Marcus Crosby, President of Cilkray Graphics, convened an emergency meeting with Cilkray's senior managers in order to respond to an unexpected development. Cilkray sold three lines of specialized graphics processing units (GPUs). Each line targeted a segment of the professional market for Hosted Virtual Desktops (HVDs). Grovex, Cilkray's key competitor, had just announced the impending launch of the GSpeed, a new GPU. It said that the GSpeed would exceed the performance of competitive products, including Cilkray's most advanced product line, the CP3000. Industry rumors suggested that the GSpeed's price would be 20% to 30% below that of the CP3000. Crosby and his team saw two options. Cilkray could drop the CP3000's price immediately. It could also delay its planned release of its new CK300, scheduled for December 2013, in order to make its products more competitive. Crosby and his team had to decide what Cilkray should do next.
In 2015, Dietmar Hopp, owner of Germany's Bundesliga football team TSG Hoffenheim and co-founder of the global enterprise software company SAP, was considering how to ensure long-term sustainability and competitiveness for TSG Hoffenheim. While historically a small team from bottom rungs of the league, TSG Hoffenheim, with revenues of €60 million to €70 million, reached the top division of the Bundesliga in the 2008-2009 season thanks to a deliberate strategy focused on enhanced scouting, strong youth programs, and innovative technology and analytics that improved player development. In 2014 Hopp, who had personally invested €300 million in the club, built a "footbonaut," an automated training environment that collected data on players' skills and strengths. The tool, one of three in the world, helped scouts and coaches better assess and develop each player. Yet some managers felt the technology was a distraction, an investment too expensive for a team that was not yet cash-flow positive. The team finished the 2014-2015 season in eighth place, below the top division, and Hopp wondered whether the focus on technology and analytics was the right strategy to grow the club. He wondered if the "moneyball" approach-when a smaller team competed with wealthier teams by using statistical analysis to buy undervalued assets and sell overvalued assets-could work in football and if investments in technology could lead the team to financial independence.
This note teaches the critical elements to understand the fundamentals of hotel investing, ownership and management. It outlines the basics of hotel segmentation, operations, ownership, management and valuation. The changing impact of technology is also addressed.
Jeju Air is a market leader in the South Korean low-cost carrier industry, operating more than 20 domestic and international air routes in Asian countries. In the midst of rising economic activity and the opening of more air routes in North Asia, Jeju Air is planning an initial public offering to seek capital to grow its China business. Meanwhile, Singapore Airlines is in discussions to purchase a 20 per cent equity investment in Jeju Air. Is this investment a wise decision for Singapore Airlines? Additionally, what is Singapore Airlines' future outlook in terms of its existing underperforming subsidiaries?
The co-founders/consultants at Maynard Leigh Associates (MLA), an HR consulting firm based in the United Kingdom and India, are in a quandary about how to respond to a couple of ethical dilemmas. In the first case, a client has hired MLA to deliver a series of workshops to a group of employees who clearly do not need any help of this kind, and the workshop facilitator feels the client is wasting its money. In the second case, the CEO of a local IT giant has hired MLA to host a workshop that would brainstorm ways to eradicate all roadblocks to his organization's success, but during the delivery of this workshop, the consultants realized that the biggest roadblock to the organization's success was the CEO himself. Should the partners be open with the client about their findings and risk damaging a lucrative business relationship, or should they simply remain silent on the subject and pocket their fee. What would be the impact of their decision on the future of their company? Importantly, they need to make a decision that upholds MLA's corporate values.
The co-founders/consultants at Maynard Leigh Associates (MLA), an HR consulting firm based in the United Kingdom and India, are in a quandary about how to respond to a couple of ethical dilemmas. In the first case, a client has hired MLA to deliver a series of workshops to a group of employees who clearly do not need any help of this kind, and the workshop facilitator feels the client is wasting its money. In the second case, the CEO of a local IT giant has hired MLA to host a workshop that would brainstorm ways to eradicate all roadblocks to his organization’s success, but during the delivery of this workshop, the consultants realized that the biggest roadblock to the organization’s success was the CEO himself. Should the partners be open with the client about their findings and risk damaging a lucrative business relationship, or should they simply remain silent on the subject and pocket their fee. What would be the impact of their decision on the future of their company? Importantly, they need to make a decision that upholds MLA’s corporate values.
Jeju Air is a market leader in the South Korean low-cost carrier industry, operating more than 20 domestic and international air routes in Asian countries. In the midst of rising economic activity and the opening of more air routes in North Asia, Jeju Air is planning an initial public offering to seek capital to grow its China business.<br><br>Meanwhile, Singapore Airlines is in discussions to purchase a 20 per cent equity investment in Jeju Air. Is this investment a wise decision for Singapore Airlines? Additionally, what is Singapore Airlines’ future outlook in terms of its existing underperforming subsidiaries?
In 2012, an equity research firm based in California accused Singapore-based Olam International Limited (Olam) of engaging in potentially misleading and dangerous accounting practices. The firm — Muddy Waters Research — further stated that Olam was on the verge of bankruptcy. The primary complaint made against Olam by Muddy Waters was that Olam allegedly made aggressive use of “non-cash accounting gains,” particularly when reporting on Olam’s biological assets. Olam’s share price tumbled after the accusations were made public. Olam defended itself by asserting that it had applied Singapore Financial Reporting Standard (FRS) 41 — Agriculture appropriately and that the fair value gains of the biological assets were justifiably derived. FRS 41, equivalent to International Financial Accounting Standards 41 — Agriculture, required Singapore-listed companies to use fair value in the measurement of biological assets. This case examines the complex challenges that valuators face when presented with different valuation models, the application of financial reporting standards and the fine balance between reliability and relevance in the accounting of assets in the real world.
In 2012, an equity research firm based in California accused Singapore-based Olam International Limited (Olam) of engaging in potentially misleading and dangerous accounting practices. The firm - Muddy Waters Research - further stated that Olam was on the verge of bankruptcy. The primary complaint made against Olam by Muddy Waters was that Olam allegedly made aggressive use of "non-cash accounting gains," particularly when reporting on Olam's biological assets. Olam's share price tumbled after the accusations were made public. Olam defended itself by asserting that it had applied Singapore Financial Reporting Standard (FRS) 41 - Agriculture appropriately and that the fair value gains of the biological assets were justifiably derived. FRS 41, equivalent to International Financial Accounting Standards 41 - Agriculture, required Singapore-listed companies to use fair value in the measurement of biological assets. This case examines the complex challenges that valuators face when presented with different valuation models, the application of financial reporting standards and the fine balance between reliability and relevance in the accounting of assets in the real world.
This case provides a context wherein a variety of financial accounting issues can be discussed, particularly those related to the multi-period dependence of accounting accruals. A less direct but nonetheless important issue relates to earnings management and ends up being a central theme of the case. The case focuses on three basic accounting topics-LIFO inventory reserves, the allowance for doubtful accounts, and depreciation policies and assumptions-that span the range of earnings management considerations. It was written as a capstone case for a 90-minute graduate-level introductory financial accounting course. The appropriate audience would be graduate- or undergraduate-level business students, executives, or those studying or working in financial fields. The case lends itself to team-teaching opportunities within accounting, ethics, finance, and leadership.
This case picks up from the events in Planters Nuts and describes how the new management team for Planters turned the brand around in 2013 by implementing a new brand positioning accompanied by a multimillion dollar marketing campaign.
In January 2015, superstar television creator Shonda Rhimes, whose production company ShondaLand dominates American television's most competitive and lucrative night with three shows in primetime on network ABC's Thursday night, is plotting the future. One challenge she faces is to, as she put it, "solve the problem of writing and producing serialized dramas for broadcast network television." What changes could she propose to ABC to make the creative process more manageable? A second challenge is to figure out how to further expand ShondaLand. How could Rhimes best build her portfolio and further cement ShondaLand's place in television history?
On September 9, 2014, in front of a packed audience in Cupertino, CA, Tim Cook, the chief executive officer of Apple, announced the much anticipated launch of Apple Pay, "Our vision is to replace this [wallet] and we are going to start with payments." Cook then invited Eddy Cue, Apple's senior vice president of Internet Software and Services, to the stage to explain how Apple Pay would transform the mobile payments industry. He explained how Apple Pay would allow consumers to complete the check-out process within apps with a single touch, and without needing to repeatedly enter credit card information, the billing address, or shipping address. On October 20, 2014, U.S. consumers could start using Apple Pay in stores with their iPhone 6 or iPhone 6 Plus (and later Apple Watch) and within apps using iPhone 6, iPhone 6 Plus, iPad Air 2 and iPad mini 3. By March 2015, Apple Pay was accepted in 700,000 retail locations including Coca-Cola vending machines. "We are the fastest adopted mobile payment service by a long shot," noted Jennifer Bailey, vice president of Apple Pay. However, Cue and Bailey were aware that the landscape of mobile wallets and payment services was littered with failures. Reflecting on these challenges, Bailey wondered, "What should Apple do to continue the early momentum for the adoption and use of Apple Pay?"
By January 2015, Whistle Sports, a multi-platform sports network for millennials, had attracted over 54 million online subscribers on Youtube, Instagram, Twitter, Facebook, Google+, and Vine. It established partnerships with several professional sports leagues and amassed 225 partner channels on YouTube. Its revenue was largely generated through advertisements featured on YouTube. Whistle Sports recently announced that it raised $32 million in Series B financing, enough to bring the company into 2016. John West (MBA 1995), founder and CEO, wondered how the company should allocate its resources over the next year in order to become profitable and ensure future growth.
This case discusses the trajectory taken by a Singapore-based entrepreneur who embarked on a multimillion business venture to turn food waste into energy. The brainchild of Edwin Khew, a veteran in the waste management business, IUT Global was formed in 2005 to set up and operate Singapore's first organic waste treatment plant. IUT's bio-methanisation plant was an ambitious project. Budgeted at $60 million, the plant was designed to process 800 tonnes of food waste and produce 10 megawatts of electricity most of which would be sold to Singapore's national electricity grid. Investors were optimistic that with their state of the art process technology and a ready customer, the plant would generate a steady income stream once it was set up and running. However, from the start of production although less than 10% of food waste in Singapore was being recycled, IUT encountered problems in the collection of food waste needed to feed its plant. It was unable to collect enough food waste and those collected contained a higher percentage of contaminants than projected. Furthermore, food operators resisted the need to separate food waste from solid waste. Unable to meet its production targets, and after three years of losses, in 2011, IUT entered into liquidation, and with it the closure of Singapore's first large scale food waste-to-energy facility. The case explores the following topics: First mover pitfalls in a sustainable energy venture; Analysis of new venture business plans; Implementation challenges for start-ups; Assumption testing/sensitivity analysis in costing of new ventures.
This case discusses the trajectory taken by a Singapore-based entrepreneur who embarked on a multimillion business venture to turn food waste into energy. The brainchild of Edwin Khew, a veteran in the waste management business, IUT Global was formed in 2005 to set up and operate Singapore's first organic waste treatment plant. IUT's bio-methanisation plant was an ambitious project. Budgeted at $60 million, the plant was designed to process 800 tonnes of food waste and produce 10 megawatts of electricity most of which would be sold to Singapore's national electricity grid. Investors were optimistic that with their state of the art process technology and a ready customer, the plant would generate a steady income stream once it was set up and running. However, from the start of production although less than 10% of food waste in Singapore was being recycled, IUT encountered problems in the collection of food waste needed to feed its plant. It was unable to collect enough food waste and those collected contained a higher percentage of contaminants than projected. Furthermore, food operators resisted the need to separate food waste from solid waste. Unable to meet its production targets, and after three years of losses, in 2011, IUT entered into liquidation, and with it the closure of Singapore's first large scale food waste-to-energy facility. The case explores the following topics: First mover pitfalls in a sustainable energy venture; Analysis of new venture business plans; Implementation challenges for start-ups; Assumption testing/sensitivity analysis in costing of new ventures.
In 2012 Planters had about $1 billion in U.S. annual revenues, but had experienced declining unit sales and household penetration over the past six years. The snack nuts category was growing overall, but household spending was shifting away from peanuts, cashews, and mixed nuts-Planters' core business-to almonds and pistachios. A new brand management team for Planters had to develop a plan to reinvigorate the still largest brand in the category, and specifically to decide whether to focus on rebuilding its traditional product categories or on attempting to capitalize on the newer nut categories. Central to this process were questions of segmentation, targeting, and positioning.