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Two MTR Corporation (MTRC) managers are participating in a week-long program in financial management. For their next class, they need to calculate the cost of capital for MTRC. First, they will review the concepts of investor expectations and cost of capital. Then, they must calculate the cost of capital by using the financial statements provided to them by the instructor. The two managers discuss their understanding of these concepts as they prepare their assignment, which is due in two hours.

The transfer of perinatal services at St. Joseph's Health Care Centre (SJHC) to the Women's and Children's Services at London Health Sciences Centre (LHSC), included the relocation of clinical programs, 500 staff and about 40 physicians. SJHC's perinatal program had been among the hospital's premier programs and was recognized as a world-class tertiary perinatal program for more than 30 years. The hospital's comprehensive care for newborns included providing care for very sick infants and extremely premature babies. The move to LHSC was a source of much concern to key stakeholders, leading scientists and specialists with much negative impact on recruitment, retention and staff morale. The vice-president, acute and ambulatory care at SJHC and the vice-president, women and children's clinical business unit at LHSC were appointed to help prepare leaders throughout all stages of the restructuring. On their agenda were the following issues: culture, safety procedures, team conflict, excessive turnover, structure, leadership orientation, among others. Where should they start; and how could they get physicians, patient care leaders and staff to think past six months, given that there are numerous issues that keep them busy on a daily, weekly and monthly basis?

Chip Wilson is trying to decide if he should pursue his current venture, a yoga wear retailing concept or return to being chief executive officer of Westbeach Snowboard, a firm he found two decades ago. This case is the first in a series of seven lululemon athletica cases that focus on decision-making using real-options analysis. Other cases in the series are: 9B06M037, 9B06M038, 9B06M039, 9B06M040, 9B06M041 and 9B06M042.

Chip Wilson, the founder of lululemon athletica, is thinking of wholesaling garments to achieve economies of scale. Deciding to wholesale is not an easy decision for Wilson because he has had difficulties collecting receivables in the past. To help him make his decision, he turns to real options-analysis. This case is the second in a series of lululemon athletica cases that focus on decision-making using real-options analysis. Other cases in the series are: 9B06M036, 9B06M038, 9B06M039, 9B06M040, 9B06M041 and 9B06M042.

With women's athletic wear doing extremely well, Chip Wilson, founder of lululemon athletica, is thinking about launching a menswear line to capitalize on the popularity of the lululemon brand. However, he has to weigh the costs of being distracted from his company's main concern - athletic yoga wear for women. This case is the third in a series of seven lululemon athletica cases that focus on decision-making using real-options analysis. Other products in the series are: 9B06M036, 9B06M037, 9B06M039, 9B06M040, 9B06M041 and 9B06M042.

lululemon athletica is on track to exceed $2 million in sales for 2001, a remarkable achievement considering it was founded in 1999. To achieve his targets of rapid growth, Chip Wilson, founder of lululemon athletica, is considering franchising his concept. But concerns remain, including control over branding and store-level operations. On the other hand, franchising would allow Wilson to rapidly expand and capture market share, as competitors are starting to take notice. This case is the fourth in a series of seven lululemon athletica cases that focus on decision-making using real-options analysis. Other cases in the series are: 9B06M036, 9B06M037, 9B06M038, 9B06M040, 9B06M041 and 9B06M042.

In 2003, lululemon athletica has sales of $30 million, and operations in Canada and the United States. Chip Wilson, the founder of lululemon athletica wants to expand his operations, opening up stores in either Asia or Europe. As his rapidly growing firm does not have resources to expand in both regions, he wonders how he should decide between the two options. This case is the fifth in a series of seven lululemon athletica cases that focus on decision-making using real-options analysis. Other cases in the series are: 9B906M036, 9B06M037, 9B06M038, 9B06M039, 9B06M041 and 9B06M042.

Should lululemon athletica shut down its Internet sales presence, leaving only an informational site? Chip Wilson, founder of lululemon athletica, has noticed that Internet sales have grown more slowly than stores sales. Faced with whether to invest $250,000 to create a appropriate online presence that would match his store presence, Wilson wonders what to do. This is the sixth in a series of seven lululemon athletica cases that focus on decision-making using real-options analysis. Other cases in the series are: 9B06M036, 9B06M037, 9B06M038, 9B06M039, 9B06M040 and 9B06M042.

In 2005, Chip Wilson, the founder of lululemon athletica is thinking about selling a 48 per cent stake in his firm. With $90 million in sales in 2005, lululemon athletica has a bright future ahead. In addition to U.S. expansion plans, the firm is expanding international operations. This case is the seventh in a series of seven lululemon athletica cases that focus on decision-making using real-options analysis. Other case in the series are: 9B06M036, 9B06M037, 9B06M038, 9B06M039, 9B06M040 and 9B06M041.

The chief financial officer (CFO) of TELUS Corporation (Telus) has just been informed that Moody's, a bond rating service, has downgraded the firm's credit rating to one notch below investment grade. The CFO's challenge is to determine what specific actions, if any, to recommend to the firm's audit committee. First, this case facilitates a discussion on how changes in capital structure impact a firm's earnings, stock price and flexibility to carry out plan. Second, students learn about how bond ratings are set and how a firm's bond rating affects its bond yield. Last, by focusing on the situation faced by Telus during challenging market conditions in 2002, students learn how to manage relationships with investors while in the midst of change.

The chairman and chief product designer of lululemon athletica is preparing to address an audience at an investor's conference. He describes lululemon's great success from 1998 to 2006 and analyses the growth opportunities it faces. This case helps students understand the concept of competitive advantage in relation to the functional and emotion marketing drivers. In addition, it underlines the importance of preserving brand equity and prioritizing strategic growth options.

The chairman and chief product designer of lululemon athletica is preparing to address an audience at an investor's conference. He describes lululemon's great success from 1998 to 2006 and analyses the growth opportunities it faces. This case helps students understand the concept of competitive advantage in relation to the functional and emotion marketing drivers. In addition, it underlines the importance of preserving brand equity and prioritizing strategic growth options.

The transfer of perinatal services at St. Joseph's Health Care Centre (SJHC) to the Women's and Children's Services at London Health Sciences Centre (LHSC), included the relocation of clinical programs, 500 staff and about 40 physicians. SJHC's perinatal program had been among the hospital's premier programs and was recognized as a world-class tertiary perinatal program for more than 30 years. The hospital's comprehensive care for newborns included providing care for very sick infants and extremely premature babies. The move to LHSC was a source of much concern to key stakeholders, leading scientists and specialists with much negative impact on recruitment, retention and staff morale. The vice-president, acute and ambulatory care at SJHC and the vice-president, women and children's clinical business unit at LHSC were appointed to help prepare leaders throughout all stages of the restructuring. On their agenda were the following issues: culture, safety procedures, team conflict, excessive turnover, structure, leadership orientation, among others. Where should they start; and how could they get physicians, patient care leaders and staff to think past six months, given that there are numerous issues that keep them busy on a daily, weekly and monthly basis?

The co-founder of NEWAD, a media company, is considering expanding his scope of operations from washroom advertising to include distributing free postcards. On one hand, offering an extra advertising vehicle to his clients would boost his topline results and would match the postcard offering planned by his larger competitor. On the other hand, launching a new line of business could distract his small firm from pursuing growth in its core business; procuring advertising sites and selling advertising space on washroom ads to advertisers.

An entrepreneur must decide if he should bid to acquire a commercial bakery, Cake Masters, given his objectives in his search and his investors' expected returns of 20-30 per cent. If he bids, he must decide how much to bid and in what form of consideration. Students are introduced to valuation methodologies and will evaluate an acquisition or opportunity, understand the process of acquiring a small company, learn how preceding transactions are considered and learn about discounted cash flow analysis.

An entrepreneur must decide if he should bid to acquire a commercial bakery, Cake Masters, given his objectives in his search and his investors' expected returns of 20-30 per cent. If he bids, he must decide how much to bid and in what form of consideration. Students are introduced to valuation methodologies and will evaluate an acquisition or opportunity, understand the process of acquiring a small company, learn how preceding transactions are considered and learn about discounted cash flow analysis.

Chip Wilson, founder of lululemon athletica, a Vancouver-based manufacturer, distributor and retailer of high quality yoga apparel, started a new streetwear line of apparel that would combine fashion with social consciousness. The apparel sold at OQOQO was made from natural and organic materials, under safe and fair working conditions, and it was produced in a way to reduce environmental impact. There were some problems regarding the sourcing of materials and the customer's perception of certain materials such as soy and hemp. Chip must decide whether to expand the number of OQOQO stores.

The vice-president of human resources of the British Columbia Automobile Association (BCAA) had just concluded negotiating the first collective agreements for two separate bargaining units with the association's union, who represented about 25 per cent of BCAA's workforce. BCAA's senior management wanted to find a way to reconcile with its unionized employees while still carrying on with the biggest cultural change in the company's century-long history. They wondered how best to proceed. The case serves as a discussion vehicle for how companies can manage labor relations post-strike, while attempting to implement strategic change.

The co-founder of NEWAD, a media company, is considering expanding the company's scope of operations from traditional place-based postcard and board advertising to digital signage. Digital signage offers the opportunity to expand NEWAD's business. However, the co-founder wondered about the high fixed costs of entering this type of advertising business and how much the company would have to charge to turn a profit.

The founder and owner of Jill's Table, a specialty food and housewares store is thinking about the challenges ahead of her. As a small business operating in the same arena as the mass merchandising chains, she has to decide how to position her service offerings so as to survive and even thrive in a highly competitive environment. As a Retailer of the Year award winner (2004 Canadian Gift and Tableware Association, Housewares and Gourmet Division), she knows that her challenges go beyond competition and touch on areas such as customer service, associate training, buying and finance.