The third in a four-part series, this case details the financial policies and practices at General Motors from 1990 to 1996. This part describes the firm's financial responses to the business stresses it faced in the 1992 time period.
The fourth in a four-part series, the case details the financial policies and practices at General Motors from 1990 to 1996. This case describes the set of financial decisions taken by the firm as its business recovered, and focuses on an immediate decision faced by GM's treasurer in 1996. He must decide whether to recommend that the board hold "excess" cash, disburse it to shareholders via a dividend increase, or repurchase shares. In addition, the repurchase alternative offers a number of tactical choices, including whether to engage in a put-writing program or an accelerated share repurchase.
Two HBS MBA's leave McKinsey and Morgan Stanley to become entrepreneurs in Hong Kong. Together they start up a cinema chain throughout Asia. This case describes the experiences of managing a team in their Wuhan, China cinema. Looks at the challenges of managing growth in an entrepreneurial venture in an emerging market; leading a multicultural team; and coping with headquarter-field relationships.
Describes how Dell redesigned its new product development process after experiencing a major product setback and a significant decline in firm profits in 1993. Dell's new process is challenged during the development of a new line of portable computers when the incoming head of portables has to manage the risk of using a new technology. This case focuses on: (1) product development process design, (2) the costs and benefits of flexibility and structure in uncertain environments, and, (3) managing development risk during and after a financial and market setback.
This note presents numerous examples of deception by selectively using statistical measures. For example: implying credibility by providing accuracy to two decimal places; using the wrong base value when presenting per cent data; using small base levels when deriving percentage data; choosing an unrepresentative base period; and, presenting graphs that deceive.
The president and general manager are reviewing a pay for performance system. The president needs to determine whether or not these systems were properly designed to ensure that they are producing higher quality product at progressively lower costs. If not, he needs to consider how he might suggest that these and other systems be changed in order to achieve cost and quality objectives.
The area manager of the bank had just informed the manager of customer service at one of the branches that one of her subordinates had filed a formal complaint about her with the National Committee for Employee Concerns. The employee claimed that the manager was impeding her personal and professional development. This complaint followed a long period of open conflicts between the two, and the area manager felt that keeping the complaint confidential was less important than informing the manager about this serious and possibly unfounded allegation.
In 1998, Chile remained a country divided. Despite the revelations made by human rights investigations, 20 per cent of Chileans were still staunch supporters of Pinochet, and ideological extremes continued to dominate the political landscape, even among the young. Although many Chileans lived under a reign of terror, many more welcomed the social and economic changes implemented under military rule. Chilean society became polarized because of differences in opinion regarding the dictatorship.
The Hongkong and Shanghai Bank case series (see also 9A98M015, 9A98M019, 9A98M020) is designed to be run over a period of three classes (80 minutes per class period). The series is intended for use in a course in project management. It highlights the impact of the owner's management of a project through the phases of feasibility, design, contracting and construction. Case A introduces alternative organizational structures for managing the design and construction for a high rise banking tower and the owner's mandate for the project, the development of the best bank in the world. The action decision in the A case requires a good understanding of the tasks that need to be performed, the process in which their execution will be organized and the objectives, roles and capabilities brought by the key actors. All of the above need to be tied to the unique characteristics of the project: ambiguous deliverables, a specific deadline, and absence of cost constraints.
Service Corporation International, the world's largest funeral consolidator, has just made a formal takeover bid for the Loewen Group, its key competitor. The offer is approximately 50 per cent above the price at which Loewen Group stock traded 30 days ago. Should Loewen Group fight the takeover, or should it accept it? This case helps students understand how to evaluate a company's strategy relative to its external environment and internal capabilities.
Omega Paw is a small, entrepreneurial and successful company ($1 million in sales in the first year) which needs to position itself as a major player in the pet industry. Omega has developed and has begun to market many pet products, among them the Self-Cleaning Litter Box, and is faced with the challenge of where, how and through whom the next stage of its growth strategy will take place. Students must examine the typical consumers, trade channels and the competition, and then consider which of the five marketing alternatives best meets the company's objectives.
This teaching note instructs on three major methods to value entrepreneurial companies and uses an example to illustrate each method. The three methods are Balance Sheet Valuations, Income Statement Valuations, and Discounted Cash Flow. For each of the three, the note explains the mechanics and highlights common problems with its use. Then, the note discusses when it is best to use each of the methods. Finally, the note discusses some other considerations, including the difference between financial and strategic buyers, the use of industry-specific operating metrics, and some other ways people value start-ups, including using comparables and required rates of return.
Willamette Industries, a large wood products and pulp and paper manufacturer, has traditionally not used any short-term pay at risk as part of its compensation approach. That means there are no sales commissions, gainsharing, or short-term bonus payments to anyone anywhere in the firm. David Morthland, the vice president of personnel and industrial relations, has been asked to reexamine these practices in the context of trends in industry at large toward the greater use of contingent compensation. The case outlines the rationale for Willamette's current pay practices in light of its particular culture, business strategy, and other management practices. Can be used by itself or with other cases illustrating different pay practices to stimulate a discussion of the pros and cons of various approaches to pay.
In July, 1975, top White House economic officials in the Ford Administration receive information that the Soviet Union, in the face of a disappointing grain harvest, might seek to purchase large amounts of wheat and corn from US suppliers. This case is an insider account of the confluence of economic and political considerations which emerge as officials face the decision as to whether to take any action to discourage grain sale to the Soviets, at a time when the Cold War is raging. The case specifically looks at the question of whether the Administration should seek to link grain exports , which have, arguably, a humanitarian dimension and are highly popular among farm state voters, to broader political and diplomatic objectives. Put another way, should food be used as a tool of diplomatic leverage? Officials-including Secretary of State Henry Kissinger, Secretary of Labor John Dunlop, and Secretary of Agriculture Earl Butz, as well as members of the Council of Economic Advisors-must consider a range of domestic political matters, as well as the potential effects on food prices of a major grain sale. Based in part on The US-USSR Grain Agreement (Roger Porter, Cambridge University Press, 1984), this case is a snapshot of the information-gathering and decision-making processes at the highest level of the United States government. HKS Case Number 1449.0
In the summer of 1993, Australia's Trade Practices Commission was considering whether or not to permanently enjoin Santos Limited from acquiring SAGASCO Holdings Limited. This merger was potentially of enormous significance, since Santos was the largest and SAGASCO the third largest on-shore natural gas producer in Australia. SAGASCO, which was fighting the takeover, argued that the merger would significantly reduce competition in the natural gas market. Santos countered that the gas industry was highly concentrated already and had always been disciplined by competition from other fuels. This case is primarily intended to illustrate the analysis of the competitive effects of a merger, but it can also be used to discuss the relationship between competition policy and the regulation of natural monopolies. HKS Case Number 1484.0