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Describes the evolution of Virgin's dot-com organization and the decision it faced in mid-2000--whether to consolidate several separate dot-com ventures into one larger venture or, instead, to allow each to run independently. Also contains a history of Virgin's development so that students can examine the implications for Virgin's core businesses of moving online.

On January 6, 1999, Itamar Franco, the governor of the state of Minas Gerais, the second-largest state in Brazil, declared a 90-day moratorium on its debt payment to the federal government. The announcement triggered a run on the Brazilian currency, the Real, and threatened the macroeconomic stability carefully constructed by President Fernando Henrique Cardoso since 1993. Confidence in the country on the part of foreign investors was badly shaken. This case traces the origin of this crisis.

The company uses the units of activity method to account for its rental inventory. A prominent hedge fund advisor recommends the company's stock be sold short.

Specialty chemical company Dixon must decide whether to acquire Collinsville, a business in a new segment, and how much to pay for it.

Examines the wrongful death lawsuit brought by the family of an infant who died after a portable crib collapsed. The manufacturer, Kolcraft, licensed the Playskool brand name from the co-defendant, Hasbro Industries. Raises difficult questions about what the two companies should do now, after a series of tragic deaths--and after apparently complying with regulatory requirements governing product recall. Also raises provocative questions about the appropriateness of settlements in wrongful-death suits, corporate responsibility to ensure product safety, and pressures of national media attention on corporate actions. Though the circumstances here are particularly heart-breaking, managers often have to deal with lawsuits that are value-laden and have high emotional content, such as employment discrimination or sexual harassment claims, for example, or environmental and regulatory disputes. The kinds of decisions and tensions that a manager faces in such instances surely have much in common with the issues raised.

Describes the work environment, systems, and processes that allow International Profit Associates (IPA) to follow a systematic four-step approach to providing advisory service to small business owners.

In late 1999, the Walt Disney Co. and the Hong Kong government agreed to develop Hong Kong Disneyland, a HK$28 (U.S.$3.6) billion theme park and resort complex planned to open in late 2005. As part of the total financing package, the sponsors decided to raise HK$3.3 billion of non-recourse bank loans for construction and working capital, and selected Chase Manhattan Bank to underwrite and syndicate these facilities. This case concerns the process by which Chase successfully competed to lead this transaction. The key questions facing Chase were whether to bid at all, how to bid, and how to structure the syndication to meet the borrower's needs, its own profit objectives, and the market's expectation for an attractively priced credit. Includes a generic section about the process, participants, and economics of syndicated lending for students who are unfamiliar with syndicated lending. This is part of a module on Financing Projects in the Elective Curriculum (EC) course Large-Scale Investment (LSI). Although written for a course on project finance, it can easily be modified for courses on capital markets or financial institutions.

The San Francisco Symphony (SFS) is a major U.S. orchestra that took on ancillary activities as part of its mission to bring the best in music to the Bay Area. Despite increasing costs, SFS posted surpluses for 15 consecutive years. However, by the end of 1993, SFS faced a shift in its financial fortunes: forecasts indicated annual budget shortfalls of $25 million in total deficits by the end of the 1999-2000 season. In 1994, SFS had just signed a "superstar" music director to lead SFS into the 21st century whose ambitions for the orchestra were boundless. Students will step into the role of an executive committee member attending a strategy retreat to develop a strategy for SFS that balances its financial needs and its artistic commitments and aspirations. Key issues for a financial plan and supporting operations are: 1) relationships with orchestra musicians and their union contract, 2) buyers' capacity for accepting continued increases in ticket prices, 3) the likelihood of substantial increases in annual contributions, 4) local responses to changes in the orchestra's community activities, and 5) the new music director's expectations for support of his artistic aspirations.

Examines the strategic position of Rambus, Inc. The company designs, develops, and licenses high-speed chip connection technology to enhance the performance and cost-effectiveness of computers, consumer electronics, and communication systems. The company's technology is integrated into dynamic random access memory (DRAM) chips and the logic devices that control them. Because Rambus did not manufacture chips, it was directly influenced by chip suppliers (such as Intel), who controlled the price and supply of DRAM chips and stood between Rambus and the OEMs that used these chips. A further complication for Rambus stemmed from the company's involvement in several costly legal battles with much larger competitors over the ownership of prevailing DRAM standards. Looks at the challenges facing Rambus in 2001 as it seeks to balance its interests with those of its business partners (including an increasingly strained relationship with its major partner, Intel) while maintaining a technological lead over its competitors and defending its intellectual property from legal attacks.

The fictional case of SpiffyTerm, Inc., is meant to teach students about the term sheets commonly used in venture capital deals. At the time of the case, the three company founders concentrate on understanding the term sheet just received from a Silicon Valley venture capital firm (included in the case) and, considering the current and anticipated future financing rounds, collaborate to determine what valuation and other terms they should bargain for. The case consists of six sections: 1) basic valuation, 2) valuation with alternative scenarios, 3) vesting and founder replacement, 4) preferred stock, 5) pricing of follow-up rounds and the right of first refusal, and 6) anti-dilution. The teaching note to this case is a spreadsheet that contains all the formulas used to solve the problems.

In 1999 Renault acquired 36.8% of Nissan, the Japanese troubled car manufacturer. This case describes the successful integration process that leads to the recovery of Nissan.

The mass killings at Columbine High School in suburban Denver, in April 1999, inspired deep soul-searching across the United States. The search for lessons to be learned from the tragedy has extended, as well, to the law enforcement and emergency response communities. This case provides a dramatic account of the details of police, fire, and emergency medical response to the reports of carnage at Columbine. It is designed to raise the central questions relevant for any such emergency: why did the response take the form it did and could matters have been handled better? In the process, the case illuminates the manner in which the decentralized United States law enforcement system functions under conditions of extreme pressure and minimal information.

"Please don't tell me that I need to have a baby to have this time off." Those words were still ringing in the ears of Jessica Gonon an hour after a tense meeting with Jana Rowe, one of her key account managers. Jessica, the vice president of sales and customer support at ClarityBase, considered Jana's request for a four-day workweek, for which she was willing to take a corresponding 20% cut in pay. Although the facts seemed simple, the situation was anything but. Just last week, Davis Bennett, another account manager, had made a similar request. Both Jana and Davis were well aware that Megan Flood, another account manager, had been working a reduced schedule for nearly two years in order to spend more time with her children. The eight account managers were in charge of helping the company's largest clients install and maintain database applications, which often required hand-holding and coddling. Because Megan had an abbreviated schedule, the other account managers were assigned the more difficult clients. But if Jessica agreed to a shorter workweek for Jana and Davis, who would take on the toughest customers? And what would happen if the other account managers started asking for similar deals? How can Jessica maintain the productivity of her department and meet her staff's needs for flexible work schedules while striking an equitable solution for both parents and nonparents? In R0103A and R0103Z, Michele S. Darlin, Chris Dineen, Elinor Burkett, and Steward D. Friedman advise Jessica on her next move in this fictional case study.

"Please don't tell me that I need to have a baby to have this time off." Those words were still ringing in the ears of Jessica Gonon an hour after a tense meeting with Jana Rowe, one of her key account managers. Jessica, the vice president of sales and customer support at ClarityBase, considered Jana's request for a four-day workweek, for which she was willing to take a corresponding 20% cut in pay. Although the facts seemed simple, the situation was anything but. Just last week, Davis Bennett, another account manager, had made a similar request. Both Jana and Davis were well aware that Megan Flood, another account manager, had been working a reduced schedule for nearly two years in order to spend more time with her children. The eight account managers were in charge of helping the company's largest clients install and maintain database applications, which often required hand-holding and coddling. Because Megan had an abbreviated schedule, the other account managers were assigned the more difficult clients. But if Jessica agreed to a shorter workweek for Jana and Davis, who would take on the toughest customers? And what would happen if the other account managers started asking for similar deals? How can Jessica maintain the productivity of her department and meet her staff's needs for flexible work schedules while striking an equitable solution for both parents and nonparents? In R0103A and R0103Z, Michele S. Darlin, Chris Dineen, Elinor Burkett, and Stewart D. Friedman advise Jessica on her next move on this fictional case study.

"Please don't tell me that I need to have a baby to have this time off." Those words were still ringing in the ears of Jessica Gonon an hour after a tense meeting with Jana Rowe, one of her key account managers. Jessica, the vice president of sales and customer support at ClarityBase, considered Jana's request for a four-day workweek, for which she was willing to take a corresponding 20% cut in pay. Although the facts seemed simple, the situation was anything but. Just last week, Davis Bennett, another account manager, had made a similar request. Both Jana and Davis were well aware that Megan Flood, another account manager, had been working a reduced schedule for nearly two years in order to spend more time with her children. The eight account managers were in charge of helping the company's largest clients install and maintain database applications, which often required hand-holding and coddling. Because Megan had an abbreviated schedule, the other account managers were assigned the more difficult clients. But if Jessica agreed to a shorter workweek for Jana and Davis, who would take on the toughest customers? And what would happen if the other account managers started asking for similar deals? How can Jessica maintain the productivity of her department and meet her staff's needs for flexible work schedules while striking an equitable solution for both parents and nonparents? In R0103A and R0103Z, Michele S. Darlin, Chris Dineen, Elinor Burkett, and Stewart D. Friedman advise Jessica on her next move on this fictional case study.

Dell Computer describes the Dell business model and its adaptation to the Web in detail. This second case provides an update through March 2001 and contains a summary of some of the company's more important events since the first case was written.

Nokia Corp. is a global telecommunications company that, in eight years, went from a near-bankrupt conglomerate to a global leader in mobile telephony, delivering almost 30% annual compound growth in revenues during 1992-2000, while shedding businesses that had accounted for almost 90% of its 1998 shares. By spring 2000, Nokia had the highest margins in the mobile phone industry, a negative debt-equity ratio, the most valuable non-U.S. brand in the world, Europe's highest market capitalization, a presence in 140 countries, and unique corporate structures, processes, and culture that gave it the feel of "a small company soul in a big corporate body." Along with growth in size and diversity, however, came growth in complexity. Nokia had to develop multiple businesses and technologies (while dealing with the great technological uncertainties that were inherent in the convergence of mobile telephony and the Internet). It also had to manage a growing network of alliances and a number of acquisitions, mostly in the United States. This case provides the background to the issues Nokia faces as it considers how to meet these challenges while maintaining its unique company values and way of working that made it possible to execute efficiently while continuing to innovate.

In December 2000, the shareholders of General Mills were presented with a merger prospectus and proxy statement that outlined the terms by which General Mills would acquire Pillsbury from Diageo plc. Payment was composed of shares of General Mills stock, assumption of Pillsbury debt, and an unusual contingent payment. The task for the student is to assess and value the contingent payment in an effort to judge the attractiveness of the proposal and to recommend how shareholders should vote on the proposal. The contingent payment resembles a contingent value right (CVR), which provides downside protection to the sellers in an acquisition. CVRs can be modeled as two options: (1) a long put struck at a low stock price and (2) a short call struck at a higher stock price. The combination of a CVR with the underlying stock of the buyer transforms the payment to the seller from floating stock to a fixed collar. Student analysis can decompose the contingent payment into its two basic options and value the whole instrument. The teaching objectives of this case are: (1) to exercise student skills at identifying and valuing options, (2) to illustrate how the use of contingent payments can bridge differing views about the value of a target firm, and (3) to suggest the important role of synergy expectations in the evaluation of payment terms.

United Grain Growers Ltd. (UGG), a Canadian grain distributor, audited its exposure to a number of key risks, especially the impact of weather on grain volumes and operating income. Understanding these risks was crucial because the company was in the midst of a major modernization and diversification program. But although UGG already managed traditional risks through a variety of control processes, it was still faced with the problem of how to deal with the biggest risk; the weather.

Given explosive growth in technologies for drug discovery, how does Merck remain competitive in an industry that is fragmented and continues to consolidate?