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Rutgers sociologist and disaster studies expert Lee Clarke discusses how organizations unwittingly make pie-in-the-sky plans--what he calls symbolic plans--that are often worse than useless. He advises companies to expose and reassess these unrealistic strategies.

By definition, forecasted numbers in a financial statement involve educated guesses. But that's not always clear in the statement itself. To reduce legal liability for off-the-mark predictions, a proposed new model for financial statements clearly distinguishes hard numbers from forecasts.

In late 1999, India's second largest tea company, Tata Tea, is faced with a highly competitive home market that is about to become more so as impending deregulation takes effect. The company is thus contemplating internationalisation. Tata Tea is grappling with the decision of how to internationalise. It can choose to build its own international brand or, take the opportunity of buying Tetley Tea, the world¿s second largest tea brand, which has recently been put up for sale. Should Tata Tea build its own brand or buy Tetley. If the decision is to buy, how much should they offer?

The case narrates the internal processes of choosing and implementing a corporate social responsibility (CSR) initiative. It illustrates the process of choosing a cause, selecting partners, creating a working plan, and finally getting the company's executive board's commitment.

Maxxium (B) details the addition of the 4th partner and new partnership models that it has adopted. The case raises issues around whether and how the company should grow.

Spreadsheet supplement for INS582.

Endius Inc. is a start-up company entering the medical products market. Endius has developed a design and a working prototype for a new and promising endoscopic surgical instrument--steerable surgical forceps. Endius recently hired a new president, Tom Davison, who is determined to move Endius from the research and development phase into product commercialization and launch. To do so, he needs to achieve two related objectives: complete development of a technically and financially viable product and secure funding to address the cash burn typical of a start-up firm. Davison is seriously considering two product development alternatives: developing the steerable forceps using an in-house staff or partnering with an outside product development consultancy that he used previously.

It's panic time at Blackheath Manufacturing. Profits have been declining, so the owner's son comes to the rescue to run the company. He asks a consultant to determine what's wrong. And the consultant has specific answers: The company's pricing guidelines are all wrong, there needs to be a budgeting system to reverse the downward slide in profits, and a former employee should be rehired. This case provides students with the data for constructing a production and raw-materials budget, flexible-expense budget, income statement, balance sheet, and cash budget. See also "Blackheath Manufacturing Company" (UV1728).

Eli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations was re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture had run smoothly for a number of years despite their difference in focus, but recently Ranbaxy had been experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives.

John Schmidt's project to convert the information system of his auto parts distribution business is in real trouble, putting his company at risk. He must decide what his decision problem is and set appropriate objectives as well as create a good set of alternatives from which to choose. This case can be used in courses on decision making as well as those that address management of information technology projects.

Supplements the (A) case.

After suffering years of volatility and crises, Turkey desperately sought macroeconomic and political stability in an ever-worsening region of the world. In the short term, Turkey had to repay its debt, which amounted to more than 80% of GDP. By January 2004, Turkey had entered the final stages of the IMF's latest $17 billion loan program. Each review required that Turkey meet specific goals of monetary control (e.g., reducing inflation), restructuring the banking sector, reforming the public sector, and increasing privatization. The country's long-term goal, joining the European Union, would be reached only if the EU's required criteria were met. Elected in November 2002 and the first absolute majority in Parliament in 15 years, the AKP party promised to meet both IMF and EU requirements. Although his AKP party had Islamic roots, Prime Minister Erdogan planned to prove that Turkey was a stable, secular democracy. After Turkey met the EU's requirements, the question remained: Would the EU's "Christian club" accept a Muslim Turkey?

Spreadsheet Supplement for case 197104

Spreadsheet Supplement for case 204009.

This case describes the everyday decisions made by an alliance team. The case focuses on a budgetary decision where the two parties are $100 million apart, and describes the prior decisions of which each partner is clearly aware. Weighing partnership needs against individual company needs is one of the critical concerns manifested.

The board has asked Ron Tolbert, an employee in the Risk Assessment and Control Group, to analyze three SPE transactions executed by Enron executives: the Destec, Rhythms, and Fishtail/Bacchus transactions, which were prominently featured in the Examiner's Report in the ensuing Enron bankruptcy. Tolbert's job is to assess why Enron used SPEs for these transactions, whether risk was successfully transferred off the balance sheet, and whether risk transfer was the only motivation.

The vice-president of IBM Corporate Community Relations is developing the launch program for IBM On Demand Community, a suite of 140 technology tools designed to enable IBM employees to assist nonprofit community organizations and schools worldwide.

Lee High, the newly hired cost accountant at Blackheath Manufacturing Company, computes the variable cost and the fixed cost per unit on a weekly volume of 500 units of the Great Heath. He uses this information to develop some pricing guidelines. His boss, Charlton Blackheath, endorses the guidelines and adds a feature: a higher commission on sales at a higher price. While both High and Blackheath are away, the file clerk, Adelaide Ladywell, accepts an order below the guidelines and is fired. Students are asked to develop an appropriate set of decision rules for pricing Great Heath and to evaluate Ladywell's decision. See also "Blackheath Manufacturing Company-Revisited" (UV1729).

Explores the role of intellectual property in firms' strategies. Explains the legal and strategic differences between patents, copyrights, trademarks, and trade secrets and explores the multiple ways firms use these different legal protections to gain competitive advantage in the marketplace.

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