A vice-president of Ventures West, a leading Canadian venture capital firm, must decide what due diligence to conduct in order to recommend an investment in AudienceView, a company that provides software and services for the sports and entertainment ticketing markets. While the case is focused on due diligence, there is sufficient information to allow for a full venture capital investment analysis, including valuation and deal terms.
The chief financial officer (CFO) of Workbrain Corporation (Workbrain) must prepare a memo for the upcoming board of directors meeting. Workbrain, a venture-backed company, has grown substantially since its founding in November 1999. Now the CFO must communicate to the board whether it is time to consider an initial public offering (IPO) and, if so, in which exchange market the stock should be offered. The company must also consider what financing alternatives are available (including maintaining the current venture financing arrangement) and whether the company needs to raise money at all. The CFO is thinking about the memo, knowing that his words will have considerable impact on the company.
In February 1994, top officials from China and Singapore signed a landmark partnership agreement to develop a massive new industrial park and residential community in the city of Suzhou in China. The ambitious project, modeled after Singapore's highly successful industrial-residential parks, would provide not only jobs for hundreds of thousands of people, but homes and community facilities as well. The agreement between the partners also called for a "software transfer," in which Singapore would share its highly-touted expertise in managing economic development with its Chinese partners. The China-Singapore Suzhou Industrial Park (CS-SIP) enjoyed the support of the highest levels of government in both nations. But the joint venture soon foundered, as CS-SIP ran into problems and fell short of its goals. The harmonious partnership between likeminded nations that their leaders envisioned did not materialize. Singaporeans accused local authorities of undermining the project, while Suzhou officials criticized the Singaporeans for taking their complaints to Beijing instead of dealing directly with them. After five years of disappointing results, Singapore pulled back from CS-SIP, dramatically reducing its share in the partnership. This case tells the story of CS-SIP in two parts: Part A describes the project and outlines the hopes both nations invested in it, as well as the potential snags that could derail it; Part B details the problems that led to a falling out between the partners. Both parts can be assigned together, or Part B can serve as a sequel to be read after classroom discussion of Part A. The case is suited for discussion of international development issues, in particular, the difficulties of doing institutional transfers across national boundaries. HKS Case Number 1859.0
In February 1994, top officials from China and Singapore signed a landmark partnership agreement to develop a massive new industrial park and residential community in the city of Suzhou in China. The ambitious project, modeled after Singapore's highly successful industrial-residential parks, would provide not only jobs for hundreds of thousands of people, but homes and community facilities as well. The agreement between the partners also called for a "software transfer," in which Singapore would share its highly-touted expertise in managing economic development with its Chinese partners. The China-Singapore Suzhou Industrial Park (CS-SIP) enjoyed the support of the highest levels of government in both nations. But the joint venture soon foundered, as CS-SIP ran into problems and fell short of its goals. The harmonious partnership between likeminded nations that their leaders envisioned did not materialize. Singaporeans accused local authorities of undermining the project, while Suzhou officials criticized the Singaporeans for taking their complaints to Beijing instead of dealing directly with them. After five years of disappointing results, Singapore pulled back from CS-SIP, dramatically reducing its share in the partnership. This case tells the story of CS-SIP in two parts: Part A describes the project and outlines the hopes both nations invested in it, as well as the potential snags that could derail it; Part B details the problems that led to a falling out between the partners. Both parts can be assigned together, or Part B can serve as a sequel to be read after classroom discussion of Part A. The case is suited for discussion of international development issues, in particular, the difficulties of doing institutional transfers across national boundaries. HKS Case Number 1860.0
The collapse of Procomp Informatics Ltd, a major Taiwanese chipmaker, has been regarded by Taiwan's market watchdogs as similar to the scandal of the U.S. energy giant Enron in 2001. In June 2004, Procomp defaulted on a bond payment and structured for bankruptcy, despite a huge cash balance recorded in its books. It was discovered that the company's executives and its overseas sales agents had colluded in overstating sales revenue, manipulating stock prices, illegally leveraging assets, and arranging bonds through paper companies. The incident left thousands of company shareholders with massive financial losses. Raises concerns about corporate governance and risk management of public companies in Taiwan, and calls into question the credibility of the financial reporting process, companies' internal controls, and corporate ethics in the Asian context.
This case was written as an exam case for first-year course, Global Economies and Markets. It is written as a comprehensive case that examine the policy choices facing a small open economy in an increasingly globalizing world. It can be used in a course on open economy macroeconomics or on international finance. Late in the day on December 18, 2006, the Bank of Thailand (BOT), the country's central bank, announced that effective the next day it would impose a 30% unremunerated reserve requirement (URR) on short-term capital inflows. The capital control measure required financial institutions to withhold in reserve accounts 30% of capital inflows that exceeded USD20,000 for a period of one year. The restriction on capital inflows represented a significant escalation of Thailand's battle to stop the appreciation of its official currency, the baht (THB). On December 19, the Stock Exchange of Thailand (SET) composite index dropped by a record 14.84%, wiping out THB800 billion or USD22 billion of market capitalization. The sell-off affected regional stock markets as well, with Jakarta (Indonesia) down 2.85%; Kuala Lumpur (Malaysia) down 2%; and Singapore down 2.23%. In the foreign exchange market, the baht lost 2% of its value against the U.S. dollar to settle at about THB36 to the dollar. The large foreign capital inflows and the resulting appreciation of the Thai baht had culminated in the decision by the interim government to impose capital controls. The dramatic reactions in the financial markets, however, had prompted Thai policymakers to reevaluate the situation and to consider policy options for 2007.
This is a short case (2 pages), which can be distributed and discussed in class as an update through 2006 of the Nike case series. It follows Nike, Inc.: Entering the Millennium (Case #299-084).
Dr. Jack Perry, a sole practitioner dentist in a small town in Ontario, had a meeting with one of his employees who suggested that there were several problems in the office. These include: low morale, lack of motivation to grow the business, fill cancellations, follow up on collections, and engage in cross-sell procedures. He had noticed these problems previously but felt unsure about his personnel and business management skills. Using his notes from a presentation made by a business consultant at a dental conference, he must decide how to act in order to address these problems.
Splash Corporation has been dubbed "the next Unilever"--not bad for a consumer packaged goods company that was started in a garage in the Philippines no more than 20 years ago. As one of the largest consumer packaged goods companies in the Philippines, it is now considering international expansion options. Should the company tackle the nearby markets of Indonesia and Malaysia, or should it look farther afield at the lucrative markets of Europe and North America? The company is not short of ambition but resources are scarce.
As the smallest of 4 partners in a unique wireless telephony venture in Bangladesh that he initiated and helped grow, Iqbal Quadir is trying to acquire a larger stake in the venture when one of the partners wants to sell his shares. However, Quadir faces stiff resistance from the other two partners, who also want to acquire the shares.
Based in Charlotte, North Carolina, American Colonial Heritage, Inc. (ACH) was a top 10 U.S. furniture manufacturer focused on the upper end of the indoor home furniture market. The head of the International Division had just asked Alexandra Jones to join the International Expansion Team. Jones had joined ACH almost a year earlier after graduating from a top business school. She worked in the International Business Division on several projects related to the company's limited sales abroad, primarily to Canada. During those first months at headquarters, she learned the basics of ACH's operations, both in the U.S. and its limited business abroad. She followed the company's initial discussions about international expansion and expressed her interest in getting involved in the project as soon as it started. Details what Jones needed to consider and how she approached her first assignment--to recommend the country into which ACH should expand first. (Note: The company, characters, and quotations, unless otherwise stated, are fictional and were created by its authors. No reference is intended to any person.)
Gives a thorough overview of the furniture market, focusing primarily on the American market; provides a general background, starting with market size, industry organization, and trends; and discusses manufacturers, production and value chain, and sales and distribution. Concludes with a future outlook and small sections on the European and Asian furniture markets.
The president of a national placement agency is preparing to make a final pitch to sign Greyhound Canada as a client. Greyhound wants to reposition its brand as a mainstream travel option, particularly for suburban commuters, and needs cost-effective ways to get its message to consumers. The company views product placement as a viable tool for building brand awareness, but worries about losing control over its brand image. Even more serious are concerns about the absence of reliable metrics to assess the overall effectiveness of product placement. The case covers fundamentals of product placement, particularly with respect to strengths and weaknesses, and provides an excellent basis for discussing its value as part of an overall marketing communications strategy.
Three young MBAs create a partnership to acquire the assets of Parmalat in Uruguay. Focuses on their analysis prior to submitting a bid and their plan for improving the operations once their bid is accepted. In addition to improving operations, they must negotiate with creditors to reduce the debt burden on the company.
Cherrypicks is a Hong Kong communications start-up approaching a large Korean mobile operator for a partnership to take the operator's products to markets outside of Korea. SK Telecom's (SKT) Ring Back Tones (RBT) product is a spectacular success in South Korea, but the partnership will require major changes in Cherrypicks' business model. Further complicating matters, SKT is also a strategic investor in Cherrypicks, a very large service provider focused on South Korea and China, and typically partners with Korean entrepreneurial firms. The Cherrypicks management team must decide how they should pitch the partnership opportunity to SKT and what their preferred deal structure would be.
A retail jeweler has relocated to a larger store and is experiencing losses for the first time. Sales and costs have increased along with the breakeven point. Changes in pricing and promotion must be explored. Alternative actions to return to profitability can be considered.
Partners in a service firm are reviewing results for 2006, wondering whether large or small projects are more profitable. Present reports make small projects look more profitable. However, activity-based accounting reveals that large projects are more profitable and that concentrating sales efforts on large projects offers potential for greater profit in a service firm.