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Canada’s current weakness in commodity prices raises the possibility that public investment in private Canadian enterprises, absent in recent years, could make a dramatic return. But that isn’t necessarily a good thing. This article looks at the creation of two heavy-oil upgraders in Saskatchewan that were built to stimulate development of the local oil industry while creating jobs and maximizing royalty income. In both cases, the financial viability of the province was threatened along with the existence of the companies that partnered with government. For business, Saskatchewan’s two heavy oil upgraders show that government can be a risky, duplicitous and opportunistic partner — one with powers that most commercial partners lack. Even if government strives to be a good partner, its presence can politicize operations and increase media scrutiny. Further, people can assume they have privileges that they’d never dream of asserting without government participation. <br><br> If seeking or accepting government as a partner can be avoided, that advice is usually sound. However, government can raise large amounts of capital through non-commercial mechanisms, and can assume risks and provide funds for public policy reasons without regard for commercial targets. If a company has a project that will be solid in the long term, but cannot raise the money on the commercial market, then government can step in. But the author urges companies in this position to a) make sure the project is worth the risk, b) ensure that government partners avoid duplicity when structuring public-sector involvement, and c) make sure that the government has money in the venture first.

Presentation for product 8B16M130.

On January 21, 2015, a trading halt was placed on the shares of Keppel Corporation (Keppel Corp) and Keppel Land Limited (Keppel Land). On January 23, 2015, Keppel Corp announced an offer to take its subsidiary, Keppel Land, private. At the time of the offer, Keppel Corp already owned 54.6 per cent of Keppel Land. The buyout offer used a two-tier pricing approach with a higher price paid if Keppel Corp acquired a threshold number of shares. Keppel Corp would have the right to receive any distribution that might be declared, paid, or made by Keppel Land on or after the purchase date. The offer was scheduled to close on March 12, 2015. On February 2, 2015, Keppel Land appointed KPMG Corporate Finance Pte. Ltd. as the financial adviser to the independent company directors regarding the offer. Minority shareholders of Keppel Land were interested in evaluating Keppel Corp’s offer and examining its motivations. This would require that they compute the premium and net present value of the company, as well as analyze the revenue and cost synergies of the buyout.

Teracom Limited was a medium-sized engineering manufacturing firm in India whose product portfolio included modems. The company catered to the various telecom service providers across India, including Bharat Sanchar Nigam Limited , a major state-owned telecommunications company. Teracom’s customers were primarily business-to-business entities such as government organizations and telecom operators. However, it was considering selling its modems to retail customers. After seeking applications for new distributors of Teracom modems, the company narrowed the list down to four candidate firms. In December 2014, Teracom’s president of corporate business had to use a distributor selection model and undertake a distributor performance appraisal. What were the main criteria for evaluating the four applicants, and which firm was the best fit?

The electric-vehicle market in India had never grown to its expected potential. Environmental uncertainties, structural challenges, lack of consumer awareness, and high costs all served as major deterrents to customer acceptance of electric cars. In 2014, Mahindra Reva launched the e2o, a completely revamped version of its previous electric vehicle, the Reva. Although the car was highly advanced and loaded with innovative features, sales remained stagnant. Should Mahindra Reva attempt to strengthen its market position or completely change its strategy and pursue other options, such as the hybrid-vehicle market.

In 2015, the general manager of Maritimes Credit Union based in Atlantic Canada was faced with a merger proposal that involved amalgamation with another, much larger credit union. The major concern was how co-operatives and credit unions could compete while retaining the values and mission that were at the core of their foundation. The credit union was dealing with the issue of competing in a modern world where technology was changing at a rapid pace, where the value demanded by younger customers had evolved, and where the competitive landscape was more intense, even in rural areas. The values and culture of a credit union were called into question as it coped by developing strategies that resembled those of investor-owned firms.

In 2015, jane’s short & sweet, a United States-based for-profit business, regularly dedicated 25 per cent of its revenue to charities supporting its mission of improving the education and healthcare of marginalized women. The company also engaged in some environmental practices with respect to its use of resources. jane's short & sweet’s owner understood that she would have to make some trade-offs between people and profit while still attempting to remain consistent with her company’s social purpose and contribute to the resolution of its current problem—finding a way to fill a customer order that exceeded the company's production capacity. While addressing the company’s new labour needs, the owner needed to evaluate how the trade-off between mission and money would affect the company's labour source, hourly wages, pricing strategy, product price, and organizational goals. To do so, the owner had to identify and evaluate the options that would enable her to better fulfil her company’s role as a social sustainable enterprise.

In 2008, the Multinational Natural Gas Pipeline Project was sponsored by China National Group Corporation to undertake a major international infrastructure project in Asia. The Pipeline Company, a wholly owned subsidiary of China National Group Corporation, established joint ventures with the host countries and took the lead in financing the project, which was required to be completed by the end of 2009. Initial investments and procurements were made, and payment would soon be due. However, there was a large gap between the estimated total investment and the funds available. Numerous banks expressed interest in the pipeline project, but most required the sponsor to provide a guarantee for the project’s loan. Some banks also asked for an increase in the capital ratio from less than 1 per cent to 20 per cent. The treasurer responsible for the financing of the project was now tasked with the issue of arranging the most effective way to finance the project.

Writing a business case as a class project is an effective way to help students integrate theory and practice, build a tolerance for ambiguity, develop critical thinking skills, and improve their writing ability. However, implementing a case writing project in the classroom can be both difficult and time-consuming. The Case Project Guide is designed to make this process easier. This field-tested guide walks students (alone or in groups) through the entire case writing process, including how to structure a case, collect data, define key problems and concepts, write a teaching note, and get a case published. Detailed specifications are included for structured assignments so instructors (even those with no case writing experience themselves) can quickly and easily integrate a case writing project into any traditional or online class (or independent study initiative).

In March 2016, eEquity, a small firm providing online training and software to corporate human resource professionals, faced a dilemma. A year after new ownership and management took over, the channel sales strategy that was expected to support the growth of the promising Software as a Service division failed, and cash was running out. Management had devised a new sales and marketing strategy that it believed would be successful, but lacked the funds to implement the strategy. This same management team identified four options to acquire the necessary funds, each of which had inherent strengths and weaknesses. The firm’s success depended on making a good choice under conditions of incomplete information and a short time frame.

SmoothPay, a 14-people start-up in Canada that offered mobile payment and loyalty solutions, enjoyed initial achievements after its launch in 2014. In less than two years, through industry partnerships and community engagement, SmoothPay grew to have over 100 merchants in its system, with over 5,000 users. However, the future was full of risks and uncertainty: businesses and consumers in Canada were both slow in adopting mobile payments, and, as a small firm, SmoothPay had not yet established brand awareness. SmoothPay’s management needed to address several key challenges. How could SmoothPay differentiate itself from its many competitors? What strategic direction should the company take? What market should SmoothPay target to enable sustainable growth?

Delhi Metro Rail Corporation Ltd. (DMRC), a government-owned enterprise in India, was responsible for building, operating, and managing the metro rail network in the National Capital Region of India. Delhi’s reliable, punctual, clean, and green metro services began operation in 2002. By 2016, DMRC had transformed peoples’ lives and become an essential form of transit for an average of 2.5 million commuters per day. In terms of customer satisfaction, DMRC was ranked in a global online survey as the second-best metro system in the world. But management at DMRC knew that to maintain that level of customer satisfaction, it had to be conscious of the gap between performance and customer expectations, which were increasing with demands from DMRC's assertive and ambitious millennial commuters. In addition, the government was embarking on strategies to induce commuters to switch from private to public transit. DMRC needed to evaluate its strategic service priorities while continuing to deliver value to its stakeholders. Should DMRC focus on enhancing customer experience with augmented services or invest in measures to reduce operational costs? Was DMRC's culture of customer delight sustainable?

Supplement for product 9B16A049.

Bad leadership is clearly expensive. Fraud resulting from mismanagement at Wells Fargo, for example, has cost the bank about US$300 million in fines and pre-settlement investigative costs while wiping out around US$6 billion in shareholder value. Ex-employees, meanwhile, are seeking at least US$2.6 billion in a class action lawsuit related to the Well Fargo corporate culture that rewarded employees who created multiple accounts for customers without permission. And let’s not forget the extra millions lost from the hit to Wells Fargo’s brand value. <br><br> It has been less than a decade since banking-sector leadership and governance failures almost toppled the global financial system, but the lessons embedded in the 2008 financial crisis already appear forgotten as cases of appalling corporate behaviour continue to undermine capitalism. It is no secret that good leadership requires commitment to doing the hard work it takes to look out for all of an organization’s stakeholders, along with the intellect and competencies required to compete in today’s disruptive times. But as research into the financial crisis has made clear, good leadership also requires a balance of identifiable character dimensions. When recruiting leaders and directors, organizations have long invested time and money to ensure they are managed and governed by people with adequate experience and competencies. But all that time and money can be wasted when leadership character isn’t also given the attention it deserves. This is because costly failures in decision making are often rooted in character-based issues such as close-mindedness and impatience, as well as a lack of accountability, empathy, humility, and courage.

The president of Cloud Syzygy Technologies (CST) had recently returned from the Pacific Telecommunications Council conference, where he discussed ways in which cloud computing had transformed industries. He knew that in the future, the real opportunities lay in the cloud and not in traditional internal IT solutions. As the executive in charge of CST, he wished to develop a plan to grow the business, which would include a clear message to his customers about the merits of cloud computing. He recognized that cloud computing provided many opportunities and risks for corporations seeking to take advantage of new and innovative technologies. He was tasked with presenting a ranking and assessment of CST’s new products to the board at the next meeting.

On February 27, 2010, Chile was razed by a three-minute earthquake of 8.8 magnitude on the Richter scale. More than 500 people died and nearly 400,000 homes were destroyed. The overall cost was estimated at US$20 billion. Over 70 per cent of the people who had died in the earthquake were from the coastal town of Constitución. Celulosa Arauco y Constitución (Arauco), a Chilean-based forestry and timber company, was Constitución’s largest employer. Arauco’s pulp mill and major sawmill in Constitución was completely destroyed, and all but one of the 34 remaining manufacturing facilities were wiped out. The company’s executives moved rapidly to respond to the crisis and create a plan to rebuild Constitución. By the end of April 2010, Arauco’s pulp business in Chile was operating at 70 per cent capacity and in May, the company’s pulp mill in Constitución reopened. However, the disaster had left an indelible imprint on Arauco’s vision and values. <br>The company had been thinking about pursuing further innovation. The company’s values of efficiency and productivity had been tested with an environmental disaster in 2005, but innovation was still limited. Then in 2009, an opportunity provided Arauco with the ability to engage innovation on a larger scale. But the earthquake and rebuilding efforts now required the company’s full attention. Should Arauco proceed with its innovation, and if so how would Arauco balance these two different objectives?

Yoyo Wallet, a technology start-up headquartered in London, United Kingdom, developed a mobile application for smartphones to facilitate in-store payments and loyalty data collection. Inspired by the success of Starbucks’ loyalty-integrated mobile application, Yoyo Wallet strove to become the ultimate tool for retailers in enhancing customer experience. The company planned to enter the mobile payment industry in the United States; however, Yoyo had to compete with existing wallets (like Apple Pay, Samsung Pay, and Android Pay), navigate through the uncertainty of the industry’s future, and adapt their strategy to the competitive environment in the United States.

On February 29, 2016, an investor, who was a business school graduate, purchased one share of Tesla Motors, Inc. stock for $191.93. In doing so, the investor wondered what trading strategy should be followed over the next six months to maximize returns while minimizing risk. In choosing a strategy, he wanted to make good use of the knowledge gained from his financial analytics classes. To that end, he did not know if he should choose a buy and hold, or a stop-loss strategy with an optimal stop-loss threshold. The investor wondered how he would make this decision. Would a six month comparison of the stop-loss strategy with thresholds from 1 per cent to 99 per cent versus the buy and hold strategy resolve his dilemma?

Instructor Spreadsheet to accompany product 8B16E023.

Spreadsheet to accompany product # 9B16E023.