This case tracks a woman named Jodi as she dreams of going back to school in her early 30s to become a nurse. Jodi had put off higher education for 15 years after she became pregnant with her son as a junior in high school. But now, with her son only a few years away from leaving the house for college himself, Jodi wants to improve both her future and the $30,000 income she currently earns as an administrative assistant at a small health clinic. Jodi calls her friend Tameka, a cashier at a local supermarket who had recently gone back to school to become a pharmacist. Tameka suggests that Jodi meet with a college adviser to learn more about her options. This case is best used in a non-MBA course on financial literacy, or in other educational settings wherein learners are exploring resilience, especially navigating returning to the educational system as an adult.
Supplement to case UV7959 This case series simulates the quintessential "American dream:" buying and financing your first house. For most people, buying a house is the largest purchase they will experience in their lifetime. The process has both legal and economic components, and often requires that the buyer rely heavily upon a realtor to navigate all the technicalities. Along the way, the buyer may experience an emotional roller coaster with both the excitement of becoming a homeowner and the worry that comes with making a large financial commitment. Much of the worry comes from a lack of understanding, particularly when we buy that first house without any experience with such a transaction. The primary objective of these cases is to provide the key information needed to understand what is involved with the purchase and financing of a house, and to simulate the process as the students experience the cases in sequence over several class periods.
This case series simulates the quintessential "American dream:" buying and financing your first house. For most people, buying a house is the largest purchase they will experience in their lifetime. The process has both legal and economic components, and often requires that the buyer rely heavily upon a realtor to navigate all the technicalities. Along the way, the buyer may experience an emotional roller coaster with both the excitement of becoming a homeowner and the worry that comes with making a large financial commitment. Much of the worry comes from a lack of understanding, particularly when we buy that first house without any experience with such a transaction. The primary objective of these cases is to provide the key information needed to understand what is involved with the purchase and financing of a house, and to simulate the process as the students experience the cases in sequence over several class periods.
Supplement to case UV7947. This case provides two snapshots of sudden health care crises. It walks the students through how health insurance works, and what questions to ask when receiving care.
Kira Allen has moved to a new city, started a new job, and is ready to get herself a new cell phone and a phone plan as well. As she researches her options, Allen thinks about trade-offs and differentiating her wants from her needs in the purchasing process. This case is most useful in a financial-literacy or financial-capability course for non-MBA learners. Students will think about their own requirements in a cell phone, what terms in the mobile-phone sphere actually mean, how to decide on a device and a provider, and the total costs of phone ownership.
This case teaches students the importance of maintaining a strong FICO score by illustrating the consequences of paying bills late or not at all. The protagonist is David Molina, a waiter at a struggling Italian restaurant located down the block from where he lives. Money is tight for Molina right now-his limited income means he lives paycheck to paycheck. However, Molina knows things will be looking up for him soon because he recently accepted a job as a bank teller across town-his first desk job. Molina has been putting off paying two of his bills: a cable bill and his Bank of America credit card bill, both of which are late and have been issued, this time, in the form of threats to impact Molina's credit score if he doesn't pay them. He has just enough money to afford the minimum payments on each overdue bill. But then he receives a phone call from his friend, Jim Lindsey, reminding him about an invitation to go to Myrtle Beach for the upcoming weekend. Molina knows he cannot afford it, but a woman he's attracted to, Jessica, will be there too. Should Molina put off the bills yet again, and if so, how exactly will being late on them hurt his credit score?
This case follows a man named Jaime as he considers options for obtaining furniture for the new apartment he and his brother, Angelo, have leased. Jaime would like a new couch, a coffee table, and a TV to improve their living room, but his $2,000-a-month income at an auto shop and lack of savings means he will have to make some difficult choices. Angelo suggests that Jaime construct a budget and only acquire one piece of furniture at a time. Because he has no bank account, credit card, or credit score (to his knowledge), Jaime believes he will not qualify for some of the furniture deals advertised in the bigger department stores. As a result, Jaime explores rent-to-own financing, which does not require a credit check.
In this case, fry cook Reggie Fuller, who wants to buy a car to ensure that he can consistently get to work on time, asks his mother if she and his sister would like to chip in with him so that he can afford a new Nissan Versa, a cheaper alternative to some of the other new cars he's been looking at. Fuller's mother responds by raising scheduling concerns along with car-related costs outside of monthly payments, such as gas, maintenance, and insurance. Staring down the realization that he just may not be able to afford a new car, Fuller wonders if he should reconsider the idea of getting a used car instead, and asks his friend, an auto mechanic, to educate him on pre-owned vehicles.
This case series simulates the decision of choosing and financing a car. Reggie Fuller is a fry cook on the verge of losing his job if he keeps arriving late to work due to inconsistent public buses. Fuller's dream car, the Lincoln MKS, is priced far beyond his budget ($50,000), but Fuller wonders if he can afford other new cars like the Nissan Altima (which costs $17,445) or the Toyota Camry (which costs $20,306). Unsure of how to proceed, Fuller seeks the advice of a family friend and mentor, who agrees to teach him what he knows about the car-financing process. Accompanying the case is a handout that teaches students how to calculate monthly auto loan payments.
This case follows dance instructor Jackie McKenzie as she struggles to properly budget her expenses needed to support life with her youngest daughter, Millie. At the checkout aisle of her local grocery store, McKenzie becomes embarrassed when she discovers she cannot afford the $150 bill. Luxury purchases such as a red dress and McKenzie's bimonthly pedicures have maxed her credit card and strained her checking and savings accounts. Unfortunately, this is not the first time McKenzie has overspent her means. When McKenzie calls her oldest daughter, Kerry, to ask yet again for her financial help, Kerry challenges her mother to put together a budget.
This case follows a woman named Maria Alvarez as she explores financing options to cover costs for her young daughter's surprise respiratory illness. Alvarez has not opened a bank account since moving to the United States from the Dominican Republic two years prior and has little savings from her job. She lives paycheck to paycheck without a credit card or credit history, to her knowledge. Should Alvarez get the money she needs through a payday loan, which wouldn't require her to have a bank account, or should she explore what it would be like to join a financial institution and get a personal loan through it?
The A case in this series takes the viewpoint of a senior portfolio manager who has to decide how to vote the shares held by Wells Fargo Asset Management: she can vote for the current board members of Imation Corp. (IMN) or for the nominees put forward by an activist hedge fund. The hedge fund sent an open letter to IMN shareholders seeking support to replace the key members of IMN's board, as the first step in pushing through sweeping changes in compensation and strategy at IMN. The case illustrates the power of an activist investor to change the governance and strategy of a company. The B case reveals that the activist's nominees were elected, and a series of decisions ensued that dismantled IMN. The case presents students with ethical questions regarding the treatment of IMN shareholders; it also highlights the influence of proxy advisers in a proxy vote. The case has been taught in an MBA corporate finance elective as the second class in activism, following another activist case, "Genzyme and Relational Investors: Science and Business Collide?" (UVA-F-1660). It can be taught to all undergraduate and graduate levels of business students, as well as seasoned executives.
The A case in this series takes the viewpoint of a senior portfolio manager who has to decide how to vote the shares held by Wells Fargo Asset Management: she can vote for the current board members of Imation Corp. (IMN) or for the nominees put forward by an activist hedge fund. The hedge fund sent an open letter to IMN shareholders seeking support to replace the key members of IMN's board, as the first step in pushing through sweeping changes in compensation and strategy at IMN. The case illustrates the power of an activist investor to change the governance and strategy of a company. The B case reveals that the activist's nominees were elected, and a series of decisions ensued that dismantled IMN. The case presents students with ethical questions regarding the treatment of IMN shareholders; it also highlights the influence of proxy advisers in a proxy vote. The case has been taught in an MBA corporate finance elective as the second class in activism, following another activist case, "Genzyme and Relational Investors: Science and Business Collide?" (UVA-F-1660). It can be taught to all undergraduate and graduate levels of business students, as well as seasoned executives.