How do (and how should) governments design fiscal policies to compete in a globalized economy while meeting internal policy priorities including redistribution? In 2009, Governor Arnold Schwarzenegger repeatedly declared fiscal emergencies as California's state budget deficit reached all-time highs. The Governor and legislative leaders established the Commission on the Twenty-first Century Economy to recommend tax reforms that would improve the state's fiscal health and competitiveness. But when the Commission issued its recommendations, many of which were consistent with domestic and international trends in taxation, legislative leaders were highly critical and the prospects for reform dimmed. The case describes the political and economic contributors to California's persistent fiscal deficits and the reforms recommended by the Commission. It summarizes recent trends in taxation by U.S. states and OECD nations, relating the empirical trends to tax theory. Finally, it engages the issue of inter-jurisdictional tax competition from both positive and normative perspectives. Instructors may also obtain a Teaching Note, written by this case's author, that provides suggestions for using this case effectively in the classroom.

This supplement to Mustang Music (A), product #910E09, introduces students to data modeling, database implementation and database querying.

The case describes the strategic dilemma involved in making a decision on the method of operation of the corporate social responsibility (CSR) department for one of the leading Indian multinational corporations, Tata Power Company (TPC) from Tata Group of Companies. TPC had undertaken the CSR activities for decades, reflecting the company's commitment towards sustainable energy generation without undue compromise to human and environmental development. These activities were undertaken as a voluntary initiative by the employees of TPC, and there was no separate CSR department. However, with large scale expansion, the need to have CSR as a separate entity was felt. The dilemma for the decision manager was whether to create a separate CSR department or continue with the existing set up. Other related issues needed to be addressed strategically as well as tactically to maintain a balance between shareholders' interest and other stakeholders.

In 2008, the Byrraju Foundation, an organization that provides self-sustaining services in Indian villages, was operating more than 50 water purification plants in the rural Andhra Pradesh region. However, almost five years after the launch of the foundation's SWEET Water Project, less than half of the residents of its targeted villages were drinking Byrraju water on a regular basis. The need for purified water was clear: studies showed that 80 percent of the illnesses in Andhra Pradesh were caused by contaminated water. In this case, students develop a marketing strategy to raise the profile of the SWEET initiative, and increase its penetration rates among villagers.

As her boyfriend's birthday was fast approaching, Ashley struggled to make a decision on what mp3 player to buy him (Kade) as a gift. After failing to acquire her first desired choice, Ashley narrowed her selection down to two different mp3 models. Option A was to buy the Creative Zen Stone Plus, which was recommended by her boyfriend's best friend; a friend who knew Kade's personality and character very well. Ashley believed Kade's friend would be a good source to ask for recommendations, as he would have a better knowledge over Kade's interests and preferences. Option B was to buy the Rio Carbon 5, which was recommended by the salesman, who claimed to be an expert in mp3 players. She felt somewhat relieved hearing from an expert, as she did not know much about mp3 players. Given these two options, Ashley struggled to make a decision. Should she go with the suggestion offered by the friend? Or should she go with the suggestion offered by the expert? Should she go with her "interpersonal advisor" or the "expert advisor"? Ashley had to make the decision today, and she was running out of time.

"Sowing the Development of the Country" (SDC) was a public-private partnership between Wal-Mart Puerto Rico (Wal-Mart PR), the island's Department of Agriculture as well as its Economic Development Bank (EDB), two NGOs "Caborrojeños Pro Salud y Ambiente" (Caborrojeños Pro Health and Environment) and ConectaRSE (a corporate social responsibility (CSR) promotion non-governmental organization(NGO)), and a group of local farmers. The objective of the project was to promote sustainable development on the island by encouraging farmers to become entrepreneurs by developing small agro-businesses. Wal-Mart acted as the primary buyer. The project faced many challenges, such as farmers' difficulties in meeting quality standards and delivery schedules, the lack of an existing vehicle through which to access funding from the EDB, and, most importantly, changes in the political party in power. Project partners had to develope a position from which to negotiate a new alliance with the incoming government administration. Since Wal-Mart was determined to guarantee the continuity and expansion of the SDC project, Wal-Mart had to step into the project champion role. Students will be exposed to issues such as: 1) adapting a global company's international CSR strategies to local circumstances; 2) developing strategies to further local economic development through market forces and entrepreneurship; 3) evaluating the advantages and disadvantages of partnerships with governments and civil society; and 4) creating and managing a public-private partnership.

This note provides students with an explanation of the regulatory and tax framework for hedge funds vs. mutual funds in the U.S.

Fisk Alloy Wire was a privately-owned specialty wire mill with facilities in Hawthorne, NJ and Oriskany, NY. The business focused on the development and manufacture of copper alloy wire for electronic components and conductors. Fisk Alloy had developed a copper alloy wire that was cadmium free (cadmium was a known carcinogen affecting both processing and disposal), but also met the characteristics of strength, conductivity, and elongation that defined a high performance wire. The product family, called Percon, was introduced into the market about the time the European Union passed the Restriction of Hazardous Substances ('RoHS') and the related Waste Electrical and Electronic Equipment ('WEEE') directives. The total market potential for Percon was not really known, since it could potentially be used in a broad variety of applications. Fisk Alloy was determined to be the best in its niche of the industry, but not necessarily the biggest. Management recognized that determining how to grow, slowly and opportunistically or more aggressively, would require balancing the market opportunities with the realities of capacity and related production issues.

The "Drawbridge" is the short story of a baroness who, despite orders by her husband not to leave the castle, pays a servant so that she can leave the castle to visit a lover overnight. On her way back to the castle, she is killed by a madman after she unsuccessfully tried to get help from her lover, a boatman, and a friend. The half-page story has been circulating for more than three decades and is widely used for educational purposes throughout the world. Even though it is a classic, it has not been used as a case study in the context of management and leadership classes. It is available as a text version or comic strip.

Supplement for ES1041

This case describes Molten Metal Technology's beginnings and its new technologies, the impact of regulation on its business, environmental implications, the waste cleanup and disposal industry, and Molten Metal Technology's possibilities for future expansion amidst competition.

This case, the second in a series, describes Molten Metal Technology's problems that culminated in the company filing for Chapter 11 bankruptcy protection, including interactions between government, environmental concerns, and business.

In 2009 the management of Vale, a Brazilian diversified mining company and the largest iron ore producer in the world, was under pressure from at least two fronts. First, the emergence of China as the most important consumer of iron ore in the last few years had changed the pricing system for iron ore from long-term contracts based on negotiated "benchmark prices" to contracts based on spot prices, usually forcing mining companies to pay for shipping. Second, for Brazil's charismatic president, Lula, a former union leader, Vale's layoffs during the global financial crisis and its perceived move away from Brazil (as Vale increased its exports to China and purchased Chinese vessels to ship iron ore to Asia) were reasons to start an open campaign to pressure Vale and Agnelli to invest in integrated steel mills in Brazil. In October of 2009, the CEO of Vale, Roger Agnelli was going to meet with Lula and had to decide what to do to attenuate these political pressures. What could Agnelli do to deal with political pressures at home? Was the purchase of large vessels to ship iron ore to Asia a good decision at a time when the shipping industry had spare capacity?

By late 2009, Nokia was grappling with the decision of whether to recover its leading position in the high-profit developed markets, where they were losing market share to the likes of Apple and Samsung, or defend its market leadership in the low-margin, high-volume emerging markets. This case poses the following questions: Should Nokia stay the course, operating in both the developed and emerging markets, or should they forego one for the other? And what would this imply for the types of handsets and services they would need to offer?

Brett Barakett, CEO and founder of Tremblant Capital Group, a New York-based hedge fund, must decide what to do with his fund's position in Green Mountain Coffee Roasters, which has dropped in value by more than 40 percent in recent months. Tremblant is a hedge fund that specializes in forecasting consumer behavioral change, and capitalizes on the disconnect between stock prices and consumer behavior. In the case of Green Mountain Coffee, many other sophisticated investors have taken short positions in the stock, leading Barakett to question whether his fund had the right trade thesis.

This is the fourth in a 35-year series of HBS cases on an organization that has changed the rules of the game globally for an entire industry by offering both differentiated and low-price service. The focus of the case is on whether Southwest Airlines should buy gates and slots to initiate service to New York's LaGuardia airport, which does not fit the airline's profile for cost, ease of service, and other factors. The bigger issue is how the organization should deal with competition that has successfully emulated more and more of what it does in an operating environment that has changed significantly. Hence the subtitle, which was suggested by Herb Kelleher, Southwest's Chairman and CEO, Emeritus.

This case considers the viability of a momentum-oriented trading strategy in U.S. equities in 2006. The case, created for use in an investment course, provides both historical performance on the trading strategy and provides the universe of U.S. equity return data in which to execute a proposed strategy.

Protegra is a small company established in 1998 in Winnipeg, Manitoba. The company specializes in the area of computer software development and business performance consulting. Protegra features a unique organizational design, characterized by a lack of hierarchy and a collegial, professional culture centred on employee and customer values. Various information systems support Protegra's design. In the process of expanding into foreign markets and enlarging staff, Protegra has been concerned with preserving its way.

<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Association of African Business Schools (AABS)/EMERALD case competition</strong></p><br>In early 2005, South African company Tiger Wheels Limited (Tiger) had established a global footprint in the manufacture of aluminum alloy wheels with customers comprising several high-end automotive producers. It was the 10th largest alloy wheel company in the world with a solid balance sheet and net current assets of $42 million. Tiger had a chance to expand and grow with the potential purchase of a new world-class alloy wheel facility in Kentucky, United States for half of its estimated value. The Kentucky plant came with a significant long-term Ford contract to supply aluminum wheels at attractive prices. To Tiger's chairman, it seemed an attractive offer, but the pros and cons of purchasing the plant would have to be carefully evaluated by the board of directors. An African Tiger Case A is a part of An African Tiger case series, which includes A and B cases.

<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Association of African Business Schools (AABS)/EMERALD case competition</strong></p><br>In January 2007, Tiger Wheels (Tiger) and ATS informed its lead banker in Germany that it was forecasting a breach of its covenants, just 18 months after acquiring the Kentucky wheel plant. This was a critical matter and, as a result, the top management at Tiger was intimately involved in the deliberations. ATS had borrowed from a consortium of European banks to fund its growth. The borrowings were covenant driven and not set against any ATS assets. Under the loan agreement, the banks had the right to call in the loan if ATS were to breach one or more of the three covenants. The aim of the top management of Tiger and ATS was to win the confidence of the banking consortium by presenting a comprehensive strategy, including an action plan, which would restore ATS's financial health and make it compliant with its covenants once again. An African Tiger Case B is a part of An African Tiger case series, which includes A and B cases. The case series can be taught in the main strategy course of an MBA program to focus the discussion on the portfolio of competences within the resource-based view of the firm. The cases are also ideal for teaching an elective course on global strategy in MBA and executive programs. Ideally, case A and case B should be used in sequence over two sessions. In programs with time constraints, instructors could choose to use only case B as the case clearly brings out the issues of country differences and difficulties in transferring competences. In such situations, the instructor can distribute the summary of the case A from the teaching note along with case B. The important learning themes are: 1) the challenges in recognizing and developing new competences, 2) the limits of the control and influence of the majority owner in the execution of strategy, when the key competences reside with the minority shareholder and 3) the relationship between corporate response, managerial cognition, monitoring and divisional operations in a large company.