Describes a set of decisions confronting some managers in the oral care division of Procter & Gamble. They must decide whether to buy a company that has developed an inexpensive, battery-operated toothbrush. The company's product has done well in one market, but determining an appropriate value and structure is challenging.
What price should Dow Chemical bid for PBB, a petrochemical complex that is being privatized by the Argentine government? To answer this question, students are forced to consider the role of country risk, the underlying currency exposure of the business, and how to value an investment opportunity that has several stages. Given that it is a privatization, students are also forced to consider the political dynamics involved, the incentives of local managers, and the bidding process of a privatization. The case provides detailed cash flows and discount rate information, allowing students to conduct a thorough valuation for an emerging markets project. To obtain executable spreadsheets (courseware), please contact our customer service department at [email protected].
The Brazilian oil company, Petrobras, is evaluating the acquisition of an Argentine oil company, the Perez Companc Group (Pecom). The acquisition would increase Petrobras' oil reserves and expand its interests outside Brazil, a significant step for the largest company in Brazil. Pecom is for sale because it has been severely affected by the financial crisis in Argentina. Students have the opportunity to assess the impact of a severe devaluation on a company. There is also considerable uncertainty about how to value Pecom, and students must weigh the importance of country risk in determining the appropriate discount rate to use in the valuation. Finally, there is also uncertainty about Petrobras's own future as the Brazilian government has controlled it. Students are allowed to review the efficacy of changes in corporate governance implemented by Petrobras, despite its ongoing link to the Brazilian state and the associated political uncertainties of that affiliation. Students will consider different methods of valuation and the impact of politics on cross-border acquisitions. To obtain executable spreadsheets (courseware), please contact our customer service department at [email protected].
In 2003, the owner of the Dallas Cowboys football team wanted to build a new stadium complex. The team's existing stadium was aging, and a new stadium offered enhanced revenue potential for one of the NFL's premier teams. The team wanted taxpayer assistance in financing the stadium, and the state legislature voted to put the matter to voters. Discusses the arguments for and against taxpayer financing of sports facilities and the economics of professional football teams. Raises the question of how the Cowboys can persuade the public to support the plan, as well as what alternatives the team should consider if voters reject the proposal.
This case presents the dilemma of a multinational oil and gas company, ExxonMobil, as it factors in the ethics issues related to the environment and cultural differences in deciding whether to proceed with building a pipeline in Chad and Cameroon, two of the poorest and most corrupt developing countries in West Africa. The many players in this project included the World Bank, which cofinanced the project and put restrictions into place that would hopefully prevent government corruption in both Chad and Cameroon and many environmental and human rights groups that warned of potential disaster. The case also covers the environmental and social analysis of the areas that would be affected by the pipeline.
Reviews Josie Esquivel's career history, detailing how, through her personal attributes, skills, experiences, and organizational practices she has developed into a star analyst. Should Esquivel accept an offer to leave Lehman Brothers for Morgan Stanley? To make this decision, Esquivel needs to reflect on what made her successful and to consider seriously what it would take to move her "franchise" to another company without compromising her performance as a star.
A shift in strategy from broadcasting standardized programs throughout its footprint to localized programming necessitates a review of STAR's organizational structure. Growing complexity and a need for local responsiveness point toward adoption of a country-based organizational structure. The question arises concerning the systems that must be in place if headquarters is truly to decentralize decision rights. The case also raises the issue of the need for senior executives at corporate to redefine their roles.
Describes key events in the start-up of Federal Express. Outlines the company's value proposition and provides an overview of key competitors in the air freight industry. This case is used with Teledesic (Abridged), HBS No. 9-804-096, which describes a failed project with a value proposition similar to Federal Express'. A revised version of an earlier case.
The managers of British business forum planner, Richmond Events, are struggling to expand their conference offerings into new territories. At the same time, they are trying to decide how product managers, who are critical to event success, should be hired, trained, managed, and retained. There is a philosophical disagreement between managers about how to take Richmond Events to the next level. Founder Mark Rayner wants to stay the course and give project managers as much autonomy as possible. He asserts that autonomy leads to priceless innovation and argues that normative controls will prevent product managers from going too far astray. Marketer Deborah Parkes wants to streamline the production process and build hierarchy into the system to promote consistent service quality. As management considers leveraging its service platform and expanding into Asia, these working tensions intensify.
Describes the history of General Motor's attempts to develop a hydrogen fuel-cell powered car. As of 2003, GM developed several prototypes of such a vehicle to demonstrate the viability of the overall concept. Many uncertainties remained, however, with respect to the issues of cost, safe storage of hydrogen on a vehicle, and the lack of a hydrogen-refueling infrastructure. Aids students in developing a strategy for pushing this initiative forward, including tackling the question of how radical the new design should be and what to do about competitors who have aggressively pushed interim technology-hybrid vehicles--which GM has chosen not to emphasize in its product portfolio. Includes color exhibits.
Although the explicit problem presented in the case concerns pricing a block trade, the real issue involves the decision-making and oversight processes used to arrive at a price that is appropriate for both the client and Goldman Sachs. Asks students in assignment questions to map the decision and control processes used in this core activity and then to reflect on whether these processes are sustainable and scalable as Goldman Sachs grows from 5,000 employees to 20,000 employees within a 5-year period. Goldman Sachs' decision and control processes are based, at root, on trust, so the question becomes whether and how a culture based on trust is scalable.
The Rollins family assembly was meeting to discuss and decide which one or combination from among an estate freeze, installment sale of stock, ESOP (employee stock ownership plan), leveraged capitalization, annual gifts of stock, one-time outright gift of stock, or sale of the business to a third party best accommodates the needs of these people and this company.
New e-technologies such as mobile Internet phones and interactive television are widely predicted to generate a wealth of opportunities through the creation of new e-business models. At the same time, numerous high-profile Internet ventures have gone belly-up, and millions of investors around the world have been caught out. A focus on the successes can give the impression that an ingenious business model is all that is needed to create a thriving e-firm. But do these models really matter? What can we learn by examining the Internet failures or the problems inherent in each model? What are the real key factors determining the survival or failure of e-firms?
Keith Ferrazzi had certainly come a long way. The son of a steelworker and a cleaning lady, he attended an elite elementary school and then a top prep school in Pennsylvania, followed by undergraduate work at Yale and then Harvard Business School. He was wooed by top consulting firms and ended up on the partner track at Deloitte Consulting, where he built the company's marketing function. He left consulting to become the chief marketing officer of Starwood Hotels and Resorts, eventually leaving the company to become CEO of YaYa Media. In 1997, he was named by Crain's Chicago Business as a member of the "40 Under 40." In 1999, he was also named one of the "Power 10" by Business Marketing, and in 2002 was named among the most creative Americans in Who's Really Who. The World Economic Forum named him a "Global Leader of Tomorrow." In the summer of 2003, Ferrazzi was at a key crossroads in his life. He had sold YaYa Media to a company called American Vantage. He questioned the opportunities for growth within YaYa and was considering a transition from the company into a new role. Ferrazzi faced two questions: First, what should he do? Should he work for a large company in a senior management position, ultimately seeking to become the CEO? Should he seek out another CEO position at a smaller, entrepreneurial company? Should he do something entirely different, such as turn his skill at networking and his interest in teaching others how to build relationships into a business? Second, what other bases of influence besides networking and building social relationships should or could he develop?
A master plan accommodating two retiring brothers, the brother who will remain as president, third-generation family members, employees, philanthropic interests, and company imperatives must be developed by second-generation brothers who are controlling shareholders and senior management team members. This case reviews several estate planning concepts the family implemented and asks the student to formulate an optimal plan for transferring control of the company while reconciling conflicting interests.