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By December 2006, Hermann Gudmundsson (the chief executive officer of both Esso Iceland and Bilanaust) had spent the past 10 months evaluating the strengths and weaknesses of both organizations, and determined that the best approach going forward would be to, consider creating a new organization with a new structure and a new brand name. He weighed the advantages, disadvantages and costs of either retaining two separate companies and their associated brand-image, or merging into one new organization. Gudmundsson was facing resistance from both the board of directors and three different advertising agencies to forgo the Esso brand; but with an ultimate mandate to increase shareholder value he needed to figure out the best method, from a branding perspective, to achieve that objective.

In December 2006, Hermann Gudmundsson (the chief executive officer of both Esso Iceland and Bilanaust) announced to employees of both companies that a merger was to occur. Various workshops were held to involve employees in the developing structure of the new organization, resulting in a tenable logistics strategy and increased trust between members of the different organizations. By April 2007, Gudmundsson and his team had merged the two organizations, created a new company name and designed a new logo. On the official launch day, over 800 employees were expected to be in attendance as Gudmundsson unveiled the new brand. Gudmundsson wanted to deliver a memorable speech that captured all the excitement and conveyed the right message of the brand going forward - but was unsure of what issues to address in the speech and concepts he should emphasize to create the right first impression.

By the end of 2007, Hermann Gudmundsson (the chief executive officer of N1) created from the merger between Esso Iceland and Bilanaust) was focused on building trust within his organization. By involving employees in decision-making, N1 had received valuable suggestions on effective business operations. But Gudmundsson had noted a lack of chemistry between employees of the two former firms, and thought that a stumbling block to better relations was the separate clubs or societies for Esso Iceland and Bilanaust employees. After human resources was unable to find a satisfactory resolution, Gudmundsson reluctantly stepped in to render his opinion on how to resolve the issue.

By October 2008, the merger of Esso Iceland and Bilanaust into the new company N1 was considered a success. Earnings before interest, taxes, depreciation and amortization (EBITDA) was on its way to doubling in three years, and cross-selling was gaining traction. But N1's plans were under threat of derailing due to a looming currency crisis. In October 2008, the Icelandic banking sector collapsed. Gudmundsson called upon his team to determine what internal and external changes needed to be made to remain viable and productive now that they were without access to commercial credit.

In February 2009,the human resources associate at the Toronto office of advertising agency Ambrose & Bisaro (A&B) had just finished interviewing a candidate for one of eight summer internship positions. Due to the economic downturn, A&B anticipated a larger number of qualified applicants for these positions, especially notable in 2009 as many of their direct competitors had scaled back their internship programs. Throughout the interview, the candidate impressed the human resources associate with their demeanor, enthusiasm and extra-curricular activities; however, the candidate had no previous marketing experience. At the end of the interview the candidate revealed she had secured interviews at five competing advertising agencies and had three firm offers. Somewhat taken aback, the human resources associate realized she had to make a very quick decision: extend an offer to the candidate, or wait and interview the remaining applicants and risk losing this one?

The green belt specialist at the Cintas Torlake facility near Toronto had four days before he was to present his recommendations to the executive steering committee (ESC) for correcting the capacity problem in the mat department, which was causing product shortages and negatively affecting customer satisfaction. The case provides data that students can use to analyze the processes used at the company for cleaning and replacing mats for its approximately 5,000 customers. The case provides students with the opportunity to develop their process and capacity analysis skills and to explore six sigma methodology.

In March 2010, the owner of Anita Norris Model Management (ANMM) was trying to discern a strategic direction to best serve the growth of her company. Its quick growth in the past two years was due to the owners' efforts to pursue any revenue stream opportunity that presented itself. The owner was concerned that this pace was unsustainable in the long run and would in fact stretch the business too thinly. Currently, the business's revenue stemmed from four main areas: modeling workshops, signing and booking models, model development and speaking fees. The owner wanted to develop a future business strategy that would allow her to focus the business and spend the majority of her time on developing and managing her models. To do this she had to carefully analyze the strengths and weaknesses of her company within the context of her competitors and the industry as a whole.

This case is based on a Canadian real estate trust's need to obtain financing for a large capital expenditure at a time when credit markets have effectively frozen. Students are asked to evaluate the trust's financial statements to determine the amount of financing required, and then to evaluate alternatives in order to meet the financing gap. Students are also asked to value the project by using basic present-value techniques.

In August 2008, there was a large propane explosion at a propane facility located in Toronto, Ontario and the resulting media coverage was nothing short of extensive. Within 24 hours of the explosion, media coverage shifted from developments at the site to the responsibilities of the Technical Safety and Standards Authority (TSSA). The TSSA was a not-for-profit corporation that was responsible for the delivery of regulatory services and ensuring technical safety in a number of areas. It currently fell under the supervision of the Ministry of Small Business and Consumer Services (the Ministry), although it had been separated from the government since 1996. By the fourth day of the crisis, the TSSA was perceived to be underperforming and had lost all credibility with the media and public. Opposition parties were calling for the TSSA to be brought back in-house. The Ministry was under criticism for actions of this arm's-length body, and was determined to deliver a media statement that would accurately capture the nuances of this politically sensitive event, thus showing leadership without taking ownership.

In August 2008, there was a large explosion at a propane facility located in Toronto, Ontario. The Technical Safety and Standards Authority (TSSA) was a not-for-profit corporation that was responsible for the delivery of regulatory services and ensuring technical safety, and fell under the supervision of the Ministry of Small Business and Consumer Services (the Ministry). By day four of the crisis, the TSSA was perceived to be underperforming and the minister was called to deliver a statement. He decided neither to support nor reject the TSSA but instead called for the TSSA to audit all propane facilities in Ontario. The audits revealed that many of the facilities had minor compliance issues. The reporting of these results, combined with intense public scrutiny of the event, again called TSSA's credibility into question. Faced with TSSA's damaged reputation, the minister evaluated three actions: 1) change TSSA's leadership; 2) bring TSSA back into the government; or 3) perform an organizational review.

In August 2008, there was a large explosion at a propane facility located in Toronto, Ontario. The Technical Safety and Standards Authority (TSSA) was a not-for-profit corporation that was responsible for the delivery of regulatory services and ensuring technical safety, and fell under the supervision of the Ministry of Small Business and Consumer Services (the Ministry). After the explosion, with the TSSA facing intense public and political scrutiny, the Ministry requested that the TSSA perform audits at every propane facility in Toronto. The audit results were reported by the media in such a way as to damage TSSA's reputation. The Ministry then ordered an organizational review of the governance structure of the eight Delegated Administrative Authorities (DAAs) of which the TSSA was one. Determined to act in the best interests of the province, the Ministry subsequently ordered a 30-day Propane Safety Review but needed to make three decisions: 1) select an insider or outsider to lead the panel? 2) should the leader be a prominent figure or technical expert? 3) what is the optimal timing of the review?

The chairman and chief executive officer (CEO) of Vancouver's Ondine Biopharma Corporation (Ondine) - a biotechnology firm specializing in the developing of medical devices - was faced with a strategic dilemma. Her publicly listed firm had developed a product that appeared to address an unmet need in the dental profession. She gathered her team to discuss whether management's efforts should be focused on maximizing returns from its new product by developing a new capability (building a direct sales force) or by capitalizing on its current expertise in photodynamic disinfection (PDD) technology to develop a host of new applications (navigating the complex regulatory approval process). Ondine did not have the financial resources to pursue both strategies, so had to choose one path and execute it well.

Eveline Charles, the founder and chief executive officer (CEO) of EvelineCharles (a chain of upscale salon and spas focused in western Canada) was planning the next growth phase of her company. It was currently well positioned for growth: it had nine locations, a 26,000-square foot training facility, a warehouse and its own line of over 1,800 different spa and salon products. Despite these advantages, EvelineCharles was a small company and the CEO needed to be selective in her chosen growth strategy. She was trying to determine whether franchising her stores made more sense than relying on either organic growth or product distribution.

In late 2007, the CEO of British Columbia-based Bradley Smoker Inc. was considering a potential licensing opportunity with Beam Global Spirits & Wine, owner of the Jim Beam brand of bourbon drinks. Bradley Smoker was a small Canadian manufacturer of food-smoking machines and bisquettes, which it sold through a variety of retail channels around the world. The current opportunity would see Jim Beam-branded bisquettes produced from wooden barrels used in the production of Jim Beam bourbon. The CEO was excited by the possibility of co-branding his product with a well-recognized global brand, but was also intimidated about the negotiations and legal aspects of such an agreement. As head of a fast-growing company with many current projects, the CEO wondered if such a deal made sense.

In May 2008, the president of Montreal-based retailer of designer furniture store, Mobilia, was reviewing her workload. Mobilia's growth had required she to spend increasing amounts of her time in operations, finance and human resources and significantly less time on sourcing and purchasing. With a doubling of her direct reports in recent years, and recognizing that external hires would soon be necessary to support Mobilia's growth, she wondered if the organization might be best served by hiring an operations manager. A successful operations manager would need to be experienced, flexible and demonstrate a willingness to work in a family-owned enterprise; however, she also was cognizant of the costs to be incurred if the initiative stalled. She wondered what factors to consider when deciding whether outside help was needed or whether efficiencies could still be reached with her current team in place.

In the 1990s, considerable debate arose concerning the strength and stability of China's banks. Of particular concern were the debts owed to the banks by state-owned enterprises (SOEs). Many SOEs were experiencing financial difficulties and so they might not have been able to repay these loans. Some analysts emphasized that, since the banks and the SOEs were both owned by the government, the only relevant concern was the financial strength of the government and its preparedness to take responsibility for any of the banks' non-performing loans. In the early years of the 21st century, the government undertook a widespread program aimed at improving the balance sheets at the banks by purchasing non-performing loans from the banks and then reselling these at a discount, often to foreign private sector financial institutions. Prior to 2010, this process provided a generally accepted faith in the stability and security of China's banks. Total non-performing loans as a per cent of total bank loans decreased from 20 per cent in 2003 to three per cent in 2008. The year 2010 brought a new realization that the non-performing loan problem had reappeared. However, China's banks now had private as well as government shareholders, and so the solution had become more complex. The government's response was to insist that China's banks increase their capital base by issuing new equity.

This is a supplement to Stitch It (A), product number 9B09M022. The Stitch It Group (Stitch It) is a mall-based clothing alteration service. Having previously sold Stitch It to its current owners in 1990 (retaining the chief executive officer (CEO) position), the founder and CEO was presented with an opportunity in 2003 to repurchase the company. Having originally sold the business because he was too cash-strapped to grow it himself, Stitch It had since grown from three store locations to 84 stores under three brand names spread throughout Canada and the United States. In determining whether to buy back the firm he founded, the founder and CEO also needed to consider his daughter Jennifer's expressed interest in becoming an executive in the firm. How would he provide Jennifer with the proper technical training to become familiar with all aspects of the firm's business, and improve her business acumen and leadership skills? The founder and CEO had one week to inform the owners of his intent to purchase and he felt it was a good deal, considering the opportunity for growth. Even if the founder and CEO resolved to buy back his company, he wondered how to train Jennifer to take over the business one day.

This note introduces the basic motivation behind Islamic finance and how it is implemented in practice. The note contains background regarding the religious principles underlying the practice of Islamic finance as well as a discussion of several products designed to be Shariah compliant and the means by which these products achieve this compliance.

Credit Default Swaps (CDS) are derivative instruments that allow investors protection against credit events such as downgrades of or defaults by single-name or a basket of obligors. Estimated by the Band of International Settlements to be at $32.6 trillion in December 2009, these instruments represent one of the largest and fastest growing financial product markets globally. This note is intended to introduce students to CDS, the pricing basics as well as the role in the 2008 subprime crisis.

The most recent recessionary period and credit crisis has precipitated discussions on the importance of stable financial systems. Many national governments are considering enacting stricter regulation on financial markets and bank liquidity. National and international supervisors will implement regulatory adjustments through coordinated efforts or independently in the next few years. There will be major developments in the banking industry within the near future.<br><br>This case provides a structure for discussing past international efforts to coordinate a strengthening of banking systems. The primary focus is the 2010 Basel negotiation to create new and more extensive internationally accepted regulations. Students can be encouraged to debate the basic concept of international rules, as well as possible versions of these rules. A central message is that such negotiations will likely continue indefinitely. China, India and other emerging nations have indicated that they are not prepared to enforce the 2010 Basel III. Furthermore, the process of analyzing banks’ financial reports in order to develop evaluations of their position vis-à-vis the rules will likely be a long and complex process.<br><br>With each of the major issues, this case presents the rationales for change and the strengths of Basel III’s provisions, as well as the weaknesses of the proposed changes.