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In 2014, an analyst with a leading investment company wanted to evaluate the financial performance of a kitchen appliances company, TTK Prestige Ltd., headquartered in Bangalore, India. To accomplish this task, the analyst decided to use the economic value added (EVA)-based performance measure, which accorded importance to value creation by management for its shareholders. Recently, there had been a shift away from traditional approaches of measuring shareholder value creation (e.g., earning capitalization and present value of estimated cash flow) towards more value-added approaches like EVA, which offered a more effective method for evaluating financial performance.

Ethan Anderson, the CEO of San Francisco-based e-commerce company MyTime, must decide on the company's growth strategy. MyTime's first product was a website and mobile app that offered consumers a convenient way to book appointments with local merchants throughout the United States. Student must assess the company's growth strategy and develop a model to value a prospective customer to the company's website.

In 2016 against the backdrop of a challenging Chinese macroeconomic environment, SOHO China, the largest owner and developer of Class-A real estate in Beijing and Shanghai, was struggling to convince analysts of the merits of their new "build-to-hold" strategy. Founded as a merchant builder, the company went public in 2007 raising a record USD 1.9 billion, but the firm, led by Zhang Xin, refocused in 2012 towards a "build-to-hold" strategy in an effort to capture the long-term value of their properties. Ms. Zhang also saw an opportunity to capitalize on the rapidly growing "shared office" trend developing their own '3Q' coworking product placing these centers in their newly held buildings. Despite 3Q's initial success and the "build-to-hold" strategy beginning to bear fruit, SOHO's stock price was still near record lows. How could Zhang Xin educate the stock market to reward SOHO's share price and acknowledge the successful transition? Would these strategic decisions be sufficient to steer SOHO China through new economic hurdles? Is 3Q enough to buoy SOHO's performance and bring them into the next phase of growth?

A technical note on the state of Chinese commercial real estate and the effects of China's slowing growth. This note was written in conjunction with the case study "SOHO China: Transformation in Progress."

Pi was a large family office pioneering the concept of 100% portfolio impact investing. Tasked with preserving capital, generating moderate returns and advancing the family's social justice goals - Pi's Managing Directors had to identify appropriate products across asset classes. In this case, students will be required to assess an investment in HCAP Partners Fund III from the perspective of Pi and whether such an investment meets the family's core criteria.

Scott Wagner has recently joined GoDaddy, a leading provider of cloud-based software and services that helped individuals and small businesses establish a web presence, in the dual role of chief operating officer and chief financial officer. One of his first tasks is to design a set of performance metrics that can be used to run the business. This case gives students the opportunity to develop a framework for thinking about GoDaddy's business and to design performance metrics that measure the health of the business and guide employee behavior.

In 2010, the board and senior management team of Falabella, a leading retailer with operations throughout Latin America, faced choices about what to do with its financial services division. More than 4.5 million customers had CMR credit cards that could be used in Falabella stores, and Banco Falabella competed with other banks by offering personal banking services. The case covers many of the key questions the leaders of the firm faced, including whether to allow credit card holders to use their cards for purchases outside of Falabella stores, whether to develop personal banking services further, and whether to make substantial changes to the strategy or to exit the business.

Supplements the (A) case and provides an update describing choices Falabella made. In 2010, the board and senior management team of Falabella, a leading retailer with operations throughout Latin America, faced choices about what to do with its financial services division. More than 4.5 million customers had CMR credit cards that could be used in Falabella stores, and Banco Falabella competed with other banks by offering personal banking services. The case covers many of the key questions the leaders of the firm faced, including whether to allow credit card holders to use their cards for purchases outside of Falabella stores, whether to develop personal banking services further, and whether to make substantial changes to the strategy or to exit the business.

Spreadsheet supplement for case 217016.

Stephanie Greenwood, founder and co-owner of Bubble & Bee Organic (B&B) was at a crossroads. She wanted to grow her business, but for that to happen she needed an infusion of capital. Because she was passionate about maintaining control of her business and the quality of her products, bringing in an outside investor held little appeal. So, it seemed a loan was in order. But...would she and her partner Steve Thomas qualify for a loan in an amount sufficient to support their growth? What should that growth entail? Should they consolidate their operations by purchasing a building, or should they just rent additional space? They could predict their growth potential, but what if they were wrong? This decision based, undisguised case focused on Greenwood and her partner's need for financial modeling to satisfy the lender, analyze the financial consequences of their options, and to determine if B&B could manage the debt payments without putting the business in financial jeopardy. Four different pro forma modeling scenarios were proposed to facilitate informed decision making at B&B: 1) 15% revenue growth with the loan, 2) flat growth with the loan, 3) 15% revenue growth with additional rental space, and 4) flat growth with additional rental space. An in-depth financial ratio analysis was also required of all four scenarios to evaluate and understand the impact on liquidity, cash conversion, leverage, profitability, efficiency, and return.

The CEO of Tangerine-formerly ING Direct Canada-describes his approach to leading and creating a disruptive business model in one of the most traditional industries: banking. In this wide-ranging interview, he explains how the culture he created embraces divergent views and encourages novel thinking. He also describes what happened when his firm was acquired by one of Canada's big banks (Scotiabank), and how the culture of disruptive innovation lives on at Tangerine.

In 2015, an ancillary client of a leading investment bank based in New Delhi, was looking to increase revenues from the two-wheeler and four-wheeler vehicle segments by acquiring customers that were original equipment manufacturers. A financial analyst was assigned the task of evaluating the options and identifying the right target to acquire for the client. The analyst used comparable company analysis and comparable transaction analysis, as well as valuation ratios (enterprise value-to-sales; enterprise value-to-earnings before interest, tax, depreciation, and amortization; and price-to-earnings per share) to arrive at Talbros Automotive Components Limited as the best target for the client. For comparable company analysis, the analyst also compiled a list of four publicly traded firms that were similar to Talbros Automotive Components Limited. The analyst needed to arrive at the final valuation range by combining the results of both techniques (i.e., comparable company analysis and comparable transaction analysis), which could be achieved by using a football field analysis.

Real estate, land, and improvements can be defined both in a physical and legal sense as the rights to own or use them. This note discusses the physical attributes of real estate, the statute of frauds, the rights of ownership, and the constraints on the ownership of real property.

This notes describes the institutional landscape of real estate ownership. Because persons other than their formal owners today manage most large-scale properties, this note emphasizes the nature and structure of arrangements between owners and managers. It is organized into three main sections: the attributes of real property ownership; the importance of management expertise to the performance of real estate investments; and a review of the fundamental characteristics of different legal vehicles for real property ownership.

In 2015, an ancillary client of a leading investment bank based in New Delhi, was looking to increase revenues from the two-wheeler and four-wheeler vehicle segments by acquiring customers that were original equipment manufacturers. A financial analyst was assigned the task of evaluating the options and identifying the right target to acquire for the client. The analyst used comparable company analysis and comparable transaction analysis, as well as valuation ratios (enterprise value-to-sales; enterprise value-to-earnings before interest, tax, depreciation, and amortization; and price-to-earnings per share) to arrive at Talbros Automotive Components Limited as the best target for the client. For comparable company analysis, the analyst also compiled a list of four publicly traded firms that were similar to Talbros Automotive Components Limited. The analyst needed to arrive at the final valuation range by combining the results of both techniques (i.e., comparable company analysis and comparable transaction analysis), which could be achieved by using a football field analysis.

Nick Leeson was known in financial circles as the original rogue trader for his misbehaviour on the trading floor in the early 1990s, and his story still stands out — not just because he was played by Ewan McGregor in the 1999 movie “Rogue Trader.” Leeson singlehandedly toppled a major financial institution. Indeed, today’s push for effective risk management of global trading practices can be traced back to his actions as a 25-year-old trader in 1995, when Britain’s oldest merchant bank at the time suffered a US$1.3 billion loss thanks to Leeson’s unauthorized speculative bets. The actions in question were not driven by greed. Rather, Leeson bankrupted the Queen’s personal bank, destroyed his career and reputation, and was sentenced to six and a half years in a Singaporean jail because he did not have what it took to admit failure. In this IBJ interview, Leeson talks to Ivey Business School Professor Gerard Seijts about lessons learned, the unique challenges managing trading risk today, and why he supports initiatives by Ivey’s Ian O. Ihnatowycz Institute for Leadership to help the world proactively develop business professionals with superior judgement driven by a proper balance of leadership character traits. As Leeson says, “People who freely admit that they are not sure about operational matters are not what we’re traditionally drawn to when we look for a leader, but it’s what we need.”

In 2012, the French government was faced with the challenge of setting the standards for socially responsible investment funds. A broader issue was the set of roles and responsibilities that regulators needed to take to ensure the best interest of society and the retail market. Retail consumers were different from institutional clients because they were numerous, they may not have had access to the same information available to more sophisticated investors, and because their thoughts on the financial markets were most likely to be based on what they had read and heard in the news. The government had to decide how to go about creating standards that could be applied to socially responsible investment funds. Also see supplement.

In December 2012, the stock of Shriram Transport Finance Company (STFC) had just breached the ₹750 mark, signifying an appreciation of close to 80 per cent for the calendar year of 2012. Texas Pacific Group (TPG), the global private equity firm, had invested in STFC at a time when the share price was hovering around ₹100. As was the case with most private equity firms, a successful exit from an investment was of paramount importance for TPG in order to reap handsome returns. In the course of charting the exit path from an investment, private equity firms had to consider several critical issues including exit structure, timeline for exit, and regulatory hurdles. There were three usual choices of exit routes: initial public offering, trade sale, or secondary sale. Each of the exit routes had its own advantages and disadvantages. Was this the right time for TPG to exit STFC? If yes, which option should TPG pursue?

In December 2012, the stock of Shriram Transport Finance Company (STFC) had just breached the ?750 mark, signifying an appreciation of close to 80 per cent for the calendar year of 2012. Texas Pacific Group (TPG), the global private equity firm, had invested in STFC at a time when the share price was hovering around ?100. As was the case with most private equity firms, a successful exit from an investment was of paramount importance for TPG in order to reap handsome returns. In the course of charting the exit path from an investment, private equity firms had to consider several critical issues including exit structure, timeline for exit, and regulatory hurdles. There were three usual choices of exit routes: initial public offering, trade sale, or secondary sale. Each of the exit routes had its own advantages and disadvantages. Was this the right time for TPG to exit STFC? If yes, which option should TPG pursue?

The High-Impact Wealth Management case series is a portfolio of cases that are built around the high-impact theme. Each case in the series can stand on its own to deliver a unique learning objective; but, taken together, the cases are designed to cover all seven topics covered in the list of “common-cents” strategies. <br><br>Also refer to 9B16N034.