Venture Valuation conducts an independent valuation of Genedata, a Swiss start-up company in order to help Novartis Venture Fund analyze and structure the next financing round. Venture Valuation, under a tight investment timeframe, has to customize the evaluation process, using both quantitative and qualitative data, to meet the customers needs. The case outlines Genedata's background, its product portfolio, competitive positioning, and issues that it will need to deal with in the near future. Learning Objective: This case is part of a three case series intended to draw the audience into the issues surrounding the valuation of a startup biotechnology company, one of the most speculative and volatile marketplace.
The owner of Runners' Choice, a running specialty store, must determine what changes to make to his marketing strategy in order to differentiate his business from that of his chief competitor, which has a similar name. Students perform a customer analysis, evaluate the existing promotional activities and product offerings of the two similar competing businesses to clearly position Runners' Choice relative to its competition.
The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or await results from the United States. Key strategic decisions include which target market to focus on and what value proposition to signal. Important questions are also raised as to how the new product should be branded, which flavors to offer, whether Kraft should use traditional distribution channels or direct-to-store delivery, and what forms of advertising and promotion to use. The case provides a basis for discussing consumer decision making, and stresses the importance of providing a clear incremental benefit when introducing a new product in an established category. It may be used independently or with the supplement, Kraft Foods: The Coffee Pod Launch (B).
Chip Wilson, founder of lululemon athletica, a Vancouver-based manufacturer, distributor and retailer of high quality yoga apparel, started a new streetwear line of apparel that would combine fashion with social consciousness. The apparel sold at OQOQO was made from natural and organic materials, under safe and fair working conditions, and it was produced in a way to reduce environmental impact. There were some problems regarding the sourcing of materials and the customer's perception of certain materials such as soy and hemp. Chip must decide whether to expand the number of OQOQO stores.
This is the second of two cases on Kraft Canada's entry into the single-serve coffee and hot beverage market. Kraft Foods: The Coffee Pod Launch (A) describes the initial situation facing the category manager, who must decide whether to launch a new line of coffee pods that Kraft plans to introduce shortly in the United States. The (B) case summarizes key elements of the marketing strategy, and the preliminary results. Students are then faced with the challenge of what to do next.
The owner and sole proprietor of a small clothing company has to plan a future marketing strategy. The company has not yet generated a profit from the seasonal store operation in Sauble Beach or from annual sales in two London, Ontario fitness clubs. This case will expose students to major marketing decisions involving product, price, promotion and place (distribution). It will also emphasize the importance of a thorough market analysis and corporate capabilities analysis before evaluating marketing alternatives and making decision. The case gives students practice calculating contribution and contribution margin rates and encourages students to develop a promotional strategy around a new method of distribution. Students also learn how to illustrate the use of a projected income statement, which will crystallize the student's marketing decisions.
Activplant is a software firm specializing in monitoring, measuring and analysing the performance of factory automation systems in London, Ontario, Canada. It is a pioneer of the industry, and has installations in most of the largest automobile manufacturing firms in North America as well as some clients in consumer goods. Activplant is considering the opportunity of expanding their business to include a much more aggressive sales and service approach in Europe. An entrance into Europe involves how both sales and service will be delivered to clients, which could be done through a number of different channels including: consulting partners, value-added resellers, a joint venture or fulltime Activplant staff. The case allows students to evaluate both the dollar costs and benefits of each choice as well as qualitative concerns like product quality and maintaining contact with customers.
The vice-president of human resources of the British Columbia Automobile Association (BCAA) had just concluded negotiating the first collective agreements for two separate bargaining units with the association's union, who represented about 25 per cent of BCAA's workforce. BCAA's senior management wanted to find a way to reconcile with its unionized employees while still carrying on with the biggest cultural change in the company's century-long history. They wondered how best to proceed. The case serves as a discussion vehicle for how companies can manage labor relations post-strike, while attempting to implement strategic change.
The co-founder of NEWAD, a media company, is considering expanding the company's scope of operations from traditional place-based postcard and board advertising to digital signage. Digital signage offers the opportunity to expand NEWAD's business. However, the co-founder wondered about the high fixed costs of entering this type of advertising business and how much the company would have to charge to turn a profit.
This case presents the situation faced by three people in the United States as they exit a restaurant in California. They are discussing whether tipping is a form of private sector corruption, similar to public sector corruption that pervades many countries worldwide. Discussion ensues on what constitutes corruption, and whether private and public sector corruption are required and ethical business practices.
Pharmaxis is a new biotechnology venture based in Sydney, Australia. The case brings to light the important stages in the growth of the company and the commercialization decisions the company faced. It also highlights both the uniqueness of some of the managing team's decisions and their understanding of the industry. The case underscores the point that good decision-making can overcome apparent barriers to growth. The company is now at a key decision point. It needs to determine the best approach to commercialize its first diagnostic product. The wrong decision could waste scarce financial resources, divert the time of managers and researchers, and jeopardize the reputation of the firm with potential investors.
Students are presented with the balance sheet, income statement, and selected footnotes from Berkshire Hathaway's 2004 annual report and are asked to respond to several questions regarding information in the materials. Questions center around the company's classification of its investments as held-to-maturity, available for sale, or trading securities and the effect of the accounting for the company's securities on its balance sheet and income statement. "Berkshire Hathaway-Intercorporate Investments (B)" (UV1026) can be used as a supplement to this case.
Since it was founded in 1988, Ping An Insurance has grown to become China's second largest life insurance underwriter and third largest property and casualty insurer. The company's ambition is to build on its local market success to become a leading regional and global integrated financial services provider within the next 10 years. The case focuses on strategy execution and illustrates how Ping An has developed and will continue to develop its business and information capabilities to meet existing and future customer needs. It examines the culture of the company and what it can and should do to drive its rapid growth through intense customer focus and market-based product innovations.
The role of distressed debt funds, also known as "vulture funds," in sovereign debt restructuring was a hotly debated topic, especially after the success of Elliot Associates in converting an $11 million investment in Peruvian bonds worth $21 million into a $58 million cash payout from the country, representing the full face value of the bonds plus past-due interest. Highlights the problems associated with debt restructuring coordination. On the one hand, many observers derided firms such as Elliot and Dart as "vultures" or "rouge creditors" who sought to profit on sovereign debt restructurings at the expense of countries suffering economic hardship and of the majority of bondholders whose cooperation allowed the restructurings to take place. Critics believed that these holdout creditors created "collective action problems" and presented a major obstacle to successful sovereign debt restructurings. On the other hand, other observers argued that activist investors actually improved the market overall by demonstrating the enforceability of contracts. In fact, they argued that creditors faced too many hurdles in collecting against countries after receiving favorable judgments in support of claims.
For more than 70 years, beginning in 1929, one party-the Party of Institutional Revolution, known by its Spanish initials PRI-dominated political life in Mexico, at all levels of government. But when Vicente Fox, a candidate of the rival National Action Party (PAN) won the presidency in 2000, change rippled through the country's overall political structure. This case tells the story of the emergence of competitive elections at the municipal level-in particular, one municipality emblematic of larger change. In describing the change in political life in Chignahuapan, a jurisdiction of some 50,000 in the Sierra Norte mountains northeast of Mexico City, the case frames the question of whether electoral change can lead to sustainable reform of local government. It is a question which arises when, surprisingly, a reform-minded PAN administration gains power in the locality in February 2002-and proceeds to change both administrative processes (opening meetings of the local Council for the first time) and moving generally toward transparency and improved local services. The reform administration, was, however, limited by law to just one term-thus, posing the central question of the case: in what ways can a reform administration seek to ensure that the changes it initiates will not be transitory? HKS Case Number 1841.0
For more than 70 years, beginning in 1929, one party-the Party of Institutional Revolution, known by its Spanish initials PRI-dominated political life in Mexico, at all levels of government. But when Vicente Fox, a candidate of the rival National Action Party (PAN) won the presidency in 2000, change rippled through the country's overall political structure. This case tells the story of the emergence of competitive elections at the municipal level-in particular, one municipality emblematic of larger change. In describing the change in political life in Chignahuapan, a jurisdiction of some 50,000 in the Sierra Norte mountains northeast of Mexico City, the case frames the question of whether electoral change can lead to sustainable reform of local government. It is a question which arises when, surprisingly, a reform-minded PAN administration gains power in the locality in February 2002-and proceeds to change both administrative processes (opening meetings of the local Council for the first time) and moving generally toward transparency and improved local services. The reform administration, was, however, limited by law to just one term-thus, posing the central question of the case: in what ways can a reform administration seek to ensure that the changes it initiates will not be transitory? HKS Case Number 1841.1
This case raises the question: How does a company reasonably estimate and record entries for uncollectible trade receivables, and under what circumstances are receivables written off as uncollectible? The required accounting transactions for the case involve estimating a receivables allowance both as a percentage of sales and as a percentage of accounts receivable and making specific account judgments under the direct write?off method. The subjective issues involve analyzing and assessing a company's methods of collection and accounting for bad debts.
Set in 2004, as Massachusetts Medical Device Industry Council (MassMEDIC) President Tom Sommer contemplates the future direction of a successful medical device cluster association. Focuses on the formation of cluster organizations and their roles and effectiveness, highlighting the importance of these organizations in enabling cross-cluster collaboration between firms, universities, regulators and other government officials, and other institutions. Details the events that led to the formation of MassMEDIC and the initial challenges the organization faced. Discusses the evolution of MassMEDIC's activities, from its formation in 1996 through 2004, and the views of different MassMEDIC stakeholders on the future direction of the organization. Provides detailed data about MassMEDIC and the Massachusetts medical device cluster to enable an evaluation of results and inform future direction.