In June 2023, the Supreme Court of the United States imposed strict limitations on the use of race in college admissions decisions. Given the outsized nature of US influence on both global perceptions and corporate practice, it is essential to consider how the Students for Fair Admissions (SFFA) decision is likely to affect corporate diversity, equity, and inclusion (DEI) initiatives around the world. In this article, the authors discuss how an incorrect understanding of the SFFA decision could negatively impact global perceptions of DEI and provide guidance for how to minimize these impacts. Put simply, the Supreme Court decision does not substantially change US corporate DEI methodology. The SFFA opinion is consistent with the “anti-discrimination” approach to advancing racial equality that has long been a feature of US law. Formal US “affirmative action” programs are strictly limited to circumstances where the employer is adopting targeted remedies to correct its own specifically identified discriminatory practices. Policies such as “employment equity” in Canada, “positive action” in Europe, “special measures” in Australia, or “affirmative action” in Brazil require, encourage, or tolerate to varying degrees social identity-based quotas, preferences, and exclusive recruiting measures of the type prohibited in the United States. Finally, understanding the anti-subordination approach—rejected by the Supreme Court majority but embraced by many national laws—allows for a recommitment to “do equity” using explicitly affirmative actions, where they are permitted, and an equity-based approach to all DEI initiatives.
Why the US Supreme Court ruling in Students for Fair Admissions does not signal the end of affirmative action or substantially change US corporate DEI methodology.
In late November 2017, Roark Capital Group (Roark) must decide on a last, best offer to purchase Buffalo Wild Wings (BWW) in a leveraged buyout (LBO) for $157 per share. That bid had followed a series of offers that began in August 2017, at $150 per share, after a protracted proxy fight by activist investor Marcato Capital (Marcato) ended with the resignation of BWW's longtime CEO, Sally Smith. Marcato had accumulated a sizeable stake in BWW and several board seats as part of the proxy contest and had been pushing BWW's board to seek a higher price. Roark must now decide if the returns to its investors merit the $157 per share offer. This case is meant to follow cases in which the topic of residual cash flows and LBOs have been introduced. We typically assign it after teaching an earlier case that introduces that material and how private equity (PE) sponsors typically evaluate LBOs, such as "DuPont Corporation: Sale of Performance Coatings" (UVA-F-1709) (DPC). DPC provides an opportunity to evaluate an LBO from a company's and sponsor's perspective, but the cash flows and debt structure are simplified to focus on the conceptual differences in how the parties might view the deal. BWW focuses on the sponsor's (Roark's) perspective and includes a richer set of operating synergies and a more complex debt structure. The debt structure features existing debt that must be refinanced and multiple tranches of debt. As such, the case introduces students to several types of debt that are commonly used to finance LBOs and their related terms. It also introduces students to the pros and cons of LBOs of franchise-model businesses, an area of strong PE investor interest. We also typically assign a technical note, "Valuing Late-Stage Companies and Leveraged Buyouts" (UVA-F-1846), to be read in conjunction with cases that cover LBOs. The note provides a basic overview of the primary sources of financing and the metrics used to gauge LBO capital structures and a step-by-step example
This award-winning case explores the challenges facing Susan Lloyd-Hurwitz, the CEO of Mirvac, an Australian property group, as she leads a major initiative to 'mainstream' flexible work arrangements across the organization. Spurred by dismal employee engagement numbers, including widespread dissatisfaction with work-life balance, she is determined to extend flex-time opportunities to all 1500 employees, including those in the male-dominated Construction division. The challenges are related to traditional attitudes within the industry and the company, the stigmatization of flex-time as smply accommodating working mothers at head office, and Lloyd-Hurwitz's own legitimacy to lead such a change. Her decision to press the leadership team to roll out the flexibility policy in the Construction division first exemplifies vision and courage. The roll-out illustrates how companies that identify/address systemic barriers can shift attitudes that often block the adoption of change initiatives. The use of male employees to experiment with flexibility in Construction and the support of male champions demonstrate that it is possible to erode stereotypes in programmes for gender diversity, equity and inclusion. The case explores Lloyd-Hurwitz's various leadership styles and the features of the change initiative which create the 'psychological safety' that enable employees to join the collective gamble to implement an unprecedented change.
This award-winning case case explores the challenges facing Susan Lloyd-Hurwitz, the CEO of Mirvac, an Australian property group, as she leads a major initiative to 'mainstream' flexible work arrangements across the organization. Spurred by dismal employee engagement numbers, including widespread dissatisfaction with work-life balance, she is determined to extend flex-time opportunities to all 1500 employees, including those in the male-dominated Construction division. The challenges are related to traditional attitudes within the industry and the company, the stigmatization of flex-time as smply accommodating working mothers at head office, and Lloyd-Hurwitz's own legitimacy to lead such a change. Her decision to press the leadership team to roll out the flexibility policy in the Construction division first exemplifies vision and courage. The roll-out illustrates how companies that identify/address systemic barriers can shift attitudes that often block the adoption of change initiatives. The use of male employees to experiment with flexibility in Construction and the support of male champions demonstrate that it is possible to erode stereotypes in programmes for gender diversity, equity and inclusion. The case explores Lloyd-Hurwitz's various leadership styles and the features of the change initiative which create the 'psychological safety' that enable employees to join the collective gamble to implement an unprecedented change.
For 160 years, Singapore Post had been one of Singapore’s main postal service providers, delivering trusted and reliable postal services to homes and businesses. However, in 2019, Singapore Post was plagued by recent service lapses and operational problems, which had elicited customer complaints and concern from various stakeholders. Singapore Post was also facing increasing pressure from rising customer expectations, surging mail volumes, and the growing popularity of e-commerce. In response, Singapore Post pursued several initiatives to improve service operations and maintain its competitiveness in the postal industry. However, the company needed to devise a long-term plan to address recent problems, market changes, and deeply-rooted operational issues—and to regain consumer confidence over the long term.
For 160 years, Singapore Post had been one of Singapore's main postal service providers, delivering trusted and reliable postal services to homes and businesses. However, in 2019, Singapore Post was plagued by recent service lapses and operational problems, which had elicited customer complaints and concern from various stakeholders. Singapore Post was also facing increasing pressure from rising customer expectations, surging mail volumes, and the growing popularity of e-commerce. In response, Singapore Post pursued several initiatives to improve service operations and maintain its competitiveness in the postal industry. However, the company needed to devise a long-term plan to address recent problems, market changes, and deeply-rooted operational issues-and to regain consumer confidence over the long term.
One of the most important goals in healthcare today is reducing costs while maintaining high-quality care. This article focuses on a triadic relationship that is responsible for a significant amount of nonlabor spending in hospitals: physician preference items. The triadic relationship among salespeople, physicians, and hospitals' supply managers has a direct influence on costs. Regarding some key purchases, the physician-salesperson relationship is closer than the physician-supply manager relationship-even though the latter two entities work for and within the same company and strive for the same mission. This reality creates a type of conflict that is perplexing to solve and costly to ignore. To better understand the sources of friction and opportunities for collaboration in this triad, personnel across hospitals, suppliers, and healthcare consortiums were interviewed. Herein, we introduce strategies to help resolve the conflict. It is essential that hospital supply managers continually negotiate for best solutions that consider both long-run costs and quality of patient care. Yet, salesperson motivations and close salesperson-physician relationships place barriers that prevent negotiations more common to other areas of spending. The strategies offered in this article highlight ways to mute negative and amplify positive effects of the physician-salesperson relationship.
This case investigates the issues involved in a private equity (PE) firm's decision to invest in the debt of a distressed leveraged buyout. The analysis has been purposefully simplified to involve only two classes of outstanding debt, senior debt and junior debt, so that students do not need to have detailed knowledge of the bankruptcy process to complete the analysis. The main analytical task requires students to compute the expected internal rate of return for two debt-investment strategies. This case has been successfully taught in a second-year elective course covering entrepreneurial finance and PE, and in an undergraduate course on PE. The case is appropriate for use in classes on PE, debt restructuring, advanced corporate finance, or deal valuation.
This case investigates the issues involved in a private equity (PE) firm's decision to invest in the debt of a distressed leveraged buyout. The analysis has been purposefully simplified to involve only two classes of outstanding debt, senior debt and junior debt, so that students do not need to have detailed knowledge of the bankruptcy process to complete the analysis. The main analytical task requires students to compute the expected internal rate of return for two debt-investment strategies. This case has been successfully taught in a second-year elective course covering entrepreneurial finance and PE, and in an undergraduate course on PE. The case is appropriate for use in classes on PE, debt restructuring, advanced corporate finance, or deal valuation.
In January 2012, Ellen Kullman, CEO and chairman of DuPont, must decide whether to retain or sell the company's Performance Coatings (DPC) division. This is an introductory case on valuing a leveraged buyout. The case focuses on a publicly listed corporation's decision to divest a large division and asks students to compare the division's value if it remains under DuPont's control or is sold to an outside party. The transaction size of approximately $4 billion is too large for potential strategic buyers in the industry, making private equity (PE) firms the most likely bidders. The case provides a base-case adjusted present value (APV) model of DPC as a stand-alone company and gives students specific assignments to adjust it to reflect the division's potential value under PE ownership (e.g., EBITDA growth, multiple arbitrage, and increased leverage). The case is designed to illustrate and discuss the differences between a public company's valuation based on unlevered free cash flows and a PE sponsor's valuation based on residual (levered) cash flows. This case has been successfully taught in a second-year elective course covering entrepreneurial finance and private equity and in an advanced undergraduate course on corporate finance. It is appropriate for use in classes on private equity, advanced corporate finance, or deal valuation.
The Carlyle Group IPO case explores the circumstances leading up to the firm's IPO in May 2012. Over the past 25 years, Carlyle had grown from a fledgling private equity firm to one of the world's largest and most diversified investment firms. Carlyle had prepared extensively for the roadshow; management anticipated some tough questions. Students are asked to evaluate the extent to which Carlyle is undervalued relative to its peers. The case provides information on how to evaluate the earnings received by the public shareholders and outlines several alternative approaches to value PPEs.
In early 2010, Paul Conforti of Finale, the Boston-area premium dessert restaurant, decided to replace its more traditional mystery shoppers with Survey on the Spot to collect market research data. Survey on the Spot uses a smart phone-based 'app' to collect data from actual customers in real time. Based on early results, Conforti was concerned that the results might be 'too good' and his decision to end mystery shopping might be precipitous. Students can evaluate both the new market research technique and the conclusions drawn from the information. Note: Finale and Survey on the Spot is one of two companion cases. The companion case, Finale - Just Desserts, deals primarily with data analysis and data interpretation and has an SPSS data set available. Finale and Survey on the Spot allows students to deal with the managerial implications of the data.
In early 2010, Paul Conforti of Finale, the Boston-area premium dessert restaurant, decided to replace the more traditional research methods with Survey on the Spot mobile surveys to collect market research data. The company used a smart phone-based 'app' to collect data from actual customers in real time. With early results in, Conforti found that while Finale was getting positive results, he questioned whether his summary provided a complete picture and has asked market researcher Felicity Klass to do a more thorough analysis. Students have access to the mobile survey data and can perform their own analysis, drawing conclusions and making recommendations to the restaurant co-founder, based on stated goals for the survey. Note that Finale-Just Desserts is one of two companion cases. This case, Finale - Just Desserts, deals primarily with data analysis and data interpretation and has an SPSS data set available.
The Nokia case provides an opportunity to explore financial policy in a situation of broad strategic change. In recent years, Nokia, the world's leading producer of mobile phones, had seen its market share and profits eroded by rival products such as Apple's iPhone and phones featuring Google's Android operating system. In February 2011, Stephen Elop, the recently appointed president and CEO of Nokia, announced a broad strategic plan and partnership with Microsoft to correct the company's course and improve its competitive position. Analysts regard the next two years as a period of great uncertainty for the company. The CFO of Nokia must reassess the firm's financial policy in light of the plan and consider its effects on the potential need for external funds, and the appropriate mix and cost of the debt or equity financing that might be used to raise those funds. Nokia, like many technology companies, often carried high cash balances to preserve financial flexibility, but in 2008 and 2009 in response to the global financial crisis it had drawn down cash to historically low levels and experienced several downgrades of its debt by major credit rating agencies. Students must evaluate the tradeoffs between maintaining cash reserves and the need for external funds and work through the implications of financing the projected need for external funds with debt or equity.