Covers the first international nonperforming loan securitization done in Korea. The CEO of KAMCO is trying to dispose of a portfolio of nonperforming commercial loans that the organization acquired from a number of banks. A group of investment bankers have proposed securitizing the loans and selling them to institutional investors. Securitization of loans (or any other type of assets) is not common in Korea, so the CEO must think through several factors as he decides whether to accept this proposal, the most important of which is the recovery price.
Examines the start-up process of a new, small high school inside the New York City public school system, with funding from the Bill and Melinda Gates Foundation. Covers the entrepreneurial process, the specific performance challenges in public high schools in the United States, and the quest for sustainability in a new enterprise. Also addresses the small high school movement in the United States.
The president of Loblaw Companies Limited must decide what to do in response to the rumoured introduction of Wal-Mart's SuperCenters (combining grocery and non-food items) in Canada. The potential launch of SuperCenters in Canada was seen by observers as a threat to Loblaw, the market leader in Canadian grocery. Wal-Mart is a vigorous competitor, and the Every Day Low Prices strategy of Wal-Mart's SuperCenters could wean away traffic from Loblaw's various banners.
The president and chief executive officer of Progistix-Solutions Inc. has asked an analyst to prepare an annual review of the Xerox Critical Parts Network for presentation to management in two weeks. The president expected the analyst to review the performance of the network and establish an improvement plan for the coming year, supported by specific goals and objectives. Although Xerox and Progistix had been satisfied with their relationship, after five years, both parties were interested in exploring ways to improve the network, particularly as competitors adopted similar approaches. In preparation for the meeting, the analyst wanted to explore opportunities in three specific areas. First, identify opportunities to improve depot operations. Second, he believed that opportunities existed to make additional improvements in the area of inventory management and he wondered how and where Progistix could work together with Xerox on such an initiative. Third, was to improve system-wide inventory turn performance by re-examining the cut-off point for filling the technicians' trunks with inventory. This case provides an opportunity for students to analyse a rapid-response supply chain and make recommendations for improvements. Class discussion can include issues related to supply chain partnerships, outsourcing, inventory management and demand forecasting. Data provided in the case allow students to develop implementation plans and set specific performance targets.
A junior process engineer at Pharma Laboratories in Cambridge, Ontario, prepares a report to recommend increasing the output of the manufacturing line that produces the drug Allegex. The increase would allow manufacture of the product to be transferred from a plant in the United States to the Cambridge facility. In addition to evaluating the financial viability of her proposal, the engineer must consider related qualitative issues.
By the end of 2002, Qwest Communications Inc., a major U.S. communications company, was reaching a precarious level of illiquidity in the face of huge debts. To reduce that debt, Qwest offered its institutional investors a chance to exchange some unsecured bonds for new senior-subordinated secured notes. But bondholders had no reliable data on Qwest's financials, and there is a two-day deadline for accepting Qwest's offer. See also the B case (UV3889).
By the end of 2002, Qwest Communications Inc., a major U.S. communications company, was reaching a precarious level of illiquidity in the face of huge debts. To reduce that debt, Qwest offered its institutional investors a chance to exchange some unsecured bonds for new senior-subordinated secured notes. But bondholders had no reliable data on Qwest's financials, and there is a two-day deadline for accepting Qwest's offer. See also the B case (UV3889).
Describes four disguised deals with different characteristics from the perspective of the acquirer. Asks students to compare, contrast, and rank the opportunities.
Distills the negotiation advice of more than a dozen general books on negotiation. Compares and contrasts specific prescriptions and organizes the books into five loose categories: win-win or mutual gains negotiation, negotiation analysis, relational negotiation, negotiation in context, and the school of hard knocks. An appendix provides a more extensive bibliography.
Explores the predicament Louis Vuitton Moet Hennessy (LVMH), one of the world's leading luxury products makers, faces with respect to brand management while expanding operations in China. LVMH, a $13 billion group of companies with operations across the world--1,500 retail stores in about 60 countries--had conquered the luxury goods market successfully in Europe, the United States, and some parts of Asia. In the early 1990s, LVMH decided to expand its operations in China and South Korea. A decade later, LVMH made its entry into India. In 2004, Asia accounted for about 40% of the sales of LVMH. LVMH is determined to capture the growing Asian market. However, it faces several challenges in its expansion plans in Asia; one of its major concerns is protecting its brand against dilution. Although China is a huge market, phony branding is endemic there. In addition, LVMH's expansion plans in Asia introduced the issue of private ownership vs. franchising with regard to the profitability of companies in the luxury goods industry.
In 2000, Xerox faces bankruptcy amid a liquidity crisis, collapsed profitability, and an expanding SEC investigation. Traces the career and leadership development of Anne Mulcahy, a former sales executive unexpectedly named COO of the beleaguered company as a last effort to turn Xerox around. Describes how Mulcahy assembles and motivates her team, frames her priorities, and fills her knowledge gaps in the face of critics doubtful of Xerox's ability to change. Raises questions in her mind about stakeholder priorities, employee motivation, difficult strategic trade-offs, and finding profitability while trying to avoid bankruptcy.
Harvard Real Estate Services executives need to design the 2005 Graduate Student Housing Survey for maximum impact in anticipation of Harvard's long-term expansion project in Allston. Students are challenged to help executives in charge to (1) draw the lessons from their earlier survey experience: what survey data had most--or least--impact and why? and (2) imagine what survey data--accounting for the power and limits of survey research--could be most useful for the Allston initiative. Provides a complete template for survey research, while at the same time raises critical issues--technical issues as well as more managerial questions related to the proactive management of market research in organizations.
Mars Inc., one of the world's largest privately owned businesses, purchased over $4 billion of materials annually and was aware that many major firms were achieving savings of around 5% through the use of online procurement auctions. The vice-president for business solutions at Mars wondered whether it was possible to design an online auction to meet the special needs of Mars while enabling Mars to achieve the savings necessary to allow the company to prosper and grow in its highly competitive markets.
In 1996, Gillette acquired Duracell for $7.3 billion in stock. The purchase was met with optimism not only by Gillette's senior management and its highly visible director, Warren Buffet, but also Wall Street analysts. Highlights the numerous challenges that Gillette has encountered since the acquisition. Despite the initial enthusiasm, Duracell has proven to be a drain on Gillette's earnings and has cost Michael Hawley, James Kilt's predecessor as CEO, his job after only 18 months in the position--in large part for his inability to turn around the financial hemorrhaging at the Duracell division. The key strategy questions revolve around what can be done to turn around the battery business to help it achieve the potential for Gillette that everyone had assumed it possessed.
After successful litigation against tobacco companies, a handful of lawyers turned their attention to the fast food industry and its possible connection to obesity. McDonald's was a prime target. Details McDonald's response to the litigation and the question of its role in the rise of obesity in the United States. Study questions guide students in analyzing both the market and nonmarket strategies that McDonald's employed.