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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.

Supplements the (A) case.

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

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

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.

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.

Supplements the (A) case.

In May 1998, the director of Research at Zeus Asset Management is reflecting on the current performance evaluation of Zeus's mutual funds (which include an equity fund, a bond fund, a balanced fund, and an international fund) and ways to improve the measurement of performance. Zeus has become increasingly aware that absolute returns, or relative returns (returns relative to a benchmark), will not suffice as a measurement of performance and that a measurement (or a series of measurements) of risk-adjusted performance must be added. Performance evaluation is key to structuring compensation and incentive schemes in general, as well as strategic planning for the company's future. Given Zeus's relatively risk-averse clientele, the "correct" measurement of risk is imperative. Students are asked to compute several measures of risk-adjusted performance. Familiarity with running regression models in Excel is required; alternatively, the case can be used to pursue that objective. The case comes with an Excel spreadsheet containing the relevant data (time series of returns [net of risk-free rate] of three mutual funds and corresponding benchmark indices).

The purpose of the case is to provide an opportunity for students to evaluate the relative performance of portfolios. In the case, students are asked to select one portfolio from among eight possible choices. Here the selected portfolio will be included in a larger pan-European portfolio. This a good application of the Sharpe, Treynor and Jensen indexes in an international setting. It can be used to draw clear distinctions about when each of the different performance measures should be used. In addition to the performance evaluation, students must also ask how each of the candidate portfolios fit into the overall objectives of the larger portfolio. This case can be used in a portfolio management class to introduce the different performance measures.

Spreadsheet Supplement for UV0084

Spreadsheet supplement to case UV0084.

Spreadsheet supplement to case UV0084.

Chronicles the negotiation of the proposed national settlement between the states and the five major U.S. tobacco companies.

Jan Eriksson is the country manager of the Indonesian joint venture of Basel-based Novartis (Novartis Indonesia), the world's largest pharmaceutical company, formed by the 1996 merger between Sandoz and Ciba-Geigy. The case describes the actions he has taken since assuming his post in May 1996. He was in the middle of merging the Indonesian operations of Sandoz and Ciba-Geigy when the financial crisis struck Indonesia. He has prepared two plans to deal with the crisis. In January 1996, headquarters had still not approved Erickssons' plans and he needs to decide how to proceed.

Cisco is the world's largest manufacturer and distributor of routers and switches. In order to achieve this position, it has adopted an aggressive growth strategy, acquiring companies, their employees, and new employees at a rate of 250 to 300 employees per month. The Cisco Employee Connection (CEC), a corporate intranet, is the primary means by which new employees are absorbed and acculturated. The CEC is also the principal means of interaction for the multi-functional work team approach Cisco employs. This case critically assesses this approach to scaling an organization and the extent to which it can be maintained and transferred.

Display Technologies, Inc. (DTI) is a new joint venture between Toshiba and IBM Japan that is manufacturing the most advanced form of flat panel displays. With success in achieving significant production volumes, DTI has been asked to double its output as quickly as possible. Mr. Shima, DTI's president, must decide among three options, each of which has immediate and long-term strategic consequences.

This note takes students step by step through the evaluation of an interest rate swap. It assumes students have a strong grounding in the concepts of forward rates and spot rates.

This brief note explains how to set up a Monte Carlo simulation using @Risk for the purpose of valuing options. It should be used in conjunction with the Excel spreadsheet Monte.xls.