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The creator of special-event T-shirts has to decide how many shirts to order for an upcoming rock concert. Although she has a best guess and maximum and minimum estimates of attendance at the concert, her decision is complicated by this particular group's history of canceling at the last minute, in which case she would be stuck with all the T-shirts.

Engine Services, Inc., is a world-class jet-engine overhaul center. An about-to-be-published quarterly report supports the perception that the overhaul facility is providing too much value relative to contractual guarantees. The root of the problem may be the "two standard deviations rule," which is being used to provide a cushion above the guarantee. Lower targets increase the chances of costly rework but save on the costs of initial work.

Provides a brief historical overview of dual class share companies in the United States, focusing on the New York Stock Exchange's evolving position on dual class structures since the 1920s, the impact of hostile takeovers on their use since the 1980s, and recent perspectives on their utility and appropriateness. Concludes with a brief discussion of the role of dual class structures in recent debates over Europe's takeover laws.

This note introduces simulation as a tool to analyze uncertainty in business decisions. It first observes the limitations of single point or simple range estimates of key uncertainties, thereby motivating the need to create a risk profile for any alternative that characterizes the full range of possible outcomes and their relative likelihoods. A simple example involving both a discrete and a continuous (triangle) distribution is used. The note is simulation software independent, although output from Crystal Ball is displayed.

In November 1998, Jan Kasl, a successful architect and erstwhile city councilor, was his party's surprise choice for mayor of Prague, the capital city of the Czech Republic. A virtual political unknown, Kasl was chosen for the post only after the presiding mayor was rejected by the other political parties in negotiations to form a coalition government. Given Kasl's inexperience and low profile, most observers assumed he would be a quiet figurehead, following in his predecessor's footsteps and toeing the party line. Kasl, however, had different ideas. While a relative newcomer to government, Kasl had long been frustrated by what he viewed as the opaqueness of city operations, and angered by suspected abuses by those in power. Soon after his appointment, Kasl vowed to do his best to open up municipal government and stop the conflicts of interest, lack of accountability, and questionable deals he believed had damaged the image and effectiveness of City Hall. To do so, though, he would have to figure out how to overcome significant institutional and political obstacles without causing a political backlash that could stymie all progress, or even force him from office. Is it better for a leader with a reform agenda to confront antagonists-and rely on public support to force change? Or would a behind-the-scenes, coalition-building strategy be the more pragmatic and effective? Or does successful reform borrow from both approaches? In addition to these leadership issues, this case provides a window into the political life of post-socialist Eastern Europe-the so-called "New Europe"-and provides a vehicle for analysis of the question of what is the best structure for local government in a newly-democratizing (and decentralizing) state. HKS Case Number 1798.0

In November 1998, Jan Kasl, a successful architect and erstwhile city councilor, was his party's surprise choice for mayor of Prague, the capital city of the Czech Republic. A virtual political unknown, Kasl was chosen for the post only after the presiding mayor was rejected by the other political parties in negotiations to form a coalition government. Given Kasl's inexperience and low profile, most observers assumed he would be a quiet figurehead, following in his predecessor's footsteps and toeing the party line. Kasl, however, had different ideas. While a relative newcomer to government, Kasl had long been frustrated by what he viewed as the opaqueness of city operations, and angered by suspected abuses by those in power. Soon after his appointment, Kasl vowed to do his best to open up municipal government and stop the conflicts of interest, lack of accountability, and questionable deals he believed had damaged the image and effectiveness of City Hall. To do so, though, he would have to figure out how to overcome significant institutional and political obstacles without causing a political backlash that could stymie all progress, or even force him from office. Is it better for a leader with a reform agenda to confront antagonists-and rely on public support to force change? Or would a behind-the-scenes, coalition-building strategy be the more pragmatic and effective? Or does successful reform borrow from both approaches? In addition to these leadership issues, this case provides a window into the political life of post-socialist Eastern Europe-the so-called "New Europe"-and provides a vehicle for analysis of the question of what is the best structure for local government in a newly-democratizing (and decentralizing) state. HKS Case Number 1797.0

This case asks students to identify and evaluate the merits of two factors that have led a buy-side analyst to conclude that an acquiring company is a high-risk investment: (1) the company's allocation of acquisition proceeds and (2) the quality of the target's intellectual-property (IP) portfolio. The acquirer's allocation of the acquisition cost of the target is quite different from that of one of the company's previous deals. Careful interpretation of each line item for both acquisitions yields insights into the value management seeks with the acquisition. An IP-quality report supplied by an independent IP consulting firm likewise raises a number of issues students should identify. The primary objectives of the case are to (1) introduce IP-quality concepts as they relate to a firm's patent portfolio, (2) understand the accounting basis for firms' purchase-price allocations in IP-intensive acquisitions, and (3) compare and contrast the risk implications of acquisitions of in-process portfolios of drug candidates with established products.

The Little Red Roaster, a retail coffee shop that offered a menu of coffees, teas, gourmet beverages, light meals and snacks, had a strong reputation for good food and coffee during the eight years it had been in operation. The owner had recently been approached to expand both its wholesale and its catering operations, but she was unsure whether she and the company were ready for expansion. Potential wholesale and catering customers would not wait for Little Red Roaster much longer, and the owner must make a decision soon about the company's strategic direction.

De Beers Consolidated Mines has successfully managed the global diamond industry for many decades, propping up prices at all stages of the value chain, reducing price volatility and increasing consumer demand. By the end of the 20th century, however, a series of forces threatened De Beer's role and profitability. New diamond mining firms were selling their production on the open market rather than through De Beers' Central Selling Organization. The new competitors were attempting to grade, polish and cut diamonds outside of the De Beers value chain. Some retailers were purchasing shares in new mines in order to create their own value chain. New technology offered the possibility of creating synthetic diamonds that would be indistinguishable from diamonds created by natural forces. Governments were threatening antitrust actions. Meanwhile, an illicit trade in "conflict diamonds" was supporting revolutionary groups and disrupting the market. De Beers now had to decide whether to maintain its traditional functions or to embark on a new strategy. In particular, De Beers contemplated a shift into the retail jewelry business in a joint venture with France's Moet Hennessy-Louis Vuitton luxury goods corporation that would sell De Beers-branded diamond jewelry.

Mearl Canada Limited does not want to implement Mearl Oil Company's environmental impact targets because, in Mearl Canada's opinion, the targets create an extra layer of regulation for considerable cost and negligible benefit. Mearl's position is that all Mearl worldwide operations must adopt these performance standards, as this will allow the company to make operational their stated environmental policy. Each party has an opportunity to make their case at the International Environmental Group meeting, and it will decide if Mearl Canada may deviate from the environmental impact target and continue with their own homegrown environmental management system and standards. This case is from the point of view of the manager, Mearl Support, environmental. The supplement Mearl Oil Company: Environmental Impact Targets (B), product 9B05M019, is from the senior environmental manager, Mearl Canada Limited view and the supplement Mearl Oil Company: Environmental Impact Targets (C), product 9B05M020, is from the International Environmental Group's perspective.

The Canadian division of Mearl Oil Company does not want to implement the company's environmental impact targets and would like to continue using its homegrown environmental management system and standards. The division is allowed to present its arguments to the International Environmental Group. This is a supplement to Mearl Oil Company: Environmental Impact Targets (A), product 9B05M018. The supplement Mearl Oil Company: Environmental Impact Targets (C), product 9B05M020 discusses the International Environmental Group's perspective.

Mearl Canada Limited and Mearl Oil Company are presenting their cases to the International Environmental Group, who will make a decision on whether or not the Mearl Canada must comply with the company's environmental impact targets. This is a supplement to Mearl Oil Company: Environmental Impact Targets (A) and (B), products 9B05M018 and 9B05M019.

The Little Red Roaster, a retail coffee shop that offered a menu of coffees, teas, gourmet beverages, light meals and snacks, had a strong reputation for good food and coffee during the eight years it had been in operation. The owner had recently been approached to expand both its wholesale and its catering operations, but she was unsure whether she and the company were ready for expansion. Potential wholesale and catering customers would not wait for Little Red Roaster much longer, and the owner must make a decision soon about the company's strategic direction.

In the early 2000s, De Beers Consolidated Mines has successfully managed the global diamond industry for many decades, propping up prices at all stages of the value chain, reducing price volatility and increasing consumer demand. By the end of the 20th century, however, a series of forces threatened De Beer's role and profitability. New diamond mining firms were selling their production on the open market rather than through De Beers' Central Selling Organization. The new competitors were attempting to grade, polish and cut diamonds outside of the De Beers value chain. Some retailers were purchasing shares in new mines in order to create their own value chain. New technology offered the possibility of creating synthetic diamonds that would be indistinguishable from diamonds created by natural forces. Governments were threatening antitrust actions. Meanwhile, an illicit trade in conflict diamonds was supporting revolutionary groups and disrupting the market. De Beers now had to decide whether to maintain its traditional functions or to embark on a new strategy. In particular, De Beers contemplated a shift into the retail jewelry business in a joint venture with France's Moet Hennessy-Louis Vuitton luxury goods corporation that would sell De Beers-branded diamond jewelry.

This note examines Hong Kong's deregulated telecommunications industry from both industry and public policy points of view in March 2005. In recent years, the industry had been viewed as a model of deregulation and free enterprise, offering high quality service to consumers at a low price. However, the industry conditions were exceedingly challenging for the operators. Cutthroat competition had resulted in low margins and a high degree of fragmentation. The operators faced new challenges in the form of disruptive technology, new market opportunities in mainland China and the possibility of new competition at home. This note allows students to examine the determinants of industry structure, the goals and mechanisms of industry regulation, and market and non-market strategies that firms may use to respond to market conditions.

The manager of a paper plant must decide whether to buy a new electrode boiler to replace a natural gas boiler. The challenge is to cut through complexities such as uncertainty in boiler efficiency, energy prices, financing alternatives, and supplier/competitor relationships to arrive at a first-cut analysis and decision. While the case is rich with issues, a considered decision can be made without using the sophisticated methods available to treat these complexities. The case is designed as an introductory class in which an agenda for a course in decision analysis/management science is established.

A fictitious private equity firm considers whether to buy the international theme park business of the LEGO Group. Considers the origins of theme parks in the United States; the international expansion of Disney theme parks to Tokyo and Paris since the 1970s; and the expansion of the theme park business of the LEGO Group from its home in Billund, Denmark, to Great Britain, Germany, and the United States. The LEGO Group has now announced that it intends to sell the business. Explores the rationale for international theme park business and, in particular, the drivers of profitability of parks in different locations.

Provides a brief overview of the Supreme Court of Delaware's opinion in the 1939 case of Guth v. Loft, a widely cited application of the "corporate opportunity doctrine." Explores the corporate law principles regulating when a corporate manager can or cannot take advantage of a business opportunity relating to the corporation's business, in light of the manager's fiduciary duties.

There are two key principles in human capital strategy. One is that people are assets whose value can be enhanced through investment. The other is that an organization's human capital policies must be aligned to support the organization's shared vision. Excerpts from two GAO reports provide an excellent summary of the topic.

Ganong Bros. Limited is a fifth generation family chocolate company in New Brunswick that is facing financial difficulties. The firm has been spreading its resources too thinly and needs to develop a plan to not only return to profitability but also to grow the business while upholding its responsibility to the local community. This case helps students to develop an understanding of cutting costs in a turnaround situation and seeking out alternative lines of business for strategic growth.