In 2007, Shai Agassi raised $200 million to launch Better Place. By deploying a network of charge spots, switch stations and systems that optimised the use of electric vehicles (EV), the company had the potential to become a major player in the transport industry. To succeed, however, it had to overcome major implementation challenges, among them the need to achieve a minimum level of standardisation for the interface between vehicles and the recharging grid, and the continuous need to finance its market expansion.
Throughout 2008 and into early 2009, the executive team of World Communications Corporation (WCC) became deeply involved in the examination of whether it should invest in a large production and distribution operation into Saudi Arabia. The Saudi Arabian economy has grown dramatically, thanks to rising oil prices and export revenues during 2008. In early 2009, Seth Thomas, the CEO of WCC, was faced with three potential alternatives. The first one was to risk building a manufacturing plant and distribution center in Saudi Arabia, and strengthen the company's competitive position abroad. The second alternative was to expand plant capacity at home and continue to export, as the company had done so successfully for years. The third alternative was to wait and delay both decisions because of the uncertainties caused by the global financial and economic crises in 2008. Whether Saudi Arabia could manage its economy to avoid the worldwide recession was an open debate, but preliminary data were encouraging. The case examines government regulations and treatment of foreign investment and the level of education of the labor force and educational system to support the growth of local executives and managers.
Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C case, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.
Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C case, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.
Transworld Auto Parts had to implement its new strategy flawlessly to survive the auto industry upheaval. The new CEO asked her leadership team to craft strategy maps and balanced scorecards to help each division implement their strategies.
Eden McCallum pioneered the network-based ("virtual") consulting firm model in the UK. Contracting freelance consultants on a per-project basis keeps overheads lean so that Eden McCallum's fees are a fraction of the big firms' rates. Their flexible, low-cost model has attracted top-notch corporate clients, resulting in steady double-digit annual growth in its first nine years. In January 2009, however, the global economic crisis has dramatically reshaped the competitive landscape and the founders must decide between pursuing their high-growth strategy versus retrenching - including cutting costs and pulling out of their first international expansion that they had launched the prior year. This case explores how the elements of a firm's innovative model reinforce each other and what happens when the environment changes.
Factors affecting decision-making about appropriate types of business entities are explored in the context of advising a prospective investor with particular emphasis on why LLCs are increasingly "go-to" entities. The potential effect of choice of organization on litigation outcomes is illustrated using the Delaware Chancery Court's decision in Fisk Ventures, LLC v. Segal, 2008 WL 1961156 (May 7, 2008) and the practical implications of the differences between unincorporated and corporate entities are highlighted.
As he nears graduation from the Stanford Graduate School of Business, Pat Smith is considering his career plans. He wants to be an entrepreneur, but he has no start-up idea of his own. He is interested in entrepreneurship through acquisition and, based on conversations with various entrepreneurs, is trying to decide which type of search fund is right for him: a traditional, or funded, search, a self-funded search, or a sponsored search. In addition, he has to decide whether to pursue an entrepreneurial endeavor immediately after graduation or later in his career.
In the 2006 election cycle, Dan Silver was challenging a popular 26-year incumbent for the U.S. congressional seat in Florida's 19th Congressional District. To win the election, Silver needed to find a way to relate to his voters on a personal level. Silver's campaign manager advised him to work with consulting firm KNP Communications. Over the course of a few sessions, Silver worked with the KNP team to learn techniques that would help him project warmth and authenticity. On election night, Silver wondered if KNP's training had allowed him to successfully connect with his voters, and more importantly, if this personal connection mattered more to voters than his competence and skills. Some information in this case has been disguised.
Hong Kong-based Li & Fung Group was a trading company renowned for skillful management of its supply chain. The bulk of its business came from the trading of soft goods, which comprised garments and apparel, with the remainder consisting of hard goods such as furniture, fireworks and promotional items. Its major market was the US, followed by Europe, which contributed about one-quarter of its turnover. With the global economic downturn in 2009 following the collapse of the American housing and credit markets, and with the fashion industry expected to be severely affected, how could Li & Fung continue to grow its business and achieve the target of doubling its turnover to US$20 billion for the period 2008-2010?
Through its uniquely proactive approach to medical malpractice risk management, the Risk Management Foundation has decreased claims-and premiums-for the Harvard hospitals it insures. The RMF is the captive medico-legal insurer of the Harvard medical institutions and affiliated physicians. Over the last two decades, through a combination of active legal defense and medical error prevention, The RMF has successfully controlled the medico-legal costs of physicians practicing at the Harvard teaching hospitals; consequently, its insured physicians pay notably lower premiums than similar specialists outside the Harvard system. The RMF's success has been due, in large part, to the close working relationships it has cultivated with the insured physicians and hospitals. However, as the hospitals expand their networks into Boston's suburbs, new, less tightly affiliated doctors whose medico-legal risk is higher than those practicing at the hospitals are coming under RMF's umbrella. This case describes The RMF's approach to risk management and the challenges its managers face in accommodating these new physicians.
Suntech, a Chinese manufacturer of photovoltaic cells and solar panels, is the third largest solar company in the world. About 90 percent of its sales have been in Europe-especially Germany and Spain. But with its new "pluto" technology, and with new governmental subsidies in China, Japan and the USA, Suntech is shifting its focus-first to the USA, and then to China and Japan. And it has recently moved down-stream in the USA, into systems integration and independent power. The case reviews the structure of competition in solar power, and evaluates Suntech's new strategy.
This case describes a critical inflection point in the growth of an international development "mentor capitalist" nonprofit, Endeavor. As Endeavor aims to scale its high-impact entrepreneurship model globally, founder Linda Rottenberg must determine what success looks like for the organization and which growth option will most effectively take Endeavor in that direction. The case begins with a panel of business leaders selecting a new class of Jordanian entrepreneurs to join the ranks of Endeavor's prestigious portfolio. Their decision forces them to wrestle with the questions: "What is high impact entrepreneurship, and how will it contribute to the economic development of a country like Jordan?"
A retail chain specializing in industrial equipment and supplies to commercial contractors is a victim of commercial crime, which has placed the business on the brink of financial collapse. A regional accounting firm has been contracted to investigate the nature of the crimes and make recommendations on what should be done. This case provides students with an introduction to the topics of commercial crime, forensic accounting, bankruptcy and financial statement analysis.
A graduate of a business school must consider two options available to him with similar salary packages. The first is to accept an offer to start as an assistant marketing manager with a consumer packaged goods firm, the other is a consulting assignment with a small tool & die firm. The case provides students the opportunity to value different benefits based on their risk tolerance and career aspirations.
Bp's green re-branding efforts began officially with the unveiling of its new bp Helios mark, named after the Greek sun god. The new logo did away with 70 years of corporate branding, replacing the bp shield, long associated in consumers' minds with the strength of British imperialism. The Helios mark cost US$7 million to develop and was forecast to cost the company another US$100 million a year to integrate into marketing and operations over the next two years. At the logo's unveiling, the company's chief executive officer directed attention to the company's recent purchase of the solar energy company Solarex, an acquisition that made bp the world's largest solar energy company. The unveiling of the Helios logo was a formalization of a re-branding strategy that had begun to emerge the year before with the CEO's announcement that 200 new bp sites around the world would be powered in part by solar energy, through solar panels placed on the roofs of gas pumps, and his commitment to reducing bp's own carbon dioxide emissions by 10 per cent by the year 2010. From the start, however, environmental groups heaped scorn on bp's green re-branding. Greenpeace gave the company its Greenhouse Greenwash Award, given to the largest "corporate climate culprit" on earth.
A group of four friends, all married men and in their late 20s, meet for coffee in a major city. One of the men has received a job application from a young woman he considers to be a stellar candidate for his job opening. The discussion turns into a debate about the feasibility of hiring young women for professional and managerial positions, given that they become pregnant and go on maternity leave.