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The note provides a qualitative and quantitative overview of the North American airline and airport industries with data covering 2016 to 2020. Specifically, the data covers five airlines—American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co., United Airlines Holdings Inc., Air Canada, and WestJet Airlines Ltd.—and five airports—New York’s LaGuardia, Los Angeles International, Chicago’s O’Hare International, Toronto Pearson International, and Tucson International. The objective is to provide students with a basic understanding of the business and operations of the airline and airport industries.

Student Spreadsheet to accompany product W26084.

In May 2021, a recent graduate from the master of business administration program at Ivey Business School noticed a news article about one of his investments, the leading athletic apparel company Under Armour, Inc. The article stated that Under Armour, Inc. was fined US$9 Million by the US Security and Exchange Commission. The charges were a result of concerns over the company’s revenue reporting practices, but the company's share price dropped only very slightly following the announcement. The investor was considering his options regarding his investment. However, he was still curious and eager to learn more about the circumstances behind the US Security and Exchange Commission’s charge and potential consequences for the company. The investor decided to examine Under Armour, Inc.’s revenue reporting practices, financial reporting practices, and corporate governance issues.

Established in 2015 in Shanghai, China, Shanghai Kmind Enterprise Management Co., Ltd. was a strategy consulting firm that specialized in helping enterprises overcome market competition through the provision of its consulting services. It not only provided strategy consulting reports to clients but also acted as a business partner in assisting clients in implementing the reports. Among its many clients, nine leading enterprises had achieved rapid growth, and five had reached revenue of ¥10 billion. However, behind its success, the firm was facing a shortage of consultants. Although its clients had increased in number since the firm's founding, it had had to turn away many high-quality clients because of the consultant shortage. The firm’s chairman had to consider how to rapidly improve the firm’s service capability.

The Hatsu brand of tea beverages and healthy food products emerged from the idea of two Colombian entrepreneurs in 2010 and evolved, in just over five years, to capture the interest of the leading company in the Colombian beverage market, Postobón SA (Postobón), which acquired it. In this context, Hatsu faced the challenge of consolidating itself in the tea beverage market while also venturing into other product categories (e.g., cereal bars, nuts, infusions, and sodas) and multiplying its sales without losing the lifestyle concept on which it was built and through which it had succeeded. By late 2020, Postobón’s premium business unit director needed to determine how Hatsu could be turned into a megabrand without losing its essence.

Ian Rosen, the recently appointed executive vice-president of Digital and Strategy at Harry Rosen Inc. (Harry Rosen), a successful men’s retail chain founded by Ian’s grandfather in 1954, must decide on a technology solution to support the advancement of his proposed digital strategy for Harry Rosen. The decision-making challenges he is encountering in early 2020 are compounded by the onset of the global pandemic and resulting impacts on the luxury menswear family retail business. Given the timing of the onset of COVID-19, the challenges and opportunities related to the replacement and upgrading of the company’s e-commerce platform have been heightened. Strategic investment and the seamless execution of a new digital strategy are imperative components of the sustainability of the retailer’s success. Ian must review and consider three different options, finalize his decision and proposal, and be prepared to launch earlier than originally planned.

At month’s end in May 2021, the owner of Lakeshore Tea Company Inc. (Lakeshore) located in Mississauga, Ontario, Canada, was reviewing her company’s merchandising operations for the preceding month. Lakeshore operated as an herbal tea processor and supplier, importing herbs and tea leaves from a variety of sources across the globe. Over its first two years of operations Lakeshore had experienced significant growth and had begun supplying a variety of restaurants, health food stores, and small grocery outlets in the Greater Toronto Area. The owner was now tasked with recording all accounting entries relating to Lakeshore’s merchandising operations for the past month.

Spreadsheet to accompany product W27019.

On September 26, 2018, the Chinese hotpot chain Haidilao International Holding Ltd. launched an initial public offering, during a time of ongoing trade tensions between the United States and China, and started trading of the company’s shares on the Hong Kong Stock Exchange. The Beijing-based company sold 424.5 million shares at HK$17.8 (US$2.27) per share, which was on the high end of the indicative price range. Its price-to-earnings ratio of 30.2 was higher than that of its peers, which ranged from 16 to 27. In addition, the CSI 300 Index, which monitored the performance of 300 stocks on the Shanghai Stock Exchange and the Shenzhen Stock Exchange, was down 27 per cent year-to-date at that time. Another key factor was that the company’s stock would likely be included on the Stock Connect program that enabled access from Mainland China to the Hong Kong Stock Exchange. Investors had an opportunity to value the company at the time of the initial public offering launch and analyze the information provided in the company’s prospectus. Based on their assessment, investors had to decide if the company’s stock was a good investment.

Instructor Spreadsheet to accompany product W24091.

Student Spreadsheet to accompany product W24090.

On September 6, 2018, a couple was enjoying a meal at a hotpot restaurant in Weifang, Shandong Province, China. The restaurant was a branch of the popular Chinese hotpot restaurant chain owned by Xiabuxiabu Catering Management (China) Holdings Co. Ltd. (Xiabu Xiabu). Halfway through the meal, the pregnant wife found a dead rat in her soup. The news spread on social media, and according to some analysts, Xiabu Xiabu’s share price dropped US$190 million in market value. Had Xiabu Xiabu’s lack of quality assurance undermined the company’s success? How could the company improve its risk and crisis management?

On May 24, 2021, Peloton Interactive, Inc. (Peloton) announced its intention to build a new US factory to produce its stationary bicycles and treadmills. The new factory, which would be located in Ohio, was an addition to the company’s investments in its manufacturing facility in Taiwan and its purchase of fitness equipment manufacturer Precor Incorporated. In deciding to invest in its own production facilities to supply exercise equipment, Peloton was in stark contrast to its competitors, who predominantly outsourced production overseas. Would Peloton’s plans to build its own fitness equipment in Ohio help or hinder its ability to fulfill its goal of market leadership?

Buckeye Chiller Systems and International Steel Corporation formed MicroFin Incorporated in 2017, in South Carolina, United States, as a joint venture to produce tubing for industrial chillers. After four years of losses, the chief executive officer of Buckeye had lost patience with the joint venture. He gave his chief operating officer until the end of March 2021 (less than three weeks) to turn around MicroFin or dissolve the partnership. With no chance of making money in the short term, the chief operating officer focused on three options for terminating the joint venture. Time was running out, and something needed to change.

Breastcancer.org (BCO), a small, Pennsylvania-based non-profit organization with a $5.4 million annual budget in 2020, was looking ahead several months to the start of Pink October (also known as Breast Cancer Awareness Month). Unlike the many non-profits that focused on medical research to find a cure for breast cancer, BCO was dedicated to helping patients and their caregivers make sense of complex information, and it had established a digital community that became a trusted source of information and stories. BCO’s vice-president of partnerships and development was preparing for the 2019–2020 fiscal year-end review with the chief executive officer and the board of directors. While BCO was not at risk of closing, it had to find ways to increase revenue beyond individual donations and corporate sponsorships. The organization needed funding from additional revenue streams to expand its program offering, and the vice-president had just a few weeks to complete her assessment of BCO’s assets and revenue strategy, which she would present to the board.

On March 23, 2021, Vineet Sharma, the sole owner of MedStar Polymers, India, a medical-grade latex glove manufacturing company, was considering the dilemma of how to scale up production to fulfill an unprecedented order during COVID-19. With demand for protective equipment outstripping global supply during the pandemic, an exceptional business growth and expansion opportunity for glove manufacturers had emerged. Several manufacturers had expanded production by adding new production lines. On the surface, a production ramp-up looked as simple as increasing inputs: raw material, labour, machinery, equipment, and cash. However, a decision to rapidly increase production could create risk and almost destroy a business—especially when constraints such as raw material unavailability, transport and travel restrictions, logistical problems, and state- and area-wide lockdowns started impacting the production process. Sharma had to decide how to increase output while also dealing with disruptions such as a shortage of labour and concerns about the use of natural latex rubber. Was now the right time to add a new production line? Should he switch to making nitrile gloves? He needed to make decisions quickly, as the current high demand would likely not last.

ShakeeBee Honey Inc. was a relatively small producer of pure honey and beeswax and provider of pollination services located in central Newfoundland, Canada. The company needed to consider further expansion beyond the facility modernization it undertook in 2018; this expansion would involve acquiring additional land and attracting key personnel. In March 2020, the owner reached out to his accountant for assistance with a variety of accounting-related matters. The company needed an analysis of its current operations, including profitability by product/service line offered. It also needed an assessment of its application for a government pollination grant and a declaration in support of this application, and assistance in evaluating tax implications of some upcoming decisions.

The social enterprise Apni Shala Foundation (ASF) provided social and emotional learning programs to disadvantaged communities in Mumbai, India. Since its founding in 2013, ASF had engaged with more than 16,000 students. Before February 2020, ASF was directly engaged with more than 4,600 students, 1,000 parents, and more than 500 teachers at 35 government schools and non-profit organizations. However, on March 31, 2020, the COVID-19 pandemic forced ASF to shut its office and discontinue operations, and its mission of equipping children, educators, and parents with skills to support improved mental well-being stopped abruptly. Amrita Nair, the co-founder of ASF now faced a dilemma regarding resuming the foundation’s social and emotional learning programs: If ASF did continue, which categories should it choose to serve, and why? How could it transform its offerings and operations without compromising much on the quality of programs?

Driven by a passion to develop his own brand, Sandeep Yadav started Rock Pharmacy in 2014 in a rented area of 700 square feet and with seed capital of US$6,665. His primary customers were patients who required medication regularly for conditions including cardiovascular diseases, diabetes, and kidney issues, and people who worked for companies in the local area. The venture dealt mainly in patented medication. However, over 2018-2020, there had been a dramatic decrease in sales and profits due to the rise of e-pharmacies and organized pharma, and the business was struggling to meet its operating expenses. Considering the options available to save his business, Yadav had to decide: should he give up his brand and collaborate with online/organized pharma players, or should he compete with them?

<p align="justify/">In 2021, the chair of the admissions committee at The School of Management in Gandhinagar, India, had only three months to prepare for the start of the school’s next master of business administration program. During these three months, prospective students who had received admission offers could decide to decline offers, even though some had already paid relevant fees. Understanding the uncertainty of those decisions was critical to estimate the number of additional offers to send out to other candidates. If the final number of prospective students joining the program was lower than the school’s available capacity, The School of Management would lose contributions toward its fixed business costs and potential profit. It would also mean that the school’s resources would be underused. On the other hand, denying admission to students who had received offers to join the program, due to a lack of space, could adversely affect the school’s brand image and future admissions. Understanding the decision-making process of prospective students was critical over the long term to develop appropriate retention strategies and encourage all candidates to accept their admission offers.</p>