個案總覽

ENGINO Toys is a decision-oriented case which is set in Cyprus (EU) at the beginning of the Covid-19 pandemic. The main protagonist is Costas Sisamos, the owner and Managing Director of ENGINO, Cyprus-based producer of STEM-oriented construction toys. In April 2020, the owner was overwhelmed by the disruptive shock caused by the Covid-19 pandemic and was wondering how he should react to this business challenge, and whether the orders from international distributors were delayed simply due to the pandemic or was this a sign of a coming collapse of his business model. Using distributors was a well-established practice in the toys business, but for over a year now Costas Sisamos had worried if that was the right business model for the future. His thoughts leapt to the idea of a STEM subscription box which had been in the back of his mind for some time. With rapid changes happening in the toy industry, the owner felt that he needed to consider new directions and new strategies. Coincidentally, there came an opportunity to bid for a local research grant. The owner was looking to answer three questions: "Will the STEM Box be profitable, and will the subscription project breakeven in year 2, as ideally expected? How do the financial projections fit into the overall strategic assessment? Based on the analysis, shall ENGINO proceed with subscriptions or not?"

Spreadsheet supplement for Case NA0812

The Sizable Case presents a decision situation. The case setting is Brussels, early November 2017. Marie Martens was at that time the newly appointed CEO of the start-up company Sizable, which was a specialist in men's undergarment made from eco-friendly bamboo, eucalyptus, and organic cotton. Since its start-up in January 2015, the company had shown high growth potential, and Martens felt confident that by further scaling up the business, Sizable could be leveraged into a position in which it would be highly profitable. Martens was not the only one who had faith in Sizable's attractive prospects. Since March 2015, multiple investors had put their money at stake, either directly as private investors in the company or via the company's three crowdfunding campaigns. In November 2017, Sizable needed 100,000 euros of additional financing. Together with the other members of the management team, Martens had prepared a business plan and proposed prompt action to secure extra funding over the month of November. While the decision to move forward with a new crowdfunding campaign was made, Martens worried about the risks of a fourth round of crowdfunding. Failing would not only mean a lack of funds, but also a stained reputation. Martens wondered how she could make this campaign even more successful than the previous rounds. She had several concerns: first, how would the market react to the change in the management team, with the firm now led by a female CEO; second, whether to use a different crowdfunding platform or rely on one of the platforms used in the past; third, would she be able to deal with investors' typical concerns about break-even and dilution; and finally, what share price would be most appropriate. She had to decide very quickly on these issues since the new crowdfunding round was set to begin before the end of the month.

Student Spreadsheet for Case NA0678

Zorbas Bakeries Case presents a decision situation. The case setting is Nicosia (Cyprus, EU), December 2014. Zorbas Bakeries, a large family-owned Cypriot company, was considering a bold new initiative - opening a new concept store abroad, in New York. Moreover, it wasn't just about opening one shop, but the shop that would be used as the pattern for all future international franchise stores. Such a project would be most unorthodox for a local family-owned company and would involve multiple risks. The managing director of the company Demetris Zorbas took up the responsibility for this project in early 2014. He had to finalize the plan before the decision by the management team at the end of 2014. "Are we fully ready to go to New York? Will we be able to compete in this difficult market? What are the projected financials for the new 'test case' store? Will this project add value?" The case requires students to do first a standard NPV analysis, and then presents an opportunity to introduce students, in a relatively easy way, to the rather complex but increasingly important concept of 'real options' in finance, an extension of the traditional DCF analysis. Students who are aware of the limitations of the standard NPV model, and can identify and understand real options, become ultimately more sophisticated users of the traditional DCF analysis and are ultimately able to make better investment decisions. The case also emphasizes that a financial analysis is an important determinant of the future strategy, although clearly not the only determinant. It is crucial for students to understand the strong link between finance and strategy.

Spreadsheet for case NA0585.