The loans manager at the Dorchester, Ontario, branch of the Canadian Commercial bank, needs to determine whether to extend a personal loan of $60,000 to the client. The loan is going to be used as a down payment to buy out Plumb Parts Supply (PPS) Ltd. from the client's father. Since profit from the company would constitute the client's only source of income, the loan officer must examine PPS Ltd.
The treasurer of The University of Western Ontario was preparing a recommendation to the Spencer Hall board of directors concerning the financing of the $7.7 million expansion to Spencer Hall. The expansion was currently being financed with short-term loans but the board was concerned about increasing rates and was considering such hedging vehicles as interest rate swaps, caps and collars. A follow-up case is available (9A97N004).
Entrepreneur Judy Wicks has built The White Dog Cafe from a carry-out muffin shop into a full-service restaurant. She has ambitions to provide her diverse clientele with more than an acclaimed dining experience. She also wants to incorporate broader community concerns into her restaurant's operations. How can she meld her social values with her business objectives?
Entrepreneur Judy Wicks has built The White Dog Cafe from a carry-out muffin shop into a full-service restaurant. She has ambitions to provide her diverse clientele with more than an acclaimed dining experience. She also wants to incorporate broader community concerns into her restaurant's operations. How can she meld her social values with her business objectives?
In an introduction to standard costs and cost variances, discussion, formulae, and examples explore the idea of comparing actual costs to those that were expected.
CompuServe, an online services vendor, informs its software developers that they must enter into a licensing agreement to use the popular GIF compression. CompuServe claims that it is forced to do so because Unisys is enforcing its patent rights in this area. Others argue that CompuServe's move is a response to the growing competitive challenge posed by the Internet.
Presents two basic principles that underlie the creation of joint gains. Four sources of joint gains--differences in interests, opinion, risk preference, and time preference--are discussed, and simple examples are provided to illustrate the basic concepts.
Kim Tomar has to evaluate bids from potential suppliers for aircraft parts for de Havilland's Dash 8 aircraft. As a financial analyst, Tomar has to make a recommendation to de Havilland's Source Selection Board on the selection of a new supplier. Tomar's recommendation must be based on the prices quoted by the bidders, and her assessment of the firms' ability to be a long-term supplier to de Havilland. This requires a financial analysis of the bidder firms.
People will be most creative when they feel motivated primarily by the interest, enjoyment, satisfaction, and challenge of the work itself--when they are driven by a deep involvement in their work and a passion for it. This note describes the ways in which creativity can be stimulated by this intrinsic motivation, and by certain forms of extrinsic motivation, such as rewards that signal competence or support future achievement. Managerial implications are discussed.
Discusses patents, licenses, and deal making in a start-up venture. The entrepreneur, Jeff Hawkins, holds a patent on Palm Print, a pattern recognition algorithm. After licensing Palm Print to his employer, he led three years of development of commercial products for the company. Focuses on Hawkins's efforts to start a new, noncompeting venture that requires cross-licenses for the Palm Print enhancements. The employer wants Hawkins to stay to develop the new products "in-house" and resists making an agreement.
The idea that "relationships" exist between consumers and products has implicitly occupied a central place in brand marketing thought and practice. Now as relational (one-on-one) marketing is said to be replacing transactional (mass) marketing as the dominant paradigm of the field, explicit theoretical development of these ideas becomes critical. This case presents detailed qualitative data on three women and their relationships with brands. Intended to reveal the deep connections consumers may form with brands across product categories, providing new insights into phenomena such as brand loyalty and brand equity that will inform brand management practice.
In April 1995, the Japanese yen hit a post-World War II high against the U.S. dollar. The yen's relentless ascent affected firms on both sides of the Pacific, but fell particularly hard on Japan's big four automakers. This case explores how endaka--or"high yen"--changes the competitive environment for the automakers and how they respond to the change. Examines how macroeconomic and political shifts can dramatically affect the competitive position of firms operating in a global economy. Also describes how firms can reshape their strategies to compete even in starkly different domestic environments.
First Community Bank, a bank-within-a-bank at Bank of Boston, was established in 1990 as a unique venture to serve urban communities. By 1995 it has achieved profitability but must manage relationships with the mainstream at Bank of Boston, serve as a change agent and role model, and face the challenge of reexamining its mission and structure.
A company nears the end of a long multiyear turnaround and now must consider how to "cash out" so its management can realize a financial return on investment. The privately held company has several options, including a leveraged ESOP and a leveraged recapitalization.
Bob Holland takes over as CEO of this iconoclastic ice cream company in February 1995 when it faces a major crisis. Holland must now develop a strategy that both adapts to the external environment and is consistent with the company's unique heritage.