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This case involves part of a module on financing large projects in the elective curriculum course entitled "Large-Scale Investment." It is set in August 1999, just after Iridium, a global communications firm, declared bankruptcy. Although the case describes Iridium's creation, development, and commercial launch, it concentrates primarily on the firm's financial strategy and execution as it raised more than $5 billion of capital. It describes the specific securities Iridium issued, the sequence in which it issued them, and the firm's financial performance prior to bankruptcy. Using analyst forecasts, students can value the firm prior to its bankruptcy, but will recognize how difficult it is to value technology start-ups given the uncertainty in demand.

Heartport, an entrepreneurial medical device maker, has introduced several innovative systems for conducting less-invasive cardiac surgery. Despite initially high expectations, the company has struggled to get its technology adopted by cardiac surgeons. The company's newest CEO, the third in less than four years, must figure out how to turn around the fledgling company. This case describes Heartport's method of performing minimally invasive cardiac surgery as well as rival techniques for treating cardiovascular disease. Describes the evolution of the company, its product strategy, and its fortunes over the period 1991-99.

Describes the development strategy followed by Korea under the leadership of Park Chung Hee as well as the reform efforts embarked on by his successors.

In 1995 McDonald's was the largest restaurant chain in the United States with domestic sales of almost $15.9 billion. McDonald's was also the country's fourth-largest advertiser, spending $490 million on measured media in 1995. On May 9, 1996, the company introduced the Arch Deluxe, a quarter-pound hamburger that was the first in a planned series of sandwiches targested to adults. By the end of May, McDonald's had sold or given away 100 million Arch Deluxe burgers. Despite this success, in the second quarter of 1996 some store sales at McDonald's restaurants declined slightly from the same quarter in the previous year. Thus McDonald's faced several key decisions. Should the Arch Deluxe burger be modified? What changes, if any, shoud be made in the marketing campaign? Should McDonald's proceed with plans to introduce fish and chicken line extensions?

Describes the evolution of Microsoft's human-resource philosophies, policies, and practices and how they used as a core of the company's competitive advantage. In particular, the focus is on how Microsoft tried to retain its ability to recruit, develop, motivate, and retain first-class talent as it grew from a start-up to a global behemoth. Triggered by high-profile, senior-level departures in 1999, the company must decide if it is time to change its "hard core" culture came to be.

Presents the story of a music retailer in Miami which started in the late 1940s, grew throughout the 1960s and 1970s, and went public in 1985 before experiencing a deep industry crisis in the mid-1990s. At issue in 1996 is whether the company should attempt to sell again after an aborted sale attempt two years earlier. Should the owners try again to sell before the industry economics become so unattractive as to make a future sale impossible? Or should they hold out, try to improve performance, and then try to sell in a couple more years? This question is asked against the backdrop of a strong history as a family-owned company. Martin Spector, the company's founder, has turned the company over to his daughters, Ann (CEO) and Roz (COO), who still defer to him on major decisions. In the context of the important decision of whether to sell the company, the family dynamics take center stage.

Norman Spencer, who grew up poor, worked for two decades to make his investment firm successful and his family wealthy. The company he founded, Arrowhead, is now known on Wall Street as a top-notch boutique firm with $25 billion in assets under management. His family has a mansion in San Francisco and a "cottage" in Nantucket. His 17-year-old daughter drives a BMW, his 13-year-old son takes flying lessons in his own plane, and his wife has a personal feng shui adviser. But at the pinnacle of his career, Norman feels as though he's drowning. Norman's success only makes him feel numb, and his home life is a disaster; his wife is so resentful of his lack of family involvement that she no longer speaks to him. His daughter refused to wish him happy Father's Day. "You're not a father," she said. Alternately harsh and remote at work, this fictional entrepreneur has been asked by one senior executive at Arrowhead to stay away from the analysts. So he spends a lot of time surfing the Internet, looking at real estate in far-flung places, and haunting web sites about missing persons, wondering what became of his younger sister, who ran away from home at age 14. What is wrong with Norman, and how can he fix it? In R00211 and R00213, commentators Edward M. Hallowell, Scott Neely, Jean Hollands and F.R. Manfred Kets de Vries offer advice on this fictional case study.

Norman Spencer, who grew up poor, worked for two decades to make his investment firm successful and his family wealthy. The company he founded, Arrowhead, is now known on Wall Street as a top-notch boutique firm with $25 billion in assets under management. His family has a mansion in San Francisco and a "cottage" in Nantucket. His 17-year-old daughter drives a BMW, his 13-year-old son takes flying lessons in his own plane, and his wife has a personal feng shui adviser. But at the pinnacle of his career, Norman feels as though he's drowning. Norman's success only makes him feel numb, and his home life is a disaster; his wife is so resentful of his lack of family involvement that she no longer speaks to him. His daughter refused to wish him happy Father's Day. "You're not a father," she said. Alternately harsh and remote at work, this fictional entrepreneur has been asked by one senior executive at Arrowhead to stay away from the analysts. So he spends a lot of time surfing the Internet, looking at real estate in far-flung places, and haunting web sites about missing persons, wondering what became of his younger sister, who ran away from home at age 14. What is wrong with Norman, and how can he fix it? In R00211 and R00214, commentators Edward M. Hallowell, Scott Neely, Jean Hollands, and Manfred F.R. Kets de Vries offer advice on this fictional case study.

Norman Spencer, who grew up poor, worked for two decades to make his investment firm successful and his family wealthy. The company he founded, Arrowhead, is now known on Wall Street as a top-notch boutique firm with $25 billion in assets under management. His family has a mansion in San Francisco and a "cottage" in Nantucket. His 17-year-old daughter drives a BMW, his 13-year-old son takes flying lessons in his own plane, and his wife has a personal feng shui adviser. But at the pinnacle of his career, Norman feels as though he's drowning. Norman's success only makes him feel numb, and his home life is a disaster; his wife is so resentful of his lack of family involvement that she no longer speaks to him. His daughter refused to wish him happy Father's Day. "You're not a father," she said. Alternately harsh and remote at work, this fictional entrepreneur has been asked by one senior executive at Arrowhead to stay away from the analysts. So he spends a lot of time surfing the Internet, looking at real estate in far-flung places, and haunting web sites about missing persons, wondering what became of his younger sister, who ran away from home at age 14. What is wrong with Norman, and how can he fix it? In R00211 and R00213, commentators Edward M. Hallowell, Scott Neely, Jean Hollands and Manfred F.R. Kets de Vries offer advice on this fictional case study.

Artists for Humanity (AFH) is a nonprofit that hires 30 to 40 teenagers each year for after-school work and training in the arts and entrepreneurship. The young artists, working in six different studios, make and sell the art they produce. AFH was started in 1990 by local artist Susan Rodgerson and six middle school students in a Boston garage studio; in 1993, they were able to expand and move to two floors of a wharf-area warehouse. At the time of the case, Rodgerson, the executive director, is weighing issues of expansion, staff turnover, and a capital campaign to raise money to secure a building (the warehouse lease ran out in 2001). The case showcases the challenges that face many small nonprofit organizations, and outlines some of the particular characteristics that describe nonprofit organizations that also have an entrepreneurial arm.

When Paulo Renato de Souza accepts an appointment to become Brazil's minister of education, he faces extreme challenges. Public education in Latin America's most populous nation is widely viewed as a failure. Brazil's vast population of poor children often attends schools that are both physically inadequate and have inadequate textbooks. His own department has seen a parade of ineffective leaders and has only indirect authority of state governments responsible for primary education. HKS Case Number 1571.0

The federal Equal Employment Opportunity Commission is the agency charged with investigation of non-criminal complaints of civil rights-related violations in the U.S. workplace, including racial and gender discrimination. This case describes the agency's efforts to reform its internal procedures do as to deal with a staggering backlog of complaints--nearly 100,000--and up to 19-month waits for resolution. It focuses on key strategic decisions which must set the stage for greater efficiency--particularly the issue of whether every complaint must be processed in the same manner, of whether the agency should find ways to concentrate its effort on complaints judged somehow to be more significant. HKS Case Number 1562.0

Direct foreign investment in Russia was only 1% of GDP in 1999, and Russian industry was only half as productive in that year as in 1992. Not surprisingly, the prevailing opinion is that privatization has only aggravated Russia's economic problems, and that foreign firms should avoid investing in Russia for the time being. This case study argues that, on the contrary, Russian companies can be successfully integrated within a multinational organization. It shows that an Anglo-Saxon-style revolutionary change process is not always the best way to proceed in Eastern European organizations; that the commonly accepted goals of rapid change, employee empowerment and a flatter hierarchy are not necessarily appropriate in these organizations in the short-term, moreover that even the definitions of trust, strategy and leadership can differ according to cultural context. The challenge lies in understanding the complexities the lingering influence of the Soviet planned central economy - as well as the Russian culture and management systems.

Merrill Lynch, a full-service brokerage firm with $1.5 trillion in client assets, is under attack from both discount and electronic brokerage firms. It responds with Integrated Choice, a suite of products designed to capture clients from the do-it-yourself investor who doesn't want to use a broker to clients who want to rely completely on a broker. The strategy is high risk and requires a sea change from the company.

eBricks.com is developing an online marketplace for construction materials. The start-up company faces two decisions: 1) whether to merge with BluelineOnline.com, a firm providing project management solutions for the construction industry; and 2) whether to develop an online marketplace between contractors and distributors or, alternatively, a marketplace between distributors and manufacturers.

Candace Kendle and Christopher Bergen, the CEO and COO of Kendle International, Inc., are reviewing ways to finance the growth of their privately-owned company. Kendle is a contract research organization that conducts clinical drug trials for pharmaceutical and biotechnology companies. To compete more effectively, Kendle plans to grow through international acquisitions. It is now time to decide whether to go ahead with a full program of two European acquisitions, a large debt financing through Nationsbank, and an initial public offering to repay the debt and provide cash for future acquisitions. The falling stock prices of Kendle's competitors add pressure to the situation. Teaching purpose: To develop skills in designing and implementing an integrated financial and acquisition strategy.

Outlines the growth of an innovative diabetes disease management organization from 1994-99. Having demonstrated the success of their model in managing diabetes populations in Texas and New York State, the CEO and president must decide the future strategy of the company and figure out where their core competencies lay. Options include focusing on the current model (which is based on developing strong patient-caregiver relationships and on immediate access to clinical data via database technology), branching into online health assessment tools, or conducting research on health and cost outcomes for pharmaceutical, medical device, or insurance companies. Illustrates the importance of aligning incentives of clinicians, hospitals, and patients to effect behavior change. Students can discuss the types of financing markets in which the company's model will work best, who is best suited to provide this type of disease management, and who should pay for it (e.g., physician, hospitals, pharmacists, insurance companies, or outside providers).

Craig Johnson, Venture Law Group's (VLG) chairman, founded VLG in 1993 with a goal of "zero voluntary turnover." In late 1998, Johnson faces the departure of three important partners, prompting himself to ask what VLG can do in the midst of an "economic hurricane" that is luring VLG attorneys to leave and enter dot.com companies.

Updates events in Microsoft CarPoint through the end of 1999, focusing on CarPoint's strategic alliance with Ford and on competitive developments.

Mauricio Santillan, regional vice president for the Latin American division of Microsoft, has introduced a new performance measurement system to help his country managers formulate and control strategy. Microsoft Latin America's priorities are rolling out of an entirely new corporate database software package and devising a strategy to combat software piracy. Santillan uses the measurement system to motivate country managers to establish locally-relevant strategies that will be aligned with the region's global priorities. This case shows how a Balanced Scorecard system can be useful to help managers in emerging markets learn about the importance of strategy and become better general managers. Also illustrates that a strategic measurement system can be implemented even in an environment where reliable data may be difficult to acquire.