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Spreadsheet Supplement for case 201003.

Dell Computer Corp. manufactures, sells, and services personal computers. The company markets its computers directly to its customers and builds computers after receiving a customer order. This build-to-order model enables Dell to have much smaller investment in working capital than its competitors. It also enables Dell to more fully enjoy the benefits of reduction in component prices and to introduce new products more quickly. Dell has grown quickly and has been able to finance that growth internally by its efficient use of working capital and its profitability. This case highlights the importance of working capital management in a rapidly growing firm.

Spreadsheet Supplement for case 101015

Spreadsheet Supplement for case 201005

This case describes the pay packages offered to Sara Becker, a graduating MBA student, including detailed information about two stock option packages (one of which is an indexed option package). She gathers the information and attempts to compare those compensation offers.

The purpose of this series of notes is to define the key "drivers" of the fundamental value of equity and to illustrate how these drivers determine the future cash flows and the "present value pattern" of the underlying common stock. The series includes one technical note for each term defined. The terms defined are as follows: invested capital (IC), capital expenditures (Capex), earnings, return on invested capital (ROIC), free cash flow (FCF), short- and long-term growth rate and the growth horizon, and advantage horizon. This is a short introductory note to the series.

A technical note that defines capital expenditures (CAPEX).

A technical note that defines earnings.

A technical note that defines return on invested capital (ROIC).

A technical note that defines free cash flow (FCF).

A technical note that defines short- and long-term growth rates and the growth horizon.

A technical note that defines advantage horizon.

This case provides a unique illustration of how a high-tech European new venture starts-up, grows, burns cash, stumbles, adapts, captures value, disappoints, survives on the verge of bankruptcy to eventually achieve in the fall of 1995 among the most successful IPOs on NASDAQ. On 27 November 1995, L&H received an IPO pricing proposal of H and Q at the low end of the pricing range, after L and H had rejected proposals by Robertson Stephens. The proposal valued the company at US $152 million, when its accumulated deficit was $(72) million and its shareholder equity $(37). The case explains the company and its technologies. It then describes the sequence of financing and strategic events that eventually lead to the IPO: early company development, international alliances, several private equity placements, financing on main street and pre-IPO private placement. It provides a lively and timely learning opportunity for an intermediate MBA corporate finance or for a private equity course in three areas: guerrilla financing, the why, what and how of an IPO, IPO valuation.

Describes the challenges facing a Japanese financial services company as it attempts to maintain its ability to attract and retain talented employees. The CEO's ideas of corporate governance and evidence from the competitive labor environment suggest the need for more performance-based compensation. But employees at all levels of the firm understand that any new compensation system must carefully consider the strategic goals of the firm, the cultural context of the Japanese workplace, and the legal framework of the Japanese corporation. Considers how a particular performance measurement system known as ORIX Value Added (OVA) might be used in the firm.

Spreadsheet Supplement for case 800291

Senior executives of Nissan and Renault are considering a major investment in Nissan by Renault. An important consideration is whether a major restructuring of Nissan's operations will be possible, given the value placed on lifetime employment and the impact on communities. Also of concern is the likely decrease in commitment to restructure once the equity investment has been made.

Useful as a background reading to prepare students for case studies about searching for acquisitions, this technical note offers eight guidelines drawn from theories about the economics of information, networks, options, and contagion.

Describes the rationale behind the strategy and structure of Dell Computer Corp.'s VC arm, Dell Ventures. While Dell Ventures had a phenomenal year one, it faced a number of challenges including dealing with market risks, finding and retaining talent, maintaining focus, and gaining the attention of Wall Street.