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In April 2015, Shannon Enberg, Managing Director of Real Assets at the United Kingdom Telecom and Technology Pension Scheme (UKTTPS), received a startling memo from the fund's board of directors. In a nutshell, the board sought to reduce the fund's multimillion-pound annual expenditure on management fees by asking all managing directors to drastically cut the number of private managers being used to manage UKTTPS assets. Enberg was told to cut the number of her external managers in half, but given the illiquidity of her private equity investments in commercial property, she would be allowed to make the decision to rehire each manager (or not) as each of her investments matured. UKTTPS had two investments in closed-end property funds that had just liquidated their final holdings at the end of 2014. Both managers had new funds being raised that could recycle the investment proceeds, but now that she was being forced to cut back, Enberg wondered whether either was really worth rehiring.

Student spreadsheet for case KEL996.

As a global company based in Hong Kong, Techtronics Industries (TTI) is sitting on top of the world. Since its incorporation in 1985 as an Original Equipment Manufacturer (OEM), TTI grew into a leading producer and brand-owner of power equipment and floor-care products in North America, Europe and Australia. At an investors meeting in 2015, it boasted of an unbroken 4-year growth of sales revenues and double digit net profits. TTI attributes its success to its passion for product innovation, manufacturing excellence, and unwavering devotion to specific markets. To sustain its growth, TTI was convinced that the Asian region would be its next frontier. How should it go about deciding which countries to target? What are the challenges and risks in introducing TTI's premium products to emerging markets?

Known for manufacturing industrial equipment, GE has decided to invest in software and analytics capabilities to become a digital industrial company. They have also created a software platform that they hope will power the Industrial Internet. GE executives forecasted that the company will generate $15 billion in digital revenues by 2020. What steps does GE need to take to reach their goal?

Next India Traveler (NIT) was a travel and tour operator based in Chandigarh, India. The young start-up had been in business since 2012. It offered both inbound and outbound tour and travel packages that covered all the major tourist destinations in India and the Asia-Pacific region. NIT's motto was to provide its clients with best-in-class services for all aspects of travel and tourism, all under one roof. An upcoming meeting with a venture capitalist firm was crucial to NIT's future plans for growth, and the investors would certainly want to have a clear idea of the company's value. Thus, before making his pitch to the venture capital firm, NIT's owner wanted to perform a valuation of his start-up. Unfortunately, the lack of long-term data and a proven methodology for valuing relatively new companies meant the owner faced a considerable challenge in terms of identifying the most appropriate model for the task.

Black Friday, the day after American Thanksgiving, marked the official start of the Christmas shopping season in the United States. It was a day that generally brought smiles to the executives of retailing giant Nordstrom, Inc. (Nordstrom). However, on November 28, 2014, Nordstrom had to deal with the tragic loss of a seasonal worker at a Nordstrom store in downtown Chicago. She had been killed in a workplace violence incident involving her former boyfriend. The event was a reminder of an earlier incident involving an Indianapolis-based employee who was terminated in November 2013. Even though Nordstrom had been a strong advocate for workplace safety, the retailer had endured public scrutiny after terminating the employee, who was victimized by her ex-boyfriend. These two workplace violence incidents made it necessary for Nordstrom's management to determine how best to protect all Nordstrom stakeholders in the future.

The case traces the birth of Shang Xia, a joint venture between the Hermès Group and Chinese designer Jiang Qiong Er. Launched in 2009 in Shanghai, the new brand's core mission is to revive and promote China's 5,000-year-old cultural heritage and leverage Chinese craftsmanship to design contemporary products. Describing the brand evolution over its first eight years of existence, the case allows for an exploration of the challenges associated with creating a luxury brand and reconciling several strategic imperatives: the need to build a strong, desirable, and prestigious brand identity and grow a profitable and sustainable business. The case also provides an opportunity to discuss the benefits and challenges associated with 1) building a luxury brand from scratch and 2) being a luxury brand "made in China" with global ambitions.

Private equity firm, Siris Capital Group must decide if they should raise their offer to take Titan Telecom private by acquiring its publicly-traded stock. Siris' decision to pay a premium for Titan must be made in the context of their unique (and somewhat complex) investment strategy that focuses on investment targets that have both mission-critical products or services that are approaching obsolescence but producing predictable cash flows, and also have new products or services on the horizon with strong growth potential. Further complicating the decision is the fact that Siris is in the midst of raising its second private equity fund and seeks to secure co-investment capital from many of the same investors they are pursuing as limited partners for their new fund.

Sally Tan, an equity analyst with Prospero Asset Management Company (PAMC), is tasked with recommending units of four Singapore REITs (Real Estate Investment Trust) - CapitaLand Mall Trust (CMT), Ascendas REIT (A-REIT), Soilbuild Business Space REIT (Soilbuild REIT), and Parkway Life REIT (P-Life REIT) for three of PAMC's portfolios: 1. The Prudent Equity Fund that targeted equity investors with a low risk appetite and desired stable, recurring dividend income; 2. The Balanced Equity Fund that targeted equity investors with a moderate risk appetite and expected a combination of dividend income and capital gains; and 3. The Wealth Accumulation Fund that targeted equity investors with a high risk appetite focussing on total returns. These investors were indifferent between dividend income and capital gains and also wanted an exposure to overseas markets. To enable unit selection, the case provides information on the operating and financial performance, the unit prices and distributions of the four Singapore REITs, as well as the underlying macroeconomic drivers. As of November 2016, there were over thirty REITs listed on the Singapore Exchange (SGX). Singapore listed REITs have a sector focus i.e. their portfolios consisted almost exclusively of assets from one of the following sub-markets - residential, retail, industrial, office, healthcare and hospitality. The REITs chosen in this case study comprise the largest REITs in the retail (CMT), industrial (A-REIT) and healthcare (P-Life REIT sectors, and an industrial REIT whose operating and financial performance is weak (Soilbuild REIT), to enable the class to get an exposure to retail, industrial and healthcare REITs and distinguish REITs with weaker business and financial profiles from stronger ones.

IN less than two decades, Netflix has grown from a DVD-by-mail service into a $55-billion-dollar global company. Along the way, it disrupted established industry players and changed how television is watched. Netflix's success has attracted the attention of aggressive competitors like Amazon, HBO, and Hulu. Netflix CEO Reed Hastings must find ways to work with internet service providers (ISPs) to ensure that subscribers can access its content. As Netflix expands internationally (to 190 countries), it also needs to ensure that it invests in the content that will be relevant to its customers. How can Netflix keep subscribers loyal and acquire new ones?

An introduction to franchising through the work of Valerie Daniels-Carter, who owns restaurant franchises across the country. The case looks at the history of franchising, franchise options, and how to do a financial analysis of franchise opportunities.

Following the March 2016 launch of DB11, Aston Martin Lagonda Ltd.'s first new sports car platform in over a decade, the case discusses the future strategy of the famed British luxury auto manufacturer. Since its founding in 1902, Aston Martin's has been characterized by leading automotive design of bespoke luxury vehicles. In 2016, CEO Andy Palmer faced decisions about the company's future direction in an automotive industry in the midst of a digital tornado with the arrival of autonomous, internetworked, clean energy-propelled vehicles. Palmer's Second Century Plan called for Aston Martin to diversify into new vehicle categories and increase overall production volume in an effort to boost earnings without compromising Aston Martin's reputation for exclusivity, style, and engineering. As one of the few luxury car companies not backed by a larger automaker, Palmer and Aston Martin faced the challenge of funding development of new vehicles and maintaining a position of leadership in automotive design. "The big question is whether the Second Century Plan has us departing from our traditional role as a sports car and luxury manufacturer and moving into new segments, new businesses," said Palmer in late 2016. "Is that a wise choice? How does a high-end premium provider in any business grow without losing its exclusive reputation? That is the eternal business question."

This case study delves into the complexities of equity allocation among startup cofounders, exploring three distinct scenarios: DogBone/Whiplash, Kitten Mittens, and Bad Blood. Each vignette presents unique challenges and decisions faced by cofounders during the critical stages of a startup's lifecycle. The DogBone/Whiplash story starts with an equal equity split among four founders and evolves through pivotal moments, including a cofounder's exit, role adjustments, and a significant pivot in business direction. It highlights the dilemmas in reassessing equity distribution in light of changing roles and contributions. Kitten Mittens focuses on the dynamics between founders and investors, and the intricacies of negotiating equity splits when new members join the team. It underscores the importance of clear communication and understanding of roles in the investor-founder relationship. Bad Blood examines the relationship between two cofounders with differing visions and skills, emphasizing the challenges in balancing equity split with operational roles and contribution levels. This case ultimately encourages a nuanced understanding of equity distribution, considering factors such as founder experience, role differentiation, and the evolving nature of startups. It serves as a practical guide for new entrepreneurs, providing insights into navigating the often complex and emotionally charged process of equity allocation in startups.

The case highlights the role of minority chambers of commerce and the background of Eve Hall, a regarded multi-sector leader asked to revive Wisconsin's African-American chamber. This case study examines the lending options that a minority chamber of commerce considers when seeking to maximum value to their constituency. Students learn the challenges minority small business owners and entrepreneurs face, the role of non-financial institutions / community-based organizations in addressing those challenges and the financial tools available to lenders and borrowers in this segment. Students learn how to analyze financing opportunities by assessing the value proposition of chambers of commerce, developing the risk-reward profile of each party involved and deliberate as members of a board to reach a final lending decision.

In September 2016, the U.S. Securities and Exchange Commission (SEC) launched an investigation into ExxonMobil's accounting treatment of its oil and gas reserves. The SEC questioned the company's decision to record no impairments of its reserves, although oil prices had declined by almost 60% since mid-2014 due to a mix of factors, including excess supply from the US, Russia and Middle East and slowing demand from China. Moreover, critics of ExxonMobil's accounting noted that competitors, such as Chevron and Royal Dutch Shell, had impaired their reserves. This followed probes, by New York and Massachusetts Attorney Generals among other state Attorney Generals, which questioned whether ExxonMobil had, for decades, failed to inform investors about potential climate-change risks. As CEO Rex Tillerson stepped down to become the Secretary of State in the new Administration under President Donald Trump, the new CEO of ExxonMobil faced many strategic questions. How should ExxonMobil invest going forward? What were the capabilities that ExxonMobil needed to develop in order to be successful in the future? Did the accounting book value of the reserves reflect economic reality or was an impairment needed?

Supplement to case 117046. The case presents ExxonMobil's response to growing pressure to disclose how climate change will impact their business. This includes multiple asset impairments and losing a proxy vote to shareholders to increase climate change related reporting. Supplements the (B) case.