Recently, the Indian Congress asked a distinguished committee of experts to analyze and make policy recommendations about India's Cooperative Financial Institutions (CFIs), which included organizations such as credit unions and cooperative banks. One committee member, Mohan R. Narayan, a leading economist at a prestigious Indian university, was enthusiastic about the job; it was an opportunity to help millions of rural poor and to have a positive effect on the country. Some poor farmers, deeply in debts to money-lenders, had been reported to resort to committing suicide when they faced with drought or other catastrophes and saw little reason to continue living. Well-functioning CFIs would certainly help restore hope and boost income for the rural poor. But he knew the system had a long history of overregulation, financial laxity, and corruption. Creating an actionable and clear strategy would be no easy task. The case, written at the invitation of the World Bank to study the challenges of building inclusive financial system in emerging countries, invites students to discuss 1) The roles and responsibilities of financial institutions in poverty-reduction and economic development, 2) the benefits and risks of using public versus private institutions to aid development, and more specifically, 3) the economics of credit cooperatives-in particular how they function in an emerging market setting.
The chief executive officer (CEO) of Fortune Motors, the largest Mitsubishi dealership in Taiwan, has to consider his vision for the survival of the company. Fortune Motors' sales in 2003 had fallen below 50,000 units for the first time in 10 years, and market share had been falling for several years. The CEO had a plan to enter the business of financing used-car purchases. He thought that the "balanced scorecard" would be a useful tool to help him implement this change. The first step was to construct a corporate scorecard.
Reacting to the 1973-4 Arab oil embargo, Congress enacted a Corporate Average Fuel Economy (CAFE) system in 1975 that required an increase in automobile fuel economy from 14.2 miles per gallon in 1974 to 27.5 mpg in 1984. Since that time, Congress had made no changes to CAFÉ, with efforts in 1990 and 2002 both failing. By 2007, however, circumstances had changed significantly enough that Congress was poised to enact a 40 percent increase in required fuel efficiency. Although the automobile industry had initially opposed any major increase, the seemingly inevitable increase convinced to industry to instead focus on details of the pending legislation and how to influence those details. This case explores the response of the auto industry to the pending fuel efficiency increases, setting up an evaluation of the industry's strategy to help craft the legislation.
In 2006, Citect Corporation, a publicly traded Australian software company, was the target of a takeover battle between a financial sponsor and a strategic buyer. Thoma Bravo, the US-based private equity firm, had to decide on its acquisition strategy in the face of competition from Schneider Electric, a large French multinational. The case allows for a thorough analysis of buyer types (financial vs. strategic), deal strategy and valuation. Among other topics covered in the case are the importance of due diligence, the potential for value creation by private equity firms through operational improvements, the use of footholds in deal strategy and the challenges of cross-border acquisitions.
Marc Fontaine, a new manager at a global manufacturing company, is on a fast-track to a senior managerial position. One morning, in a storage room, he discovers ornamental artifacts made with the same materials used for official production. He suspects workers have been making these items with company materials. At that moment, a worker enters the room to fetch a tool. Fontaine asks what is going on with these items, but the worker claims ignorance and quickly leaves. Fontaine is meeting his boss and the plant director that afternoon. What should he do? Say something? Pretend nothing happened? This case deals with group dynamics, informal behaviors, and ethics at work.
Founded by Priscilla and Raymond Lee and headed by chief executive officer Stephen Miller, Oasis Hong Kong Airlines was perhaps the world's first long-haul, low-cost carrier. The airline received approval to fly to London, Cologne, Berlin, Milan, Oakland and Chicago in November 2005. It announced its acquisition of two Boeing 747-400s in March 2006 and planned to start its maiden service to London Gatwick in October 2006. Aspiring to bring the best features of both traditional and budget airlines together, the airline pioneered a business model that offered a world-class, long-haul product at an affordable price, but it was too early to tell if the airline would be successful.
In the fall of 2001, officials of the National Energy Commission of Nicaragua were reviewing a pilot study of the options for electrification in three rural communities. Rural electrification was an important issue in Nicaragua since 40 percent of the population, mostly in rural areas, was without power. Many of those lived too far from the main high-voltage grid to be served easily with grid extensions. The consultants were recommending subsidizing mini-grids powered by small hydro plants to serve villages and individual solar power systems for isolated rural households. HKS Case Number 1705.3
This brief (B) case documents the fate of Mitsubishi and the shipping company NYK after the death of Yataro Iwasaki in 1885. The case supplements case 808-158, "Yataro Iwaski: Founding Mitsubishi (A)."
The Blue Bulls rugby team enjoyed a fanatical fan base and had been performing well in local and international competitions recently. As a leading South African rugby franchise, the Blue Bulls faced a social and political environment that emphasized racial transformation. An up-and-coming Afrikaans musician had become best-seller with his De La Rey song, which was about a Boer soldier who calls on General De La Rey to lead the Afrikaner people to victory in the second South Africa War between the Boer Republic and colonial Britain. Given the emotive theme of the song and the response by some to view it as a reassertion of Afrikaner nationalism, the song had attracted significant media coverage and controversy. As part of the entertainment at the Vodacom Super 14 rugby game between Western Force and the Vodacom Blue Bulls, De La Rey was played over the stadium loudspeakers. This delighted most of the mainly White Afrikaans spectators. As the evening progressed, the acting head of the Blue Bulls Company, the organization that managed the Blue Bulls rugby team and the Loftus Versveld stadium, received a number of complaints from supporters about the playing of the De La Rey song and thus decided to remove the song from the official stadium playlist. By Monday morning, a media frenzy had erupted about this decision and the acting head was faced with a number of options of how to respond. The case is written for a first-year MBA module and is designed to explore the following themes: 1) race, identity and language as consumer behaviour variables 2) spectator, supporter and consumer processes within sports marketing 3) sports brand development and sponsorship relationships.
The person responsible for global allocation for a large pension fund had been asked by the board of directors in April 2008 for an assessment on whether she thinks the dollar would appreciate or depreciate over the next five to ten years. She has heard mostly negative views about path of the dollar over the long term, and former Federal Reserve Chairman Alan Greenspan's suggestion that the Gulf States, and others, should de-link from the U.S. dollar as a way to contain inflationary pressures. Currently, the fund is 60% in dollar-based assets and 40% in foreign markets. The dollar's sharp decline against a broad array of currencies, central banks diversifying reserves away from dollars, and some OPEC members invoicing oil-sales currencies in other than dollars are discouraging news. She considers whether to increase the foreign weighting and, because the dollar has overshot its "long-term value," whether it is now more likely to appreciate than depreciate, and finally whether the fund should use the recent dollar pessimism as an opportunity to take profits on its foreign positions and increase the weighting on the now relatively cheap U.S. securities.
One of the few remaining producers of lead additives must decide whether to continue producing them for use abroad. Banned in the United States, lead additives were still legal in developing nations. Ellie Shannon, the division manager overseeing bromine production for the Indiana-based Great Lakes Chemical Corporation (Great Lakes), must advise Great Lakes' directors on whether the company should 1) continue production for the foreseeable future, while developing countries moved from leaded vehicles to unleaded vehicles; 2) wash its hands entirely and immediately of the lead additive business; or 3) aggressively phase out its participation in this marketplace, with a five-year deadline, while lobbying for developing nations to switch to unleaded gasoline. Each of the options had its downside, however, financially, operationally, and in terms of reputation. Great Lakes placed a great deal of importance in its shareholders' well-being and in remaining a viable company, but it also wanted to be-and to be seen as-a respectable corporate citizen.
Is "Fair Trade" really fair? This case examines the concept, history, and logistics of the Fair Trade movement, specifically for coffee. Fair Trade began as an attempt to ensure farmers received fair compensation for their crops and credit when needed. Fair Trade also provided opportunities to help coffee growers learn best practices and sustainable farming methods (minimal damage to the environment, for example). But Fair Trade had its critics, who claimed that ultimately the farmers did not benefit and that retailers charged more for Fair Trade products and pocketed the difference. This case examines these issues through the eyes of one coffee-drinker who has specifically chosen her caffeine venue because of the Fair Trade designation.
The law firm, Sloan & Harrison, was confronting issues pertaining to morale and turnover among its associate ranks. Annual surveys of associates revealed increasing dissatisfaction, particularly with respect to partner communication, work-life balance, and mentorship. The firm's leadership wondered: how legitimate were the associate concerns? What could and should be done to resolve them?
The law firm, Sloan & Harrison, was dealing with some discontent among its junior non-equity partners. These partners were concerned with the transparency of the advancement process, their ability to position themselves as both leaders within the firm and rainmakers, and the politics of promotion within the firm. The firm must find solutions to these challenges. Senior partners wondered: Was the path to partnership structured in the best interests of the firm? What could and should be done to address the non-equity partners' concerns? What were the ultimate effects of discontent within the NEP ranks upon the firm's functioning overall?
The Minister of Justice for the Republic of Iceland is contemplating how to work with the various stakeholders to implement the recommendations for the structure of policing. The main issue to address is how to consolidate the number of region-based police forces. The minister's views on restructuring the police force are shared by the police association; however, a number of municipalities and police commissioners are not as enthusiastic about the proposed changes to the structure of the police organization. He understands that change is never a pain-free process. Formal reports have been submitted and now is the time to make some decisions.
A major bankrupt retailer is poised to emerge from Chapter 11. Two activist hedge funds ("vulture investors") will own over 50% of reorganized Kmart's common stock, based on prior investments in Kmart's debt claims, and an infusion of new equity financing. The chapter 11 process has generated both costs and benefits for the company. Its future profitability, and the value of the reorganized business, are both highly uncertain.
The vice-president of marketing at Arts & Crafts was reflecting on the company's extremely successful year in the music business. New artists had been added to the company's roster, experiments with digital releases and marketing campaigns had been successful, and plenty of international licensing opportunities were emerging. In addition, one of the company's artists, Leslie Feist, had received multiple music awards. On the other hand, the music industry was facing some difficulties and most analysts predicted nothing but doom and gloom. The vice-president of marketing had to consider the future strategy of Arts & Crafts while considering the overall health of the industry.
On their return to Croatia following a six-year visit to the United States, a couple has decided to open their own coffee house, one that is new to Croatia — a California-style coffee house that offers the quality, service, product assortment, ambiance, and efficiency found in sophisticated coffee shops in developed markets, and all for a locally affordable price. The major challenge faced by the couple is how to grow. Specifically, should they consider franchising over organic growth? If so, how should they go about franchising in a country where the market is developing and where franchising is under-regulated, underdeveloped, and misunderstood?