Provides an example of a so-called "whole business" securitization. In early 2004, Fraikin, France's leading industrial vehicle rental company, compares several alternatives for refinancing a large bridge loan within a year. Presents three primary options: a classic leveraged buyout, an asset-backed loan, and a loan based on securitizing Fraikin's truck rental contracts. Asks students to evaluate the advantages and disadvantages of each option, particularly the securitization. Elicits discussion about why securitization appears to be the least cost financing alternative and whether it is worth the high transaction costs involved.
Introduces radio frequency identification (RFID) as the next generation of automatic identification technologies that is expected to improve the performance of retail supply chains through reduced shrink, increased product availability, and improved labor productivity. Showcases the implementation of the technology by the METRO Group, the world's third-largest retailer. Places students in the position of Dr. Gerd Wolfram, managing director of METRO's internal IT service group, and Zygmunt Mierdorf, the company's chief information officer, who, in mid-2005, evaluate the results of the RFID rollout and decide on the next stage in the implementation.
Tells the story of Agora, the largest media company in Poland, describing its corporate strategy of diversification since its founding in 1989 by entrepreneurial journalists closely linked to the anti-communist movement Solidarity. Describes in detail Gazeta Wyborcza, the country's best-selling daily newspaper and Agora's main revenue contributor. In late 2003, Fakt, the new daily owned by a German publishing house, took the lead on the Polish newspaper market, harming Gazeta Wyborcza's sales and advertising revenues. Places students in the position of Wanda Rapaczynski, Agora's CEO, who, in mid-2005, explores ways to improve Agora's position in an increasingly competitive environment.
In March 2005, Mark Schneider, CEO of Fresenius, is considering the group's strategic and organizational future. The highly decentralized 7 billion euro German health care group is active in three different business units, with the largest, FMC AG, listed separately from the parent Fresenius AG and representing the lion's share of the company's revenue and profit. A decentralized approach had let the group units grow independently over the years, and Fresenius took pride in its adaptive, entrepreneurial spirit. Schneider, however, wonders whether the decentralized approach will allow the group to continue to grow in a coordinated and cost-conscious fashion. How should he combine the company's entrepreneurial and profit-oriented culture with any latent synergies in the existing organization? Although Fresenius looks healthy at the moment, Schneider knows that the company's future is tied to improved sales and profitability.
Describes how JCDecaux, the second largest global outdoor advertising company, became the world leader in street furniture advertising in a fast consolidating business environment. Also explains why, in the late 1990s, JCDecaux diversified its activities into billboards and transport outdoor advertising in reaction to competitor attacks. Places students in the position of Jean-Francois Decaux and his brother Jean-Charles Decaux, the sons of the founder and JC Decaux's co-CEOs who, in late 2004, explore ways to continue the success of the 73% family-owned business.
Tells the story of the Czech transition from a centrally planned to a free market economy, describing the first economic reforms, the fixed-exchange rate regime, and the voucher privatization. Also explains why, in the middle of the 1990s, the Czech Republic liberalized its capital account and how this affected the Czech banking system, leading to a massive credit boom. Explores why Ceskoslovenska Obchodni Banka (CSOB), the country's fourth largest bank, decided not to participate in the credit boom and how CSOB determined and pursued its expansion strategy. Students assume the position of Pavel Kavanek, CSOB's CEO who, in June 2000, must decide whether CSOB should acquire IPB, another large Czech bank on the brink of bankruptcy.
All securities can be evaluated based on certain common characteristics: value, rate of return, risk, maturity, and so forth. This case examines how bonds are valued and how their rates of return are computed. It begins with basic definitions and features of fixed-income instruments and proceeds to basic bond mathematics. An overview of the U.S. Treasury market is provided, as well as some national markets for other important domestic government bonds.