For most of the 1990's, Thailand's economy was one of the fastest growing in the world. Thailand was popular with foreign investors, and the country's currency was stable due to the central bank's currency peg. However, overspeculation, high interest rates, lower than expected exports and job losses were causing speculation that the central bank would abandon the currency peg. The Bank of Thailand must decide whether to continue or to abandon the peg of the baht to the U.S. dollar. Was the country through the worst of the economic problems or was there more to come? The supplementary cases enable role plays designed to provide an understanding of the forces influencing a decision about appropriate monetary policy as importer (9B01M022 - Exclusive Autos of Bangkok), exporter (9B01M023 - Thai Shoes PCL), investor (9B01M027 - International Assets Investment Company), lender (9B01M026 - Hokkaido Bank), currency speculator (9B01M029 - Quantile Investment Fund), the IMF (9B01M028 - International Monetary Fund), and the Bank of Thailand (9B01M025 - Bank of Thailand in June 1997).
Bureaucrats from the Thailand central bank and Ministry of Finance meet to discuss the implications of abandoning the peg of the baht to the U.S. dollar. This is a role play supplement to Thailand, 1997, product 9B01M024.
The manager of a Japanese bank is concerned about extending loans to Thai customers because of Thailand's currency instability. This is a role play supplement to Thailand, 1997, product 9B01M024.
A U.S. investor owns shares in a Thai developer. If the baht devalues, the dollar value of this investment will decline. This supplement is the investor role in the role play surrounding Thailand, 1997, product 9B01M024.
This role play supplement to Thailand, 1997 (product 9B01M024), discusses the International Monetary Fund conditions that will be put in effect should Thailand request assistance.
Kodak's Health Imaging division is the second largest business unit within Kodak, a worldwide provider of consumer, professional and health imaging products. The regional manager of the Health Imaging division is preparing her presentation for the company's senior management retreat. The East Asian Crisis and its impact on the division are on the agenda. The regional manager reflects on the magnitude of the crisis, and she wonders if the company's responses were reactive instead of strategic. There will be some tough questions to rake through at the meeting. Did the Health Imaging department respond effectively to the crisis? Is Kodak better off because of the crisis? What will the short-term and long-term effects be? Will Kodak's response to the East Asian Crisis preserve customer relationships for the years to come? Information pertaining to Health Imaging's strategic view of the region, the company's organizational structure and the levers employed by Kodak in response to the crisis all serve to produce some answers for the division's future consideration. A supplementary (B) case is available, product 9B01M056.
As equity-linked consideration has become more popular in acquisition and alliances, so has the use of the "price-protection" mechanisms, known variously as floors, caps, and collars. In general, these are contractual agreements that provide insurance to the shareholders of the selling firm, the buying firm, or both.
For nearly three months, John Carter, a vascular surgeon by training, had been studying a variety of clinical processes at Deaconess-Glover Hospital in Needham, Mass. Carter was looking for an opportunity to test the applicability of Toyota Production System "Rules-in-Use" in the health care context. After several weeks of increasing focus, he had found a particular process--medication administration--to test his ideas. He had just suggested to John Dalton and Julie Bonenfant, the hospital's president and vice president, that they create a learning unit or model line within one of the nursing wards to begin conducting experiments. Dalton and Bonenfant received his modest proposal negatively. They complained that his proposal seemed remarkably unambitious, yet, paradoxically, they complained that creating a dedicated learning unit within the larger nursing ward would be infeasible. Carter struggled to explain how they could react simultaneously with such seemingly contradictory sentiments.
Examines Microsoft's strategy and competitive position as it prepares to launch Windows XP. The discussion explores how Microsoft builds and sustains its competitive edge.
Examines Webvan's operations and the processes by which it delivers groceries that were ordered from the Internet to customers' homes. Recounts Webvan's history from founding through early 2001 and concentrates on the unique approaches to warehousing, delivery, scheduling, and to a lesser extent, marketing and information technology. Also examines the rest of the Webvan business model and how it was formulated. At the time of the case, there is great pessimism, reflected in the press and the company's share price, that Webvan will be able to execute its business model profitably or even stay in business. Webvan's business model relied heavily on properly designed and executed operations, and it appears clear that the company's operations were neither. In addition, the mismatch between visiting operational capabilities and the operational requirements imposed by the rest of the business model appear to be severe.
Summarizes the debate on accounting for computer software development costs. Provides a historical description of the development of standards on accounting of computer software development costs, both in the United States and internationally. Describes how, after much debate, standard setters gave companies the option to capitalize development costs that meet definitive standards, such as proof of technological feasibility. An exhibit reveals that, despite the requirement in the financial accounting standard to capitalize post-technological development costs, few large software companies in the United States capitalize any of their software development costs.
In early 2001, Charitableway, an ePhilanthropy application service provider that enabled the collection of charitable donations online; faced major strategic decisions relating to its alliance with United Way of America to foster workplace giving online. One of the best capitalized dot-coms operating in the new ePhilanthropy sector and a pioneer in the workplace giving segment, it nonetheless, faced a series of challenges that threatened its success and even survival.
Dr. Stuart Weisman, CEO of ePhysician, creator of a hand-held device for entering prescriptions and capturing changes, wonders whether his marketing strategy is appropriate. Although everyone agrees that the product is excellent, the sales results are meager to date.
In November 2000, a money manager needs to make a decision regarding an offering of convertible bonds by Corning. The analysis requires her to compare the insights available from standard descriptive ratios to those available from valuation analysis. This case is intended to be a student's first exercise in analyzing convertible bonds and assumes some familiarity with option pricing theory and bond valuation. In addition, the case highlights the importance of going beyond the convertible bond calculations. The volatility of Corning stock has increased in the past year, and makes the call option more valuable, but at the same time Corning appears to be issuing converts at a time when both its share price and stock market valuations are at historic highs. Thus it is imperative that the student "have a view" on the sustainability of stock market valuations and the outlook for Corning.
In June 2001, the owners of this small rapidly growing sports promotion firm are assessing the financing implications of their growth plans. Threshold Sports organizes professional cycling races, and holds major race franchises for several large U.S. cities. It seeks to expand quickly the number of events that it manages, eventually to build professional cycling in the United States to a level consistent with Europe. The growth outlook creates a financing need of $500,000. The case presents three financing alternatives: debt, common equity, and convertible preferred stock. The task for the student is to assess the alternatives and make a recommendation. The choice hinges importantly on the estimated value of the firm.
Alfonso Cortina, chair of Repsol-YPF S.A., accepted the award from the Financial Times for the best merger in the energy sector in 1999. The acquisition, which closed on June 28, 1999, boosted the firm's share price despite a strategy of hostile acquisition and significant change in the firm's capital structure.
Set in December 2000 immediately following the merger announcement between PepsiCo Inc. and the Quaker Oats Company, asks students to examine the implications of the merger for the rivalry between Coca-Cola Co. and PepsiCo, and for value creation by each firm. Because the merger would allow PepsiCo to control Gatorade, which held an 83% share in the sports drink market, PepsiCo would further strengthen its already wide lead over Coca-Cola Co. in the noncarbonated drinks segment. Would Coca-Cola's historically stellar performance in terms of value creation be threatened by the merger?
Simon Carlson, chairman of the board of his family's fourth-generation industrial company, must decide how to deal with his conflict with the company's nonfamily CEO. Hired by the board just 15 months earlier to pursue growth more aggressively, CEO Paul Steel has upset Carlson and several managers with his management approach with the very strained relationship between the chairman and CEO. The board must decide how it will deal with Steel and Carlson.