An entrepreneur has invented a device to make it easier for men's retailers to measure customers for made-to-measure suits, avoiding error and thereby improving the profit chain for the retailer. The entrepreneur is looking at ways to promote the device to middle- and upper-end men's retailers.
Hewlett-Packard hired a new chief executive officer in 1999 to lead them into the future. The company, despite a strong legacy of success, had been faltering since the late 1990s, with slow sales growth and declining profitability. Industry observers felt that HP was not responding appropriately to competitive threats in its server, printer and personal computer markets. Industry conditions were also worsening, suggesting hard times ahead. The CEO felt a dramatic move was required to improve HP's position in the market. An attempt to expand HP's IT services business through the acquisition of PriceWaterhouseCoopers was unsuccessful. The CEO was considering a merger between HP and Compaq. With the help of four role plays supplements, 9B04M085 - Hewlett-Packard: Sun Microsystems in 2001, 9B04M086 - Hewlett-Packard: Dell in 2001, 9B04M087 - Hewlett-Packard: IBM in 2001 and 9B04M088 - Hewlett-Packard: Lexmark in 2001, student groups take on the roles of competitors in various segments and plan their competitive strategy while Hewlett-Packard is dealing with the merger. The supplement 9B04M084 - Hewlett-Packard in 2004 concludes the Hewlett-Packard in 2001 case series.
This is a supplement to product 9B04M083, Hewlett-Packard in 2001, and details what happened to Hewlett-Packard between 2001 and 2004. This case concludes the Hewlett-Packard in 2001 case series, which together demonstrate the effects of competition in dynamic competitive situations.
The chief executive officer of Amtelecom Group Inc. must make a recommendation to the board of directors regarding the best way to sell its Amtelecom Communications subsidiary. AGI owns and operates ICS Courier, a national fixed-route courier business and Amtelecom Communications, a regional telecommunications, cable television and Internet business. Amtelecom Communication's capital requirements are not being satisfied because cash is being diverted to ICS Courier to cover its losses. As well, AGI's stock has been performing poorly. In order to alleviate these problems, the board has decided to sell off Amtelecom Communications. The three sales alternatives being considered are: selling to a strategic buyer, IPO via a common share offering and IPO via an income trust offering. This case can be used to teach students about valuation in a strategic setting, and provides an opportunity to apply sum of parts valuation to value a diversified firm, apply discounted cash flow, conduct a transactions analysis to determine the standalone value of a firms, and gain a basic understanding of income trusts.
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Oikos Sustainability Case Writing Competition</strong></p><br>Icelandic New Energy Company, a research and development consortium based in Reykjavik, Iceland, is considering what future direction to take. The two-person team has met their first major goal - the installation of the world's first commercial hydrogen filling station and the coordination of a public transport test project involving the operation of three hydrogen fuelled city buses. The company was founded with the overall objective of investigating the potential for eventually replacing the use of fossil fuels in Iceland with hydrogen-based fuels and creating the first hydrogen society in the world. Working towards the goal of self-sufficiency from fossil fuels, Icelandic New Energy Co was set up in 1999 by the consortium Vistorka and three major partners each contributing a part to the testing - Royal Dutch Shell (the refueling station), Norsk Hydro (the electrolysis technology to make the hydrogen) and DaimlerChrysler (fuel cell vehicles using hydrogen fuel). The shareholder agreement was established with the company's start in 1999 and is set to expire in 2005. With all of the major activities being outsourced and contracted, the team wondered how they could keep the company as a going concern and contribute to Iceland's transition to a hydrogen economy - a feat that could take more than 15 years.
The Bonita Bay Marina, founded 20 years ago by the Bonita Bay Group, established a reputation of high quality service delivery. According to the marina's manager, customers' high regard for their services was due to the organization's adherence to well-defined customer service philosophy known as the E5 Customer Service Philosophy. The manager must decide whether the benefits of pursuing a Clean Marina certification program would bolster the level of service quality and ultimately the reputation of Bonita Bay Group in the marketplace. Further evaluation of the current customer service program must be conducted to determine whether the clean marina certification would complement the existing E5 Customer Service Philosophy and create synergies that would enhance customer perceptions of their services as well as contribute to profit margins for years to come.
For General Motors (GM), the year 2004 brought a wide variety of new challenges that added to an already complex business environment. The industry structure was changing quickly. Demand and supply projections for motor vehicles had promised substantial increases in sales and profits, but suddenly the optimism faded. China's new membership in the World Trade Organization created expectations of a level playing field for foreign investors, but - at least in the short run - major barriers remained. Government intervention persisted, particularly the requirement of a joint venture partner, competition from government-owned assembly firms, and arbitrary rules such as sector-specific credit restrictions. Violation of intellectual property, with the copying of foreign automobile designs and false-branding of parts, was an ongoing threat. Also, inflation was increasing and the government was unsure whether and how to use monetary and fiscal policies. The government had purposely kept the renminbi undervalued for many years. Pressure was building for the government to change its foreign exchange rate policy, but a higher renminbi would suddenly decrease GM China's international competitiveness.
Three friends start a business together upon graduation from an MBA program. Two start full-time jobs while the third, Deland Jessop, works on the business. One year later, Jessop must decide whether to continue trying to develop the business or take a salaried position. The outstanding issue of equity among the partners also needs resolution. Students have the opportunity to evaluate the business opportunity, while also evaluating the pros and cons of going into business with friends.
With the hope of changing the way Canadians think about purchasing flowers, the owner of Bloom the Flower Company recognized the importance of the Wow! factor and the European florist model in her design of Bloom. Opened in 2002, the Toronto-based florist was continually stocked with a unique array of exotic, cut flowers for everyday purchase or individual or corporate events. Bloom's service delivery was based upon a friendly, welcoming and laid-back approach that focused on providing meaningful solutions to an individual's floral needs. Bloom's success had not gone unnoticed as several additional younger and hipper floral shops had been started in the area since Bloom opened. A number of business and service management issues have to be addressed in order for Bloom to grow.
For General Motors (GM), the year 2004 brought a wide variety of new challenges that added to an already complex business environment. The industry structure was changing quickly. Demand and supply projections for motor vehicles had promised substantial increases in sales and profits, but suddenly the optimism faded. China's new membership in the World Trade Organization created expectations of a level playing field for foreign investors, but - at least in the short run - major barriers remained. Government intervention persisted, particularly the requirement of a joint venture partner, competition from government-owned assembly firms, and arbitrary rules such as sector-specific credit restrictions. Violation of intellectual property, with the copying of foreign automobile designs and false-branding of parts, was an ongoing threat. Also, inflation was increasing and the government was unsure whether and how to use monetary and fiscal policies. The government had purposely kept the renminbi undervalued for many years. Pressure was building for the government to change its foreign exchange rate policy, but a higher renminbi would suddenly decrease GM China's international competitiveness.
Coastal Uniforms provides a cleaning service for work uniforms. In an effort to improve profitability, the company institutes a series of measures of increasingly questionable ethics, causing a downward spiral of the company's corporate culture and budget/incentive system. A sales representative for the company must decide if he should quit his job or consider legal action in response to the changes to the incentive program.
Discusses the bankruptcy reorganization process, with an emphasis on valuation and capital structure. Serves as the basis for a bankruptcy reorganization game that has been used for many years in Creating Value Through Corporate Restructuring, a second-year finance course. The game is played in Chapter 11, after previous efforts to complete an out-of-court restructuring failed. Students are divided into five claimholder groups--secured debt holders, unsecured senior debt holders, etc.--and these groups, under the supervision of a bankruptcy judge, must negotiate a satisfactory plan of reorganization or suffer significant incremental losses through liquidation. Provides the background information with respect to Delaware's history, prospects, and financial condition necessary to play the game. A rewritten version of an earlier case.
The Leveens started a high-end catalog business as a small home-based venture in 1987. It grew into a nationally recognized, $60 million company, offering products that ranged from unique pens and pencils to leather briefcases and fully furnished offices. In 1999, it reached saturation in the U.S. marketplace, and the owner-founders must consider new avenues of growth, including expansion of the catalog business into international markets; private labeling products for a large, national retailer; retailing in partnership with others; or retailing through company-owned, free-standing stores.
Capital One CEO and founder, Rich Fairbank, had much to be proud of both in terms of his and co-founder Nigel Morris' accomplishments and the accomplishments of Capital One. However, he and Morris didn't want to rest on their laurels. In 2000, they called a meeting with their senior managers to assess the company's strategy. Specifically, Fairbank wondered whether the company had executed on the optimal strategy throughout its history and whether the company's strategy was consistent, yet fluid and flexible, during changing times. Also, had the various functions optimally aligned with the company's strategy? Other financial companies imitated Capital One's successes. Fairbank wanted to ensure that the company remained ahead of the competition, while maintaining its culture of testing and innovation.
The investment-strategy decisions of a Darden Capital Management student-portfolio management team in 2004 are examined. Case materials allow students to estimate CAPM-based expected returns using market data. The case focuses on introducing the portfolio-allocation decision; exploring the relevance of various investment-risk metrics; developing the intuition of diversification, market risk, and the capital-asset-pricing model; building judgment on how to appropriately estimate the CAPM parameters using available market data; and discussing the fundamental concepts of market efficiency.