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In early January 1998, the co-owners/photographers of Off Broadway Photography, were reviewing the company's year-end financial statements. Although profit levels were up from last year, sales were down. To improve both their sales and profit levels, the partners were considering three options; purchasing bulk film, outsourcing black and white film development, and changing the proof format. Students need to assess the company's current customer requirements and what is important to them, the company's current activities as to both efficiency and effectiveness and how the company could become more efficient, and therefore more profitable. The tradeoffs presented require both quantitative and qualitative analysis.

As part of General Motors' overall strategy to standardize systems across GM's global operations, GM planned to implement a new timekeeping information system throughout GM plants in Canada. A common timekeeping system could increase plant efficiency, standardize reporting for headquarters, and facilitate productivity benchmarking across North America. Existing GM Canada timekeeping practices differed considerably within Canada and with U.S. operations, however, and Canadian resistance was threatening system implementation.

The general manager of COM DEV's Chinese facility which assembled satellite components, was trying to decide whether the plant should seek ISO 9000 certification. Not only did ISO 9000 registration have a number of advantages and disadvantages, but as well, the decision in the Chinese plant would have some implications for COM DEV's other facilities in Canada and Europe. In addition, if the general manager decided to seek ISO 9000 certification for his plant, he would have to decide which level of certification to seek. COM DEV Xi'an was a joint venture between COM DEV International of Cambridge, Ontario and Xi'an Institute of Space Radio Technology.

The basics of project management are described and applied to a simple tutorial problem. The steps for project management, as well as the calculation of the critical path, using CPM, are presented.

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.

The buyer of power tools and power tool accessories for Canadian Tire Corporation had to make a decision regarding the depth and breadth for the circular saw product line. The previous year's assortment did not perform up to expectations and the company experienced a significant decrease in sales in that category. The buyer had six weeks to complete a strategy to increase profitability in the line and to decide which products would make up Canadian Tire Corporation's assortment.

A leading Canadian mining company had recently closed two uranium mines and begun the lengthy and complex regulatory process to obtain approval of their clean-up plans for the mine, surface facilities and waste management areas. The accounting issues in the case focus on the uncertainty associated with the approval of a specific waste management method, upon which the company had based its provisions for clean-up costs, and the potential cost associated with alternative waste management methods that had been investigated by an independent consultant. If forced to adopt one of the alternative methods, a potential cost and liability of $300 million could result. In the audit committee meeting a concern is raised about the potential existence of a contingent liability. The decision faced by the audit committee is whether to investigate the situation, and if so, its role and how to proceed. (Two sequels to this case, titled Northern Mines Limited (B), case 9A98B013 and Northern Mines Limited (C), case 9A98B014 describe the audit committee's investigation and recommendations.)

A leading Canadian mining company had recently closed two uranium mines and begun the lengthy and complex regulatory process to obtain approval of their clean-up plans for the mine, surface facilities and waste management areas. Northern Mines (B) summarizes the investigation that was carried out by the audit committee, and the information that is gathered from the auditors and management about the regulatory process for decommissioning and the company's proposed clean-up methods. Now the audit committee members must decide if a contingent liability exists, and if so, what to recommend to the board about disclosure. (This is a sequel to Northern Mines Limited (A), case 9A98B012.)

The executive vice president, Investor and Trust Services Division, The Toronto-Dominion Bank, and chairman, Green Line Investor Services, was trying to decide whether he should request the authorization of the bank's top management to begin negotiations to acquire Waterhouse Investor Services Inc. Waterhouse was the fourth largest discount brokerage firm in the United States, and the acquisition, if consummated, would be the largest acquisition in the history of the bank. The case describes the major strategic moves of Green Line from its establishment in 1984 to the proposed Waterhouse acquisition in 1996. During this period Green Line became the dominant discount broker in Canada. The Waterhouse acquisition would represent its first major move into the global discount brokerage market. One of the issues in the case is trying to understand the reasons for Green Line's success in Canada and the potential transferability of its customer value and profit creation model to the highly competitive U.S. market.

Nancy Featherstone, an account manager with the Royal Bank, was assessing a client request for an expanded operating line of credit. Ashleigh Cosmetics Ltd., a Montreal-based manufacturer and distributor of women's cosmetics, planned to launch a new red lipstick line called Marilyn M. Ashleigh had applied for a $2,000,000 increase in its authorized operating line for a total of $4,500,000. The estimated increase was based partly on anticipated inventory and receivable peak levels for the new product.

The director of sales and marketing for the Delta Grand Pacific Hotel in Bangkok, Thailand, needed to devise a marketing strategy that would ensure the hotel's success in its very competitive market. He wanted to ensure that the hotel maintain and eventually increase its two key benchmarks of performance, namely, occupancy rates and average room rates, by milking the Sukhumvit Micromarket to its fullest potential. Compounding this challenge was the anticipation of a sharp drop in occupancy at the hotel due to the likelihood that an important client contract would not be renewed.

The chief financial officer of Ault Food Limited was compiling the data he would need to run a divisional Economic Value Added (EVA) analysis. He had been asked by the CEO of Ault Foods to present the analysis at the next meeting of the board of directors. The CEO must persuade the board that divesting at least one of the company's divisions will be in the best interest of Ault's shareholders. The case is intended to provide an introduction to the use of EVA in a multi-business setting. Having completed the case, students should have a basic understanding of the EVA concept and its usefulness as a performance indicator, be capable of making EVA adjustments and calculating actual EVA measures, and have a good conceptual grasp of the application of EVA as both an internal control device and an aid to strategic decision making.

Huaneng Power International (HPI), an independent power producer in the People's Republic of China (PRC), is in the process of executing a global equity issue to raise funds for the construction of new power plants. The company is planning to list the new shares through an American Depositary Receipt program on the New York Stock Exchange. The company has recently reduced the price of the issue due to poor market conditions and investor resistance to the price range stated in the preliminary prospectus. HPI's management must decide whether the new offer price and choice of listing exchange is reasonable in light of recent market events and the political, economic, social and technological environment in the PRC.

Wayne Adlam, head of equity capital markets for CIBC Wood Gundy Securities Inc. (Wood Gundy), sat at his desk contemplating placing a value on the equity units of the Legacy Hotels Real Estate Investment Trust. Wood Gundy and RBC Dominion Securities Inc. had been given the mandate to co-lead manage Legacy's Initial Public Offering (IPO). Legacy planned to use the proceeds of its IPO along with funds raised in a concurrent $300 million subordinated debt offering to invest in 11 hotel properties located in major business centres across Canada. The hotel properties would be acquired from CP Hotels.

The Mexico-U.S. border environmental situation is outlined in this note which provides background information on the region. The nature and extent of the pollution problem and a brief overview of the current system of environmental regulation and enforcement in Mexico and under the North American Free Trade Agreement is also reviewed. The note also provides two caselets of companies operating in the border region. The principle objective of this note is to familiarize students with some of the major debates surrounding the relationship between globalization (expansion of international trade and investment) and the natural environment. It offers the chance for students to learn about the Mexican-U.S. border situation and to consider both the causes of and possible solutions to the serious and complex pollution problem in the region.

The assistant engineer in the Thermal Treatment Department of a state-owned enterprise in China has received approval for the formation of a new quality control group to reduce the high defect rate of a critical part. The total quality concept is presented within the context of a specific quality problem, which encourages students to both assess the company's quality system and apply quality improvement tools to this particular problem. This case is the first of a three part series that applies the principles and tools of total quality management in a Chinese setting. This case can either be used independently or in combination with the (B) case, 9A98D002 and (C) case, 9A98D003.

After selecting the quality control group members, the assistant engineer and his group begin data collection and need to construct a cause-and-effect diagram to develop an action plan. This case should be used in conjunction with case (A), 9A98D001.

The quality control group has implemented several countermeasures, and the results have been monitored and reported. A final examination is necessary to assess whether this type of problem is likely to recur, and where further improvement can be made in the company's quality systems. This case is designed to be used in conjunction with the (A) case, 998D001 and the (B) case, 998D002.

The president and general manager of Township Motors, a franchised dealership, was considering two proposals for a new body shop facility. He has to decide whether to accept a loan at 15 per cent interest for ten years, or to lease the building and land for a ten-year period, with payment at year end.

The head of the Clinical Resource Management Committee at St. Catharines General Hospital which was responsible for monitoring and promoting optimal resource utilization by physicians and the other staff at the hospital. While the committee had made some gains, there was little effect on the hospital's operating costs and many physicians were uninterested or resistant to the concept of utilization. In addition, hospitals in the region were faced with restructuring proposals and budget cuts in the near future. The case highlights the changes taking place in the health care sector and the implications for managerial analysis and control. Issues covered include: cost analysis, design of a funding scheme to promote certain behavior, data collection and validity, incentives, and performance measurement.