Minnova Lac Shortt mine faces an important capital budgeting decision. A discounted cashflow analysis of a $19 million investment to deepen the existing mine by 300 metres is required. Given the high levels of uncertainty and flux in the external environment (e.g., U.S. exchange rate, price of gold, head grade of ore, recovery percentage, etc), managers need to conduct a sensitivity analysis. Qualitatively, Minnova's mining strategy weighs heavily on the decision because the quantitative analysis results in a slightly negative net present value.

The owner and general manager of the Cedarbrae Volkswagen dealership is concerned about the Kundendienst Index (KI) used by Volkswagen Canada to measure customer satisfaction with new vehicles and service work. The case details Cedarbrae operations and the KI, and focuses on the issues of What is quality of service?, and How do you devise a management control system that reinforces and measures service? From a marketing research perspective, case discussion could center around a technical evaluation of the customer survey process design.