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Spreadsheet Supplement for UV6463

A financial analyst for Procter and Gamble must report on the prospects and implications of a new teeth-whitening product. Beyond a realistic profit-and-loss forecast and baseline net present value, he must determine which pricing and marketing strategy is most likely to maximize value for shareholders.

The case is intended for a class relatively early in a decision analysis or a risk analysis class module. The case can be used as the very first case in the course if students are familiar with the concepts of NPV. Alternatively, students can be given a short technical note on calculating NPV for cash flows as pedagogy for the case. The analysis requires use of NPV calculations to determine the outcomes of different options in the case and to choose one of the given options. Using the choices that students make, the instructor can lead a rich discussion on effects of risk-seeking and risk-averse behavior in situations that managers face in real life.

Student spreadsheet to case UV6468

In 1982, Saab opened his first atelier in Beirut and began designing luxurious evening gowns and exquisite wedding dresses. His talent for design fuelled his career throughout the 1980s. In the 1990s, Saab continued to expand his business by moving to a larger atelier in Beirut and organizing exclusive fashion shows in Europe. In 2000, he opened a salon and showroom in Paris to increase his cosmopolitan and international clientele. A flagship store in Paris opened in March 2007. In June 2010, Elie Saab (ES) opened its first flagship store in the Gulf region in Dubai's prestigious Dubai Mall. This new flagship store reinforced the brand's presence in the United Arab Emirates, making its products more accessible to the region's local and international shoppers. The store showcased day and evening wear dresses, shoes, bags and accessories from the latest ready-to-wear (RTW) collections. In July 2008, ES opened its first U.K. boutique at Harrods. The company planned to increase its worldwide retail presence through opening additional stores in major cities around the world, including the United States and Asia. While the company was witnessing impressive growth, management was dealing with the challenge of selecting the right partners, identifying new markets with the greatest growth potential and, most importantly, protecting the brand from dilution. From the start, its goal was to "attract, select and maintain customers who place significance on high-end, one-of-a-kind designs made from the finest fabrics and materials." The case covers the challenges and opportunities of the company as it expands internationally.

Green Mountain Coffee Roasters is considered as a short sale candidate. (A stock sold short makes money if the stock price declines.) This business is growing at a high rate, but there are signs of potential problems. This is a very real illustration of bullish investors versus bearish investors. Like a mystery novel, there are spies, possible misrepresentation and conflicting information. Decision-making under uncertainty is explored, a factor professional investors must deal with every day. Case discussion topics include risks in short selling, margin loan calculation, investor behavior, stock valuation analysis, forecasting business growth potential, forecasting earnings reports, management incentives, actions taken by management to increase stock price, aggressive accounting practices, assessing business impact of a patent expiration and the impact of business growth rate on stock market valuation.

Looking back at five years of losses, Rivka Belzer, a newly minted MBA, steps into her family owned business with their mandate to turn it around or close it. In her first six months, she has made a number of changes, with mixed results, but is beginning to show a profit. Many strategic, organizational, marketing, control, and operational decisions lie ahead as she plans for the next year and tries to manage a difficult board of directors in the challenging entertainment industry.

This case is a two-part case series. Part A of the case study is set in early 2011, and begins with Parag Gadre, the assistant vice president of marketing and strategy at Tata Chemical Limited (TCL), contemplating what to do with Tata Salt's flanker brand. It has been five years since I-Shakti was launched in 2006, and has since become the second biggest salt brand in India. I-Shakti was originally conceived as a flanker brand to satisfy demand that TCL's original flagship product, Tata Salt, could not satisfy. The target markets, pricing and other attributes of the two brands were originally envisaged to be very distinct. However, I-Shakti has far outperformed expectations, and is now at a stage where it could potentially cannibalise Tata Salt's market share. This case will stimulate a discussion on the concepts and rationale of a flanker brand. In addition to the overarching question of whether it is a good idea to introduce a flanker brand, it will also create a forum for discussing strategies that are available to a company when the flanker outperforms expectations and becomes a potential threat to the original premium brand that it was set up to protect. Finally, it also enables students to discuss whether market share is an appropriate concern for an organisation. Part B of the case is set at the start of 2012, about one year after the conclusion of Part A. Readers are given an update of the strategy that TCL adopted - a strategy that not only continues with I-Shakti Salt, but also ventures into the production and distribution of an I-Shakti brand of pulses. The reason for doing so is given in the case, and students are left to analyse whether they agree with the company's decision. This section also links back to the earlier Part A of the case study, as it gives the readers an example of a viable alternative that is available to the company in the event that it decides to play down or altogether phase out the flanker brand.

This case is a two-part case series. Part A of the case study is set in early 2011, and begins with Parag Gadre, the assistant vice president of marketing and strategy at Tata Chemical Limited (TCL), contemplating what to do with Tata Salt's flanker brand. It has been five years since I-Shakti was launched in 2006, and has since become the second biggest salt brand in India. I-Shakti was originally conceived as a flanker brand to satisfy demand that TCL's original flagship product, Tata Salt, could not satisfy. The target markets, pricing and other attributes of the two brands were originally envisaged to be very distinct. However, I-Shakti has far outperformed expectations, and is now at a stage where it could potentially cannibalise Tata Salt's market share. This case will stimulate a discussion on the concepts and rationale of a flanker brand. In addition to the overarching question of whether it is a good idea to introduce a flanker brand, it will also create a forum for discussing strategies that are available to a company when the flanker outperforms expectations and becomes a potential threat to the original premium brand that it was set up to protect. Finally, it also enables students to discuss whether market share is an appropriate concern for an organisation. Part B of the case is set at the start of 2012, about one year after the conclusion of Part A. Readers are given an update of the strategy that TCL adopted - a strategy that not only continues with I-Shakti Salt, but also ventures into the production and distribution of an I-Shakti brand of pulses. The reason for doing so is given in the case, and students are left to analyse whether they agree with the company's decision. This section also links back to the earlier Part A of the case study, as it gives the readers an example of a viable alternative that is available to the company in the event that it decides to play down or altogether phase out the flanker brand.

Everything Rattan has approached its bank for a loan. The bank needs to analyze the loan request and prepare a collateral analysis for the situation.

The Good Night Motel is considering offering special pricing for a two-day church convention event involving 20 rooms. This requires the owner to perform contribution analysis, sensitivity analysis, and some qualitative analysis.

AeroMechanical Services, Ltd. has a superior aircraft-monitoring product, FLYHT, which is significantly more advanced than the typical flight data recorder used by airlines. It can be easily installed and provides a wide range of real-time information that could be critical for airlines looking to reduce costs and improve safety. Yet it continues to struggle to get its solution adopted by major airlines. The vice president of business development for AeroMechanical is looking for a way to "cross the chasm" to expand sales from the early-adopter market to the major carriers.

On October 16, 2011, El Paso agreed to sell itself to Kinder Morgan for just over $21 billion. Shareholders filed suit, arguing that the process was tainted by conflict and that a higher price could be obtained. Delaware Chancellor Leo Strine agreed with the plaintiffs on the conflicts, and in his opinion expressed serious concerns with how El Paso advisor Goldman Sachs and El Paso CEO Douglas Foshee conducted themselves in the process. The case examines these conflicts, Strine's view of their effects on the outcome, and the reason he was unable to grant the plaintiff's request, instead allowing the merger vote to proceed. The case is a companion case to "Barclays Capital and the Sale of Del Monte Foods," HBS No. 313-036.

This case contains four vignettes that provide an introduction to the issues covered in the course, Private Equity Finance.

In 2010, David Droga and Andrew Essex, co-founders of advertising agency Droga5, hope to convince both John Meneilly, manager of hip-hop star Shawn Carter (better known as Jay-Z) and a partner in Carter's company Roc Nation and Yusuf Mehdi, senior vice president of Microsoft's Online Services division, to enter into an unprecedented, high-stakes partnership to benefit the launch of Carter's new lyrical memoir, Decoded. Droga5 wrestles with two disparate challenges: developing a campaign for the book's launch and finding a way to drive trial for Bing, Microsoft's new search engine. Droga5's innovative solution is to kill two birds with one stone: a massive, interactive scavenger hunt involving outdoor, bespoke, and digital media. Because Spiegel & Grau, a Random House imprint that holds the rights to the book, lacks the funds to market Carter's memoir at a scale deserving of a superstar, Droga5 is asking Microsoft to shoulder most of the campaign's costs. How can Droga5 broker a deal between Roc Nation, Random House, and Microsoft, and ensure success for each of the parties? And is pursuing this campaign idea a smart investment for the young agency? The case describes a set of decisions that paved the way for a groundbreaking advertising campaign that would win major advertising-industry awards, including the Grand Prix at the 2011 Cannes Lions International Festival of Creativity and a 2012 Gold Effie.

In its third year of existence and poised to double its workforce, Warby Parker attributed its success to an innovative approach in the eyewear industry and to the company culture that supported it. With a mission combining social and business goals, the company had articulated a stakeholder-centric model that benefited consumers through high-quality, fashionable, and affordable eyewear: the global community by donating, through sustainable channels, one pair of glasses per every pair sold; employees through a fun culture and inspiring work; and the environment, by becoming carbon neutral. The case covers the decisions that Warby Parker must make at the beginning of its third year of existence as a consequence of growth and in order to avoid losing momentum. Some of the challenges that Warby Parker faced were maintaining the company culture, finding adequate partners to preserve the quality of the "Buy a Pair, Give a Pair" program, and devising an integrated online and offline marketing strategy that fit the brand personality.

Starting in 1966, the Rehabilitation Institute of Puebla Civil Association (IPODERAC) has dedicated itself to providing a home and an education for children who have been abandoned in the streets of Mexico. Using an educational model based on the concept of personal development through honourable work, IPODERAC has successfully combined its desire to be financially self-sufficient with its goal of teaching educational values, responsibility and discipline to the children in its care, thus enabling them to develop a sense of belonging and some useful skills for life. This case explores the inception and the long evolution of IPODERAC's educational model, as the organization faces a constant search for production projects that will enable it to generate income. After meeting this goal, IPODERAC also faces the ongoing challenge of maintaining its business units without deviating from its institutional mission. By April 2009, IPODERAC had all but obtained self-sufficiency; however, given the national financial crisis and the emergence of the influenza A1H1 epidemic, IPODERAC's main source of income (i.e., the sale of gourmet cheeses) had suddenly diminished. This crisis affected the stability of the institution, and as a result new proposals for diversification were needed to strengthen IPODERAC's financial sustainability and to avoid similar pitfalls in the future.

Peter Jepsen, a newly minted MBA, has bought a furniture hardware manufacturing business utilizing debt and investors equity that in a very short time is about to trigger bank covenants due to poor financial performance. The prior owner continues to be involved in the business, handling key customers and expecting a healthy earn-out and some favorable transaction closing adjustments and Jepsen considers the wisdom of having him involved. Further, he has discovered an illegal practice to avoid customs duties that has been going on for years and condoned by the owner. He has taken steps to bring on new hires and outsource to reduce costs, but the faltering economy is lowering his revenues. He has to decide how to manage his banking relationships, the caliber of staff he needs and react to the declining revenue while maintaining the confidence of his board.

After years of rapid growth and stock price appreciation, New Century Financial Corporation, one of the largest subprime loan originators in the U.S., reported accounting problems in early 2007. The resulting liquidity crisis forced the company to file for Chapter 11 bankruptcy protection. According to the Bankruptcy Examiner assigned to investigate New Century, the company's troubles "were an early contributor to the subprime meltdown" which fueled a financial crisis in the U.S. and beyond. The case study examines New Century's business model and accounting practices and focuses on the role of management, audit committee, and external auditors in the problems at New Century based on the findings of the Bankruptcy Examiner.

Financial Reporting Standards is a ten-chapter book written by David T. Doran, a former CPA with Coopers & Lybrand and current professor of financial accounting at Penn State Erie, The Behrend College. The book was published in July of 2012 by Business Expert Press. Written for practicing managers, MBA students, and undergraduate non-accounting business majors, the text emphasizes how management's choice of accounting methods and their required estimates in reporting transactions and events impact financial statements, both immediately and in the future. Most of the topics addressed in this book are typically studied by accounting majors in the two-course "intermediate" accounting sequence, but the text also includes discussion of consolidations, a topic generally covered in the "advanced" accounting course.. By exclusively applying a user's decision-making emphasis, and limiting topical content to areas relevant to financial analysis, this book allows non-accounting majors to acquire the underlying knowledge in a concise and easy to understand text. Chapter 1 presents a broad introduction to the purposes of financial accounting. The various financial statements - balance sheet, income statement, statement of stockholders' equity, and statement of cash flows - and their respective purposes and components are explored in detail. The accounting process is then reviewed with a comprehensive example illustrating the impact that various transactions and events, including the adjustment of entries, have on the accounting equation framework.