VaporLock was a proprietary coating sold by Heinrich Chemical as a vapor barrier over polyurethane insulation on oil/chemical storage tanks. A company engineer had developed a computer program to compute the energy savings and economics of tank insulation projects. The marketing director wondered how this computer program might be used to help sell VaporLock. This case is one in a series of four cases on value-based selling. The (B) case provides the value mapping and value proposition.
VaporLock was a proprietary coating sold by Heinrich Chemical as a vapor barrier over polyurethane insulation on oil/chemical storage tanks. A company engineer had developed a computer program to compute the energy savings and economics of tank insulation projects. The marketing director wondered how this computer program might be used to help sell VaporLock. This case is one in a series of four cases on value-based selling. The (B) case provides the value mapping and value proposition. The (A) case provides the background.
Barbara Ladao was the chief executive officer of the Neighborhood Health Clinic (NHC), a nonprofit health center located in an ethnically diverse, underserved, and complicated community. At the time, the interpersonal dynamics within the clinic had started to interfere with the ability of Ladao's staff to work effectively and efficiently together. Worse yet, she was concerned that the dysfunctional behavior (which had created a racial divide among employees) was starting to affect the clinic's patients, and ultimately could impact NHC's ability to continue expanding, raising funds, and meeting the needs of the community on a long-term basis. The "A" case explores the history, demographics, and tensions in the external environment and the impact they have on clinic operations (e.g., hiring, staff management, interpersonal relations). The "B" case evaluates specific challenges within the clinic related to language, work ethic, and discipline. The "C" case describes what course of action Ladao and her team took, the strengths of their approach, and the challenges/opportunities that still required attention at NHC.
In addition to spas, theme parks, and palm beaches, health care tourism is emerging as a growing source of revenue in tourist destinations in Asia. Thailand, Singapore, Malaysia, and India have identified health care tourism as one of the fastest growing segments in their respective tourist markets and are launching aggressive marketing plans for the next few years. The target markets are customers from developed countries, mostly from Europe, North America, and Japan, with over-crowded and expensive medical services at home. As part of the health care package, customers receive the bonus of vacationing and sightseeing in a foreign country and an exotic culture. Provides a survey of the development of health care tourism in select Asian countries. Emphasizes the marketing efforts employed by the various countries in positioning their services and developing this promising market segment. Compares and contrasts the respective roles of the public and private sectors and highlights issues and challenges for other countries in their destination marketing efforts.
A venture capitalist must decide among three highly qualified candidates to be CEO of a start-up software company. Each has unique strengths and weaknesses and will take the company in very different directions. Whom should he recommend to the board?
Can a short-sleeved, sandal-wearing, college dropout create a company manifesting love, joy, and happiness? Chainsaw John Mackey did. This CEO took a five-month sabbatical to hike the Appalachian Trail. More credentials: Sales-per-square foot of $690 and rising. Hiring by means of teams and a vote requiring a two-thirds majority. A single store in Austin, Texas in 1980; 144 stores in 2004. A seven-year streak near the top of Fortune's list of best companies to work for in America. Team-based hiring with a two-thirds majority required. Incentives based on the bottom line. Morale surveys. No salary higher than eight times the average salary. So how did John Mackey come to be christened Chainsaw John Mackey?
Highlights how word-of-mouth is crucial in the acquisition of new customers. Specifically, it shows the existence of both internal (to the firm) and external markets for customer leads.
Corey Robinson is promoted to a new position at Sprint during a time of much internal change within the company. Asks readers to consider how he sets the tone to his new management team and how effective he is in building credibility in his new leadership role. A rewritten version of an earlier case.
MAS is an apparel supplier to the world's leading brands. Beginning January 2005, a quota-free international textile trade regime will replace country-specific textile quotas for goods entering WTO member states. Small apparel manufacturers are not expected to survive - Chinese firms could corner as much as 50% of the worldwide market. The case looks at how MAS should be organized to best meet customer demands in a rapidly changing, fashion-driven industry where both speed and flexibility in operations are critical to success. How vertically integrated should MAS become? Should it invest in building a retail brand? Or should it go downstream and bring raw material suppliers in-house? Or instead focus on configuring its supply chain to optimize its existing business processes? How should MAS manage and deploy its IT systems to improve knowledge sharing and information management capabilities across the organization, and perhaps strive for a competitive edge?
This note covers several frequently used methods to value early-stage companies and discusses some of the issues and difficulties encountered more generally in valuing privately held assets. The basic assumptions underlying the venture capital and the discounted cash flow methods of valuation are discussed in detail. In addition, the note attempts to provide some direction in making the appropriate trade-offs between the guidance provided by financial theory and the practical limitations posed by an illiquid asset class. A numerical example is given to highlight the key differences between the techniques.
In August 2002, the French retail giant Carrefour S.A. was considering alternative currencies for raising (euro) EUR750 million in the Eurobond market. Carrefour's investment bankers believed that the bonds can be issued at 5.25% in euros, 5.375% in British pounds, 3.625% in Swiss francs, and 5.5% in U.S. dollars. Despite the high nominal coupon rate and the lack of any material business activity in the United Kingdom, the British-pound issue appears to provide the lowest cost of funds. This case was designed to introduce topics in international finance such as interest-rate parity, currency risk management, and the Eurobond market. Students are tasked with exploring why forward-currency exchange rates vary from spot rates and proposing a Eurobond financing strategy for Carrefour.
The worldwide Severe Acute Respiratory Syndrome (SARS) epidemic could be traced back to an outbreak of atypical pneumonia in Guangdong Province, China in late 2002. In February 2003, this disease spread to Hong Kong with devastating results. Of the 1,755 people who were infected, 299 died. The senior management at Hong Kong's Queen Mary Hospital managed the SARS crisis by adopting effective infection control measures. They also implemented strategies in gaining employees' trust and co-operation amidst a growing public hysteria caused by severe hospital outbreaks and rising death tolls. They showed wisdom, integrity, and strong leadership during the crisis management.
Furqan Nazeeri is looking to spin out a promising set of products and technologies from an established financial services firm. Designed as an exercise in negotiation. Includes material from the original business plan, and it is possible to simulate a negotiation around key issues involved in the spin-out: timing and financing, equity distribution, asset transfer, personnel transitions and roles of key players, customer retention, CEO selection, and new board formation.
Presents a comprehensive review of the valuation methods based on discounting cash flows or value creation metrics and shows, through simple example and a straightforward "how-to-do" framework, the perfect consistency and identity of their results under similar assumptions.
Describes a meeting of an executive team to discuss strategy for a company turnaround. The exercise is to construct a strategy map and Balanced Scorecard to capture the new strategy.
In March 2005, Mark Schneider, CEO of Fresenius, is considering the group's strategic and organizational future. The highly decentralized 7 billion euro German health care group is active in three different business units, with the largest, FMC AG, listed separately from the parent Fresenius AG and representing the lion's share of the company's revenue and profit. A decentralized approach had let the group units grow independently over the years, and Fresenius took pride in its adaptive, entrepreneurial spirit. Schneider, however, wonders whether the decentralized approach will allow the group to continue to grow in a coordinated and cost-conscious fashion. How should he combine the company's entrepreneurial and profit-oriented culture with any latent synergies in the existing organization? Although Fresenius looks healthy at the moment, Schneider knows that the company's future is tied to improved sales and profitability.