strategy and General Management Data source: Generalised experience Product Year: 2008 Geo location: Nanjing Industry: Manufacturing Size: 4,500 employees Timing: Feb 2008 Topics: Entrepreneurship; Strategy; Manufacturing; OEM (original equipment manufacturer); China; Internationalisation; Branding; Private label Abstract: In 1997, Verton shifted its role from a trading company to a power tool manufacturer. After ten years, Verton China had 4,500 employees, excluding 60 employees in the sales and marketing divisions in the UK, Germany, and the US. Its sales revenue amounted to US$260 million, of which 90% was generated from exports. The company was faced with new challenges because of the strengthening of the renminbi on a daily basis, the unfavourable new tax redemption rules and the sluggish economic climate. The strategic challenge for the top management was to navigate these external forces to secure future growth.
Article Author(s): Berglas, Steven Publication Date: 06/01/2002 Product Type: Harvard Business Review Article HBS Number: R0206E Subjects: Coaching; Executive ability; Human resources management; Leadership; Performance appraisal; Performance effectiveness; Personal strategy & style; Psychology Academic Discipline: Organizational behavior & leadership Product Description: A personal coach to help your most promising executives reach their potential — sounds good, doesn’t it? According to Steven Berglas, executive coaches can make a bad situation worse. Because of their backgrounds and biases, they ignore psychological problems they don‘t understand. Companies need to consider psychotherapeutic intervention when the symptoms plaguing an executive are stubborn or severe. Executives with issues that require more than coaching come in many shapes and sizes. Consider Rob Bernstein, an executive vice president of sales at an automotive parts distributor. According to the CEO, Bernstein had just the right touch with clients but caused personnel problems inside the company. The last straw came when Bernstein publicly humiliated a mail clerk who had interrupted a meeting to ask someone to sign for a package. At that point, the CEO assigned Tom Davis to coach Bernstein. Davis, a former corporate lawyer, worked with Bernstein for four years. But Davis only exacerbated the problem by teaching Bernstein techniques for “handling” employees — methods that were condescending at best. Although Bernstein appeared to be improving, he was in fact getting worse. Bernstein's real problems went undetected, and when his boss left the company, he was picked as the successor. Soon enough, Bernstein was again in trouble, suspected of embezzlement. This time, the CEO didn't call Davis; instead, he turned to the author, a trained psychotherapist, for help. Berglas soon realized that Bernstein had a serious narcissis Source: Harvard
Case Cordell, V V — Monterey Institute of International Studies Distributor: ecch (www.ecch.com) Reference: 398-013-1 Language: English Category: Strategy and General Management Data source: Field research Product Year: 1998 Geo location: Russia Industry: Air transport Size: 50 employees Timing: 1996-1998 Topics: Defense conversion; Privatisation; Public policy; Strategy; Logistics; Transportation; Free trade zones; Russia Abstract: Veschevo Fighter Base, 80 miles northwest of St. Petersburg, has been abandoned by the Russian military. The regional government of Leningrad controls the facility and wants to convert it into an air cargo aerodrome. Infrastructure at the aerodrome was styled to meet military needs and is weak on civilian amenities. Although Veschevo is close to the Port of Vyborg, which would facilitate intermodal transport, the seaport emphasises bulk cargo, while air cargo is typically low volume/high value. Management sees a market in serving the air delivery needs of Russia’s northern slope, an area which lacks year round ocean and ground delivery. Current needs are being satisfied by more distant Moscow area airports. An investment of $150 million is required from outside sources to convert the aerodrome to cargo use, but the government‘s strategic commitment to Veschevo is questioned because of its pursuit of expanding St Petersburg's Pulkovo airport. The case elicits discussion on market development, policy coordination, and free economic zones.
