Darden Graduate School of Business Administration - University of Virginia
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Case Author(s): Freeman, R. Edward; Mead, Jenny; Lown, Christian Darden ID: UVA-E-0251 Published: 5/28/2003 Copyright Year: 2003 Subject Area: Ethics Keywords: ethical issues Abstract: This case present the dilemma of an employee who, having been terminated in a manner he deems is unfair, has to decide whether to cash or return a $2,500 check wrongfully sent him by his former employer.
Case Author(s): Haskins, Mark E. Darden ID: UVA-C-2130 Published: 4/25/1996 Revised: 10/1/1996 Copyright Year: 1996 Subject Area: Accounting and Control Keywords: financial-statement analysis Teaching Note: UVA-C-2130TN Abstract: The characteristics of a firm’s business are often reflected in the makeup of its financial statements. Using common-sized balance-sheet and financial-ratio data for 14 anonymous companies, students match identified industries to the data based on the story portrayed by the information.
Case Author(s): Haskins, Mark E. Darden ID: UVA-C-2149 Published: 6/26/2000 Copyright Year: 2000 Subject Area: Accounting and Control Keywords: accounting methods balance sheet analysis credit financial ratios statement industry structure profitability return on investment Teaching Note: UVA-C-2149TN Abstract: This case provides an opportunity for students to: (1) learn about the calculation of various financial ratios, (2) hypothesize how some of their basic understandings of an industry would be reflected in certain financial metrics, and (3) discuss an organizing framework for financial ratios.
Case Author(s): Haskins, Mark E. Darden ID: UVA-C-2162 Published: 8/6/2002 Copyright Year: 2002 Subject Area: Accounting and Control Keywords: accounting inflation finance introduction financial analysis Teaching Note: UVA-C-2162TN Abstract: Financial ratios and common-size balance sheets for 13 “mystery” companies are provided. Students then match each mystery company’s data to 1 of the 13 industries provided. In the process, students learn how to calculate a number of basic financial ratios; craft a story about the distinctive aspects of a company‘s business by interpreting balance sheets; hypothesize how some of their basic understandings of an industry would be reflected in certain financial metrics; and propose a match of a column of metrics to an industry, and present their rationale to classmates.
The case also provides an opportunity to discuss an organizing framework for the focal ratios, to present the concepts of financial leverage and a DuPont ratio deconstruction, and to introduce students to some of the published sources for industry metrics.
This is an appropriate single class assignment for an introductory MBA-level financial accounting course.
Case Author(s): Yemen, Gerry; Clawson, James G.; Clawson, James G. Darden ID: UVA-OB-0861 Published: 12/5/2005 Copyright Year: 2005 Subject Area: Organizational Behavior and Human Resources Keywords: Performance effectiveness, performance evaluation, performance management, performance measurement, coaching, career management, feedback, human resources, ?, personal change, personnel management, executive compensation. Abstract: In most organizations, the employee appraisal process causes more tension than any other aspect of personnel management. Despite the good intentions behind it, a 360? Feedback system does little to quell the fear that performance evaluation tends to instill. But is it possible to design a 360? Feedback system that is both comfortable and constructive for employees? This technical note discusses the challenges of and opportunities for creating a system that improves performance effectiveness and enhances career success.
Technical Note Author(s): Russell, Harry “Mac” Darden ID: UVA-OM-1334 Published: 2/11/2008 Copyright Year: 2007 Subject Area: Operations Management Keywords: Lean manufacturing, Lean implementation Abstract: “Lean” has been defined as the “relentless pursuit of the elimination of waste.” This technical note provides a glossary of terms concerning Lean implementation, including muda, muri, nura, kanban, andon board, SMED, poka-yoke, 5S, gemba, takt time, heijunka, and kaizen.
Case Author(s): James G. Clawson Description: This note outlines a simple but powerful model, in managerial language, for understanding why people behave the way they do. The model builds a set of relationships among perceptions, beliefs, conclusions, defense mechanisms, and behavior. The note provides a framework that has been useful in a variety of settings for practicing managers. Subjects: interpersonal relations; interpersonal behavior; relations; Darden ID: OB-0744 Teaching Note: N/A
Case Author(s): Pohl, Jessica; Sinnarajah, Jason; Isabella, Lynn A. Darden ID: UVA-OB-0896 Published: 5/24/2007 Copyright Year: 2007 Subject Area: Organizational Behavior and Human Resources Keywords: Teamwork, conflict, cultural difference, diversity, multicultural teams, personality, personality conflicts, teams, managing teams, problems, problem solving. Abstract: “Hee Soap, Hee Soap,” Timothy Jones sang out in a mocking fashion towards Hee Seop Choi, a fellow learning team member at a noted graduate school of business. Hoping to gain the benefits from a diversity of resources, knowledge, and ideas, MBA students at this school were assigned to learning teams. Each member was specifically chosen with an effort to mix up gender, nationalities, professional backgrounds, and interests. But those advantages may be outweighed by problems stemming from multicultural differences. This case offers a disguised, yet real, team experience that can be used in the classroom to unpack how this richly diverse group had trouble getting along and why their personality clashes intensified. The opportunity to discuss the challenges in light of culture, and the difference between that and problems stemming from personalities will help students reap the benefits intrinsic in multicultural teams.
Case Author(s): Davidson, Martin N.; Yemen, Gerry; Magnuson, Erin Darden ID: UVA-OB-0920 Published: 11/12/2007 Copyright Year: 2007 Subject Area: Organizational Behavior and Human Resources Keywords: team dynamics, diversity, integration Abstract: A marketing team, asked to compile a marketing deck in response to an urgent request by the head of a business, has completed the task. Still the team leader is concerned about the dynamics he observed during the meeting of his marketing group team. He has noticed that a recent recruit to the team, an African American, is being ignored when he contributes to the discussion although his ideas are solid ones. The leader is left with some nagging questions: What happened to this recruit in the meeting? Why wasn’t he more integrated into the team? How was he feeling about the meeting? And most important, was there any way to make the collaborative process more effective the next time around?
Technical Note Author(s): Kumar, Sameer; Kalla, Arya; Spekman, Robert E. Darden ID: UVA-M-0746 Published: 8/29/2007 Copyright Year: 2006 Subject Area: Marketing Keywords: sales management; sales force design; marketing strategy Abstract: This note describes several approaches one could employ to size a sales force. It addresses the advantages of each approach as well as the weaknesses. The case entitled “Z Associates: Sizing the Sales Force” (UVA-M-0745) provides a real-world example of one company’s attempt to select the correct approach, and includes a supplemental Excel file for students.
Technical Note Author(s): Venkatesan, Rajkumar Darden ID: UVA-M-0767 Published: 8/25/2008 Copyright Year: 2008 Subject Area: Marketing Keywords: Analytics; Marketing Research; Cluster Analysis; Segmentation; Field Experiments; Regression; Customer Lifetime Value; Direct and Interactive Marketing Abstract: This note provides a detailed description of a second-year elective called Marketing Analytics at Darden. The course exposes students to marketing strategy that is empowered by data analytics. The three modules in the course include product analytics, customer analytics, and measuring return on marketing. Specific attention is provided throughout the course to familiarize students with using large marketing databases for obtaining insights that will help marketing decisions.
Case Author(s): Rodriguez, Peter L. Darden ID: UVA-BP-0503 Published: 8/3/2006 Copyright Year: 2006 Subject Area: Global Economics Keywords: Angel Investing, Venture Capital, Emerging Markets, entrepreneurshp, Latin America, Economic Growth Abstract: This technical note discusses the practice of angel investing, particularly its meaning and suitability to emerging markets. Adapted from a chapter in An Executive Briefing on Angel Investing in Latin America (Batten Institute), this note focuses on business in Latin America, but the discussion and the relationships discussed are relevant and perfectly suitable to discussions of early-stage finance and entrepreneurship in all emerging economies. Additionally, the note explores the role of angel investors and venture capitalists on entrepreneurial activity and economic development.
Case Author(s): Rodriguez, Peter L. Darden ID: UVA-BP-0502 Published: 7/26/2006 Copyright Year: 2006 Subject Area: Accounting and Control Keywords: Corruption, Development, Ethics, International Business Abstract: This note defines and discusses the measurement of corruption, describes corruption’s principal effects on firms and societies, and discusses its relevance of to managers and to the efforts of firms to promote higher living standards throughout the world.
Technical Note Author(s): Rodriguez, Peter L. Darden ID: UVA-F-1541 Published: 9/24/2008 Copyright Year: 2008 Subject Area: Finance Keywords: macroeconomics money market aggregate demand supply curve Abstract: This technical note introduces the basic structure of the IS\LM and AS\AD models for a closed economy (i.e., one that does not engage in international trade). It is a useful complement for the more in-depth presentation of these models commonly found in an economics textbook.
Technical Note Author(s): Warnock, Francis E. Darden ID: UVA-BP-0528 Published: 8/14/2008 Copyright Year: 2008 Subject Area: Business Policy Keywords: Capital inflows; Net exports; Exchange rate Abstract: This technical note introduces the basic structure of what we call the Three-Paned Model. The model is essentially just an “opening up” of the closed-economy IS/LM Model, with the main pane being the IS/LM Model (modified only slightly to allow for international trade) and two additional panes that determine the amount of capital inflows, net exports, and the exchange rate. This note is not a substitute for the more in-depth presentation of these models found in textbooks, but should be used to complement each textbook’s richer treatment of the theoretical and technical aspects of these models.
Case Author(s): Grenblad, Daniel; Yemen, Gerry Darden ID: UVA-M-0739 Published: 4/7/2006 Copyright Year: 2006 Subject Area: Marketing Keywords: As a manager of a global subsidiary, how skilled should you be in predicting a customer’s behavior? Larry Swartz, country manager at Genua in Sweden AB, an IT services company, and one of his sales people were awaiting a promised fax about a sweet deal he Abstract: As a manager of a local subsidiary, how skilled should you be in understanding a customer‘s behavior? Lars Falk, country manager at Genupay in Sweden AB, an IT software company, and one of his sales people were awaiting a promised fax about a sweet deal he had landed with a Swedish casino company. The timing of this contract could not have been better. The CEO of Genupay Inc., the parent company in London, United Kingdom, was putting the pressure on Falk to address some financial shortcomings. The local company was, so far, a loss-making subsidiary. In the (A) case, Falk senses a problem when the promised contract fails to appear. The (B) case, 24 hours later, reveals that the customer is canceling its purchase. The (C) case reveals that the purchasing contract signatory left the casino company, which has Falk wondering about the potential fallout of taking legal action. This case set is intended to be read and taught in a single 90-minute class. It allows for the application of frameworks on mapping functional and legal roles of actors in the buying decision and the personal selling processes. The main events of the case are actual occurrences; all actors are disguised.
Case Author(s): Grenblad, Daniel; Yemen, Gerry Darden ID: UVA-M-0740 Published: 4/7/2006 Copyright Year: 2006 Subject Area: Marketing Keywords: Mapping roles; Consumer behavior; Consumer marketing; Customer relations; Customer retention; Predictability Abstract: As a manager of a global subsidiary, how skilled should you be in predicting a customer’s behavior? Larry Swartz, country manager at Genua in Sweden AB, an IT services company, and one of his sales people were awaiting a promised fax about a sweet deal he
Case Author(s): Grenblad, Daniel; Yemen, Gerry Darden ID: UVA-M-0741 Published: 4/7/2006 Copyright Year: 2006 Subject Area: Marketing Keywords: Mapping roles; Consumer behavior; Consumer marketing; Customer relations; Customer retention; Predictability Abstract: As a manager of a global subsidiary, how skilled should you be in predicting a customer’s behavior? Larry Swartz, country manager at Genua in Sweden AB, an IT services company, and one of his sales people were awaiting a promised fax about a sweet deal he
Technical Note Author(s): Warnock, Francis E. Darden ID: UVA-BP-0523 Published: 5/20/2008 Copyright Year: 2008 Subject Area: Business Policy Keywords: international investment position, balance of payments Abstract: This note presents a short description of the balance of payments (BOP) and international investment position (IIP) presentations. It refers to data for South Africa, but given that there are worldwide standards for countries that report both BOP and IIP, it should provide guidance for understanding the data of just about any country.
Case Author(s): Mark E. Haskins; Rebecca Bray Description: This case provides an opportunity to explore various methods of accounting for estimated bad debts. A. H. Robins’ three product groups (Ethical Pharmaceuticals, Consumer Products, and Caron Fragrances) are very different in regard to the customer bases they serve. Thus, each group has its own peculiar set of problems related to the collection of accounts receivable. The issue raised is: What should the director of corporate accounting record for the 1984 provision for bad debts? Subjects: assets; balance sheet, accounting; financial accounting, balance sheet Darden ID: C-1042 Teaching Note: C-1042TN
Case Author(s): Eaker, Mark R. Darden ID: UVA-F-1024 Published: 3/1/1994 Copyright Year: 1994 Subject Area: Finance Keywords: financing; foreign exchange; international finance Abstract: This case examines the financing options available to a U.S. multinational to provide funds for a Spanish subsidiary. The analysis is largely driven by tax considerations and the outlook for currency changes.
Case Author(s): Bruner, Robert F. Darden ID: UVA-F-1088 Published: 3/2/1995 Revised: 6/23/1998 Copyright Year: 1994 Subject Area: Finance Keywords: acquisitions; mergers; international business strategic planning valuation Teaching Note: UVA-F-1088TN Student Spreadsheet: UVA-S-F-1088 Faculty Spreadsheet: UVA-S-F-1088TN Abstract: In 1993, the chairmen of Volvo and Renault announced the terms under which their two firms would merge. The case describes the unusual structure of the strategic alliance that predated the merger proposal, the motives for merging, and the expected financial synergies. The tasks for the student are to evaluate the proposed terms of the merger and to recommend whether Volvo’s shareholders should approve the merger. This case may be taught singly or in combination with the epilogue case, “Volvo/Renault: The Contest for Shareholder Approval” (UVA-F-1089). Student and instructor Excel spreadsheet files are available with this case and teaching note.
Case Author(s): Boynton, Andrew C. Darden ID: UVA-BP-0323 Published: 5/28/1992 Copyright Year: 1992 Subject Area: Operations Management Keywords: mergers international diversity diverse merger Teaching Note: UVA-BP-0323TN Abstract: This case is a good vehicle for analyzing how two recently merged firms should be organized to compete on a global basis. The case can be used as a stand-alone or in a module to teach students how to think about product-process change, managing core technological competencies and the merger of two firms, and global competition. See also the B case (UVA-BP-0324).
Case Author(s): Boynton, Andrew C. Darden ID: UVA-BP-0324 Published: 9/15/1992 Copyright Year: 1992 Subject Area: Operations Management Keywords: control systems, mergers, organizational design Abstract: In the B case, Asea and Brown Boveri have merged. The new company needs to establish a management-control system that provides key information to a small HQ staff and is consistent with the strategic and operational principles of the CEO, Percy Barnevik. See also the A case (UVA-BP-0323).
Case Author(s): Mead, Jenny; Werhane, Patricia H. Darden ID: UVA-E-0311 Published: 2/29/2008 Copyright Year: 2008 Subject Area: Ethics Keywords: ethics, ethical issues, stakeholder management, corporate social responsibility, healthcare, nonprofit initiatives, leadership, innovation, diversity Abstract: In 1999, the 20-year-old AIDS crisis had ravaged many developing countries and, in particular, on the continent of Africa. Of the estimated 33.4 million people living with HIV/AIDS worldwide in 1998, almost two-thirds (22 million) were in sub-Saharan Africa, considered the “global epicenter” of the disease. Already 12 million had died, and life expectancy in the region plummeted from 62 years to 47. Chicago-based Abbott Laboratories had responded at the start of the AIDS outbreak by developing the HIV diagnostic test kit and then, later in the crisis, developed some of the state-of-the-art HIV/AIDS drugs. Abbott executives, led by new CEO Miles White, wanted to address the crisis in sub-Saharan Africa, but in a specific, efficient, and effective way. This case details the evolution of the AIDS crisis, Abbott Laboratories’ HIV/AIDS drug production, and the company‘s efforts — in 1999 — to find other ways to battle HIV/AIDS globally.
Case Author(s): Mead, Jenny; Werhane, Patricia H. Darden ID: UVA-E-0312 Published: 2/29/2008 Copyright Year: 2008 Subject Area: Ethics Keywords: ethics, ethical issues, stakeholder management, corporate social responsibility, healthcare, nonprofit initiatives, leadership, innovation, diversity, global, reputation Abstract: In 1999 and 2000, Abbott Laboratories’ senior management considered a number of philanthropic options that could make a difference and define the focus for Abbott and the Abbott Fund‘s charitable programs. Although the cause was humanitarian, it was considered important that the programs align strategically with Abbott's leadership in the HIV/AIDS arena. The Abbott Fund officially launched the Program for Orphans and Vulnerable Children in June 2000. The program assisted orphans and vulnerable children infected and affected by HIV/AIDS as well as the communities that cared for them. They chose Tanzania as host for a pilot program, which involved updating the country's community health care infrastructure. Abbott partnered with Tanzania's Ministry of Health over the next five years to upgrade the facilities at Muhimbili National Hospital in Dar Es Salaam, the Tanzanian capital; build an HIV center comprising an outpatient clinic and counseling/support facilities; create a national HIV teaching center; and introduce pharmacy, health information, and management systems. The dramatic growth of the Abbott Fund HIV/AIDS programs suggested a strategic turning point for the Abbott Fund, transforming it from a domestic philanthropic program to one with a global focus, now aligned with Abbott's international business focus. By 2003, nearly $20 million from the Abbott Fund was being invested in its developing-world AIDS programs.
Case Author(s): Mead, Jenny; Werhane, Patricia H. Darden ID: UVA-E-0313 Published: 2/29/2008 Copyright Year: 2008 Subject Area: Ethics Keywords: ethics, ethical issues, corporate social responsibility, healthcare, nonprofit initiatives, leadership, innovation, diversity, global Abstract: The partnership between Abbott and the government of Tanzania continued to flourish. As a demonstration of Abbott’s long-term commitment to Tanzania, in 2007, the Abbott Fund opened its first office outside Abbott headquarters in Illinois. The new office in Dar es Salaam, led by Divisional Vice President Christy Wistar, oversaw the expanding number of philanthropic projects in Tanzania. In June 2007, Abbott CEO Miles White returned to Tanzania for the third time and announced the Abbott Fund‘s future plans to modernize the 23 regional laboratories across Tanzania. By the end of 2007, the Abbott Fund had invested more than $50 million in Tanzania alone, strengthening and modernizing the health care infrastructure and systems countrywide. The Abbott Fund planned to continue its support of numerous programs and organizations that were working to prevent mother-to-child transmission of HIV/AIDS and deliver effective care and treatment to HIV-infected patients. The Abbott Fund also supported programs that provided for the basic needs of orphans and vulnerable children in Tanzania and elsewhere in Africa and India.
Case Author(s): Weiss, Elliott N. Darden ID: UVA-OM-1263 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Turney, Peter B. Darden ID: UVA-G-0555 Published: 5/15/2000 Copyright Year: 2000 Subject Area: General Keywords: activity based costing Teaching Note: UVA-G-0555TN Abstract: This case illustrates the integration of two management methods: the Balanced Scorecard and Activity Based Costing to create the Activity Based Scorecard. It describes the use of the Balanced Scorecard to translate strategy into workable goals and objectives, to deploy company resources to attain these goals and objectives, to provide feedback on performance against plan, and to use this feedback to reward managers and influence the next planning cycle. The case examines the use of Activity Based Costing to enhance the company’s ability to set and manage financial performance using the Scorecard.
Case Author(s): Collins, Bette; Farris, Paul W.; Darden ID: UVA-M-0366 Published: 4/2/1991 Revised: 9/1/1990 Copyright Year: 1989 Subject Area: Marketing Keywords: advertising; Advertising media; Advertising strategy; Ethical issues; Marketing strategy,product positioning Teaching Note: UVA-M-0366TN Abstract: This case depicts the history of an unusual brand in the “super premium” segment of the vodka market. The top-of-line positioning is supported with creative advertising, narrow distribution, point-of-purchase advertising, and expensive advertising production. Absolut has used very expensive inserts as advertisements in print vehicles during the Christmas season. The last inserts described in the case cost approximately $1 each to manufacture and distribute via the media vehicle (The New Yorker). The case asks students to decide whether such expensive advertising should be continued and, if so, how. The societal effects of advertising alcoholic beverages and the implications of pursuing such exclusive positioning strategies may also be explored.
Case Author(s): Smith, C. Ray Darden ID: UVA-C-0736 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Haskins, Mark E.; Bristow, John B. Darden ID: UVA-C-2024 Published: 3/11/1991 Revised: 8/1/1989 Copyright Year: 1988 Subject Area: Accounting and Control Keywords: assets; cash flow; financial accounting, balance sheet Abstract: This technical note describes cash flow analysis, cash management, and construction of the statement of cash flows.
Technical Note Author(s): Lynch, Luann J.; Haskins, Mark E. Darden ID: UVA-C-2280 Published: 2/27/2008 Copyright Year: 2008 Subject Area: Accounting and Control Keywords: intercorporate investments marketable securities Abstract: This note provides an overview of intercorporate investments, including passive investments (marketable securities), investments that result in significant influence, and investments that result in control. Then, the accounting for marketable equity and debt securities is described in detail.
Technical Note Author(s): Lynch, Luann J.; Brownlee, E. Richard II Darden ID: UVA-C-2155 Published: 8/7/2001 Revised: 7/25/2007 Copyright Year: 2001 Subject Area: Accounting and Control Keywords: accounting inflation compensation employee Abstract: Technical note discusses accounting for stock options. It includes a discussion of the business considerations in issuing stock options, the evolution of accounting for stock options, accounting for stock options using the intrinsic value method and the fair value method under U.S. GAAP, income tax implications of stock options, and accounting for stock option repricing. The note provides illustrative examples.
Case Author(s): Davis, Edward W. Darden ID: UVA-OM-0996 Published: 1/17/2002 Copyright Year: 2001 Subject Area: Operations Management Keywords: change, management of; quality improvement; international marketing; manufacturing operations; operations strategy Abstract: This is an exercise designed to illustrate application of several of the basic problem-solving tools of the ACE (Achieving Competitive Excellence) quality improvement system used at United Technologies Corporation. Based on a project conducted at the Nogales, Mexico, plant of Otis Elevator Corporation in 1998/1999. The exercise was created for use with “ACE Implementation at United Technologies Corporation: Otis Elevator (A)” (UVA-OM-0905), but can be used alone or in conjunction with other quality improvement materials.
Case Author(s): Bodily, Samuel E. Darden ID: UVA-QA-0430 Published: 9/9/1992 Revised: 10/1/1992 Copyright Year: 1992 Subject Area: Quantitative Analysis Keywords: decision analysis; Marketing research; Probability; Risk management; Sensitivity analysis; Uncertainty Teaching Note: UVA-QA-0431TN Abstract: A division president of a Fortune 50 company must decide whether to initiate an immense capacity expansion. The critical question is whether revenue from the company’s major product line will continue to grow rapidly. An opportunity is available to conduct some market research prior to making the decision. This case introduces the steps of decision analysis: decision diagramming, assessing monetary consequences, assigning probabilities, and evaluating expected monetary value to “fold back” the decision tree. The case also develops the ideas of value of information (clairvoyance), control (wizardry), and sensitivity analysis (breakeven probability). (The B case is QA-0431.)
Case Author(s): Bodily, Samuel E. Darden ID: UVA-QA-0431 Published: 9/9/1992 Revised: 10/1/1992 Copyright Year: 1992 Subject Area: Quantitative Analysis Keywords: decision analysis risk management probability net present value Teaching Note: UVA-QA-0431TN Abstract: This case can be used with the A case (see QA-0430) to extend the “first-cut” decision analysis into issues of risk management and consideration of options to stop the project.
Case Author(s): Watson, Dan; Bourgeois, L. J. III Darden ID: UVA-BP-0466 Published: 3/3/2003 Revised: 1/26/2007 Copyright Year: 2003 Subject Area: Business Policy Keywords: post merger integration; Corporate strategy; Management of change; Cross-cultural communications; Cultural conflict; Implementation; International strategy; Mergers; Merger integration; Organizational design; Role playing; Strategy implementation Abstract: This case is designed to allow two integration teams, each representing one of two very different companies, to construct a joint post-acquisition-integration plan: Titan Products, Inc., a large, publicly traded, North American multinational (approximately $3 billion in annual sales); and Franz Schuler GMBH, a smaller, family-owned and -operated European company (approximately $500 million in annual sales). Some of the issues addressed by this role-play case include (1) organization of Schuler, (2) staffing of management positions, (3) joint-distribution channels, (4) resolution of culture conflicts, (5) focus of strategic and operational decisions, and (6) performance metrics for assessing the success of the acquisition. The role-play requires about 60 minutes of team preparation, 30 minutes of negotiation, and a normal class session (85 minutes) to debrief. The instructions and assignment questions for the case are self-contained.
Technical Note Author(s): Edwards, Jeffrey R. Darden ID: UVA-OB-0370 Published: 4/3/1991 Copyright Year: 1989 Subject Area: Organizational Behavior and Human Resources Keywords: action planning; business planning; planning Abstract: This note presents a six-step sequence of points to consider when preparing an action plan, including stating objectives, generating alternatives, evaluating alternatives, selecting an alternative, implementing the alternative, and assessing its impact. (The checklist alone is given in OB-0371.)
Case Author(s): Parry, Mark E.; Darden ID: UVA-M-0365 Published: 4/2/1991 Copyright Year: 1989 Subject Area: Marketing Keywords: distribution channels; Product-line policy Teaching Note: UVA-M-0365TN Abstract: Richard Kramer, president of Active Distributors, Inc., must decide whether to accept a line of bicycle helmets. His decision depends on forecasts of consumer demand and the product/customer fit, as well as the attractiveness of the helmets to retailers.
Case Author(s): Clawson, James G. Darden ID: UVA-OB-0341 Published: 4/3/1991 Revised: 12/28/2001 Copyright Year: 1986 Subject Area: Organizational Behavior and Human Resources Keywords: communication process; human resources, management of; superior/subordinate relationships Abstract: This note describes reflective, or active, listening. A list of types of responses, from directive to nondirective, is given in an appendix. The note itself summarizes major principles of reflective listening and how they can be applied. It may be used as a summary of, or introduction to, the topic.
Case Author(s): Bruner, Robert F. Darden ID: UVA-F-0964 Published: 8/16/1991 Revised: 9/1/1995 Copyright Year: 1991 Subject Area: Finance Keywords: investment banking; mergers; negotiation; international case; diversity case; strategy formulation; strategy implementation; valuation; international Teaching Note: UVA-F-0962TN Abstract: The set of four cases composing the Fur Industry Merger Exercise affords the opportunity for a merger negotiation among students. Three potential buyers (Adams, Jindo [UVA-F-0962], and Lessard [UVA-F-0963]) compete for two potential sellers (Adams and Gallery of Furs [UVA-F-0965]). The cases give detailed financial forecasts for the target firms that are unique to each party. The forecasts form the basis for valuation of the target companies. The merger opportunities are prompted by major competitive changes in the worldwide fur-garment industry and by adverse changes in demand in U.S. fur retailing. The exercise affords insights into the challenges of cross-border acquisitions. Adams is the largest retailer of fur garments in the United States. Publicly, it appears to be a healthy company, but private information reveals a serious erosion in its business. The current turmoil in the industry provides Adams an opportunity either to buy its next largest competitor (Gallery of Furs) or sell to one of two fur-garment producers (Jindo or Lessard). The “Adams” case may be used on a stand-alone basis to illustrate aspects of corporate valuation in a merger setting.
Case Author(s): Haskins, Mark E. Darden ID: UVA-C-2264 Published: 7/16/2007 Copyright Year: 2007 Subject Area: Accounting and Control Keywords: Accounting control financial reporting compensation Teaching Note: UVA-C-2264TN Abstract: This case challenges students to apply financial reporting concepts pertaining, most notably, to liabilities and expenses in a specific corporate situation. In the context of an interesting, but noncomplex, technical accounting issue, students debate the best way for Adenosine Therapeutics to present its compensation arrangements in its financial statements. In addition, this case also prompts students to debate the best way for a growing company, with cash constraints, to provide incentive and maintain top employees.
Technical Note Author(s): Clawson, James G. Darden ID: UVA-OB-0224 Published: 4/3/1991 Revised: 5/1/1990 Copyright Year: 1982 Subject Area: Organizational Behavior and Human Resources Keywords: career management; human resources, management of; individual behavior Abstract: This note summarizes seven major adult life- and career-stage theories. These include the adult-life-stage theories of Erik Erikson, Roger Gould, and Dan Levinson and the career theories of Miller and Form, Super, Schein and Dalton, Thomson, and Price. The note is useful in outlining these theories quickly so that students can use the basic concepts in analyzing case material involving longitudinal data.
Technical Note Author(s): Clawson, James G. Darden ID: UVA-PHA-0047 Published: 4/2/1997 Copyright Year: 1997 Subject Area: Pedagogy and Higher Administration Keywords: neurolinguistic programming myers briggs knowles kolb akin ethics, medical; pedagogy; alternative business issue setting; diversity Abstract: This note summarizes several modern theories of adult learning, including the Myers-Briggs Type Indicator, Neurolinguistic Programming, and the theories of Malcolm Knowles, David Kolb, and Gib Akin. The note can be used as an introduction to adult learning in a doctoral seminar on pedagogy and invites readers to be aware of adult learning styles in preparing for and teaching their classes.
Case Author(s): Ryan, Elizabeth; Clawson, James G. Darden ID: UVA-OB-0886 Published: 1/24/2007 Copyright Year: 2007 Subject Area: Organizational Behavior and Human Resources Keywords: difficult conversations, hygiene, feedback, appraisals, hiring and firing, problem employees, risk, managing employees, human resources. Teaching Note: UVA-OB-0886TN Abstract: How do you tell one of your direct reports that she stinks? This case explores the dynamics behind having difficult conversations, and giving and receiving feedback. It is designed to illustrate the negative effects that can result after a difficult conversation and ways to reduce the risk of adverse consequences. The case also touches on relationships in the workplace and the correlation they have to the bottom line.
In the A case students have to decide whether to confront a worker about her hygiene problems. The B case offers a role-playing situation to practice conducting a difficult conversation. We learn in the C case that the discussion went terribly wrong, and in the E case readers are provided an epilogue.
Case Author(s): Ryan, Elizabeth; Clawson, James G. Darden ID: UVA-OB-0887 Published: 1/24/2007 Copyright Year: 2007 Subject Area: Organizational Behavior and Human Resources Keywords: Difficult conversations, hygiene, feedback, appraisals, hiring and firing, problem employees, risk, managing employees, human resources. Teaching Note: UVA-OB-0886TN Abstract: How do you tell one of your direct reports that she stinks? This case explores the dynamics behind having difficult conversations, and giving and receiving feedback. It is designed to illustrate the negative effects that can result after a difficult conversation and ways to reduce the risk of adverse consequences. The case also touches on relationships in the workplace and the correlation they have to the bottom line.
In the A case students have to decide whether to confront a worker about her hygiene problems. The B case offers a role-playing situation to practice conducting a difficult conversation. We learn in the C case that the discussion went terribly wrong, and in the E case readers are provided an epilogue.
Case Author(s): Ryan, Elizabeth; Clawson, James G. Darden ID: UVA-OB-0888 Published: 1/24/2007 Copyright Year: 2007 Subject Area: Organizational Behavior and Human Resources Keywords: Difficult conversations, hygiene, feedback, appraisals, hiring and firing, problem employees, risk, managing employees, human resources. Teaching Note: UVA-OB-0886TN Abstract: How do you tell one of your direct reports that she stinks? This case explores the dynamics behind having difficult conversations, and giving and receiving feedback. It is designed to illustrate the negative effects that can result after a difficult conversation and ways to reduce the risk of adverse consequences. The case also touches on relationships in the workplace and the correlation they have to the bottom line.
In the A case students have to decide whether to confront a worker about her hygiene problems. The B case offers a role-playing situation to practice conducting a difficult conversation. We learn in the C case that the discussion went terribly wrong, and in the E case readers are provided an epilogue.
Case Author(s): Ryan, Elizabeth; Clawson, James G. Darden ID: UVA-OB-0889 Published: 1/24/2007 Copyright Year: 2007 Subject Area: Organizational Behavior and Human Resources Keywords: Difficult conversations, hygiene, feedback, appraisals, hiring and firing, problem employees, risk, managing employees, human resources. Teaching Note: UVA-OB-0886TN Abstract: How do you tell one of your direct reports that she stinks? This case explores the dynamics behind having difficult conversations, and giving and receiving feedback. It is designed to illustrate the negative effects that can result after a difficult conversation and ways to reduce the risk of adverse consequences. The case also touches on relationships in the workplace and the correlation they have to the bottom line.
In the A case students have to decide whether to confront a worker about her hygiene problems. The B case offers a role-playing situation to practice conducting a difficult conversation. We learn in the C case that the discussion went terribly wrong, and in the E case readers are provided an epilogue.
Case Author(s): Ryan, Elizabeth; Clawson, James G. Darden ID: UVA-OB-0890 Published: 1/24/2007 Copyright Year: 2007 Subject Area: Organizational Behavior and Human Resources Keywords: Difficult conversations, feedback, appraisals, hiring and firing, problem employees, risk, managing employees, human resources. Teaching Note: UVA-OB-0886TN Abstract: How do you tell one of your direct reports that she stinks? This case explores the dynamics behind having difficult conversations, and giving and receiving feedback. It is designed to illustrate the negative effects that can result after a difficult conversation and ways to reduce the risk of adverse consequences. The case also touches on relationships in the workplace and the correlation they have to the bottom line.
In the A case students have to decide whether to confront a worker about her hygiene problems. The B case offers a role-playing situation to practice conducting a difficult conversation. We learn in the C case that the discussion went terribly wrong, and in the E case readers are provided an epilogue.
Technical Note Author(s): Shames, Ervin R.; Ferries, John Darden ID: UVA-M-0539 Published: 1/13/1998 Copyright Year: 1998 Subject Area: Marketing Keywords: advertising agency compensation Abstract: This note briefly examines the history of advertising agency compensation and the types of compensation arrangements currently in use.
Case Author(s): Venkatesan, Rajkumar; Farris, Paul W.; Darden ID: UVA-M-0752
Subject Area: Marketing Keywords: advertising Teaching Note: UVA-M-0752TN Abstract: This case is intended to be part of a first-year MBA marketing course, or a second-year elective in advertising, integrated marketing communications, market research, or marketing analytics. The case provides students with examples of two real advertising experiments and the challenges involved in executing the experiments. It allows for a discussion of the need for advertising experiments, and also, at a more general level, the need to measure the return on marketing. Biases surrounding the field experiments allow for a discussion of the problems with establishing a causal relationship between advertising and sales.
Case Author(s): Farris, Paul W.; McNabb, Jill Corso Darden ID: UVA-M-0602 Published: 8/1/1999 Copyright Year: 1999 Subject Area: Marketing Keywords: internet, advertising, media planning, marketing Abstract: This technical note introduces the key elements of Internet advertising, including options available to advertisers, pricing, measurement, an overview of the buying process, and a comparison with traditional advertising. The note includes the following appendices: glossary, how to make effective advertisements, and tips for directing traffic to one’s site.
Case Author(s): Laseter, Timothy M.; Ranjan, Rajiv Darden ID: UVA-OM-1167 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Teaching Note: UVA-OM-1167TN Student Spreadsheet: UVA-S-OM-1167 Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Laseter, Timothy M.; Ranjan, Rajiv Darden ID: UVA-OM-1168 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Teaching Note: UVA-OM-1167TN Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Werhane, Patricia H.; Watson, Orson W. Darden ID: UVA-E-0125 Published: 10/7/1997 Copyright Year: 1997 Subject Area: Ethics Keywords: ethical isues; public relations/publicity; strategy formulation; strategy implementation Teaching Note: UVA-E-0125TN Abstract: This series of cases focuses on Malden Mills’ strategy for rebuilding its Lawrence, Massachusetts, plants following a catastrophic fire in 1995. Through an analysis of the history of the Feuerstein family‘s successful management style in the supposedly dying New England textile industry, the case illuminates a unique and consistent corporate identity based on ethics, public relations, and iron-willed determination. See also the B, C, and D cases (UVA-E-0126, UVA-E-0127, and UVA-E-0128).
Case Author(s): Werhane, Patricia H.; Watson, Orson W. Darden ID: UVA-E-0126 Published: 10/7/1997 Copyright Year: 1997 Subject Area: Ethics Keywords: ethical issues; public relations/publicity; strategy formulation; strategy implementation Teaching Note: UVA-E-0125TN Abstract: This series of cases focuses on Malden Mills’ strategy for rebuilding its Lawrence, Massachusetts, plants following a catastrophic fire in 1995. Through an analysis of the history of the Feuerstein family‘s successful management style in the supposedly dying New England textile industry, the case illuminates a unique and consistent corporate identity based on ethics, public relations, and iron-willed determination. See also the A, C, and D cases (E-0125, E-0127, and E-0128).
Case Author(s): Werhane, Patricia H.; Watson, Orson W. Darden ID: UVA-E-0127 Published: 10/7/1997 Copyright Year: 1997 Subject Area: Ethics Keywords: UBA-E- ethical issues; public relations/publicity; strategy formulation; strategy implementation Teaching Note: UVA-E-0125TN Abstract: This series of cases focuses on Malden Mills’ strategy for rebuilding its Lawrence, Massachusetts, plants following a catastrophic fire in 1995. Through an analysis of the history of the Feuerstein family‘s successful management style in the supposedly dying New England textile industry, the case illuminates a unique and consistent corporate identity based on ethics, public relations, and iron-willed determination. See also the A, B, and D cases (E-0125, E-0126, and E-0128).
Case Author(s): Watson, Orson W.; Watson, Orson W. Darden ID: UVA-E-0128 Published: 10/7/1997 Copyright Year: 1997 Subject Area: Ethics Keywords: ethical issues; public relations/publicity; strategy formulation; strategy implementation Teaching Note: UVA-E-0125TN Abstract: This series of cases focuses on Malden Mills’ strategy for rebuilding its Lawrence, Massachusetts, plants following a catastrophic fire in 1995. Through an analysis of the history of the Feuerstein family‘s successful management style in the supposedly dying New England textile industry, the case illuminates a unique and consistent corporate identity based on ethics, public relations, and iron-willed determination. See also the A, B, and C cases (E-0125, E-0126, and E-0127).
Technical Note Author(s): Landel, Robert D. Darden ID: UVA-OM-1008 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Technical Note Author(s): Landel, Robert D.; Moreira, Derrick Darden ID: UVA-OM-1055 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Lichtendahl, Kenneth C. Jr.; Bodily, Samuel E. Darden ID: UVA-QA-0720 Published: 5/7/2008 Copyright Year: 2008 Subject Area: Quantitative Analysis Keywords: subjective probability, decision trees, simulation, real options, game theory Teaching Note: UVA-QA-0720TN Student Spreadsheet: UVA-S-QA-0720 Abstract: Set in 1999, this case allows students to put themselves in the positions of both Airbus and Boeing as Boeing considered how to respond to Airbus’s decision to announce its plans to proceed or not with the $10 billion development of the world‘s first commercial superjumbo jet, the Airbus A3XX. Boeing was considering a development effort to “stretch” its 747 jumbo jet into a larger superjumbo version, the 747-X. At the time, the two companies' widely available 20-year forecasts for jumbo- and superjumbo-jet demand were particularly divergent. In light of this very public “agreement to disagree,” Boeing could pursue several alternatives, all of which were related to Airbus's decision about whether or not to develop the A3XX. This case presents an opportunity for students to make a real downstream decision. It was prepared as a final exam for an introductory decision analysis course involving subjective probability assessment, decision tree modeling, simulation, real options, and game theory. In the analysis of this case, a student is expected to utilize ideas from all five of these areas.
Case Author(s): Weiss, Elliott N.; Fujii, Kanji Darden ID: UVA-OM-0799 Published: 1/16/1996 Copyright Year: 1996 Subject Area: Operations Management Keywords: economic order quantity; Inventory management; International; Diverse protagonist; Gender (female protagonist) Teaching Note: UVA-OM-0799TN Abstract: This case requires students to evaluate an inventory-control system for a provider of spare parts for a regional turboprop-airplane manufacturer. Students must also calculate economic order quantities, safety stocks, and reorder points. Issues regarding relevant costs and performance measures are also addressed.
Case Author(s): Kares, Michael Darden ID: UVA-OM-1216 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Eaker, Mark R.; Bailey, E. Clark Darden ID: UVA-F-1435 Published: 1/30/2004 Revised: 4/20/2004 Copyright Year: 2004 Subject Area: Finance Keywords: investment valuation hedge funds; Abstract: This case presents a valuation and investment opportunity in Akamai Technologies. Students are exposed to the notion of enterprise value and the possibility of capital structure arbitrage.
Case Author(s): Frey, Sherwood C. Jr. Darden ID: UVA-QA-0398 Published: 4/8/1991 Revised: 11/11/2002 Copyright Year: 1989 Subject Area: Quantitative Analysis Keywords: cost analysis, management of service industries Teaching Note: UVA-QA-0398TN Abstract: The aluminum industry had been subjected to large price increases and Akron Foundry had suffered erosion of their margins on several recent contracts with RMC. A new contract is being discovered.
Case Author(s): Clawson, James G. Darden ID: UVA-OB-0216 Published: 4/3/1991 Copyright Year: 1982 Subject Area: Accounting and Control Keywords: interpersonal behavior; superior/subordinate relationships Teaching Note: UVA-OB-0216TN Abstract: This short fictitious case provides the background for a powerful classroom experience demonstrating how people’s basic assumptions shape their behavior. After the case is distributed, different individuals tell how they would respond to it. The many varied answers give rise to the discussion about how people behave so differently with such similar data.
Case Author(s): Li, Wei; Beckenstein, Alan R. Darden ID: UVA-F-1480 Published: 11/14/2005 Copyright Year: 2005 Subject Area: Global Economics Keywords: global economics Abstract: In October 2004, one month from the presidential election, U.S. Federal Reserve Chairman Alan Greenspan undertakes a full review of the unusual events of the previous six years, including the devastating terrorist attacks of September 11, 2001. Apart from policy, what were the underlying drivers of the economy? Should he continue along a path begun several months earlier when the Fed began to raise interest rates, or should he suspend such action in order to allow the economy to make a full recovery from the recession of 2001?
Case Author(s): Bourgeois, L. J. III; Barach, Jeffrey Darden ID: UVA-BP-0329 Published: 8/24/1992 Copyright Year: 1992 Subject Area: Operations Management Keywords: leadership, motivation, strategy formulation, strategy implementation Teaching Note: UVA-BP-0329TN Abstract: This two-part exercise is used to introduce the strategy process. In Part I, a slightly injured gold prospector must decide which route to take to file a claim. The route through the valley is safer but may take too long. The other (over mountains) is riskier, and a storm is brewing. Part II has the prospector sprain an ankle, so he or she must rely on an uneducated, drinking trapper friend either to help get out (which may take too long) or to file the claim on the prospector’s behalf (alone). This exercise requires students to assess the external environment and their own capabilities to select a strategy. Then they must lead and motivate another, less committed person to help implement it.
Case Author(s): Bourgeois, L. J. III; Moscoso, Ana; Cording, Margaret Darden ID: UVA-BP-0428 Published: 8/28/2001 Revised: 5/25/2007 Copyright Year: 2001 Subject Area: Business Policy Keywords: Mergers and acquisitions; Acquisitions; Corporate strategy; Industry evolution; Strategy implementation Teaching Note: UVA-BP-0428TN Abstract: Albany International, a New-York-based paper machine clothing (PMC) manufacturer, has acquired Geschmay Group, a Germany-based competitor with operations in France, Italy, Germany, and South Carolina. Its paper manufacturer customers have been consolidating quickly, forcing the PMC companies to do the same. Not only are the corporate and national cultures of the two firms different, but Geschmay itself is multicultural and poorly integrated. Albany management is faced with realizing value in a company for which it overpaid and deciding which plant to close in France, where the merger resulted in redundant facilities; meanwhile, French law and French culture makes it nearly impossible to move people between plants.
Case Author(s): Haskins, Mark E.; Bray, Rebecca Darden ID: UVA-C-2245 Published: 6/8/2006 Copyright Year: 2006 Subject Area: Accounting and Control Keywords: uncollectible trade receiveables; estimating receivables allowance; direct write-off method; analyzing and assessing methods of collection and accounting for bad debts Teaching Note: UVA-C-2245TN Abstract: This case raises the question: How does a company reasonably estimate and record entries for uncollectible trade receivables, and under what circumstances are receivables written off as uncollectible? The required accounting transactions for the case involve estimating a receivables allowance both as a percentage of sales and as a percentage of accounts receivable and making specific account judgments under the direct write-off method. The subjective issues involve analyzing and assessing a company’s methods of collection and accounting for bad debts.
Case Author(s): Right, Jonathan M.; Frank, Mary Margaret Darden ID: UVA-C-2257 Published: 8/28/2007 Copyright Year: 2007 Subject Area: Accounting and Control Keywords: Net operating loss; valuation; merger; acquisition Abstract: This brief case asks students to assess the impact of an acquisition on the valuation of a company’s net operating losses. Specifically, students assess whether an article discussing Alcatel S.A. s acquisition of Lucent has assessed the correct value of Lucent‘s net operating losses. The case requires students to use the companies' financial statement information and a related technical note on the valuation of net operating losses in acquisitions (UVA-C-2256) to complete the assignment.
Case Author(s): Frey, Sherwood C. Jr.; Clyman, Dana R. Darden ID: UVA-QA-0605 Published: 12/16/2002 Copyright Year: 2002 Subject Area: Quantitative Analysis Keywords: decision analysis Abstract: With MBA degree nearly in hand, Alec Mason has stormed the job market and come away with offers from two prestigious strategic-consulting firms in the Washington, D.C., area. Mason must decide between one firm that offers a low starting salary but high annual salary increases and another with the attraction of a higher starting salary but lower yearly pay increases. The case follows an MBA student as he weighs the perks, compares the figures, and articulates the criteria that influence his decision.
Case Author(s): Parry, Mark E.; Fehskens, Katie Darden ID: UVA-M-0554 Published: 5/5/1998 Copyright Year: 1998 Subject Area: Marketing Keywords: new product introduction, positioning Abstract: In 1988, Syntex formed a joint venture with Procter & Gamble to market naproxen sodium, a prescription pain reliever sold by Syntex under the names Anaprox and Naprosyn, in the over-the-counter (OTC) internal analgesics market. The product received DFA approval for sale over the counter in January 1994, and was to be launched in June 1994 under the brand name Aleve. This was not Procter & Gamble’s first foray into marketing OTC pain relievers. In the 1980s, P&G attempted to launch Encaprin, a coated aspirin product. Encaprin was unable to compete with the ibuprofen products entering the market, and the product was eventually pulled. Syntex and P&G know that they were entering into a highly competitive, if not voracious, market. How could they build on the success of the prescription product? How could they introduce a new pain reliever in an overcrowded OTC market? How much would they have to spend to gain significant market share?
Case Author(s): Parry, Mark E.; Fehskens, Katie Darden ID: UVA-M-0556 Published: 5/18/1998 Copyright Year: 1998 Subject Area: Marketing Keywords: new product introduction, positioning Abstract: In this, the second part of a two-case series on the launch of an over-the-counter pain relieve, the P&G launch plan for Aleve and results of that launch are discussed. Aleve was launched in June 1994 with an annual marketing budget of $100 million. Initial results were astonishing. Within one week, supermarket scanner data indicated that Aleve was available in 92% of monitored stores. By August, Aleve’s market share was 6.5%. After four months, Aleve was tied with Excedrin for third place in the category.
Case Author(s): Scheff, Edward; Rotch, William Darden ID: UVA-C-2007 Published: 3/11/1991 Revised: 7/1/1988 Copyright Year: 1987 Subject Area: Accounting and Control Keywords: cost-accounting systems; cost control; cost-information systems; health-care management; management-control system Teaching Note: UVA-C-2007TN Abstract: This case describes the competitive hospital environment, partly stimulated by third-party payors, and this hospital’s system of acuity measurement and costing for the nursing service, which it developed to control costs and strengthen its competitive position.
Case Author(s): Gillespie, Megan; Kelly, Dorothy C. Darden ID: UVA-OB-0855 Published: 10/7/2005 Copyright Year: 2005 Subject Area: Organizational Behavior and Human Resources Keywords: managing change, higher education, leadership turnaround management Abstract: Stephen Jones, the newly hired superintendent of Norfolk Public Schools (NPS), wants to pick up where his predecessor John Simpson left off. During his six-year tenure, Simpson had managed a successful turnaround for the school division and garnered tremendous praise. Yet one accolade continued to elude NPS: the prestigious Broad Prize in Urban Education. How can Jones step into a well-performing organization and continue the momentum? What actions can he take to succeed where his predecessor had not? What can Jones do to take NPS to the next level?
Case Author(s): Crowder, Lane; Spekman, Robert E.; Darden ID: UVA-M-0460 Published: 8/9/1995 Revised: 1/1/1996 Copyright Year: 1995 Subject Area: Marketing Keywords: computer-systems management; Marketing strategy Teaching Note: UVA-M-0460TN Abstract: This case examines the alliance between two arch rivals in the computer industry—IBM and Apple. The objective of the case is to help students appreciate the awkward partnerships that arise among companies in their desire to compete against a common threat as well as to develop a new market. The case develops the background of the relationship between Apple and IBM and poses questions concerning the structure of the alliance, its alleged benefits, and the likelihood for its success based on tensions articulated in the case.
Case Author(s): Lipson, Marc Darden ID: UVA-F-1527 Published: 5/2/2007 Revised: 3/20/2008 Copyright Year: 2007 Subject Area: Finance Keywords: debt policy, forecasting, growth management Abstract: While preparing a financial forecast, the newly promoted CFO of a small and profitable, but financially constrained, ready-mix concrete company must choose between renegotiating debt obligations, postponing long-overdue capital improvements that would prevent more costly future repairs, or reducing the dividend payment to a parent company that only recently purchased the firm. A potential slowdown in the business due to a slowing economy and pressure from the new parent company add additional layers of complexity.
Case Author(s): Lipson, Marc Darden ID: UVA-F-1535 Published: 7/9/2007 Revised: 3/20/2008 Copyright Year: 2007 Subject Area: Finance Keywords: valuation, subsidiary, cost of capital, free cash flow, forecast, sensitivity Abstract: After having negotiated major financial and operating decisions with its parent company, the Chief Financial Officer of this small ready-mix conrete subsidiary is then asked to provide a valuation of the subsidiary. A one-year forecast of financial statements is provided along with information on long-term operating expectations and capital costs. This otherwise straightfoward valuation exercise is enhanced by: (1) the need to select between the parent- or comparable-firm costs of capital, (2) sufficient guidence to perform an illuminating sensitivity analysis, and (3) a sufficiently clear and rich context in which to illustrate the linkages between operating and financing choices.
Case Author(s): Gale, Christopher; Kelley, Stephen M. Darden ID: UVA-M-0352 Published: 4/2/1991 Revised: 2/1/1991 Copyright Year: 1989 Subject Area: Marketing Keywords: international marketing, legal issues, international case, diversity case, international Teaching Note: UVA-M-0352TN Abstract: A large animal-pharmaceuticals company has introduced in the United States a highly successful treatment for a common canine disease. Now, management is wondering how to introduce the product in Europe and whether the strategy should be the same as in the United States. In order to answer these questions, focus-group data on veterinarians and consumers are available for France, Spain, and Italy.
Case Author(s): Jones, Donald G.; Horniman, Alexander B.; Richtsmeier, Jane M.; Darden ID: UVA-E-0038 Published: 3/12/1991 Revised: 10/1/1990 Copyright Year: 1982 Subject Area: Ethics Keywords: Business/government relations; Labor relations; Discrimination; Diversity in the workplace; Managerial ethics; Diversity case; Women in business Teaching Note: UVA-E-0038TN Abstract: The B case describes the actions taken by Allied in response to the situation posed in the A case (UVA-E-0037) and poses new problems generated 15 months later. As a consequence of removing the women from the packaging line, Allied becomes involved with federal and state agencies concerned with health and safety as well as with equal employment. Several suits are filed by the union’s national organization charging that removal of the women violated equal-employment-opportunity laws. In addition, two of the laid-off workers have been sterilized, and the union charges that the company encouraged sterilization. The case invites students to consider the various constituencies and interests—both local and national--affected by Allied‘s decision and also to consider which of the actions available to Allied would best satisfy the legitimate interests of those constituencies. See also the C case (UVA-E-0039).
Case Author(s): Jones, Donald G.; Horniman, Alexander B.; Richtsmeier, Jane M.; Richtsmeier, Jane M.; Jones, Donald G.; Darden ID: UVA-E-0039 Published: 3/12/1991 Revised: 10/1/1990 Copyright Year: 1982 Subject Area: Ethics Keywords: Business/government relations; Labor relations; Legal issues; Discrimination; Diversity in the workplace; Managerial ethics; Diversity case; Women in business; Work-force management Teaching Note: UVA-E-0039TN Abstract: The C case describes various results of the decisions made in response to the problems described in the B case (UVA-E-0038). Allied and union representatives agree on a framework for a future settlement, additional evidence regarding fluorocarbon-22 surfaces, and Allied settles the grievances filed by the female workers. The case provides an opportunity to reassess positions taken in discussions of the A (UVA-E-0037) and B cases and to propose guidelines on worker safety and equal employment for Allied.
Case Author(s): Lynch, Luann J. Darden ID: UVA-C-2275 Published: 1/7/2008 Copyright Year: 2007 Subject Area: Accounting and Control Keywords: financial operations, income statement, balance sheet Abstract: Alphadale Community Bank, Inc., began operating as a one-branch bank on January 1, 2006. It was dedicated to serving those in the small community of Alphadale who just wanted basic banking services without all the bells and whistles in a place where they felt comfortable and at home every time they walked through the door. The transactions that took place during its first year of operation are listed, and students are asked to record all transactions related to the first year of operations, prepare a December 31, 2006 balance sheet, and prepare an income statement for the year ended. The worksheet to record these transactions is provided.
Case Author(s): Jones, Melanie; Parry, Mark E. Darden ID: UVA-M-0705 Published: 1/12/2005 Copyright Year: 2004 Subject Area: Marketing Keywords: New; products; product; launch; brand; strategy; brand; extensions; consumer; behavior; Abstract: In 2000 Altoids was the best-selling powermint with sales of $107 million. Within two years, however, sales had declined to $90 million. In part, Altoids’s difficulties reflected the success of Listerine PocketPaks breath strips, which had generated sales of over $110 million in less than a year. The success of PocketPaks raised an important line extension question for executives at Callard & Browser-Suchard (CB)(a division of Kraft foods): should Altoids introduce its own version of breath strips? If so, how should Altoids strips be positioned? What media mix should CB use for the launch?
Case Author(s): Landel, Robert D.; Mukherjee, Amit; Wood, Thomas Darden ID: UVA-OM-0396 Published: 4/9/1991 Revised: 4/1/1986 Copyright Year: 1982 Subject Area: Operations Management Keywords: inventory management; Manufacturing strategy; Quality; Quality control Teaching Note: UVA-OM-0396TN Abstract: Aluframe, a major company in the fabricated aluminum-window and -door market, faces major quality problems in its Thermoframe line, produced at its custom-products plant. The company fabricates the finished product from the Thermoframe extrusions and also sells six-foot Thermoframe extruded lengths to builders. Aluframe originally intended to produce primarily the fabricated product, but a huge demand exists for the extruded lengths, too. However, the plant was dedicated to custom-finished products, not extrusions. Management is now trying to improve quality and on-time delivery through reprimands to careless workers, technological changes, and a new control system that charges departments for defects. Students should evaluate the causes of the Thermoframe quality problems, management’s responses to date, and the relationship between the product/plant fit and the quality defects.
Case Author(s): Clawson, James G. Darden ID: UVA-OB-0660 Published: 11/30/1998 Revised: 9/8/1999 Copyright Year: 1998 Subject Area: Organizational Behavior and Human Resources Keywords: career management; management Teaching Note: UVA-OB-0660TN Abstract: Five years short of retirement, Alvarez is an experienced but uneducated mechanic working for a Venezuelan manufacturer of aluminum building products. In the A case, new North American management is concerned about Alvarez’s grumbling and egocentric behavior and is pondering the impact of firing him. In the B case (UVA-OB-0661), management decides to fire Alvarez at a high cost. In the C case (UVA-OB-0662), Alvarez dies of a heart attack soon after being fired, adding poignancy to the decision to fire him. This case series provides an excellent opportunity to explore self-concepts, methods of personal mastery, cross-cultural management, and issues of managing personal change.
Case Author(s): Clawson, James G.; Darden ID: UVA-OB-0661
Subject Area: Organizational Behavior and Human Resources Keywords: career management; Management Teaching Note: UVA-OB-0660TN Abstract: Five years short of retirement, Alvarez is an experienced but uneducated mechanic working for a Venezuelan manufacturer of aluminum building products. In the A case, new North American management is concerned about Alvarez’s grumbling and egocentric behavior and is pondering the impact of firing him. In the B case (UVA-OB-0661), management decides to fire Alvarez at a high cost. In the C case (UVA-OB-0662), Alvarez dies of a heart attack soon after being fired, adding poignancy to the decision to fire him. This case series provides an excellent opportunity to explore self-concepts, methods of personal mastery, cross-cultural management, and issues of managing personal change.
Case Author(s): Clawson, James G. Darden ID: UVA-OB-0662 Published: 11/30/1998 Copyright Year: 1998 Subject Area: Organizational Behavior and Human Resources Keywords: career management; management Teaching Note: UVA-OB-0660TN Abstract: Five years short of retirement, Alvarez is an experienced but uneducated mechanic working for a Venezuelan manufacturer of aluminum building products. In the A case, new North American management is concerned about Alvarez’s grumbling and egocentric behavior and is pondering the impact of firing him. In the B case (UVA-OB-0661), management decides to fire Alvarez at a high cost. In the C case (UVA-OB-0662), Alvarez dies of a heart attack soon after being fired, adding poignancy to the decision to fire him. This case series provides an excellent opportunity to explore self-concepts, methods of personal mastery, cross-cultural management, and issues of managing personal change.
Case Author(s): Dell, Richard Darden ID: UVA-OB-0864 Published: 1/26/2006 Revised: 3/29/2007 Copyright Year: 2006 Subject Area: Organizational Behavior and Human Resources Keywords: individual behavior; interpersonal behavior; conflict situations; international management; hiring; firing; interpersonal communications; conflict resolution; personnel development Teaching Note: UVA-OB-0660TN Abstract: Discover the power of the graphic approach this case takes to present material on managing conflict in an organization. This version of the three-part print case “Alvarez” (OB-0660, OB-0661, and OB-0662) depicts the story of employee problems facing an international company.
Canalven was a Venezuelan aluminum manufacturing company embarking on growth through new products and new processes needed to manufacture them. To help with the growth, local management brought in foreign engineers who experienced real difficulty with a long-term, relatively uneducated Canalven employee named Alvarez. Mr. Alvarez, generally seen as a grumbler, viewed himself as the on-site machine magician. He had the habit of painting his name on equipment he built. Recently, he had taken to contradicting management’s approaches. At the end of the A case, Mr. Pinto, the assistant plant manager, is faced with managing the conflict between the engineer and Alvarez.
The case is relatively short, yet develops rich discussions around topics such as personal motivation and behavior, international management, managing relationships and difficult colleagues, and managing conflict. The B case describes what the assistant manager did — basically to provide high severance pay and fire Alvarez. The C case epilogue reveals a stunning twist.
Case Author(s): Dell, Richard Darden ID: UVA-OB-0865 Published: 1/26/2006 Revised: 3/28/2007 Copyright Year: 2006 Subject Area: Organizational Behavior and Human Resources Keywords: interpersonal behavior; interpersonal behavior; conflict situations; international management; hiring; firing; interpersonal communications; conflict resolution; personnel development Teaching Note: UVA-OB-0660TN Abstract: Discover the power of the graphic approach this case takes to present material on managing conflict in an organization. This version of the three-part print case “Alvarez” (OB-0660, OB-0661, and OB-0662) depicts the story of employee problems facing an international company.
Canalven was a Venezuelan aluminum manufacturing company embarking on growth through new products and new processes needed to manufacture them. To help with the growth, local management brought in foreign engineers who experienced real difficulty with a long-term, relatively uneducated Canalven employee named Alvarez. Mr. Alvarez, generally seen as a grumbler, viewed himself as the on-site machine magician. He had the habit of painting his name on equipment he built. Recently, he had taken to contradicting management’s approaches. At the end of the A case, Mr. Pinto, the assistant plant manager, is faced with managing the conflict between the engineer and Alvarez.
The case is relatively short, yet develops rich discussions around topics such as personal motivation and behavior, international management, managing relationships and difficult colleagues, and managing conflict. The B case describes what the assistant manager did — basically to provide high severance pay and fire Alvarez. The C case epilogue reveals a stunning twist.
Case Author(s): Dell, Richard; Celis, Ingrid; Yemen, Gerry; Clawson, James G. Darden ID: UVA-OB-0866 Published: 1/24/2006 Revised: 3/28/2007 Copyright Year: 2006 Subject Area: Organizational Behavior and Human Resources Keywords: individual behavior; interpersonal behavior; conflict situations; international management; hiring; firing; interpersonal communications; conflict resolution; personnel development Teaching Note: UVA-OB-0660TN Abstract: Discover the power of the graphic approach this case takes to present material on managing conflict in an organization. This version of the print case Alvarez [OB-00660, OB-0661, OB-0662] offers images to convey problems at an international company.
Canalven was a Venezuelan aluminum manufacturing company embarking on growth through new products and new processes needed to manufacture them. To help with the growth, local management brought in foreign engineers who experienced real difficulty with a long-term, relatively uneducated Canalven employee named Mr.Alvarez. Alvarez, generally seen as a grumbler, viewed himself as the on-site machine magician. He had the habit of painting his name on equipment he built. Recently, he had taken to contradicting management’s approaches. At the end of the case, Mr. Pinto, the assistant plant manager, is faced with managing the conflict between the engineer and Alvarez.
The case is relatively short, yet develops rich discussions around topics of personal motivation and behavior, international management, managing relationships and difficult colleagues, and managing conflict. The B case describes what the assistant manager did — basically to pay high severance pay and fire Alvarez. The C case epilogue reveals a stunning twist.
Case Author(s): Frey, Sherwood C. Jr.; Castleman, William R. Darden ID: UVA-QA-0531 Published: 7/17/1998 Revised: 1/27/1999 Copyright Year: 1998 Subject Area: Quantitative Analysis Keywords: negotiation, K form Teaching Note: UVA-QA-0530TN Abstract: This case and its companion, the CIT Group (UVA-QA-0530) can be used as part of a module on the creation of mutual value. If the negotiators go beyond an arms-length approach to their relationship, they can create considerable value by relieving constraints and including additional issues. The cases can be used to illustrate the value of strategic alliances.
Case Author(s): Kennedy, Charles R. Jr.; Willey, Mitch Darden ID: UVA-G-0317 Published: 4/1/1991 Copyright Year: 1988 Subject Area: Business Government Relations Keywords: business/government relations Abstract: This case looks at one possible business consequence of U.S. Export Controls, contract termination by a foreign company. A U.S. firm faced that situation in 1980, when a Finnish firm terminated their contract following President Carter’s decision to review all export licenses to the USSR. Several business and legal options are explored, including arbitration.
Case Author(s): Bourgeois, L. J. III; Yungmeyer, Ann; Darden ID: UVA-BP-0290 Published: 3/3/1991 Revised: 2/1/1993 Copyright Year: 1988 Subject Area: Strategy Keywords: business planning; Corporate strategy; International business; Leadership; Product portfolio; Strategy formulation; International; Cross cultural issues; Diverse protagonist; Nationality; Diversity issues Teaching Note: UVA-BP-0290TN Abstract: Amer is a diversified firm with a portfolio of unrelated businesses. Leif Ekstrom has been recruited as the new COO and must (1) try to “make sense” out of the portfolio of businesses and (2) provide leadership in a firm built by the charismatic chairman (who remains as CEO). Among Amer’s challenges is that it is generating lots of cash through businesses that have limited futures (e.g., tobacco and auto importing). Objectives of the case include (1) applying portfolio-planning techniques while (2) considering the behavioral dimension of making strategic changes, and (3) examining diversification criteria. See also UVA-BP-0291, UVA-BP-0293, and UVA-BP-0294.
Case Author(s): Whetsel, John S. Jr.; Whetsel, John S. Jr.; Pommerening, W. E. Darden ID: UVA-OM-0531 Published: 4/10/1991 Revised: 12/1/1992 Copyright Year: 1985 Subject Area: Operations Management Keywords: operations management; planning; productivity; queuing; service industries, management of Teaching Note: UVA-OM-0531TN Abstract: The business-travel department of American Express is facing rapid growth in demand but is plagued with overstaffing in some offices because of the broad distribution of client demand. Management’s challenge is to reduce costs in local offices while maintaining a high level of service. One alternative under consideration is a centralized regional business-travel center to handle reservation functions for up to 20 other Amexco offices. This case gives students the opportunity to apply queuing theory to a practical situation. Normally, in order to facilitate the numerous calculations required, it is used with the UVA “QUEUE” program.
Case A Author(s): Pfeifer, Phillip E. Darden ID: UVA-QA-0257 Published: 4/5/1991 Revised: 3/1/1994 Copyright Year: 1983 Subject Area: Quantitative Analysis Keywords: marketing research; regression analysis; statistics Teaching Note: UVA-QA-0260TN Abstract: This case concerns a lawbook publishing company’s procedures for evaluating law school textbook proposals. Several evaluation approaches are possible. Historical cost data, assessments of unit sales, and data on market size and number of competing texts are available for evaluating three new titles. (The B case is QA-0260.)
Case B Author(s): Pfeifer, Phillip E. Darden ID: UVA-QA-0260 Published: 4/5/1991 Revised: 3/1/1994 Copyright Year: 1983 Subject Area: Quantitative Analysis Keywords: regression analysis; statistics Teaching Note: UVA-QA-0260TN Abstract: This case describes two simple regression models built by an analyst at the American Lawbook Corporation in response to the issues of the A case (QA-0257). This B case is used to facilitate the students’ analyses of the A case and to focus the discussion concerning the appropriateness of regression analysis.
Case Author(s): Innes, Michael J.; Passer, William J.; Bruner, Robert F. Darden ID: UVA-F-1142 Published: 8/22/1996 8: 50: 00 AM Revised: 3/1/1998 Copyright Year: 1996 Subject Area: Finance Keywords: acquisitions; Cash flow; Entrepreneurship; Mergers; Valuation Teaching Note: UVA-F-1142TN Student Spreadsheet: UVA-S-F-1142 Faculty Spreadsheet: UVA-S-F-1142TN Abstract: Set in September 1992, this exercise provides teams of students the opportunity to negotiate terms of a merger between AT&T and McCaw Cellular. AT&T, one of the largest U.S. corporations, was the dominant competitor in long-distance telephone communications in the United States. McCaw was the largest competitor in the rapidly growing cellular-telephone communications industry. Prior to the negotiations, AT&T had no position in cellular communications. This case and its companion (F-1143) are designed to allow students to be assigned roles to play. The case may pursue some or all of the following teaching objectives: exercising valuation skills, practicing strategic analysis, exercising bargaining skills, and illustrating practical aspects of mergers and acquisitions.
Case Author(s): Haskins, Mark E.; Bristow, John B. Darden ID: UVA-C-2040 Published: 3/12/1991 Revised: 10/1/1992 Copyright Year: 1988 Subject Area: Accounting and Control Keywords: accounting method assets depreciation financial diverse diversity protagonist female Teaching Note: UVA-C-2040TN Abstract: This case provides a setting for analyzing the effects of various depreciation methods and expenditure capitalization decisions on divisional return on asset (ROA) measures.
Case Author(s): Colley, John L.; Scott, Julie; Hassett, Stephen D.; Mulholland, David B.; Warren, Kristin C. Darden ID: UVA-OM-0637 Published: 4/10/1991 Revised: 4/5/2001 Copyright Year: 1988 Subject Area: Operations Management Keywords: service industries, management of; takeovers; valuation Teaching Note: UVA-OM-0638TN Abstract: This background case traces the origin and growth of this leisure conglomerate through the point when it was the victim of a hostile takeover by Irwin Jacobs. The case covers the mechanics and terminology of takeovers, and the exhibits contain enough financing information to allow students to evaluate AMF’s operating performance and attractiveness as a takeover. The B case (OM-0638) covers the leveraged buyout of AMF Bowling. (Follow-up cases are OM-0639 and OM-0640.)
Case Author(s): Barrs, Suzanne G.; King, Martin Darden ID: UVA-OM-0708 Published: 10/17/1991 Copyright Year: 1990 Subject Area: Strategy Keywords: capital investment; Teaching Note: UVA-OM-0708TN Abstract: This case describes a company’s option to integrate vertically and manufacture bowling balls rather than purchase them for resale. The company‘s manufacturing strategy is integral to its corporate strategy.
Case Author(s): Weiss, Elliott N.; Leschke, John P. Darden ID: UVA-OM-0732 Published: 7/28/1993 Copyright Year: 1993 Subject Area: Operations Management Keywords: customer relations; Diversity in the workplace; International case; Diversity case; Service operations; Management of Teaching Note: UVA-OM-0732TN Abstract: Roy Menachemson, general manager of Operations for AMF Bowling Centres (Australia), is contemplating the introduction of a service goal for AMF. The case provides information about the barriers to introduction of the service guarantee.
Case Author(s): Chaplinsky, Susan; Lynch, Luann J.; Doherty, Paul Darden ID: UVA-F-1262 Published: 3/21/2000 Copyright Year: 2000 Subject Area: Finance Keywords: mergers acquisitions bargaining negotiation valuation Teaching Note: UVA-F-1262TN Student Spreadsheet: UVA-S-F-1262 Abstract: This case is one of a pair of cases used in a merger negotiation. It is designed to be used with “British Petroleum, Ltd.” (UVA-F-1263). One-half of the class prepares only the British Petroleum (BP) case, and one-half uses this case. BP and Amoco are considering a merger, and are in the process of negotiating a merger agreement. Macroeconomic assumptions, particularly forecasting future oil prices in an uncertain environment, and assumptions about Amoco’s ability to reduce exploration and production costs make Amoco‘s future cash flows difficult to predict.
Case Author(s): Pfeifer, Phillip E.; Carraway, Robert L. Darden ID: UVA-QA-0317 Published: 4/5/1991 Revised: 9/15/2005 Copyright Year: 1984 Subject Area: Quantitative Analysis Keywords: data analysis production control sampling statistics Teaching Note: UVA-QA-0317TN Abstract: Amore must set the fill-target for its eight-ounce macaroni and cheese pie. Unless five sample pies taken every 20 minutes average more than eight ounces, the entire 20-minute batch must be rejected. The case provides enough information to make an economic decision on the fill target. The case may be used to introduce the distribution of a sample average.
Case Author(s): Lynch, Luann J. Darden ID: UVA-C-2238 Published: 6/6/2006 Copyright Year: 2006 Subject Area: Accounting and Control Keywords: Leases Abstract: Students are presented with the balance sheet and the lease footnote from AMR Corporation’s 2004 Annual Report and are asked to respond to several questions regarding information in the materials. Questions center around what can be inferred regarding operating leases and capital leases from the materials presented.
Case Author(s): Lynch, Luann J. Darden ID: UVA-C-2277 Published: 1/25/2008 Copyright Year: 2007 Subject Area: Accounting and Control Keywords: accounting investments, intercorporate investments, marketable securities, market value method, trading securities, available-for-sale securities AFS Teaching Note: UVA-C-2277TN Abstract: This exercise illustrates the accounting for passive equity investments in other companies (marketable equity securities). It focuses specifically on equity securities classified as either trading securities or AFS securities. It is intended for use in an introductory financial accounting course to introduce the accounting for marketable equity securities. It may be used as a stand-alone exercise or followed by the Berkshire Hathaway Inc. — Intercorporate Investments (A) and (B) cases (UVA-C-2240 and UVA-C-2276). The instructor may also assign the technical note, “Accounting for Marketable Securities,” (UVA-C-2280) to accompany the case.
Technical Note Author(s): Wicks, Andrew C.; Parmar, Bidhan; Harris, Jared Darden ID: UVA-E-0340 Published: 1/12/2009 Copyright Year: 2008 Subject Area: Ethics Keywords: ethics; Ethical theory; Decision-making Abstract: This technical note provides an introduction to the some of the key concepts of ethics relevant to thinking about business.
Technical Note Author(s): Schill, Michael J.; Wada, Yosuke Darden ID: UVA-F-1547 Published: 9/19/2008 Copyright Year: 2008 Subject Area: Finance Keywords: Technical trading; Charting Abstract: Technical stock analysis uses past prices and trading volume or both to predict future prices. A broad range of techniques such as chart analysis, moving averages, and other filters and oscillators can be used to identify predictable patterns in stock prices. The conventional wisdom is that stock-price patterns emerge from systematic psychological behavior of market participants. This note provides an overview of some common analytical tools for identifying trading opportunities.
Technical Note Author(s): Allen, Brandt R.; Simko, Paul J. Darden ID: UVA-C-2255 Published: 8/23/2007 Copyright Year: 2007 Subject Area: Accounting and Control Keywords: ratio analysis forecast Abstract: On September 20, 2000, Jonathan Weill, a Wall Street Journal reporter in Dallas, Texas, published a piece questioning the profitability and accounting of Enron Corporation. He based his article on a study of Enron’s financial statements and conversations with staff at the Financial Accounting Standards‘ Board (FASB), accounting professors, financial analysts, and others. “It took me a while to figure out everything I needed to? It probably took a good month or so. There was a lot of noise in the financial statements.” His piece was read by James Chanos, founder and president of Kynikos Associates, a firm that specialized in short-selling. How did Weill and Chanos figure Enron out when so many others were pushing up the stock price? How did they know to do that kind of analysis? Only the answer is simple: through study, application, and more application. You cannot develop financial analysis expertise overnight. Our objective in this document, however, is to present a very basic structure for financial analysis that will help move you toward that goal. We focus on what to look for in the financial statements, how to do basic ratio analysis, what financial forecasting entails, and how analysts use financial statement data in valuation. We intentionally focus on the mechanistic nature of financial analysis because these tools are fundamental building blocks common to the analysis of most firms. Without understanding this basic structure the unique issues facing a firm would be difficult to interpret.
Technical Note Author(s): Simko, Paul J.; Bruner, Robert F.; Frank, Mary Margaret; Martin, David Darden ID: UVA-F-1539 Published: 1/16/2008 Copyright Year: 2007 Subject Area: Business Policy Keywords: intellectual property, corporate market values, patent practices and policies Abstract: A significant fraction of corporate market values derive from intellectual property. It is vital for the practicing manager to appreciate the risks and uncertainties surrounding intellectual property. This note focuses specifically on patent positions, arguing that these deserve special scrutiny because of an emerging crisis within and among governments, corporations, and inventors. The objective of this note is to introduce the reader to patent practices and policies as they may affect the intellectual-property positions of firms. In particular, the note covers five aspects of importance to the practicing manager.
Technical Note Author(s): Frank, Mary Margaret; Darden ID: UVA-C-2273 Published: 3/16/2009 Copyright Year: 2007 Subject Area: Accounting and Control Keywords: tax code Abstract: This technical note provides a brief overview of tax planning, the U.S. tax system, and basic U.S. tax law attributable to fundamental business decisions in a corporation’s life.
Technical Note Author(s): William W. Sihler Description: This technical note reviews a number of basic frameworks for analyzing a company’s financial situation: the company‘s life cycle, the DuPont ratios, sustainable rate of growth, capital “position,” and long-term capital structure. Subjects: capital structure; financial analysis; financial ratios Darden ID: F-1107 Teaching Note: N/A
Technical Note Author(s): Clyman, Dana R. Darden ID: UVA-QA-0437 Published: 2/5/1993 Copyright Year: 1993 Subject Area: Quantitative Analysis Keywords: probability Abstract: This note introduces four analytical probability distributions and the underlying uncertain processes from which they can be derived. It demonstrates that, when we can build a reasonable model of an uncertain process, we can use the model to derive the probability distribution from fundamental principles and forgo the chore of estimating the distribution subjectively by assessing fractiles. The probability distributions discussed are the binomial, normal, Poisson, and exponential. The associated processes discussed include counting, accumulation, Poisson, and memoryless. The note emphasizes that, although these probability distributions have many legitimate applications, they are applicable only when the specific assumptions about the underlying processes are satisfied — that is, when the uncertain quantity is obtained from a process similar to the one used to drive the probability distribution in the first place.
Case Author(s): Frey, Sherwood C. Jr. Darden ID: UVA-QA-0679 Published: 2/3/2006 Copyright Year: 2006 Subject Area: Accounting and Control Keywords: Probability analysis Abstract: This note introduces four common underlying processes and the analytical probability distribution used to forecast the outcomes of each. The note also illustrates how to use Excel functions to calculate probabilities from the four resulting probability distributions: the binomial, normal, Poisson, and exponential.
Technical Note Author(s): Carraway, Robert L. Darden ID: UVA-QA-0660 Published: 7/22/2005 Copyright Year: 2005 Subject Area: Accounting and Control Keywords: simulation; Risk profile; Discrete probability distribution; Continuous expected value; Risk neutral; Risk averse; Decision analysis; Uncertainty Abstract: This note introduces simulation as a tool to analyze uncertainty in business decisions. It first observes the limitations of single point or simple range estimates of key uncertainties, thereby motivating the need to create a risk profile for any alternative that characterizes the full range of possible outcomes and their relative likelihoods. A simple example involving both a discrete and a continuous (triangle) distribution is used. The note is simulation software independent, although output from Crystal Ball is displayed.
Case Author(s): Yemen, Gerry; Davidson, Martin N. Darden ID: UVA-OB-0965 Published: 10/14/2008 Copyright Year: 2008 Subject Area: Organizational Behavior and Human Resources Keywords: Leverage difference; Military; Leadership; Conflict; Feedback; Organizational issues; Workforce; Action planning; Difficult conversations. Abstract: “The diversity lady has a label on her forehead and talks about the standard message,” one senior executive at a large corporation said. ‘’It’s the same message we got 20 years ago. We do it annually but employees never get any of that. I‘ve never had a diversity talk to my staff.'' Traditional diversity initiatives generally focus on specific dimensions of difference such as gender, race, sexual orientation, able-bodiedness, or religion. This material involves role-plays among a diverse group of players that encourage inclusion of a broader scope of social-identity differences such as diversity of problem-solving styles and emotional intelligence differences.
Case Author(s): Lynch, Luann J. Darden ID: UVA-C-2239 Published: 6/6/2006 Copyright Year: 2006 Subject Area: Accounting and Control Keywords: Deferred taxes Abstract: Students are presented with the income-taxes footnote from Ann Taylor Stores Corporation’s 2004 Annual Report and are asked to respond to several questions regarding information in the footnote. Questions center around what can be inferred about income-tax expense, deferred-tax expense, and deferred-tax assets and liabilities from the footnote.
Technical Note Author(s): Norton, John; Reynolds, Thomas J. Darden ID: UVA-M-0343 Published: 4/2/1991 Revised: 6/1/1989 Copyright Year: 1987 Subject Area: Marketing Keywords: advertising research, communication process, communication strategy, marketing research Abstract: This note deals with a research methodology that is useful in developing product-related communications, primarily advertising. It shows how to conduct the research prior to applying it in the creative communication process.
Case Author(s): Landel, Robert D. Darden ID: UVA-OM-0685 Published: 4/11/1991 Revised: 10/1/1991 Copyright Year: 1990 Subject Area: Operations Management Keywords: technology strategy Abstract: This case presents the technical concept behind the video tumor fighter, a neurosurgical product designed to use hyperthermia techniques to treat brain-tumor patients. The technology issues, marketing considerations, and backgrounds of the five inventors are described. Students are asked to develop marketing, technology, and organizational strategies. The B case (UVA-OM-0686) provides a consultant’s report. See also the C case (UVA-OM-0687).
Case Author(s): Landel, Robert D.; Bockman, Ed Darden ID: UVA-OM-0686 Published: 4/11/1991 Revised: 10/1/1991 Copyright Year: 1990 Subject Area: Operations Management Keywords: financial analysis; Technology strategy Abstract: A consulting team of Darden MBA students has prepared a business-study report for Applied Magnetic Guidance Corporation. They recommend that the start-up company proceed with plans to commercialize the video tumor fighter. Specific recommendations cover technology strategy, marketing, financing, and organizational structure. See also the A (UVA-OM-0685) and C (UVA-OM-0687) cases.
Case Author(s): Landel, Robert D. Darden ID: UVA-OM-0687 Published: 4/11/1991 Revised: 10/1/1991 Copyright Year: 1990 Subject Area: Operations Management Keywords: technology strategy Abstract: The C case describes events from March to September 1989, including possible venture partners and new applications of the technology. See also the A (UVA-OM-0685) and B (UVA-OM-0686) cases.
Case Author(s): Harris, Robert S. Darden ID: UVA-F-1456 Published: 10/7/2004 Copyright Year: 2004 Subject Area: Finance Keywords: capital asset pricing, cost of capital Abstract: This note discusses how some of the most financially sophisticated companies and financial advisors estimate the cost of equity capital. It focuses on areas where finance theory is silent or ambiguous and practitioners are left to their own devices. Survey evidence shows that the Capital Asset Pricing Model (CAPM) is the most widely used model. The note discusses methods companies use to estimate the three key elements needed to apply the CAPM: a proxy for the risk-free rate, an estimate of beta, and an equity-market risk premium. The note is useful for students attempting to apply the Capital Asset Pricing Model.
Case Author(s): Paine, Lynn Sharp Darden ID: UVA-E-0020 Published: 3/12/1991 Revised: 10/1/1986 Copyright Year: 1984 Subject Area: Ethics Keywords: business ethics; decision making Abstract: This note provides background for analyzing ethical issues in business. It contains (1) a discussion of the nature of ethics in general, (2) a summary of some problems of business ethics, and (3) a description of five approaches to making ethical decisions.
Case Author(s): Bodily, Samuel E.; Clark, Eric Darden ID: UVA-QA-0618 Published: 8/22/2003 Copyright Year: 2003 Subject Area: Quantitative Analysis Keywords: decision analysis; structuring; software; Monte Carlo simulation; consulting team; risk analysis; decision trees Teaching Note: UVA-QA-0618TN Abstract: A regional director of a consulting firm must decide how to compete for a major consulting contract. Appshop can take a level payment contract, a lower level payment with a prospective bonus given high performance, or bid on an RFP where a significant reward is given contingent on the client’s savings. The case can be used to introduce Monte Carlo simulation modeling and to build skills in structuring a decision tree in a spreadsheet. It affords an opportunity to simulate alternative risk profiles and to discuss their comparative advantages.
Case Author(s): Bruner, Robert F.; Carr, Sean Darden ID: UVA-F-1496 Published: 12/9/2005 Copyright Year: 2005 Subject Area: Finance Keywords: terminal value, valuation, private equity, forecasting Teaching Note: UVA-F-1496TN Student Spreadsheet: UVA-S-F-1496 Faculty Spreadsheet: UVA-S-F-1496TN Abstract: In August 2005, an investment manager of a hedge fund is considering purchasing an equity interest in a start-up biotechnology firm, Arcadian Microarray Technologies, Inc. The asking price is $40 million for a 60 percent equity interest. Managers of the firm are optimistic about the firm’s future performance; the investment manager is more conservative in his expectations. He calls on the help of an analyst with her firm to fashion a counterproposal to Arcadian‘s management. The tasks for the student are to apply the concept of terminal value, interpret completed analyses and data, and derive implications of different terminal-value assumptions in an effort to recommend a counterproposal. Very little numerical figure-work is required of the student.
Case Author(s): Bodily, Samuel E.; Frey, Sherwood C. Jr.; Gabel, H. Landis; Sessoms, W. K. Darden ID: UVA-QA-0227 Published: 4/5/1991 Revised: 4/1/1989 Copyright Year: 1982 Subject Area: Quantitative Analysis Keywords: business and society; corporate strategy; environmental issues; pollution; production planning Teaching Note: UVA-QA-0227TN Abstract: This case considers the EPA’s bubble policy, which allows pollution to be managed on a plantwide basis rather than stack-by-stack. A pollution constraint is added to a linear-programming model that may be used to plan production and the control of pollution.
Case Author(s): Davis, Edward W.; Wehrenberg, John W.; Moore, Sandon Darden ID: UVA-OM-0977 Published: 3/29/2001 Copyright Year: 2001 Subject Area: Operations Management Keywords: Manufacturing, Operations; Automotive Industry; International; Supply-Chain Management; Sourcing; Global expansion Teaching Note: UVA-OM-0997TN Student Spreadsheet: UVA-S-OM-0977 Abstract: A U.S. automotive supplier follows a major customer to Asia, and forms a joint venture with a Thai company to build and operate a new manufacturing plant. Key parts are also sourced from the Thai partner’s existing plant. The Asian currency crisis causes devaluation of the Thai currency as well as problems for the joint venture, requiring the restructuring of the joint venture and the resourcing of parts from another company. Issues in the case include the recovery of tooling and equipment from the joint-venture partner and cost analysis to determine the best sourcing alternative. An optional Excel template is available for use with this case.
Case Author(s): Bourgeois, L. J. III; Sharma, Anurag Darden ID: UVA-BP-0298 Published: 3/3/1991 Revised: 12/1/1989 Copyright Year: 1988 Subject Area: Operations Management Keywords: strategy implementation Teaching Note: UVA-BP-0297TN Abstract: This case follows “Arvin Industries, Inc.” (UVA-BP-0297). Having received the dreaded phone call from a raider, the CEO quickly devises a two-pronged defense plan and presents it to his investment banker and legal counsel in New York City. They both tell him his plan will not work. The denouement is contained in the C case (UVA-BP-0299).
Case Author(s): Bourgeois, L. J. III; Sharma, Anurag Darden ID: UVA-BP-0299 Published: 3/3/1991 Revised: 12/1/1989 Copyright Year: 1988 Subject Area: Operations Management Keywords: strategy implementation, takeover defesnse, takeovers Teaching Note: UVA-BP-0297TN Abstract: This case, a companion to “Arvin Industries, Inc.” (UVA-BP-0297) and “Arvin Industries, Inc. (B)” (UVA-BP-0298), describes Arvin’s successfully fending off the raider‘s hostile-takeover attempt. The defense included (1) gaining commitments from each of five “friendly” corporations to buy $20 million of preferred stock, if needed, and (2) pushing an antitakeover bill through the Indiana legislature and having it signed into law — all within three weeks.
Case Author(s): Fairchild, Gregory B.; Guthrie, Elizabeth; Yemen, Cory Darden ID: UVA-ENT-0058 Published: 11/30/2004 Copyright Year: 2005 Subject Area: Entrepreneurship and Innovation Keywords: #Private equity investing for-profit education government-business relationships; # Abstract: This case describes the decision by Ascend Ventures to invest in a firm that falls outside their investment strategy. Ascend Ventures is a relatively young private equity firm that has targeted technology companies that are managed by women or minorities. The company under their consideration, Platform Learning, operates in the for-profit education market, providing supplemental education services to children in failing public schools. Because Platform Learning is not a technology company, Ascend’s investment managers are worried about their ability to add value in this market and concerned about how their limited partners might react to this investment.
Case Author(s): Li, Wei; Li, Dong Darden ID: UVA-F-1374 Published: 8/27/2002 Revised: 9/28/2005 Copyright Year: 2002 Subject Area: Finance Keywords: Valuation Merger China Venture Forecasting ASIMCO; Abstract: This case is written for a course on emerging markets finance. It can be used to teach valuation, merger and acquisition, and financial forecasting in an emerging market setting. Intrigued by growth opportunities in China, Jack Perkowski, a retired Wall Street investment banker, raised a venture capital fund with the backing of two large U.S. institutions in 1994 to found Asian Strategic Investment Company (ASIMCO) to explore private equity investment opportunities in China. After visiting more than 100 automotive component factories in China, Perkowski and his partners identified a few state-owned factories as potential equity joint venture partners. On top of the list was Nanyue Fuel Injection Pump Assembly Company, Ltd. (Nanyue), one of China’s largest fuel injection pump manufacturers. After three months of negotiation, the two parties struck a deal under which ASIMCO and Nanyue would enter into a joint venture with ASIMCO holding the majority ownership. Should Perkowski and his partners give this joint venture agreement their final approval? And if so, how should Perkowski integrate and restructure its state-owned partner, Nanyue? More generally, should ASIMCO invest in China‘s automotive component industry?
Case Author(s): Li, Wei; Rodriguez, Peter L. Darden ID: UVA-BP-0490 Published: 10/19/2005 Copyright Year: 2005 Subject Area: Global Economics Keywords: economic analysis Abstract: In the summer of 2005, while the U.S. economy was growing comfortably despite a few longstanding concerns over deficits and outsourcing, storms were brewing off the Gulf Coast. On August 25, 2005, Hurricane Katrina blasted New Orleans, Louisiana, and the surrounding coastal areas in the Gulf of Mexico. Barely a month later, a second storm, Hurricane Rita, swept through the Gulf region to make landfall between Sabine Pass, Texas, and Johnso’s Bayou, Louisiana. Speculation over their likely impact on the world energy markets and the U.S. economy began as soon as the hurricanes were forecast to strike the oil-rich Gulf region. This case documents the paths of the storms and provides a summary of the Congressional Budget Office‘s estimates of the storms' impact on the U.S. economy. It is designed for use in the first year Global Economies and Markets course to teach the concept of national income accounts. It can also be used to analyze the impact of exogenous shocks
Technical Note Author(s): Edwards, Jeffrey R. Darden ID: UVA-OB-0360 Published: 4/3/1991 Revised: 4/24/2003 Copyright Year: 1987 Subject Area: Organizational Behavior and Human Resources Keywords: character assessment, testing character Abstract: This technical note contains a scale measuring Type-A behavior patterns (Bortner, 1969), describes its impact on individuals and organizations, contains two short cases describing Type-A and Type-B individuals, and presents recommendations for modifying Type-A behavior patterns. (See also UVA-OB-0363.)
Case Author(s): Isabella, Lynn A.; Forbes, Ted Darden ID: UVA-OB-0443 Published: 1/1/1993 Revised: 8/1/1994 Copyright Year: 1993 Subject Area: Organizational Behavior and Human Resources Keywords: capital budgeting; conflict management; ethical issues; general management; diverse protagonist, female; marketing planning; organizational change; personnel management; diversity case; women in business Teaching Note: UVA-OB-0443TN Abstract: This case is an in-basket exercise. Sarah Conner has just assumed control of Astral, a successful compact-disc manufacturer with some looming problems. Previously run by an autocratic manager, Astral is paralyzed following Sir Maxwell S. Hammer’s death. Sarah Conner must work through a stack of messages, memos, and faxes, and decide where to begin and what to do.
Case Author(s): Bruner, Robert F.; Eades, Kenneth M.; Conroy, Robert M. Darden ID: UVA-F-1065 Published: 8/22/1994 Revised: 2/1/1998 Copyright Year: 1993 Subject Area: Finance Keywords: capital budgeting; cost; financial analysis; forecasting; valuation Teaching Note: UVA-F-1065TN Student Spreadsheet: UVA-S-F-1065 Abstract: A new CEO from outside the firm takes over following the sudden death of the former CEO. Included in the new CEO’s in-box are pressing decisions concerning (1) the firm‘s financing needs, (2) capital equipment, and (3) a general assessment of the firm's financial performance. The task for the student is to analyze these issues and recommend action.
Case Author(s): Bolon, Meredith Moskow; Spekman, Robert E. Darden ID: UVA-M-0430 Published: 11/2/1993 Copyright Year: 1993 Subject Area: Marketing Keywords: #alliances; #partnerships; #relationships; #business-to-business; # Teaching Note: UVA-M-0430TN Abstract: This case examines the early stages of an alliance between two firms. The case deals with the reasons why the alliance makes sense, and documents how the alliance degrades and eventually fails. It demonstrates how the different expectations of partners can affect the nature and tone of their relationship.
Case Author(s): Frey, Sherwood C. Jr.; Clyman, Dana R. Darden ID: UVA-QA-0439 Published: 8/18/1993 Revised: 7/1/1994 Copyright Year: 1993 Subject Area: Quantitative Analysis Keywords: competitive dynamics; Pricing; Relevant costs Teaching Note: UVA-QA-0439TN Abstract: Athens Glass Works has been losing significant market share over the last several quarters in the nonglare glass market with a price 10% above the competition. Lowering the price is under consideration. Unfortunately, fully allocated costs are such that the lower price results in a loss. Issues to be discussed and analyses to be conducted include the relevant costs for the decision and the reactions from competitors.
Case Author(s): Terlidis, Minas; Eades, Kenneth M.; Allayannis, Yiorgos (George) Darden ID: UVA-F-1576 Published: 12/3/2008 Copyright Year: 2008 Subject Area: Finance Keywords: Infrastructure finance; Project finance; Private-public partnerships; Risk management Teaching Note: UVA-F-1576TN Faculty Spreadsheet: UVA-S-F-1576TN Abstract: The case examines one of the most significant infrastructure projects in southeastern Europe during a time when the legal and financial environment for project financing was in its infancy (early to mid-1990s). Athens needed a ring road to support its bid to host the 2004 Olympic Games. The road was technically — as well as logistically — complex, involving 33 municipalities and construction that involved a major metropolitan area (Athens) populated by more than 3.5 million inhabitants. The case examines the economics of the project, how private-public partnerships (PPP) are structured, and the broader field of infrastructure finance.
Case Author(s): William W. Sihler Description: he president of a closely held company must decide what to offer next and the maximum offer to make for a company that has been a competitor. Subjects: valuation; mergers and acquistions Darden ID: F-1307 Teaching Note: N/A
Case Author(s): William W. Sihler Description: Having increased the company’s leverage significantly, the senior management must assess the company‘s debt capacity in light of their future plans and possibilities. Subjects: debt assessment; debt capacity; growth strategy Darden ID: F-1309 Teaching Note: N/A
Case Author(s): William W. Sihler Description: This is an in class handout to be read with Audubon Aggregates, Incorporated (A) (F-1307). A problem has arisen at the last minute in the negotiation with competition, which must be resolved to close the deal. Subjects: valuation; mergers and acquistions Darden ID: F-1308 Teaching Note: N/A
Case Author(s): Doe, Lucas Darden ID: UVA-F-1536 Published: 9/11/2007 Revised: 3/25/2008 Copyright Year: 2007 Subject Area: Finance Keywords: capital investment analysis, capital budgeting, discounted cash flow, financial distress cost, sensitivity analysis, net present value, internal rate of return, free cash flow Teaching Note: UVA-F-1536TN Student Spreadsheet: UVA-S-F-1536 Abstract: This case asks the student to decide whether Aurora Textile Company can create value by upgrading its spinning machine to produce higher-quality yarn that sells for a higher margin. Cost information allows the student to produce cash-flow projections for both the existing spinning machine and the new machine. The cash flows have many different cost components, including depreciation, the number of days of cotton inventory, and the liability costs associated with returns from retailers. The cost of capital is specified in order to simplify the analysis. The analysis has added complexity, however, owing to the troubled financial condition of both the company and the U.S. textile industry, which is in decline as manufacturers migrate to Asia to benefit from lower manufacturing costs. This begs the question whether management should invest in a declining business or harvest the company by paying out all profits as a dividend to the owners. The case is suitable for students just beginning to learn finance principles, but is also rich enough to use with experienced students and executives. The primary learning points are as follows:
? The basics of incremental-cash-flow analysis: identifying the cash flows relevant to a capital-investment decision
? The construction of a side-by-side discounted-cash-flow analysis for a replacement decision
? How to adapt the NPV decision rule to a troubled or dying industry
? The effect of financial distress on the NPV calculation
? The importanc
Case Author(s): Colley, John L.; Doyle, Jacqueline L. Darden ID: UVA-OM-0844 Published: 4/30/1997 Revised: 9/10/2001 Copyright Year: 2001 Subject Area: Operations Management Keywords: computer-systems management; electronic commerce Teaching Note: UVA-OM-0844TN Abstract: Automated Design, Inc, is the leading producer of equipment used in engineering and manufacturing companies to improve process speed and quality. Automated Design is the market leader and is growing at more than 50% per year. The strategic problem is to find the cash to support the growth.
Case Author(s): Cross, Tom; Farris, Paul W.; Simko, Paul J. Darden ID: UVA-M-0730 Published: 9/26/2005 Revised: 4/20/2006 Copyright Year: 2005 Subject Area: Marketing Keywords: marketing strategy Abstract: Bad news for AutoZone: until recently the sales and store count leader in the retail auto parts category, AutoZone has been surpassed by Advance Auto Parts; Wall Street has punished AutoZone and is praising Advance Auto. Students will examine why this has happened and what AutoZone can do to compete with Advance Auto.
Case Author(s): Colley, John L. Darden ID: UVA-OM-1021 Published: 8/7/2002 Revised: 5/5/2003 Copyright Year: 2002 Subject Area: Operations Management Keywords: start-up; cash flow; general management; innovation management; venture capital; growth relationships Teaching Note: UVA-OM-1021TN Abstract: This case describes the rapid growth of a start-up company which benefited from the identification of a specific market niche. The company, over a short time, became positive in EBITDA and then PAT. The case is rich in operational details regarding scheduling, inventories, workforce planning, capacity expansion, and customer service. The strategic issue in the case involves the looming decision to carry the company through its next stage of expansion.
Case Author(s): Marston, Felicia C.; Darden ID: UVA-F-1125 Published: 2/29/1996 Revised: 3/1/1996 Copyright Year: 1996 Subject Area: Finance Keywords: capital structure; cash flow; cost of capital; leasing; valuation Teaching Note: UVA-F-1125TN Abstract: A financial manager is faced with a variety of purchase plans for obtaining new computing equipment: a traditional operating lease, the straight purchase of the equipment, and a new leasing product called TMMS (Technology Management Maintenance Service). The case can be used in an introductory finance course with a focus on the proper discount rate and cash flows, or in an elective course with an emphasis on the obsolescence risk and the sources of value of TMMS.
Case Author(s): Landel, Robert D.; Zinner, Daniel Darden ID: UVA-OM-1067 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Teaching Note: UVA-OM-1067TN Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Lipson, Marc Darden ID: UVA-F-1516 Published: 1/25/2007 Revised: 3/12/2007 Copyright Year: 2007 Subject Area: Finance Keywords: currency, hedging, finance, international Student Spreadsheet: UVA-S-F-1516 Abstract: A small adhesives company faces exchange-rate risks as it makes its first foray into international sales. The receipt of payment from an unhedged foreign currency denominated past sale illustrates potential currency risks while a potential follow-on order provides a context to discuss potential hedges. Additional richness is provided by the fact that the follow-on sale appears unprofitable unless the analysis acknowledges the irrelevance of overhead and that the market value of raw materials is below book value.
Case Author(s): Christmann, Petra Darden ID: UVA-BP-0473 Published: 4/3/2004 Copyright Year: 2002 Subject Area: Accounting and Control Keywords: balance of payments world trade Abstract: This exercise defines balance of payments as a statement of a country’s economic transactions with the rest of the world and explains its significance and utility, along with other essential economic terms related to understanding and calculating balance of payments. An exercise for calculating a country‘s balance of payments accompanies the note.
Case Author(s): Collins, George; Williams, Peter Darden ID: UVA-BP-0337 Published: 10/13/1993 Copyright Year: 1993 Subject Area: Operations Management Keywords: economic policy, public administration, diversity case Teaching Note: UVA-BP-0337TN Abstract: This case raises the issue of whether the United States should adopt a balanced-budget amendment. It is useful for discussions of fiscal policy, the role of government, and the budget process.
Technical Note Author(s): Clawson, James G. Darden ID: UVA-OB-0323 Published: 4/3/1991 Revised: 4/25/2003 Copyright Year: 1986 Subject Area: Organizational Behavior and Human Resources Keywords: personal values,work-family,self-assessment, career management Abstract: This self-assessment instrument helps students assess their current level of development and then examine their allocation of time to see whether the daily and weekly structure of time allocation is consistent with their personal definition of success. It can be used alone or with such cases as “The Life and Career of a Senior Executive Officer” (UVA-PACS-0023).
Technical Note Author(s): Shapiro, Andrew; Allayannis, Yiorgos (George) Darden ID: UVA-F-1555 Published: 10/3/2008 Copyright Year: 2008 Subject Area: Finance Keywords: Bank Capital; Basel I; Basel II; Capital Ratios Abstract: This technical note accompanies the case titled “Suntrust Acquisition of National Commerce” (UVA-F-1554) and describes the various capital ratios that are commonly used in the banking sector as well as gives an example of those ratios using a hypothetical bank. It also discusses briefly Basel I and Basel II which shaped capital regulations and ratios in the Banking sector.
Case Author(s): Larson, Andrea; Eckhoff, Anne Darden ID: UVA-ENT-0092 Published: 1/30/2007 Copyright Year: 2006 Subject Area: Entrepreneurship and Innovation Keywords: Innovation, entrepreneurship, sustainable business, sustainability, triple bottom line, natural environment, environmental, ecology, ecological, strategy, implementation, financial returns Abstract: This is a minicase, one of 10 in a set of short cases written to illustrate the business benefits companies realize through adopting sustainable business strategies. This minicase describes Bank of America’s new headquarters building in New York City focusing on the “green” or sustainable design features used and anticipated benefits.
Case Author(s): William W. Sihler Description: The management of the Bank of Montreal is considering how best to structure the bank and investment bank groups that service the larger corporate market. Subjects: structuring; Darden ID: F-1319 Teaching Note: N/A
Case Author(s): Schill, Michael J. Darden ID: UVA-F-1018 Published: 12/14/1992 Revised: 11/17/1997 Copyright Year: 1992 Subject Area: Finance Keywords: bank management bonds capital markets commercial banking diverse protagonist; Asian; option pricing; international case; diversity case; valuation; international Teaching Note: UVA-F-1018TN Abstract: In October 1990, the president of this bank (the 9th largest in Japan and 15th largest in the world) must design a financing plan with which to bring the bank into compliance with the new worldwide Bank for International Settlements’ (BIS) capital-adequacy standards. The alternatives include (1) slowing the growth of the bank, (2) issuing equity, and (3) issuing convertible subordinated debentures. The tasks of the student are to compare and contrast the equity and convertibles tactics and to recommend a possible price or coupon rate for the convertible issue.
Technical Note Author(s): Ramraika, Baijnath; Allayannis, Yiorgos (George); Darden ID: UVA-F-1582 Published: 4/7/2009 Copyright Year: 2009 Subject Area: Finance Keywords: Bank credit quality; Capital; Liquidity; Profitability metrics Abstract: This technical note describes some of the key issues that bank analysts, ratings agencies, and the market broadly examine to understand the financial health of a bank and ultimately to estimate its value. Specifically, the note discusses alternative credit quality, capital, liquidity, and profitability metrics and provides related terminology.
Case Author(s): Shinewald, Jeremy; Mead, Jenny; Wicks, Andrew C.; Darden ID: UVA-E-0264 Published: 3/15/2004 Revised: 2/19/2009 Copyright Year: 2004 Subject Area: Ethics Keywords: ethical issues; Business ethics; Community relations; Goodwill; Morale; Public relations/publicity Teaching Note: UVA-E-0264TN Abstract: What does a nonprofit do when its major donor is indicted on insider trading? This case details the uncomfortable position and subsequent decisions that a rabbi and his congregation must make after the synagogue finds itself in that position.
Case Author(s): Frey, Sherwood C. Jr. Darden ID: UVA-QA-0343 Published: 4/5/1991 Revised: 3/7/1997 Copyright Year: 1986 Subject Area: Quantitative Analysis Keywords: competitive factors, decision making Abstract: Recruiting for MBA graduates had not gone well this year at Basey Associates, a strategic consulting company with offices in 11 major cities throughout the country. Currently it had only two offers outstanding as four had already been rejected. Several calls from senior project directors had made it clear that both of the outstanding offers needed to be accepted. There was one more appointment scheduled for the afternoon.
Case Author(s): Forbes, Ted; Isabella, Lynn A.; McMillen, Sheila Darden ID: UVA-OB-0625 Published: 2/24/1997 11: 07: 19 AM Copyright Year: 1997 Subject Area: Organizational Behavior and Human Resources Keywords: change; Management of; Leadership; Management philosophy; Public administration; Alternative bussiness issue or setting; Diverse protagonist; Race Teaching Note: UVA-OB-0625TN Abstract: James Scott, one of two sector commanders at the Lynchburg (Virginia) Fire Department, is about to retire. Since Scott had been promoted to this position, he had tried to inculcate a new management style in the department. Where there had once been a rigid, paramilitary hierarchy, Scott had attempted to create a team-based environment that empowered each fire fighter to do his or her job without having to report to their immediate supervisor first. The story of Scott’s management style is interwoven with the story of an actual fire that took place in Lynchburg in 1996. This story reveals the high degree of stress, uncertainty, and danger to which a fire fighter is subjected. The environment of the fireground is very different from that of the station house; the fire fighters must immediately make the transition from the relatively relaxed and informal milieu of the latter, where individuals are free to question the decisions and actions of their colleagues, to the highly structured and hierarchical environment of the former, where both civilians‘ and fire fighters' lives hang in the balance. The decision points in the case explore Scott's philosophy and the changes he has made, and challenge the student to consider how to sustain the momentum of such changes.
Case Author(s): Chen, Ming-Jer; Anderson, Jason; Mueller, Patrick; Tolonen, Jeff Darden ID: UVA-S-0116 Published: 10/8/2004 Revised: 1/27/2006 Copyright Year: 2004 Subject Area: Strategy Keywords: airlines, air transportation, competition, strategy Abstract: JetBlue, the up and coming low-cost, low-fare airline, was set to begin flying out of Boston’s Logan Airport — and American Airlines was feeling the competitive heat. Only three years old in 2004, JetBlue was growing some eight times faster than Southwest Airlines, the longtime leader among low-cost carriers, and the rapidly expanding low-cost segment of the industry — 30% of all U.S. flights, projected to rise to 40% by 2006 — presented an increasing challenge to the “major” airlines.
For American, JetBlue‘s entrance into Boston via Logan, a market AA had served for 75 years, seemed to signal a moment of reckoning. Should the airline opt for a standard competitive response, such as price reductions and frequent flyer programs? Should it take on JetBlue at Logan only, or across all the markets where it would compete with the low-cost challenger?
On the eve of JetBlue's latest incursion, American Airlines was wrestling with its strategic options. American, already weakened financially, cannot match JetBlue's prices and remain profitable. It must weigh the importance of the Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the economic conditions affecting the airline industry; the business models of the three main types of airlines — Major, Low-Cost, and Regiona — and their strengths and vulnerabilities in terms of recent competitive market conditions; and the economic role airports play. The case is divided into three parts. The A case covers the above. The B case involves American's counter-attack: a fre
Case Author(s): Anderson, Jason Darden ID: UVA-S-0117 Published: 10/8/2004 Copyright Year: 2004 Subject Area: Strategy Keywords: competitive analysis and strategy market analysis pricing strategy fair competition prices; Abstract: The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue’s prices and remain profitable. It must weigh the importance of the Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the recent economic conditions affecting the airline industry; the business models of the 3 main types of airlines — Major, Low-Cost Carriers, and Regionals — and their strenghts and vulnerabilities in terms of recent competitive market conditions; and the economic role airports play. This case is divided into 3 parts: A, B, C. The B case involves American‘s counter-attack — a free ticket promotional offer from American on the day JetBlue opens. The C case discusses the responses of other airlines and JetBlue and a preliminary analysis of the fallout: resulting financial and Market costs and benefits. See related cases(A case: UVA-S-0116; and C case: UVA-S-0118).
Case Author(s): Anderson, Jason Darden ID: UVA-S-0118 Published: 10/8/2004 Copyright Year: 2004 Subject Area: Strategy Keywords: competitive; analysis; and; strategy; market; analysis; pricing; strategy; fair; competition; practices; Abstract: The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue’s prices and remain profitable. It must weigh the importance of Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. Thnis case reviews the recent economic conditions affecting the airline industry; the business models of the 3 main types of airlines — Major, Low-Cost Carriers, and Regionals — and their strengths and vulnerabilities in terms of recent competitive market conditions; and the economic role airports play. This case is divided into 3 parts: A, B, C. The B case involves American‘s counter-attack — a free ticket promotional offer from American on the day JetBlue opens. The C case discusses the responses of other airlines and JetBlue and a preliminary analysis of the fallout: resulting financial and market costs and benefits. See related cases(A case: UVA-S-0116; and B case: UVA-S-0117).
Case Author(s): Bulkley, Derick; Bruner, Robert F. Darden ID: UVA-F-1124 Published: 10/6/1995 Revised: 11/25/2001 Copyright Year: 1995 Subject Area: Finance Keywords: corporate strategy; financial analysis; industry analysis Teaching Note: UVA-F-1124TN Abstract: This case is an abridged version of UVA-F-1115. This version is intended for use with audiences requiring less source documentation than is available in the unabridged version. The teaching note, however, contains all the source documentation in an appendix.
Case Author(s): Bulkley, Derick Darden ID: UVA-F-1115 Published: 8/9/1995 Revised: 7/31/1997 Copyright Year: 1995 Subject Area: Finance Keywords: corporate strategy; financial analysis; industry analysis Teaching Note: UVA-F-1115TN Abstract: Set in July 1995, this case invites students to assess the financial performance of Federal Express and United Parcel Service, two close competitors in the U.S. overnight express package-delivery industry. Although the case requires no numerical computations, it does ask students to interpret results and reflect on the implications. The contrasting financial records of the two firms afford a platform for exploring several important issues, including (1) the definition and use of “economic value added” (EVA) as a measure of corporate performance; (2) a comparison of EVA with other classic approaches of historical performance analysis; (3) the exercise of skills in business-segment analysis; (4) the exploration of the financial implications of intense competition and corporate transformation; and (5) the definition of ‘’excellence’‘ from a corporate-finance point of view.
Case Author(s): Leong, Jin; Leong, Jin Darden ID: UVA-S-0110 Published: 1/22/2004 Copyright Year: 2004 Subject Area: Strategy Keywords: competitive analysis; competitive decision making; competitive dynamics; competitive factors; corporate strategy; international business; emerging markets; strategic planning; globalization Abstract: This version has edits by Jenny accepted and new edits by Petra based on Jin’s and Morton‘s comments. References need to be completed.
Case Author(s): Leong, Jin; Leong, Jin Darden ID: UVA-S-0111 Published: 1/22/2004 Copyright Year: 2004 Subject Area: Strategy Keywords: competitive analysis; competitive decision making; competitive dynamics; competitive factors; corporate strategy; international business; emerging markets; strategic planning; competitive advantage; globalization Abstract: Competition had arrived in the ports industry of Southeast Asia and was not going to disappear. Group Chairman Dr. Yeo Ning Hong and his executive team had set the ambitious goal for the state-owned Port of Singapore Authority (PSA), upon its incorporation in 1997, to become the “World’s Port of Call.” PSA operated the Port of Singapore, which was the dominant transshipment hub in Southeast Asia. The Port of Singapore had long been among the world‘s busiest ports and was a model of efficiency and operational excellence within the industry. But the events of the first few years of the millennium proved a challenge to PSA's competitive mettle. By the end of 2001, PSA had lost two key customers to an emerging competitor, the upstart Port of Tanjung Pelepas (PTP), in neighboring Malaysia. In 2002, the Chinese shipper COSCO Pacific was considering a shift to PTP. And by 2003, for the first time in 20 years, PSA laid off staff, and both PSA and government officials were in overdrive trying to explain the reasons behind the layoffs. This three-case series (see also UVA-S-0110 and UVA-S-0111) explores competitive strategies in a mature industry within the context of the Asia-Pacific region.
Case Author(s): Newton, Derek A.; Ranson, Alexandra Darden ID: UVA-M-0431 Published: 11/2/1993 Revised: 7/15/2004 Copyright Year: 1993 Subject Area: Marketing Keywords: sales force management, sales management, Teaching Note: UVA-M-0431TN Abstract: This case serves as an introduction to field sales management. A manager must address three sales representatives’ ingrained behaviors in order to implement a major shift in marketing strategy. Students should recognize the nature of the “man-in-the-middle” squeeze: the manager caught between the pressure of implementing a new strategy from the top and the resistance to change from the bottom.
Case Author(s): Rotch, William Darden ID: UVA-C-2059 Published: 3/12/1991 Revised: 5/21/2004 Copyright Year: 1990 Subject Area: Accounting and Control Keywords: cost accounting; management control systems Teaching Note: UVA-C-2059TN Abstract: Jim Quick, president of Bay Industries, is considering how much bonus he should pay to each of his three division managers. One part of their bonus is already determined by formula, and he has to decide how much to award each manager in the other part. The case provides financial information for the past three years and some descriptive information about each division. The case enables students to explore the extent to which performance measurement of the business can and should be separated from performance evaluation of the manager; the strengths and weaknesses of using formulas or subjective judgment on which to base bonus payments; the influence of apparently uncontrollable or fortuitous events; and the probable importance of non-financial dimensions in the overall evaluation of performance.
Case Author(s): Bruner, Robert F. Darden ID: UVA-F-1027 Published: 2/19/1993 Revised: 5/28/1998 Copyright Year: 1992 Subject Area: Finance Keywords: break-even analysis; credit analysis; dividend policy; financial-statement analysis; inventory management; diverse protagonist; Female; risk analysis; international case; diversity case; diversity; international Teaching Note: UVA-F-1027TN Student Spreadsheet: UVA-S-F-1027 Faculty Spreadsheet: UVA-S-F-1027TN Abstract: A new director of this small brewery must prepare to vote on three issues coming before the board of directors the next day: (1) approval of the financial plan for 1993, (2) quarterly dividend declaration, and (3) incentive-compensation plan for the marketing manager. The tasks for the student are to evaluate the past and prospective financial performance of the company and to assess the extremely liberal credit and inventory terms the company is extending to its distributors. The objective of the case is to introduce and exercise tools and concepts of financial-statement analysis. Perhaps the biggest insight gained by students concerns the link between incentives and financial performance: in this case, the marketing manager is motivated to build sales volume, which he accomplishes by a dramatic buildup in receivables and inventory.
Case Author(s): Frey, Sherwood C. Jr.; Clyman, Dana R. Darden ID: UVA-QA-0614 Published: 7/11/2003 Copyright Year: 2003 Subject Area: Quantitative Analysis Keywords: multi-objective decision making, negotiation Abstract: Used in conjunction with UVA-QA-0615 and UVA-QA-0616. Three couples, all good friends, rent a beach house for the week. They all have different financial circumstances and different beliefs about what’s fair. They need to find a way to decide who sleeps where, and how to divide the costs of the beach house.
Case Author(s): Frey, Sherwood C. Jr.; Clyman, Dana R. Darden ID: UVA-QA-0616 Published: 7/11/2003 Copyright Year: 2003 Subject Area: Quantitative Analysis Keywords: multi-issue negotiation; negotiation Abstract: Used in conjunction with UVA-QA-0614 and UVA-QA-0615. Three couples, all good friends, rent a beach house for the week. They all have different financial circumstances and different beliefs about what’s fair. They need to find a way to decide who sleeps where, and how to divide the costs of the beach house.
Case Author(s): Frey, Sherwood C. Jr.; Clyman, Dana R. Darden ID: UVA-QA-0615 Published: 7/11/2003 Copyright Year: 2003 Subject Area: Quantitative Analysis Keywords: multi-issue negotiation; negotiation Abstract: Used in conjunction with UVA-QA-0614 and UVA-QA-0616. Three couples, all good friends, rent a beach house for the week. They all have different financial circumstances and different beliefs about what’s fair. They need to find a way to decide who sleeps where, and how to divide the costs of the beach house.
Case Author(s): Chaplinsky, Susan Darden ID: UVA-F-1574 Published: 10/22/2008 Copyright Year: 2008 Subject Area: Finance Keywords: investment banking; Credit crisis; Hedge funds; Securitization; CDOs; Liquidity Abstract: This case is suitable for courses on corporate finance at the graduate or advanced undergraduate level that cover banking, financing, security design, capital structure, or capital markets. The case covers the events that led to the collapse of Bear Stearns’s (Bear‘s) hedge funds in July 2007 and traces management's response to the situation through January 2008. These events include macroeconomic factors that fueled the housing boom, the growth of securitization, structured products, and credit default swaps, and the maturity mismatch of financial institutions' funding strategies. The case provides a rich setting for students to understand the increasingly interrelated nature of banking activities, which poses large systemic risk to the financial sector. Two key questions are posed: “What factors were responsible for the collapse of Bear's hedge funds?” and ‘’Was the response by Bear's management adequate in light of the collapse and the credit problems that ensued?'' John Corso is a hedge fund manager with large cash balances in a prime brokerage account at Bear. In January 2008, he receives a call from a senior Bear executive reassuring him that the firm is in good hands following a shakeup of top management. The previous summer, two Bear hedge funds collapsed as a result of their investments in collateralized debt obligations (CDOs) that were backed by subprime mortgages. As a longtime client of Bear, Corso must evaluate whether the steps taken by management have been sufficient to resolve its credit problems or whether now is the time to remove his funds from the firm.
Case Author(s): Shepherd, Stephen; Weiss, Elliott N. Darden ID: UVA-OM-0836 Published: 12/4/1996 Revised: 10/29/2004 Copyright Year: 1996 Subject Area: Operations Management Keywords: capacity planning, entrepreneurship, make, buy, or lease, queuing, small business, waiting-line analysis, agency management, diverse protagonist Teaching Note: UVA-OM-0836TN Abstract: Bill Kenerson, the owner-operator of a retail bow-tie business faces two decisions. The first is whether to bring production of bow ties in-house. The second concerns his telephone-order- entry system. The case invites students to calculate the capacity of the production facility and determine the appropriate staffing plan for telephone operators.
Case A Author(s): Mueller, Laurence G. Darden ID: UVA-G-0542 Published: 9/30/1998 Copyright Year: 1998 Subject Area: General Keywords: communication strategy, education, higher, ethical issues, faculty and students, group behavior, group dynamics, organizational culture, participative management, recruiting Teaching Note: UVA-G-0542TN Abstract: The A case (see also the B [UVA-G-0543] and C [UVA-G-0544] cases) provides the background and culture of the Beaufort Business School and then brings to light the ethical challenges facing graduate students in securing on-campus job interviews. It also highlights the student-run honor system and issues concerning faculty involvement in handling potential honor violations. The A case challenges students to ascertain the facts, decide whether there is either an honor or ethics violation, and determine if faculty or administrative intercession is necessary.
Case B Author(s): Mueller, Laurence G. Darden ID: UVA-G-0543 Published: 9/30/1998 Copyright Year: 1998 Subject Area: General Keywords: communication strategy, education, higher, ethical issues, faculty and students, group behavior, group dynamics, organizational culture, participative management, recruiting Teaching Note: UVA-G-0542TN Abstract: The B case (see also the A [UVA-G-0542] and C [UVA-G-0544] cases) provides extensive evidence of the questionable recruiting behavior. The administration makes sweeping decisions concerning the handling of the ethical issues it has surfaced. The B case leaves open the question of how the director of Career Planning and Placement will relay the administration’s decisions to the students.
Case C Author(s): Mueller, Laurence G. Darden ID: UVA-G-0544 Published: 9/30/1998 Copyright Year: 1998 Subject Area: General Keywords: communication strategy, education, higher, ethical issues, faculty and students, group behavior, group dynamics, organizational culture, participative management, recruiting Teaching Note: UVA-G-0542TN Abstract: The C case (see also the A [UVA-G-0542] and B [UVA-G-0543] cases) finds Beaufort students unreceptive to the administration’s explanations concerning its handling of the unethical practices surrounding on-campus job interviews. The students take matters into their own hands by threatening to invoke the honor system and using the school‘s newspaper as a public forum.
Case Author(s): Frey, Sherwood C. Jr. Darden ID: UVA-QA-0631 Published: 7/23/2004 Revised: 10/19/2007 Copyright Year: 2004 Subject Area: Quantitative Analysis Keywords: Bargaining/bidding, multiissue negotiation Teaching Note: UVA-QA-0631TN Abstract: The Becca Brothers series of cases is part of the “Da Click” collection of short cases written for use with high-school students. Da Click is a successful local rap band that has attracted the attention of the national record company Becca Brothers. The situation is a multi-issue negotiation over the group’s first recording contract. There are issues that are congruent, distributive, and integrative, thus presenting the opportunity for creating and claiming value.
Case Author(s): Frey, Sherwood C. Jr. Darden ID: UVA-QA-0632 Published: 9/1/2004 Revised: 10/19/2007 Copyright Year: 2004 Subject Area: Quantitative Analysis Keywords: Bargaining/bidding, multi-issue negotiation Teaching Note: UVA-QA-0631TN Abstract: This series of short cases (see also UVA-QA-0631) is written for use with high-school students. Da Click is a successful local rap band that has attracted the attention of the national recording company Becca Brothers. The series presents a multi-issue negotiation over the group’s first recording contract. There are congruent, distributive, and integrative issues that provide an opportunity for creating and claiming value.
Case Author(s): Weiss, Elliott N. Darden ID: UVA-OM-1262 Published: 4/17/2006 Revised: 9/11/2007 Copyright Year: 2006 Subject Area: Operations Management Keywords: operations management; quality management; quality improvement; six sigma; design of experiments Abstract: Tom Jenkins, manager of the filling line for Amore Frozen Foods’ beef-noodle-casserole product, must determine the proper fill rate and production rate for three filling machines. An on-line simulation requires the student to perform a number of tests using statistical design of experiments to determine the proper allocation of product to machine and the optimal settings for each machine.
Case Author(s): Colley, John L.; Doyle, Jacqueline L.; Darden ID: UVA-OM-0851 Published: 5/23/1997 8: 24: 00 AM Revised: 9/10/2001 Copyright Year: 2001 Subject Area: Operations Management Keywords: long-range planning; Manufacturing strategy; Multi-objective decision making; Operations strategy; Strategy formulation; International; Alternative business issue or setting; Diverse protagonist; Gender (female protagonist) Teaching Note: UVA-OM-0851TN Abstract: Bellair is thriving and growing profitabily while their industry is shrinking. They have clearly acheived superb levels of effectiveness in cost, quality, delivery, and flexibility. The issue in the case is which of 4 alternatives should be used to increase manufacturing to meet rapidly growing demand.
Case Author(s): Lynch, Luann J.; Brownlee, E. Richard II Darden ID: UVA-C-2178 Published: 7/23/2003 Copyright Year: 2003 Subject Area: Accounting and Control Keywords: Management control; Performance measurement; Budgeting; Strategic profitability analysis Teaching Note: UVA-C-2178TN Abstract: This case exposes students to the process of creating an operating plan. In addition, it introduces the concept of flexible expense budgeting. It may be used as a stand-alone case on budgeting, or it may be paired with the B case (UVA-C-2179) in a module on budgeting and strategic-profitability analysis or flexible expense budgeting.
Case Author(s): Lynch, Luann J.; Brownlee, E. Richard II Darden ID: UVA-C-2179 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Teaching Note: UVA-C-2179TN Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Schill, Michael J. Darden ID: UVA-F-1364 Published: 9/13/2002 Revised: 10/6/2003 Copyright Year: 2001 Subject Area: Finance Keywords: milgram; takeovers; corporate objectives; asset control; corporate valuation; multiples Teaching Note: UVA-F-1364TN Abstract: This case examines issues of asset control for Ben & Jerry’s Homemade, Inc., in light of the outstanding takeover offers by Chartwell Investments, Dreyer‘s Grand, Unilever, and Meadowbrook Lane Capital in January 2000. The case provides a unique opportunity to discuss fundamental firm objectives and the implications of a nontraditional corporate orientation; it reviews the development of Ben & Jerry's strong social consciousness and the takeover-defense mechanisms that maintain management's control on company assets. Students, in the role of outside board members, are invited to review management's performance, estimate the economic cost of its social agenda, and evaluate the implications of takeover defense strategies. Ultimately, they must take a position on whether Ben & Jerry's should continue to independently pursue its social agenda or accept one of the attractive takeover offers and accept a shift toward greater profit orientation. The case requires relatively little prior finance knowledge, and is designed largely to provide a stimulating introduction to the principles of a traditional corporate finance curriculum.
Case Author(s): Mead, Jenny; Sack, Robert J.; Werhane, Patricia H. Darden ID: UVA-E-0225 Published: 3/13/2002 Revised: 8/28/2008 Copyright Year: 2001 Subject Area: Ethics Keywords: acquisitions; Community relations; Competitive bidding; Corporate social responsibility; Employee stock ownership; Goodwill; Growth strategy; Stakeholder management Abstract: Ben Cohen and Jerry Greenfield were best friends and socially conscious entrepreneurs when they founded Ben & Jerry’s Homemade in the 1970s in Burlington, Vermont. The company was well-known for being offbeat, quirky, and committed to socially responsible ventures and using organic ingredients in its products. When the company went public in 1984, most people bought the stock because they believed in the company‘s values and mission. In late 1999, the financial and economic world was quite different, and two suitors — Unilever and Dreyer's Ice Cream — appeared, both very interested in acquiring Ben & Jerry's. This case describes not only the background and history of Ben & Jerry's, but the factors involved in the founders' having to decide what course of action to take.
Case Author(s): Mead, Jenny; Sack, Robert J.; Werhane, Patricia H. Darden ID: UVA-E-0226 Published: 12/28/2001 Revised: 8/28/2008 Copyright Year: 2001 Subject Area: Ethics Keywords: corporate culture; Acquisitions; Business ethics; Community relations; Competitive bidding; Corporate social responsibility Abstract: Case B describes the aftermath of Ben & Jerry’s being acquired by Unilever. While there was public sadness and dismay over the socially responsible company appearing to “sell out,” Ben Cohen and Jerry Greenfield tried to put it in the best possible light: ‘’Under this new arrangement, Ben and Jerry‘s will be independently operated, our values will continue and we hope our efforts to make positive change will even expand. Unilever has contractually agreed to increasing socially beneficial activities as a percentage of sales every year. Ben and Jerry's will be doing more good than it does today.''
Case Author(s): Bourgeois, L. J. III; Mariani, Elio; Yu, Vivian Jen Darden ID: UVA-BP-0471 Published: 1/30/2004 Copyright Year: 2004 Subject Area: Operations Management Keywords: mergers and acquisitions, corporate strategy, ethics, strategic change, post merger integration Teaching Note: UVA-BP-0471TN Abstract: Ben & Jerry/Unilever raises the issues of (1) how to bring a nonbusiness culture (B&J) into a corporate culture (Unilever) while preserving the value acquired; (2) how to manage a recently acquired subsidiary whose parent company is an ocean away; (3) how, as a corporate-appointed general manager, the French general manger can gain the trust of the acquired firm; and (4) how (or even whether) to preserve the Social Responsibility (SR) aspects of the target. An additional focus might be how (or whether) to export a socially-responsible firm’s values to overseas locations.
The case can be positioned near the end of a PMI course, where the students can apply PMI skills in a unique ethical and cultural situation. Alternatively, it can be used in an Ethics course to highlight the challenges of maintaining an SR mission when a public global corporation acquires a local (Vermont) SR organization
Case Author(s): Li, Wei Darden ID: UVA-F-1510 Published: 10/19/2007 Copyright Year: 2006 Subject Area: Accounting and Control Keywords: Monetary policy, central banking, oil price, housing market, interest rates, macroeconomics, macroecnomic management Student Spreadsheet: UVA-S-F-1510 Abstract: The case has been used in a first-year required course called Global Economies and Markets in a module on monetary policy.
On October 24, 2005, President Bush nominated Ben S. Bernanke to be chairman of the board of governors of the Federal Reserve System for a term of four years along with a 14-year term on the board of governors. With the U.S. Senate confirmation widely anticipated, Bernanke was expected to take over stewardship of the U.S. monetary policy from Chairman Alan Greenspan when he retired in January 2006. While the U.S. economy was in good shape at the end of 2005, Bernanke had to prepare to deal with two challenges when charting a course for managing U.S. monetary policy. First, the sharp rise in energy prices that began in 2002 had the potential to bring back the specter of inflation and dampen desired consumer and business spending. Second, the housing boom could turn into a housing bust, throwing the mortgage industry into turmoil and weakening consumer business confidence. There was also the possibility that the housing bust could affect broader financial markets. Bernanke had to consider his options for dealing with contingencies in the not-so-distant future.
Case Author(s): Dixon, Robb Darden ID: UVA-PHA-0004 Published: 4/15/1991 Revised: 2/1/1996 Copyright Year: 1982 Subject Area: Pedagogy and Higher Administration Keywords: pedagogy, teaching methods Teaching Note: UVA-PHA-0004TN Abstract: Ben Tipton, an experienced teacher, is frustrated with his class, which seems to be ill-prepared and unwilling or unable to deal with the day’s case or calculations. Tipton is wrestling with how to handle that situation, sensitive as he is to the implications for his relationship with the class and its learning. (The B case is UVA-PHA-0005.)
Case Author(s): Clawson, James G.; Dixon, Robb Darden ID: UVA-PHA-0005 Published: 4/15/1991 Revised: 2/1/1996 Copyright Year: 1982 Subject Area: Pedagogy and Higher Administration Keywords: pedagogy; teaching methods Teaching Note: UVA-PHA-0004TN Abstract: The B case tells how Ben Tipton handled the situation that occurred in the A case (UVA-PHA-0004), and how the students responded.
Case Author(s): Johnson, Richard R.; Carraway, Robert L.; Shames, Ervin R.; Farris, Paul W. Darden ID: UVA-M-0664 Published: 1/20/2003 Copyright Year: 2002 Subject Area: Marketing Keywords: advertising; Advertising; Media; Advertising; Strategy; Media; Planning Teaching Note: UVA-M-0664TN Student Spreadsheet: UVA-S-M-0664 Abstract: Benecol Spread, a cholesterol-lowering margarine, was a product with unusual media-planning challenges. With a narrow target group and unproven market potential, Johnson & Johnson needed to get the most “bang for the buck” from its Benecol advertising. Would a media-planning model (optimizer) requiring executives to quantify their judgment on several key inputs be helpful in this process? A spreadsheet accompanying the case allows students to weight the target groups and to choose among different advertising vehicles to form the best possible media plan.
Case Author(s): William W. Sihler Description: An investment maker has been engaged to value a small company where owner recently died and which is being put up for sale. (The case is a contraction of UVA-F-1324 to focus on valuation). Subjects: valuation Darden ID: F-1417 Teaching Note: N/A
Case Author(s): McKinnon, Paul D.; Bartholomew, Elizabeth; Darden ID: UVA-OB-0288 Published: 4/3/1991 Revised: 3/1/1993 Copyright Year: 1983 Subject Area: Accounting and Control Keywords: change implementation; Change; Management of; Family business; Leadership; Managerial style; Organizational culture Teaching Note: UVA-OB-0288TN Abstract: Michael Silva tries to save a group of companies owned by the Bennett family. The companies have been losing money for several years, and the banks have demanded that an outside CEO be appointed to turn them around. The A case describes the condition of the companies when Silva becomes CEO. It also reviews the history of the companies, one of which dates back 100 years, and describes the family members still associated with the companies. The case includes information about Silva and his unique management style, along with his views about the challenges of changing an established company with a well-developed culture. Follow-up cases are OB-0289, OB-0292, and OB-0297.
Case Author(s): Dreyer, Todd; Pfeifer, Phillip E. Darden ID: UVA-QA-0716 Published: 5/2/2008 Copyright Year: 2008 Subject Area: Quantitative Analysis Keywords: correlation, regression, data analysis Abstract: A summer intern must explain to his boss the negative correlation between the prices of corn and ethanol for 2006 and the first half of 2007. The negative correlation called into question the use of traditional hedges against corn prices to directly hedge against the volatility in ethanol prices. This case comes with a spreadsheet: UVA-S-QA-0716, “Berclays Capital: Corn and Ethanol Prices.”
Case Author(s): Lynch, Luann J. Darden ID: UVA-C-2240 Published: 6/11/2006 Revised: 11/23/2008 Copyright Year: 2006 Subject Area: Accounting and Control Keywords: Intercorporate investments; Marketable securities Teaching Note: UVA-C-2240TN Student Spreadsheet: UVA-S-C-2240 Abstract: Students are presented with the balance sheet, income statement, and selected footnotes from Berkshire Hathaway’s 2004 annual report and are asked to respond to several questions regarding information in the materials. Questions center around the company‘s classification of its investments as held-to-maturity, available for sale, or trading securities and the effect of the accounting for the company's securities on its balance sheet and income statement. “Berkshire Hathaway — Intercorporate Investments (B)” (UVA-C-2276) can be used as a supplement to this case.
Case Author(s): Lynch, Luann J. Darden ID: UVA-C-2276 Published: 12/31/2008 Copyright Year: 2008 Subject Area: Accounting and Control Keywords: Intercorporate investments; Marketable securities Teaching Note: UVA-C-2240TN Abstract: This case can be used as a supplement to “Berkshire Hathaway Inc. — Intercorporate Investments (A) (UVA-C-2240). Students are presented with hypothetical data related to one of Berkshire Hathaway’s investments and asked to compare the financial statement impacts of the investment if it is classified as an available-for-sale security with the impacts if classified as a trading security.
Case Author(s): Liedtka, Jeanne M.; Gibbons, Emily Jean Darden ID: UVA-BP-0418 Published: 10/10/2000 Copyright Year: 2001 Subject Area: Business Policy Keywords: Industry analysis; Strategy formulation Teaching Note: UVA-BP-0418TN Abstract: Bertelsmann, a global media company, whose holdings include television, books, music, and printing, is considering the purchase of the publisher Random House. The backdrop for the purchase, laid out in the A case, is a publishing industry showing decreasing profitability, with the rise of celebrity-author advances and powerful retailers like Barnes & Noble and Amazon. Further complicating the decision is Bertelsmann’s recent emphasis on multimedia operations, the development of which may threaten Bertelsmann‘s traditional print operations. The B case (UVA-BP-0419) describes Bertelsmann's purchase of Random House, and begins to make explicit the CEO's strategy for the purchase. As Bertelsmann makes a series of deals to become stronger in content delivery, difficulties with implementing new strategies under the current corporate structure are revealed. The B case leaves the reader considering where Bertelsmann should focus further investments and what structure will support a cultural shift. The C case (UVA-BP-0420) reveals Bertelsmann's decision to reorganize all e-commerce operations into one division.
Case Author(s): Liedtka, Jeanne M.; Gibbons, Emily Jean Darden ID: UVA-BP-0419 Published: 10/10/2000 Copyright Year: 2001 Subject Area: Business Policy Keywords: Industry analysis; Strategy formulation Teaching Note: UVA-BP-0418TN Abstract: Bertelsmann, a global media company, whose holdings include television, books, music, and printing, is considering the purchase of the publisher Random House. The backdrop for the purchase, laid out in the A case (UVA-BP-0418), is a publishing industry showing decreasing profitability, with the rise of celebrity-author advances and powerful retailers like Barnes & Noble and Amazon. Further complicating the decision is Bertelsmann’s recent emphasis on multimedia operations, the development of which may threaten Bertelsmann‘s traditional print operations. The B case describes Bertelsmann's purchase of Random House, and begins to make explicit the CEO's strategy for the purchase. As Bertelsmann makes a series of deals to become stronger in content delivery, difficulties with implementing new strategies under the current corporate structure are revealed. The B case leaves the reader considering where Bertelsmann should focus further investments and what structure will support a cultural shift. The C case (UVA-BP-0420) reveals Bertelsmann's decision to reorganize all e-commerce operations into one division.
Case Author(s): Liedtka, Jeanne M.; Gibbons, Emily Jean Darden ID: UVA-BP-0420 Published: 10/10/2000 Copyright Year: 2001 Subject Area: Business Policy Keywords: Industry analysis; Strategy formulation Teaching Note: UVA-BP-0418TN Abstract: Bertelsmann, a global media company, whose holdings include television, books, music, and printing, is considering the purchase of the publisher Random House. The backdrop for the purchase, laid out in the A case (UVA-BP-0418), is a publishing industry showing decreasing profitability, with the rise of celebrity-author advances and powerful retailers like Barnes & Noble and Amazon. Further complicating the decision is Bertelsmann’s recent emphasis on multimedia operations, the development of which may threaten Bertelsmann‘s traditional print operations. The B case (UVA-BP-0419) describes Bertelsmann's purchase of Random House, and begins to make explicit the CEO's strategy for the purchase. As Bertelsmann makes a series of deals to become stronger in content delivery, difficulties with implementing new strategies under the current corporate structure are revealed. The B case leaves the reader considering where Bertelsmann should focus further investments and what structure will support a cultural shift. The C case reveals Bertelsmann's decision to reorganize all e-commerce operations into one division.
Case Author(s): Hess, Edward D. Darden ID: UVA-S-0142 Published: 9/18/2007 Copyright Year: 2007 Subject Area: Strategy Keywords: organic growth, business model, operations strategy Teaching Note: UVA-S-0142TN Abstract: In 2007, Best Buy was the leading electronics retailer in the United States with more than 941 stores, revenue totaling $31 billion, and a market cap of $21 billion. In 2005, Best Buy had adopted a new business model, culture, and customer-segmentation template called Customer Centricity. This move created volatility in the price of Best Buy stock because of the higher-than-expected employee costs that went with this new way of doing business and the difficulty of executing the old and the new business models simultaneously while the new model was rolled out. Best Buy responded to Wall Street’s short-term focus in a myriad of ways. It first asked for investor patience, and stressed the strong operating results achieved in Best Buy stores operating under the new model. But in June 2007, after the stock dropped again, the CEO knew he had to decide whether to open more Best Buy stores, increase the company‘s dividend, or increase the stock-repurchase program.
Case Author(s): William W. Sihler; Richard D. Crawford Description: A student interested in a career in investment banking must decide which of four offers to accept — two are from investment banks and two are from bank holding companies with significant investment banking activities. Subjects: investment analysis Darden ID: F-1460 Teaching Note: N/A
Case Author(s): Mead, Jenny; Hartman, Laura P. Darden ID: UVA-E-0316 Published: 3/24/2008 Copyright Year: 2008 Subject Area: Ethics Keywords: business ethics, stakeholder management, environmental, corporate social responsibility, diversity, Africa, best practices, foreign, global investment, community development Abstract: BHP Billiton, the world’s largest diversified resource company at the start of the 21st century, began a feasibility study in 1995 for building an aluminum smelter project in the Maputo province in southern Mozambique — one of the world‘s poorest countries that was hampered by fragile legal, financial, and health, safety, environmental, and community institutional structures and capacity. BHP Billiton was committed to sustainable development and believed that social and environmental performance were critical factors in business success. BHP Billiton believed firmly that sustainable development involved engaging and partnering with its community stakeholders to address the challenges associated with establishing resource projects and to share the benefits of success. Was this possible in Mozambique, given the nation's social and political challenges, the prevalence of malaria and HIV, and the weak infrastructure? Acknowledging that stakeholders had a role to play in achieving a successful and sustainable project, BHP Billiton adopted this slogan for the project: “Together we make a difference.” The company called the project “Mozal.” But would or could they be successful? And at what cost?
Case Author(s): Mead, Jenny; Hartman, Laura P. Darden ID: UVA-E-0317 Published: 3/24/2008 Copyright Year: 2008 Subject Area: Ethics Keywords: business ethics, stakeholder management, environmental, corporate social responsibility, diversity, Africa, best practices, foreign investment, global, community development Abstract: BHP Billiton began construction of Phase 1 of the Mozal aluminum smelter in 1998. Because of the challenges that the community presented, BHP Billiton and its partners created the Mozal Community Development Trust (MCDT), which worked to improve the infrastructure, social services, and health care of the community. During the two construction phases, the project contributed more than USD160 million to the local economy, principally through the employment of Mozambican laborers and the use of local contractors and suppliers. The MCDT implemented malaria prevention and HIV/AIDS prevention program, made improvements to the health clinics and schools, instituted work force training and development, and supported small and medium enterprises. In addition, it initiated projects aimed at raising the level of education of the country’s engineers and technologists to international standards. In 2002, when both phases of the Mozal smelter were complete, the World Bank‘s International Finance Committee (IFC) stated that Mozal had set a precedent for future projects in Mozambique. Mozal, said the IFC, “illustrates the clear advantages of incorporating environmental and social issues early in a project, and reflects the approach and procedures IFC has been refining and putting in place to deal with environmental and social issues.” For BHP Billiton, the Mozal experience demonstrated that, when establishing a major resource project, it made good business sense to invest not only in the venture but also in the host community.
Case Author(s): Hastings, Allison S.; Bass, Lucien; Frey, Sherwood C. Jr. Darden ID: UVA-QA-0699 Published: 5/14/2007 Copyright Year: 2007 Subject Area: Quantitative Analysis Keywords: Negotiation Abstract: Darcy Elliot has been asked by the rush chair of her sorority to secure T-shirts with a very limited budget. In an effort to control cost, Elliot designed an alternative. Prior to contacting the usual supplier (Tees R Us), which was located out of town, and in an effort to avoid any issues about expediting, Elliot approached a local vender. The local vender offered a quote that was over-budget but guaranteed meeting the deadline. With this information, Elliot contacted Tees R Us and communicated the specifications. The vender’s sales rep, Taylor Taggart, promised to call back shortly with a price.
Case Author(s): Hastings, Allison S.; Bass, Lucien; Frey, Sherwood C. Jr. Darden ID: UVA-QA-0700 Published: 5/14/2007 Copyright Year: 2007 Subject Area: Quantitative Analysis Keywords: Negotiation Abstract: Taylor Taggart, a sales rep for Tees R Us, received earlier in the afternoon an inquiry and specifications for a rush order of T-shirts for Alpha Sigma Eta sorority, a regular customer of Tees R Us. Having now confirmed production availability and estimated costs, Taggart was prepared to return Darcy Elliot’s phone call and hopefully close the deal — there was more urgency than usual to secure contracts because the order volume had fallen below budget.
Case Author(s): Chaplinsky, Susan; Marston, Felicia; Darden ID: UVA-F-1560 Published: 2/17/2009 Copyright Year: 2008 Subject Area: Finance Keywords: buyouts; LBO; Private equity; Valuation Teaching Note: UVA-F-1560TN Student Spreadsheet: UVA-S-F-1560 Abstract: In August 2005, The Carlyle Group and its partners (Clayton, Dubilier & Rice, and Merrill Lynch Global Private Equity) must finalize the terms of a bid to purchase the Hertz Corporation. The Ford Motor Company had put Hertz, a wholly owned subsidiary, up for sale in April 2005, and in June 2005, entered a dual-track process, which would result in its sale or an initial public offering (IPO). The case provides detailed pro forma projections for the transaction that allow students to examine the synergies of the deal and estimate a value and bid for Hertz. Students must consider whether their bid provides an adequate return to the sponsors, can produce in a higher value for Hertz than an IPO, and can best that of a rival bidding group. The case is appropriate for use in courses on corporate finance, private equity, or deal valuation. Because of the rich range of issues that can be considered, the case also works well as a capstone case or in a case competition. For instructors wishing to provide students an overview of the role and practices of private equity, we recommend combining the Hertz LBO case with its companion case, “Investing in Sponsor-Backed IPOs: The Case of Hertz” (UVA-F-1561). The Hertz IPO was announced in July 2006 just seven months after the LBO was completed. The two cases cover a wide range of issues that arise over the course of entry and exit of private equity investments.
Case Author(s): Bodily, Samuel E. Darden ID: UVA-QA-0696 Published: 11/29/2006 Copyright Year: 2007 Subject Area: Quantitative Analysis Keywords: decision analysis, bargining/bidding, competitive bidding, negotiation Abstract: The task is to prepare a sealed bid against one opponent for a hotel that has an appraised value and a specific, higher value to our company. We have data about the ratio of bids of the other bidder to appraised value in similar sealed bids. The intent is to dispel many unfounded notions of how to bid and to develop a strategic approach to finding the best bid.
Case Author(s): Pfeifer, Phillip E.; Brannman, Lance Darden ID: UVA-QA-0417 Published: 1/31/1996 Copyright Year: 1991 Subject Area: Quantitative Analysis Keywords: bargaining/bidding; decision analysis; linear programming; regression analysis Teaching Note: UVA-QA-0417TN Abstract: A forestry analyst must review the recent bidding history of 103 timber trees in order to prepare bids for future timber auctions. A regression analysis to predict highest competing bid and a decision analysis to select a bid to maximize expected profit might be used to prepare the case. Students are required to build their own linear models.
Technical Note Author(s): Horniman, Alexander B. Darden ID: UVA-OB-0611 Published: 3/8/2001 Copyright Year: 2001 Subject Area: Business Communications Keywords: Communication process; Communication strategy Abstract: This technical note provides a pedagogical overview of management communication for MBA education.
Case Author(s): Horniman, Alexander B.; Brake, F. B. Jr. Darden ID: UVA-OB-0411 Published: 3/11/1992 Copyright Year: 1991 Subject Area: Organizational Behavior and Human Resources Keywords: change implementation; change, management of; labor relations; labor unions; organizational change; work-force management Teaching Note: UVA-OB-0411TN Abstract: This case follows the A case (UVA-OB-0396) and describes the people and events that transformed a strike and tension-ridden situation into a “world-class operation.” The case outlines the issues and personalities that created this remarkable change. This case should be used with the A case.
Case Author(s): Brake, F. B. Jr.; Horniman, Alexander B. Darden ID: UVA-OB-0396 Published: 3/11/1992 Revised: 9/1/1994 Copyright Year: 1991 Subject Area: Leadership and Organizational Behavior Keywords: change implementation; change, management of; labor relations; labor unions; organizational change; work-force management Teaching Note: UVA-OB-0396TN Abstract: This case describes the start-up and the early trials and tribulations of the Magasco Paper Mill. Originally designed to be a state-of-the-art operation, old customs and habits have inhibited the expected performance of the mill. The case ends with a labor dispute, a strike, and a period of enormous tension and conflict. This case should be accompanied by the B case (UVA-OB-0411).
Case Author(s): Hild, Matthias; Dwivedy, Avin; Raj, Akash Darden ID: UVA-QA-0627 Published: 5/19/2004 Revised: 2/14/2006 Copyright Year: 2004 Subject Area: Quantitative Analysis Keywords: telecommunication licensing auctions Abstract: In the spring of 2000, nine Western European governments were preparing for the sale of licenses that would allow private operators of 3G networks to use certain blocks in the spectrum of radio frequencies. The governments’ objectives included the competitiveness of the resulting telephony market, an efficient allocation of licenses, and the generation of revenues to supplement governmental budgets. Most governments were considering the use of auctions to sell their licenses in the private market. Different countries faced different market conditions, and differed in their preferred choice of auction format.
Case Author(s): Hild, Matthias; Dwivedy, Avin; Raj, Akash Darden ID: UVA-QA-0628 Published: 5/19/2004 Revised: 2/14/2006 Copyright Year: 2004 Subject Area: Quantitative Analysis Keywords: telecommunications licensing auctions Abstract: This case serves as a follow-up to the A case (UVA-QA-0627), revealing the outcomes of 3G licensing in nine Western European countries.
Case Author(s): Bruner, Robert F.; Carr, Sean Darden ID: UVA-F-1481 Published: 11/14/2005 Copyright Year: 2005 Subject Area: Finance Keywords: investing, efficient markets hypothesis, capital markets, investment performance, mutual funds Teaching Note: UVA-F-1481TN Abstract: Set in the autumn of 2005, this case recounts the remarkable performance record of Value Trust, a mutual fund managed by William H. “Bill” Miller III at Legg Mason, Inc. The case describes the investment style of Miller, whose record with Value Trust has beaten the S&P 500 14 years in a row. The tasks for the student are to assess the performance of the fund, consider the sources of its success, and decide on the sustainability of Miller’s performance. Consistent with the introductory nature of the case, the analysis requires no numerical calculations. The instructor should not be deceived, however: the absorption of capital-market background and the implications of financial concepts in the case will fully occupy the novice. This case updates and replaces “Peter Lynch and the Fidelity Magellan Fund” (UVA-F-0777) and “The Fidelity Magellan Fund, 1995” (UVA-F-1126). The case is intended for use in the opening stages of a finance course. It provides a nontechnical introduction to the U.S. equity markets and lays the foundation for some basic concepts in finance.
Case Author(s): Clawson, James G.; Taylor, Scott Darden ID: UVA-OB-0598 Published: 10/15/1996 Copyright Year: 1996 Subject Area: Accounting and Control Keywords: Managing change; mergers and acquisitions; human resources, management of; leadership Teaching Note: UVA-OB-0598TN Abstract: A new supervisor in a managed health care facility created from a merger wrestles with taking charge and dealing with human resource problems for the first time. See also the B case (UVA-OB-0599).
Case Author(s): Clawson, James G.; Taylor, Scott Darden ID: UVA-OB-0599 Published: 10/15/1996 Copyright Year: 1996 Subject Area: Accounting and Control Keywords: managing change; mergers and acquisitions; human resources, management of; leadership Teaching Note: UVA-OB-0598TN Abstract: A new supervisor in a managed health care facility created from a merger wrestles with taking charge and dealing with human resource problems for the first time. The B case describes what the protagonist learned from the situation. See also the A case (UVA-OB-0598).
Case Author(s): Conroy, Robert M. Darden ID: UVA-F-0943 Published: 3/29/1991 Revised: 4/17/2002 Copyright Year: 1990 Subject Area: Finance Keywords: model evaluation; option pricing Abstract: This note is designed to introduce the binomial option-pricing model. It covers the basic concepts using a one-period model and then provides an example of a two-period model. The note focuses on a conceptual approach to binomial option pricing rather than formulas.
Case Author(s): Clyman, Dana R.; Spillane, Jennifer Darden ID: UVA-QA-0580 Published: 9/17/2001 Copyright Year: 2001 Subject Area: Quantitative Analysis Keywords: decision analysis; monte carlo simulation Abstract: This two-part series is designed provide an advanced simulation modeling exercise within reach of the average MBA student on a topic of great interest. The A case provides this. The B case allows an even more challenging experience for the more sophisticated members of the class. Birch Oil has been offered a “farm-out” deal to drill a well in Terrebonne Parish, Louisiana. They also have the option, if the well is successful to drill a second well a year later. The A case focuses on the decision of whether or not to accept the deal, which requires that they value the embedded option. The B case allows Birch the additional option of waiting an extra year to decide whether or not to drill the second well. Valuing the deal now requires a far more complex and interesting model.
Case Author(s): Gregory B. Fairchild Description: Robert L. Johnson accomplished what many thought couldn’t be done: he founded a company that leveraged managerial talent, largely African-American, and grew into one of the leading media companies in the world. This multimedia case study allows for many teaching points from multiple functional perspectives. Students will learn about decisions necessary for firm startup and can compare the startup of Black Entertainment Television (BET) to businesses in other industries and markets. The case offers an opportunity to examine the strategic benefits of the BET brand to various consumer groups and to assess the growth and viability of each group and product category. Through BET, students will learn about the benefits and liabil
