In 2013, controversy arose over the actions of Adria Richards, a developer-evangelist, in response to remarks she overheard being made by two male attendees at a technology conference. After she reported what she believed to be sexist remarks by posting a photo of the men and a comment on Twitter, the two men were asked to leave the conference session and one was soon fired. A firestorm ensued during which Richards' actions were subjected to scrutiny and the larger question of whether sexism hindered women's participation in the technology industry received a great deal of attention.
A vice-president of human resources at a technology software provider was reviewing the employee appraisal submissions for her firm. After years of rapid growth, the firm was underperforming relative to its peers and it seemed that part of the problem was its relaxed performance appraisal system. As much had been written about Microsoft Corporation's stack ranking system, the human resources executive wondered how much she could learn about appraisal systems from this example.
Hyrule Cinemas is losing money quickly and its owner must take steps to rectify the problem. Using survey data and general information about the business, three types of analysis can be completed: Van Westendorp, conjoint, and a decision tree. These analyses will enable Hyrule Cinemas to make the best decision possible about price points and location, thereby helping the company to become profitable.
The director of analytics and reporting at The Leading Hotels of the World and his team were to present their new idea to the company’s executive team: the hotel engagement scorecard (HES). HES was received well and gained recognition from the executive team of 10 members, becoming one of four company goals for the year. HES was to be implemented across all of The Leading Hotels of the World’s 25 global offices and more than 430 member hotels. As the founder of the idea, the director of analytics and reporting felt responsible and motivated to make HES as strong as possible before its implementation. He wondered how HES innovation could move forward and assist member hotels as much as possible.
The case explores a public-private partnership initiative on environment education in India, highlighting the strategic, institutional, and reputational implications for corporate social responsibility in an emerging country context. Launched in 2010 with a target to reach 200,000 schools, “Paryavaran Mitra” (Friends of the Environment) was a multi-layered collaboration with three primary and more than 160 secondary partners. The case is positioned in 2013, when the senior manager of corporate responsibility for the firm that serves as the corporate sponsor of the project must make a decision about the future of the initiative.
This two-part case series is about the largest equity-raising deal in history - the Petrobras seasoned equity offering (SEO) of 2010. In June 2010, Petrobras, Brazil's national oil company was preparing a share issue to develop its "pre-salt" oil fields - so called because they are trapped under several kilometers of seawater, rock and a hard-to-penetrate layer of salt. The hydrocarbons resting in the pre-salt fields could make Brazil one of the world's largest oil-exporting nations. Brazil's offshore pre-salt area - widely tipped to rival the North Sea in terms of size and importance - had been generating excitement in the energy world since its discovery in 2005. Six new pre-salt fields had been discovered more recently and were now ready for exploration. The investments outlined in the plan were huge and would transform Petrobras into one of the world's largest producers. However, this also posed significant financing challenges for Petrobras, given its capacity to generate cash from its current operations. So, how could it raise the money? A bond issue so soon after the previous one was a possibility. It would then be among the world's biggest bond issues. But there was a risk of not meeting the need for capital. How would such an issue affect its debt-to-value ratio and its rating? Would Petrobras be able to maintain its investment grade status? A share issue was another possibility, but it would also be very big. Would the market be ready for such a big issue so soon after the financial crisis? Many unresolved issues lay ahead. Both Gabrielli (CEO) and Barbassa (CFO) understood that regardless of the method used, they were facing one of the world's biggest funding challenges to date. A lot was at stake and wrong choices would have disastrous consequences for both Petrobras and Brazil.
Supplement to case IMD752. This two-part case series is about the largest equity-raising deal in history - the Petrobras seasoned equity offering (SEO) of 2010. In June 2010, Petrobras, Brazil's national oil company was preparing a share issue to develop its "pre-salt" oil fields - so called because they are trapped under several kilometers of seawater, rock and a hard-to-penetrate layer of salt. The hydrocarbons resting in the pre-salt fields could make Brazil one of the world's largest oil-exporting nations. Brazil's offshore pre-salt area - widely tipped to rival the North Sea in terms of size and importance - had been generating excitement in the energy world since its discovery in 2005. Six new pre-salt fields had been discovered more recently and were now ready for exploration. The investments outlined in the plan were huge and would transform Petrobras into one of the world's largest producers. However, this also posed significant financing challenges for Petrobras, given its capacity to generate cash from its current operations. So, how could it raise the money? A bond issue so soon after the previous one was a possibility. It would then be among the world's biggest bond issues. But there was a risk of not meeting the need for capital. How would such an issue affect its debt-to-value ratio and its rating? Would Petrobras be able to maintain its investment grade status? A share issue was another possibility, but it would also be very big. Would the market be ready for such a big issue so soon after the financial crisis? Many unresolved issues lay ahead. Both Gabrielli (CEO) and Barbassa (CFO) understood that regardless of the method used, they were facing one of the world's biggest funding challenges to date. A lot was at stake and wrong choices would have disastrous consequences for both Petrobras and Brazil.
In the Spring of 2014, Rudy Adolf, CEO and founder of Focus Financial, and the two other co-founders of the firm are considering alternative growth strategies to solidify Focus Financial position as a leading aggregator of independent wealth management firms in the U.S. Focus has grown from $3.5B in client assets at its inception in 2006 to over $70B in and it has acquired more than 30 RIA (Registered Investment Advisor) firms, capitalizing on a secular shift in investors' preferences from a traditional product and commission-driven brokerage model to a fiduciary, fee-based client advice model.<br/><br/> Since the 1970's, independent SEC registered investment advisors (RIAs) have been a growing segment of U.S. wealth managers, steadily winning market share from the dominant, traditional wirehouse broker-dealers. But, with more than $1.4 trillion in assets under management in 2013, the RIA industry is also at a crossroads, with aging advisors with limited succession plans and limited access to capital to fund intergenerational transfers, rising compliance and regulatory complexity, competition from new advice delivery models, and fragmentation. The case examines the RIA business model, the opportunities for growth through consolidation in this industry, and the competitive landscape in the wealth management aggregator sector through the lenses Focus Financial business model, its acquisition and M&A model for RIAs, and its wirehouse breakaway programs. The case examines Focus Financial strategy in the face of rising competition, potential growth paths, and IPO scenarios.<br/><br/> The case presents opportunities for students to explore similarities and differences between the broker-dealer and the RIA retail wealth management business models, strategies for growth and consolidation in the retail wealth management business, and issues related to incentives, organization and valuation of retail wealth management businesses.
Marisa Sanchez, a new Associate at Douglas Private Equity Advisors, confronts a dilemma when she is asked by a Senior Vice President (SVP) to do due diligence on a deal he wants to bring before the investment committee which will include the SVP, Douglas' owner and founder and others. The meeting is timed just before annual bonus season. Marisa's due diligence findings indicate that her boss, the SVP, has significantly misrepresented the market information and that the pricing should be considerably less than he is advocating. He asks her to manipulate the numbers, "to make the numbers work." She has to decide, when asked at the committee meeting, what to say and how.
In late 2012, Michael Dell wants to take Dell Inc., the company he founded, private. Mr. Dell believes that the successful company's transformation from a personal computer (PC) manufacturer to an enterprise solutions and services provider (ESS) is dependent on going private without the short-term results scrutiny public companies face. He and a private equity firm, Silver Lake Partners, have made an offer for the company, which Dell Inc.'s board has accepted. The deal requires the vote of a majority of shareholders. Southeastern Asset Management, an investment firm, and Dell Inc.'s second largest shareholder behind Mr. Dell strongly oppose the deal because the offer is well below what Southeastern believes is Dell Inc.'s intrinsic value. Southeastern, along with activist investor Carl Icahn, wage a campaign to defeat the go-private deal and propose a leveraged recapitalization as an alternative. On several occasions it appears that the deal will be voted down by shareholders, but rule changes made by Dell Inc.'s Board eventually pave the way for Mr. Dell to take the eponymous company private-for a price only slightly higher than the original bid. The case describes the reasons why Mr. Dell wants to take Dell Inc. private, why Southeastern and Icahn oppose the deal, the specifics of both the Dell/Silver Lake bid and of Southeastern's/Icahn's leveraged recapitalization proposals, and the events that took place.
Product stewardship services relied on an Australian Government regulatory framework built on the concept of Extended Producer Responsibility (EPR) - a policy that required producers to manage their product's end-of-life segment by recycling a certain tonnage of electronic waste relative to their product tonnage imported into Australia. Envirosolutions was one of the approved providers of business-to-business logistics services for collecting and recycling waste on behalf of producers. In response to requests by ANZRP, a competing provider, the Australian regulator decided not to separate the categories of Computers and Televisions and to set combined recycling tonnage requirements. As the in-house expert on regulation, Green decides to bring this matter up with the Senior Director of Envirosolutions, Peter Bruce and the Operations and Compliance Manager, Mark Philips. Given the regulatory changes and the entry of a new provider, they need to analyse the regulatory and competitive environment to fine-tune their future strategy. With the initial success in Australia, DHL is also evaluating the feasibility of their success in product stewardship services in other Asian markets.
After a delayed shipment of flooring materials impeded Jeff Booth's ability to complete a construction project on schedule, he, along with cofounder Robert Banks, was determined to solve the inefficiency of the heavyweight building supply industry. They founded BuildDirect, an e-commerce company based on a sophisticated technology platform that optimized the shipment of home improvement products. Since its founding in 1999, BuildDirect faced several near-death strategic and economic challenges, including the fallout of 9/11 and the 2008 housing crisis. In spite of these challenges, Booth and Banks never wavered in prioritizing corporate culture over bottom line results. To guide effective employee actions and behaviors, three core values of honesty, integrity, and respect for others had been engrained into the company's DNA. Rituals such as daily "huddles" strengthened employee morale, increased emotional intelligence, and enhanced customer service. Company culture was a major competitive advantage; employees felt empowered to view the home improvement purchase process as an enriching experience, rather than as a mere transaction. In 2014, prospects looked promising. BuildDirect had raised CAD $30 million in Series B funding in a round led by Mohr Davidow Ventures. Headcount doubled in 2013, and was projected to double again in 2014. Customers enjoyed savings of up to 80% of retail prices. Booth and Banks were concerned, however, that continued rapid growth would threaten the culture that was so critical to their success. The cofounders needed to determine how to maintain this winning culture. What aspects of the company's daily operations needed to be changed, and which ones safeguarded at all costs?
Under the guidance and vision of founder Peter Munk, Barrick Gold Corporation had risen to become an industry leader and the world’s largest gold producer. The company had grown, mostly through mergers and acquisitions, from one single mine in Northern Ontario to 26 operating mines on five continents, with more than 20,000 employees worldwide. By 2013, however, weak gold prices, asset value writedowns and operational cost overruns have negatively affected the company’s stock price. Many attribute the company’s problems to Munk’s personality and his control over the board of directors. Munk has announced that he will retire in 2014 and will be replaced as chairman by his current co-chairman, John L. Thornton. How can Thornton effectively chair Barrick’s board in the wake of Munk’s legacy? Will his vision for the company conflict with Munk’s dream of turning it into an international diversified mining company? How much of a role will Munk play in the future given his level of informal power? Finally, what can Barrick do to lift itself out of an industry mired in volatility and financial uncertainty?
Bitcoin is part of a new wave of financial technology – or fintech – innovations. These innovations are disrupting the technical, highly regulated financial industry that has been dominated by large banks and other financial institutions.After three years of trading in relative obscurity, the emergence of bitcoin in 2013 as a viable cryptocurrency is promising both to open up new possibilities to entrepreneurs and incumbent firms and to pose challenges to regulators such as the U.S. Federal Reserve. Rising in value from just $0.05 in mid-2010 to over $1,000 by November 2013, bitcoin is to some people the 21st century version of Tulipmania and to others a viable alternative to fiat currencies. Bitcoin’s popularity has prompted the development of competing cryptocurrencies, the establishment of a foundation to promote its interests and the emergence of legitimate and grey market entrepreneurs looking to capitalize on the currency itself and its features. Its position as a currency concerns regulators around the world, and hackers have already exploited security gaps in service providers such as Mt. Gox, a bitcoin exchange platform, for their own benefit. Looking at recent developments, what will the future of bitcoin be?
Sudarshan Chemicals Industries is a top player in the Indian chemicals industry. This case traces the remodelling of its corporate social responsibility (CSR) initiative, both along scientific lines and aligned to its core business strategy. Faced with an informal and unstructured CSR initiative, the company uses an innovative method of problem-solving – crowd-sourcing ideas from a top business school in India. A team of students assesses the situation completely in order to make recommendations to the company’s top managers. The case details a process of scientific value-creation in CSR that can be adopted by companies as they make the transition from local to global.
In January 2013, the general manager of the Planning Division of the Bank of Maharashtra in Pune, India, is considering how best to analyze the performance of the bank’s 1,728 branches in 28 states and two union territories and its staff of nearly 14,000 people. Such a process would help develop a comprehensive yearly plan by setting realistic targets for each of the bank branches, which have a wide variety of operating conditions. With its market share falling and increasing competition from major players in both the private and public sectors, the bank must take proactive steps to develop a strategy for expansion. The general manager meets a business school graduate who suggests using performance evaluation and benchmarking tools that will not only help evaluate performance in terms of an efficiency score but also indicate possible potential improvements. Should the general manager trust that the young analyst can pinpoint why some branches are not meeting their targets and suggest how their performance can be improved, or should he hire a more experienced consultant?
Sudarshan Chemicals Industries is a top player in the Indian chemicals industry. This case traces the remodelling of its corporate social responsibility (CSR) initiative, both along scientific lines and aligned to its core business strategy. Faced with an informal and unstructured CSR initiative, the company uses an innovative method of problem-solving - crowd-sourcing ideas from a top business school in India. A team of students assesses the situation completely in order to make recommendations to the company's top managers. The case details a process of scientific value-creation in CSR that can be adopted by companies as they make the transition from local to global.