This case is presented as a dialogue between four friends, who examine the economic crisis that has affected Japan since the beginning of the 1990s and focuses on the current situation of recession and deflation. Extensive macroeconomic data is provided, as well as information on the policies implemented by the government since 1992. How did Japan get into the crisis, and why has it not yet recovered?
Summarizes five major trade disputes before the World Trade Organization (WTO): (1) the Brazil-Canada aircraft dispute, (2) the European Union/United States foreign sales corporation dispute, (3) the Asian/United States shrimp and sea turtle dispute, (4) the United States/European Union beef hormones dispute, and (5) the U.S. steel tariff dispute.
Documents the entrepreneurial efforts of a single individual to bring together car and engine manufacturers, local circuit owners and promoters, advertisers, drivers, and fans in the creation of one of the biggest markets for world sports.
KaBOOM! is a nonprofit organization developing playgrounds in partnership with corporations and communities. It has grown since 1995 to a national organization that has built 338 playgrounds in partnerships with over 40 companies. This case deals with the nature of strategic alliances with corporations and poses choices for shifting strategies. These include emphasizing advocacy and public education and enabling communities to build playgrounds themselves. Further complicating the strategy was growing competition from nonprofits and for-profits engaged in playground development.
Tinplate Co. of India is a leading manufacturer of tin packaging for food and beverage products and batteries. Changes in government policy on importing materials, new types of packaging products, and customer dissatisfaction present challenges for the company. The company must decide whether to continue with its current market strategy, determine how it can compete with foreign companies, or determine whether they are missing other strategic opportunities based on organizational buying behaviors.
In 2002, Environmental Power Corp. (EPC), a small company developing renewable energy projects, was attempting to commercialize its "digester," a facility that extracted methane from manure, reduced manure's environmental impact, and generated electricity. The company addressed two promising convergent markets: the farm waste management market and the renewable energy market. One of the main challenges was to put together a financial scheme that satisfied the conflicting interests of four groups of stakeholders: the farmers who lacked cash, the investors who distrusted the electricity trading business after the Enron scandal, the utilities who resisted long-term commitments to buy electricity, and the government who was reconsidering its agricultural and energy policies. The primary challenge is to provide a process that reduces animal waste pollution and at the same time provides a positive renewable energy source.
What the acquiring company pays for a target in a merger or acquisition is called "consideration." Consideration can be in the form of cash, shares, or a combination of cash and shares. During the 1990s, equity-linked consideration became the dominant method of payment in the United States. This case series describes the basic mechanics of equity-linked consideration. Part 1 looks at the effects of all-stock consideration on the values realized by the shareholders of the target and acquiring companies.
The consideration paid by an acquiring company to a target can be a combination of cash and stock. During the 1980s and 1990s, for example, approximately 12% to 13% of all deals between public companies involved both cash and stock. This case series describes the basic mechanics of equity-linked consideration. Part 3 looks at the value and risk of cash-and-stock transactions to the shareholders of the acquiring and the target companies. The case also considers the announcement effects of such transactions and their impact on the post-announcement betas of the two companies.
Istituto Clinico Humanitas is a newly built private hospital, south of Milan, Italy, that has attained unusual profitability while treating public system patients. The hospital was built and is managed by Techosp, a subsidiary of Techint, a global engineering and consulting firm. Techosp created a design and management system that emphasizes optimizing patient throughput and utilization of all of the hospital's facilities. Physicians are all fully employed and have a significant financial incentive to maximize efficiency. The executive team is now considering whether to affiliate with the University of Milan medical school and, in effect, become Italy's first private academic medical center. The general manager must consider the effect of this affiliation on the hospital's performance.
Julio Martinez finds himself as one of the owners of the Arts Hotel Project in Barcelona, Spain. The 455-room hotel is managed by the Ritz Carlton and is in a 44-story tower along Barcelona's beachfront. Julio needs to figure out a strategy to maximize his investment, including a negotiation of the Ritz's operating agreement. Includes color exhibits.
Provides an introduction to depositary receipts. Recently, these instruments have been used with increasing frequency by firms seeking to list their shares on stock exchanges in other countries, especially in the United States. Describes different types of depositary receipts and comments on their prevalence over time. Also discusses issues that managers need to consider when contemplating the issuance of American Depositary Receipts (ADRs).
In response to Stanley Work's announcement that it is moving to Bermuda--and the associated jump in market value--a major competitor sets out to determine how the market is valuing the consequences of moving to a tax haven and whether his company should invert to a tax haven. In particular, the competitor's CFO needs to attribute Stanley's stock price movements across several dimensions of potential tax savings (tax savings on foreign operations and on interest payments) to see if there might be something else at play (earnings stripping). In the process, the mechanics and incentives created by the international tax regime are illustrated. To obtain executable spreadsheets (courseware), please contact our customer service department at [email protected].
Metro, a German wholesaler, sued Cartier, a French luxury retailer, to require Cartier to honor Cartier's guarantee on its watches that Metro sold, even though Metro is not part of Cartier's selective distribution network. Is such a network incompatible with the European Union Treaty?
Silhouette, an Austrian eyeglass frame manufacturer, sued Hartlauer, an Austrian retail discounter, for reselling Silhouette frames within the European Union (EU) that Hartlauer had purchased outside the EU. Does the EU follow the principle of exhaustion of trademarks?
Describes how Bank of America is creating a system for product and service innovation in its retail banking business. Emphasis is placed on the role of experimentation in some two-dozen real-life "laboratories" that serve as fully operating banking branches and as sites for testing new ideas and concepts. Focuses on: 1) how learning from experimentation can be maximized; 2) incentive and reward systems that motivate employees to experiment in "life" environments; and 3) the challenges of managing innovation in an industry that eschews risks, failure, and change.
GolfLogix has developed a small, GPS-based device to help golfers track their play. They must decide how best to distribute these devices: 1) sell them directly to golfers through traditional retail channels; 2) sell them to courses, which would then provide them to golfers as part of their greens fee or for a nominal rental charge; or 3) simultaneously sell them to both groups. Complicating the decision is the fact that GolfLogix has two devices it is trying to sell: a distance-only device, which tells golfers how far they are from the green, and a complete device that additionally allows golfers to track how far and how accurately they are hitting the ball with each club and how many putts they are taking on each hole. The distance-only device is easy to use and explain, whereas the complete device likely requires some support from the golf courses. Contains color exhibits.
Sell-side financial analysts are important to a firm because they affect both investor behavior and the firm's reputation in the business community. The effective implementation of strategy requires that the firm effectively communicate with these analysts regarding its strategy. Here, the focus is on the relationship that exists between companies and analysts, as well as its implications, from a communication strategy standpoint, for companies' investor relations activities.
Quality award-winning firms use seven key activities that dramatically improve the contribution of customer value and satisfaction (CVS) data. Although CVS as a management process cannot be reduced to just these seven keys, the goal here is to help firms focus on the most important applications and elements of CVS programs. A research study was undertaken to examine these leading-edge firms and find out how they apply their best practices: a customer-focused culture; executive support, persistence, and intensity; a set of customer listening tools; training, training, and more training; linking performance measures; identifying improvement opportunities; and evaluating and rewarding CVS performance.
Co-branding is an important strategy for the transition of brands. For multinational companies with global brands, it raises the chances of success in local markets. For local firms with strong brands, it secures their future through foreign investment and access to technology while maintaining consumer franchise and loyalty. In this review of co-branding and its relationship to consumer choice behavior, two case studies in the food industry lead to a set of guidelines for managers who want to use a co-branding strategy in brand transitions.