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Explores the tradeoffs between climate change action and economic development from the perspective of Greenland, a self-governing territory of Denmark. Greenland lacks autonomous decision-making authority in several key international fora, including the United Nations international climate negotiations. The Paris Agreement was a milestone in international climate negotiations, and an important step towards limiting global greenhouse gas emissions. Greenland, as part of wealthy Denmark, would be considered under the Paris Agreement obligations of the European Union and Denmark. The central conflict explored in this case is whether Greenland should participate in the Paris Agreement or request a territorial exclusion from Denmark. The Paris Agreement was widely accepted by the international community, with signatories ranging from the wealthiest nations to the least-developed nations. However, countries are not equally responsible for historical emissions. With a population of approximately 56,000 (90% indigenous Inuit), Greenland has contributed a negligible amount of historic emissions, but is experiencing disproportionate impacts from climate change, including rapid melting of its ice sheet. During the case, Greenland is in the process of nation building. Greenland's economy historically has been dependent on fisheries, but with climate change transforming the landscape, Greenland has an opportunity to pursue economic development by tapping into its abundant natural resources, including minerals, oil, and gas, or developing other sectors like tourism. This development is seen as the key to Greenland's economic growth and ultimate independence from Denmark. Many in Greenland's government are concerned that joining the Paris Agreement would limit Greenland's ability to achieve economic growth and independence. Others were in favor of participating in the Paris Agreement to demonstrate Greenland's active participation in global efforts against climate change.

In April 2020, Alisha Moopen, Deputy Managing Director of Aster DM Healthcare, a network of clinics, hospitals, and pharmacies in the Middle East and India, must create her company's budget for the 2021 fiscal year in light of the onset of Covid-19. The pandemic had forced Aster to indefinitely cancel elective procedures, which represented 70% of the company's revenue. Meanwhile, materials costs increased as the Aster team had to procure enough personal protective equipment (PPE) to keep frontline staff safe from the virus, even as revenue from clinics and pharmacies declined. To offset the impact of the pandemic, Alisha and her team must decide whether to implement austerity measures, such as temporary salary decreases, whether to request temporary rent reductions from their landlords, and whether to renegotiate their debt covenants with their lenders. They must also decide what assumptions they can make about revenue: when elective procedures will resume, whether their new telehealth practice will gain traction, and when clinic and pharmacy revenue will recover.

In 2000, Eaton Corporation was a broadly diversified industrial conglomerate. But its strategy was evolving and its focus was narrowing around "power management" and more recently on "intelligent power," the use of digitally enabled products and services designed to enhance efficiency and reliability. To implement this transition, Eaton had acquired more than 70 companies and divested another 50. Such active portfolio management required Eaton to regularly assess the prospects of each business unit-the profit and growth potential-and to explore opportunities to enhance its capabilities through acquisitions. In January 2020, Eaton got an offer from Danfoss, a Danish conglomerate, to buy its hydraulics business for $3.3 billion. Recently appointed CEO Craig Arnold must decide whether this deal makes sense strategically and financially. In particular, he must decide if $3.3 billion is a fair price for the firm's hydraulics business. This abridged version is shorter than the original version (HBS Case #221-006) and does not contain the appendix that explains and derives the formulas for the WACC using the capital asset pricing model (CAPM).

Spreadsheet supplement for case 221070.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 1 offers a summary of different types of financial information and their providers, focusing on information that is issued publicly. Financial information is essential for an organization to operate efficiently. Various people use an organization's financial information, such as tax authorities, lenders, and suppliers. The information requirements of users are typically met by an organization's financial information system and disclosures in income statements, balance sheets, and cash flow statements. Several examples are given of financial information from large companies. Types of financial information are also discussed that are specifically meant for those inside the company and are not available publicly. Financial information is needed by those running a business and is vital for effective management.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 2 introduces three main financial statements: income statements, balance sheets, and cash statements. Income statements show the profit for a specific financial period; balance sheets provide information about the assets and liabilities of an organization at the end of the financial period; cash statements reveal the money coming in and going out during the financial period. These statements are typically in an organization's annual report. This chapter will discuss how to find key figures in financial statements and learn about the company's financial position and performance. Trend analysis, vertical analysis, and comparative analysis are all explored. For-profit organizations are the focus of this chapter, and several examples are given that show how to calculate ratios in order to analyze financial success or failure. The principles in this chapter can be applied to all types and sizes of organizations.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 3 builds on the previous chapter, going into greater detail about analysis of financial statements. Examples of financial statements from three companies in three different countries are offered. These examples show how to look at complex financial statements and find the figures needed to conduct an analysis. This chapter focuses on analyzing a company's profitability, liquidity, efficiency, and control of cash. How to conduct a sophisticated analysis is then explained. Calculating and analyzing ratios is discussed. To analyze ratios, comparisons are needed, which can be from the company's previous financial statements or statements from other companies; these ratios are useful in understanding an organization's financial performance and standing. Limitations of ratio analysis are also discussed.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. This chapter discusses how information available to managers is essential for business success as it can help them make informed decisions, explore problems, set performance targets, and complete their management responsibilities. Managers are specifically interested in the costs of activities and decisions, such as operating machinery or selecting different working methods. This chapter explains what cost and management accounting are and explores various types of cost, specifically direct, indirect, fixed, and variable costs. How costs relate to the service sector and the manufacturing sector is also discussed. This chapter focuses on different types of costing to ensure an organization's efficiency, such as process costing, full costing, and standard costing. Explanations and examples are given for each.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Building off of the previous chapter, this chapter shows how to choose the costing methods that would be most helpful to find the financial information needed. Various methods and techniques are explained; however, businesses should be careful to select which ones would be the most helpful and tailor those techniques to meet the business's needs rather than trying to change the business to fit a specific method. Before determining what information is needed, it has to be decided where the business is going. This chapter explores business objectives, planned profit, sales objectives, and cost strategies. Every organization should have a business plan that is expressed in financial terms as well as a form of record keeping to measure success or failure in meeting the plan. Several costing methods are given that may be helpful; which to choose depends on a company's size and industry type. Two major financial approaches-activity-based and total quality management-are also discussed with the focus on the aspect of accounting.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 6 goes beyond looking at just financial performance and takes a broader view of a company's activities. This chapter starts by exploring Management Discussion and Analysis sections in annual reports, the growing amount of data available to companies, and how companies can use data analytics to improve decision making. Key performance indicators (KPIs) can help organizations measure performance and explain publicly available information. This chapter also discusses the potential expansion of information made available to shareholders, sustainability accounting, and integrated financial reporting. Typically, only large organizations give information on sustainability and integrate their financial reports; however, this information is of interest to investors as well as a growing number of consumers.

Spreadsheet Supplement for Case CU322

This note describes how the Chinese Communist Party (CCP), founded in 1949, has attempted to create and maintain an official narrative of the country and regime that tilts toward the favorable and minimizes any negative. A key component of the historical narrative has been China's so-called Century of Humiliation, in which China suffered exploitation at the hands of various other nations. Mistreatment by foreigners resulted in China's being disadvantaged in unequal treaties, being impoverished by outrageous indemnity payments, and suffering territorial losses (e.g., Hong Kong and Macau) and violations of its sovereignty (e.g., foreign concessions). In announcing the founding of the PRC in 1949, CCP Chairman Mao Zedong said, ""Ours will no longer be a nation subject to insult and humiliation. We have stood up."" Reference to the Century of Humiliation and China's refusal to be controlled any longer was meant to inspire and motivate national pride in the Chinese people. In recent years, the influence of the national humiliation narrative has become increasingly apparent in China's international actions. The CCP has aggressively responded to perceived offenses by foreign entities, be they governments or companies, with public criticism and mobilization of Chinese netizens. This note was written to accompany ""The NBA, China, and Social Media: What Are the Rules of the Game?"" (UVA-E-0459), which outlines the Chinese reaction to 2019 social media posts sympathetic to protestors in Hong Kong. It gives background on the national humiliation narrative and its ongoing influence on China's relationship with its own people and with other nations.

The case opens in August 2020 as Moulay Mhamed Elalamy (Mhamed), CEO of the Saham Group (the Group), a pan-African investment company that operates a variety of businesses out of Morocco, contemplates the Group's identity, its investment strategy, and how to navigate the existing businesses through volatility. Since Mhamed's father Moulay Hafid Elalamy (Moulay Hafid) had laid the foundations of the Group in 1995, its insurance arm became the largest insurance company in Morocco and expanded into the rest of Africa, and the Group diversified to include call centers, real estate, and agriculture. In 2013, Moulay Hafid Elalmy left his executive duties to take on the role of Minister of Industry, Trade, and New Technologies. The case talks about Mhamed's entering the family business at the age of 23 and his rise through the ranks to eventually assume the CEO position. In 2018, Mhamed decided to sell the insurance businesses, the Group's crown jewel, and the Group became a private equity house. Since then, Mhamed and his sister Anissa Elalamy were focused on making sure that business continued to prosper. While the Group was settling into its new identity as a family office focused on private equity, the COVID-19 pandemic highlighted the difference between the father and son's risk appetite and management styles: Mhamed was focused on value preservation and risk-reward analysis, while Moulay Hafid's saw opportunities everywhere. This raised questions for the future and the family contemplated its risk tolerance and allocation, governance, and succession. The case introduces the different family members and executives and their points of view and asks: What difficult conversations did the Elalamys need to have to ensure shareholder value and continued success in the upcoming generations?

In 2014, Ifeoma Fafunwa, an award-winning playwright and director, founded iOpenEye, a commercial production company dedicated to driving social change through performance art. iOpenEye's flagship theatrical production was called "Hear Word! Naija Woman Talk True," which shared narratives of Nigerian women's struggles. By 2019, "Hear Word!" had debuted internationally, playing sold-out shows at distinguished venues like the American Repertory Theater and at the renowned Edinburgh International Festival. By spring 2020, COVID hit and venues closed, offering Fafunwa new possibilities, such as streaming content and reconsideration of production scale. What steps would it take to have iOpenEye and "Hear Word!" be successful five years down the line? Fafunwa contemplated her next move knowing that whatever it was, it had to be an iOpenEye 2.0 business model.

The case opens in November 2019 as Eyad Alkassar and Mahmoud Fouz, co-founders of Iran's first and leading ride-hailing platform, Snapp, find out about Apple's and Google's decisions to remove all Iranian apps from their respective application stores. The case takes us through the founding story of Snapp in 2014 to how the company grew to reach two million daily rides in Iran servicing 30 million customers through its two million registered drivers in 100 cities in Iran. The case then goes into detail about how the removal of all Iran-based apps from application stores limited Snapp's operations and its go-to-market channels. Next, the case chronicles how the co-founders focused on finding operational and technological solutions to minimize Snapp's reliance on U.S. technology following the U.S.' withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May 2018 and instating the secondary sanctions on Iran. The case highlights the challenges of operating under sanctions and the different ways the co-founders try to find to keep Snapp alive in a market that had been out of reach for Western investors. In 2019, Snapp had become the largest Internet company in the Middle East yet it was increasingly difficult to navigate the operational hurdles. The co-founders could not help but think whether it was now time to reach out to major media outlets and launch a public relations campaign to create awareness around the unexpected decision that had put the very existence of many companies at risk, including Snapp's. Alkassar and Fouz needed to weigh it against Snapp's realities. The case then asks: Should they go public with their story, or would it be better to stay under the radar and focus on efficiency and sustainability of operations?

In March 2020, Chris Abkarians and Nikhil Agarwal were in the midst of preparing the annual auction for their student loan assistance startup, Juno. Both current MBA students at Harvard Business School, the duo founded Juno in 2018 to leverage student bargaining power to negotiate better student loan terms with private lenders. Their business model involved soliciting bids from banks through an annual auction; the lender who submitted the best terms then received the right to exclusively market their loan products to Juno's members. The co-founders held their first official auction in 2019, and anticipated receiving several competitive bids from large banks in 2020. However, several weeks before the auction was scheduled to begin, a new entrant to the private student loan market, Eager Bank, expressed a strong desire to become Juno's 2020 loan partner. Eager requested that Abkarians and Agarwal cancel the auction and negotiate directly with them. In exchange, Eager offered several attractive terms, such as involving Juno in the underwriting process. Abkarians and Agarwal must decide whether to partner with Eager, hold the auction as originally planned, or pursue both options simultaneously.

In March 2020, Juno co-founders Chris Abkarians and Nikhil Agarwal decided to pitch banks in anticipation of their annual auction while negotiating directly with private lender Eager. Responses from the majority of private lenders-including Juno's 2019 partner-were not encouraging, yet Eager remained keenly interested in an exclusive partnership. The co-founders faced additional pressure following the onset of the COVID-19 pandemic. Given the uncertainties of the pandemic and its economic impact, the co-founders gravitated towards the Eager partnership. However, they must decide whether to cancel the auction, and whether Eager has the stability to withstand the pandemic.

In May 2020, Juno co-founders Chris Abkarians and Nikhil Agarwal decided to hold the annual auction for their student loan assistance startup. Five lenders submitted bids, and the co-founders ultimately opted to select Eager Bank as their partner for the 2020-2021 academic year for fixed-rate loans. However, a significant portion of Juno's membership expressed interest in variable-rate loans, prompting them to seek out another partner for the variable-rate product. They secured a deal with a major private lender through an intermediary, but are forced to quickly adapt their strategy when the lender refuses to pay for Juno's loan volume. The case concludes with the co-founders considering whether Eager Bank might be a potential long-term partner, and once again wondering whether they should make changes to their auction-based strategy for the coming year.

The global fashion industry was among the hardest hit by the COVID-19 pandemic, facing major disruptions on an unprecedented scale. On the retail side, challenges included store closures as part of government lockdown measures, as well as sudden shifts in market demand since many consumers were largely confined to their homes and facing economic uncertainty amid a deepening recession. On the supply side, complex and vulnerable global value chains proved to be ill-prepared for factory closures, prolonged shipping delays and reduced labor capacity due to lockdown measures, as well as sudden order cancellations due to a halt in customer demand. While these supply and demand shocks were triggered by the events of the global pandemic, they came on the back of a laundry-list of sustainability issues for which the fashion industry had since long been widely criticized, such as the environmental impact of textile waste and exploitative labor conditions for workers at the bottom of the value chain. A global leader in apparel, PVH Corp. (hereafter referred to as PVH) - parent company of iconic fashion brands Tommy Hilfiger and Calvin Klein - found itself in the same boat as many players in the fashion industry. PVH suffered significant declines in revenue and earnings, and was forced to make difficult decisions, including permanent store closures as well as substantial lay-offs and furloughs. Stefan Larsson, the president of PVH, who would succeed Emanuel Chirico as CEO in early 2021, had major strategic issues to address, not only to get the company through the COVID-19 crisis but to future-proof it in a challenging post-pandemic world.