Discusses progress made by mid-1995 on the three challenges identified by the change leadership at the end of 1993. First, it describes the decision-making process that resulted in a general consensus to reorganize the huge London office, and it highlights certain psychological, logistical, and strategic challenges of implementing this change. Second, it addresses action plans taken to increase the satisfaction of the firm's nonpartner senior managers. Third, it explores continued efforts of the change leadership to communicate and clarify its vision.
Acme Investment Trust is considering investing in a private equity partnership that is seeking only 15% of the profits, instead of the standard 20%. The management fee requested, however, is higher than in its earlier fund. The pension managers must consider the financial and organizational consequences of this shift.
The export director for Cerveceria Cuauhtemoc Moctezuma, of Monterrey, Mexico, must develop a sophisticated marketing strategy in order to earn a permanent place for the brewery's SOL brand in the UK brewing market, considered to be one of the world's most dynamic and competitive beer markets. Specifically, he must decide how to position the brand; what brand characteristics, if any, should be modified; what new distribution channels, if any, should be pursued; and finally, what type of advertising and promotional campaign is necessary.
Bob O'Connell, CFO of General Motors, is considering a variety of equity alternatives to fund a large shortfall over the next couple of years. His tasks are to map out a financing strategy for the long term and to choose the equity instrument to be issued immediately. Of particular interest to O'Connell is a new security called PERCS (preferred equity redemption cumulative stock).
The setting for the case is a rate hearing to determine the cost of capital for a gas utility. The case provides an opportunity for a full discussion of the issues in estimating the cost of capital for both regulated and unregulated firms. The situation has an added twist in that the company just became a wholly owned subsidiary of British Gas.
The Independent Committee of the Board of Directors of Goodyear Canada Inc. must assess the fairness of the proposed Going Private amalgamation received from Goodyear Canada's parent, The Goodyear Tire & Rubber Company of Akron, Ohio. The Goodyear Tire & Rubber Company offered to buy all the common shares of Goodyear Canada not already owned by them (11.2% of the shares issued were in public hands) for $48.00 (CDN) in cash per share. This represented a 22% premium over the closing price on the Toronto Stock Exchange on the previous afternoon.
The bank has to decide if and how it will help Columbia Pine Pulp Company (CRP). The bank must evaluate CRP's projections, capital structure, security, proposed design of the financing, interest rate hedging, and other financial decisions. The company is proposing a greenfield pulp mill on the site of a sister pulp mill and an affiliated paper mill. Students are required to develop a financial strategy. (Two related cases bearing the same name examine recapitalization and interest rate hedging - cases 9A90B036 and 9A90B037.)
The purpose of this case is to permit a discussion about value creation, performance assessment, the case method and corporate finance. It is intended to be used in the first class in a corporate finance course.
The senior financial analyst for Kingston-Murray Enterprises, must decide what funding technique to recommend to the company's chief financial officer. The firm's recent discoveries of gold and sulfur reserves have created a need for $500 million in operating cash. Because of the company's low credit rating and high cost of borrowing, senior management has restricted the financing choices to either common stock or convertible bonds. The zero-coupon convertible under consideration is a LYON (liquid-yield option note). Before recommending whether to issue LYONs, the analyst wants to understand fully the details of these subordinate, zero-coupon, callable, putable, convertible notes.
Describes the six steps included in most reengineering initiatives: selecting the processes for reengineering; identifying change enablers; developing a business vision of process objectives; understanding and measuring existing processes; designing and prototyping the new processes; and implementing the new processes.
Charlie LeMantia, the president and CEO of Arthur D. Little (ADL), a leading consulting firm, is trying to decide whether the firm has a complete and effective corporate strategy. The case traces ADL's history, its rise to prominence and subsequent decline, and LeMantia's efforts to turn the organization around. Special attention is devoted to his introduction of process thinking and process management, and their impact on the way the company is managed.
This case gives a broad overview of the global property and casualty insurance industry. Topics covered include insurance economics and risk bearing, insurance accounting, risk-based capital, catastrophic risk, underwriting cycles, the Lloyd's crisis, reinsurance, and the rise of the Bermudian reinsurers.
Explores the origins of reengineering; its evolution during the 1980s and 1990s; the current state of reengineering, which is prevalent in business today; and several possible futures of reengineering, specifically in relation to process management, knowledge work, and participative work design.