個案總覽

An assistant account manager is evaluating a loan request from a small trucking company that is planning to expand its fleet in order to bid for a large trucking contract. The decision is centered on the firm's past performance and growth record. Particular attention is paid to the firm's chances of winning the trucking contract and its ability to service the increased debt. New highway safety regulations for trucking companies also play a role in the case.

Chronicles the founding and growth of Hotmail Corp., the leading provider of free e-mail services to consumers. The focus is on its financing history, starting with its first-round negotiations with the venture capital firm, Draper Fisher Jurvestson, and finishing with its consideration of a fifth round of financing only a year and a half later. The first round was a relatively quick negotiation to give the company seed capital of just over $300,000. The second round was a contentious one that examined the relationship between entrepreneurs and their VC investors. The third and fourth rounds of investing were structured as contingency financings. Finally, the fifth round of financing showed a number of options that the managers must consider, including an investment from Kleiner Perkins, strategic financing, and an acquisition offer from Microsoft. To add to the complications, Hotmail was running out of money and needed a short-term solution (possibly bridge financing) to complete these negotiations. The case examines each alternative and asks the reader to rate them.

The partners of the newly formed Info-Tech venture are in the process of formulating their company's marketing strategy. They have spent over a year developing their company's product - a six-page, bi-weekly news service delivered to subscribers via e-mail that summarizes recent advancements in the computer technology industry. They must now decide on how to price and promote the service.

In 1998, Metropolitan Life's first vice president of Interactive Commerce faced a plethora of opportunities, challenges, and decisions in charting MetLife's strategy for e-commerce. He wanted to move quickly into transacting Web-based commerce, but he had to consider executive support, infrastructure requirements, possibly disenfranchising the sales force, fast-moving competitors, and the frenzied rate of technology change. The case covers almost all e-commerce start-up issues, but from the perspective of a large, established bricks and mortar business. (A 19-minute video is available for purchase with this case.)

Entrepreneur Doug Levine runs a fitness company with an incredibly powerful brand. His company leverages the brand to expand, both in terms of facilities and lines of business. But he may need to make significant organizational changes in order to continue the growth.

Describes Mandic BBS, one of Brazil's first Internet service providers. In April 1998, with competition increasing, its venture capitalist financier is looking to exit their investment. Aleksandar Mandic must decide which potential investor offers the best fit with his company and at what valuation and under what terms he is prepared to sell. Interested parties include a group of U.S. financial investors, an Argentine company with broad telecommunications ambitions in Latin America, and another Brazilian ISP.

Describes TelePizza, is Spain's leading chain of pizza restaurants and delivery services. TelePizza has experienced rapid growth to 500 stores since its creation in 1987. The company went public on the Spanish stock market in late 1996. Franchising has played an important role in the firm's expansion to date. For further growth, the founder and CEO is contemplating three strategies: further expansion in Spain, international expansion, or the creation of new restaurant concepts.

Georgian Glass and Mineral Water (GGMW), was created in 1995 by a Georgian entrepreneur and Western investors in Georgia (former Soviet Union) to bottle and market the famous mineral water from the Borjomi valley. At the height of the Soviet Union's power, Borjomi was Georgia's leading export product with 450 million half-liter bottles per year. During the early 1990s, however, Borjomi factories suffered underinvestment, theft, and neglect. GGMW's management needs to raise additional financing in order to fully capitalize on the market opportunity. Furthermore, management is faced with serious operating challenges in a newly privatized economy.

Introduces students to the best practices for managing new product development projects. Includes concepts and tools related to structuring teams consistent with the project objectives as well as concepts and processes for improving project execution.

Nick Lazaris becomes Keurig's third CEO in three years, after one founder was fired and the other decided to leave the company. He inherits a company that has made several abortive attempts to launch its new coffee brewing system. Now, problems with crucial suppliers threaten the next proposed launch plan.

A family-owned brick manufacturer has built an export business to Japan and other Asian markets from zero to 10 per cent of its volume in seven years. The case examines the company's export strategy and organization in light of the recent Asian economic crisis and the reasons for their competitive success both in Australia and Asia. The managing director is raising the question of whether it is time to change their regional export strategy and organizational structure.

In 1997, Lifeline Systems continues to grow its service business to $32 million, 56% of the company's total revenues. More local hospital Lifeline programs turn over their monitoring service to Lifeline Central, expanding the company's subscriber base by 30%. The company decides to invest over $11 million in a new subscriber monitoring system to maintain its market leadership. At the end of 1998, Lifeline moves its corporate headquarters from Cambridge, MA to suburban Boston to lower real estate costs. Changes in the eldercare industry also spell growth: employers become interested in providing eldercare referral as an employee benefit, cuts in Medicare result in less home health care by nurses, and Lifeline forms strategic partnerships with the American Red Cross and an assisted-living community developer.

JAFCO, a large Japanese venture capital firm, is making a second attempt to enter the U.S. venture capital market. The U.S. subsidiary, JAFCO America Ventures, is in the midst of a challenging turnaround. Going forward, the U.S. subsidiary's leadership needs to make a number of important decisions regarding investment focus, deal flow generation, compensation, and cooperation with the Japanese parent company.

venture finance focus on the economics of financing; while these materials provide useful information about the mechanics of valuation and how to structure venture-capital agreements, they miss the social side of venture-capital investing. The case illustrates the theoretical concept that social capital (i.e., a person's relationship to other people in society) influences venture finance. The case can be used in a class on entrepreneurship or venture finance.

This note provides an overview of business valuation techniques. The discounted cash flow method is described in a simple six-step process. A numerical example is also provided. Other valuation methods are briefly discussed, including the price-earnings approach, break-up value, and an acquisition premium approach. This note is ideally suited for an executive audience. (A more in-depth note in this area can be found in A Note on Mergers and Acquisitions and Valuation, case number 9A95B023.)

An English major at Baruch College, New York, is considering opening an English language center which would offer a variety of English as a Second Language and/or English courses targeted mainly at foreigners coming to New York. She has already done some research and identified a few potential market segments, some aspects of the strategies used by the competition, and elements in the U.S. immigration policy which might threaten her project. She needs to decide if her business idea is feasible. If she decides to go ahead with her project, she has to develop a strategy and a detailed implementation plan before she can open her school.

Describes the design and launch of an Internet venture. Focuses on the drivers of the venture's scalability and adaptability.

QI-TECH, is a Chinese manufacturer of precision coordinate measurement machines. A foreign investor who holds 50% of QI-TECH must negotiate a sale with its Chinese partner and a potential buyer (a large Western measurement machine company). For this purpose the foreign investor must value the joint venture and develop a viable deal structure and negotiation strategy.

Sabeer Bhatia, cofounder and CEO of Hotmail, is making efforts to finance and grow this business, which is based on free Web-based e-mail. Describes early, successful efforts at raising several rounds of venture capital and presents choices around a next stage of financing.

Securicor Wireless (SWN) sold software products to wireless telephone carriers. The company was incorporated in January of 1995 as a 40%-owned subsidiary of Securicor Telesciences (STI), itself a wholly-owned subsidiary of British security giant Securicor PLC. Just over a year later, in February of 1996, SWN had the opportunity to merge with STI, creating a 70%-owned subsidiary of Securicor PLC and bringing it further under the umbrella of the British conglomerate. In presenting the events leading up to this decision, this case examines the dynamics of starting up a company with a large corporate investor, including the interplay between such a corporate partner and their traditional venture capitalist co-investors. Also touches on issues of corporate culture and differences in attitudes between U.S.-and U.K.-based companies/investors.