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Fisher Francis Trees & Watts is a New York fixed-income investment management firm. A portfolio manager needs to purchase $375 million of 5-year notes at the Treasury auction. Unlike previous auctions, however, this is the first time the Treasury will auction the notes in a single-price "Dutch" auction. Provides the opportunity for students to study the primary and secondary market for government securities, auction theory, and financial market structure.

As CEO of Primerica, Sandy Weill has built a $6.6 billion company from acquisitions and underperforming firms. The case examines Weill's distinctive approach to building, managing, and leading an organization that seeks the benefits of scale without the problems of bureaucracy. The 1992 acquisition of 27% of Travelers is posed as a final topic for discussion. Illustrates one distinctive general manager's approach to leading a high-performing firm.

Less than a year after completing a leveraged buyout of their own company, the managers of BW/IP International were presented with an attractive acquisition candidate. To buy the target company, however, BW/IP would have to borrow more money and take on more administrative problems at a time when its managers are already very busy. The case asks students to consider how BW/IP can convince its lenders that the acquisition is a good idea. Presents two straightforward valuation exercises. Also permits a careful comparison of the capital allocation processes at a large, low-leveraged, public company, versus a small, highly-leveraged, private company.

Focuses on the new CEO of a growing software firm, the culture he's tried to create, and the need to hire a manager to spearhead a new product division. Includes details on how the search was conducted and presents resumes of four candidates who are being considered for the position. Designed to allow students to think through the recruitment, selection, and interview process.

Professional service firms, in law, accounting, advertising, consulting, and so on are ubiquitous and relatively easy to start. Few firms, however, gain scale or permanence. This case explores the reasons behind McKinsey & Co.'s exceptional success in building a prestigious, global institution and the role played by its leader in making it so. May be used with McKinsey & Co. (B)--1966. Describes many interrelated strategic, organizational, and governance issues facing the partners of McKinsey & Co. in 1956.

BEA's enhanced index fund product uses derivatives and cash market securities to find the most efficient way to "track an index." The considerations involve transaction costs, custodial fees, withholding taxes on dividends, and fees from securities lending. In this case, BEA is faced with the task of investing an off-shore portfolio so as to track the S&P 500. The choices include buying the underlying stocks, buying an S&P 500-index-linked note, buying futures or doing an S&P 500 swap, and investing in a variety of short-term fixed-income alternatives.

Reviews the history of Pohang Iron & Steel Co.'s (POSCO) development under its founding Chairman, Mr. T. J. Park. Between 1968 and 1991 the company grew from nothing to the third largest steel producer in the world. Now POSCO's opportunities for further growth in steel appear limited and Chairman Park is raising the possibility of leaving the company to enter Korea's political arena. Teaching Purpose: Strategy of a developing country, and how what appeared to be outstanding opportunities at one stage of development no longer appear as attractive at a later stage.

Describes the initial efforts at a film production plant to shift from a traditional QC inspection mentality to a worker-based process control mentality. Students can prepare SPC charts, propose actions needed, and combine steps into an overall action plan.

Tidewater Corp. CEO Bob Salinger faces a dilemma: his most valuable employee, boat designer Ken Vaughn, is also his most destructive. Because of his great talent, Vaughn is critical to the company's future growth and profitability. But his antagonism toward Tidewater's recent reorganization is causing disruptions all over the company, and Vaughn has become increasingly violent. If Salinger fires Vaughn, he risks losing him to a competitor, who would than be in position to grab Tidewater's market share. But if he keeps Vaughn, the company's necessary reorganization may be seriously damaged. Salinger is waffling in the decision and has made a tough situation even worse.

Charles River Jazz Festival must decide whether to press a compact disk (CD) of Friday's jazz performance for sale on Saturday and Sunday. The idea to press CDs is novel, so there is considerable uncertainty about how receptive customers will be. The festival must decide whether to press CDs only on Friday or pay for an option to press them on Friday and Saturday. A simulation is performed to help estimate Saturday and Sunday CD demand. One input of the simulation is a regression relating Saturday and Sunday attendance to Friday attendance and weekend weather conditions. The case illustrates how several different quantitative techniques--decision analysis, regression, and simulation--can be integrated in an analysis of a managerial decision problem. Provides practice in decision analysis; illustrates use of simulation and regression in obtaining probability estimates.

L.L. Bean must make stocking decisions on thousands of items sold through its catalogs. In many cases, orders must be placed with vendors twelve or more weeks before a catalog lands on a customer's doorstep, and commitments cannot be changed thereafter. As a result, L.L. Bean suffers annual losses of over $20 million due to stockouts or liquidations of excess inventory. Provides a context in which buying decisions that balance costs of overstocking and understocking when demand is uncertain are made and implemented on a routine basis.

Describes the design and implemenation of a quality improvement program. Sterling Chemical's management hoped the program would improve teamwork and productivity at the plant.

Nopane is a proprietary drug that sells in much of the United States. It faces substantial competition. The brand manager is undertaking an experiment to determine whether ad copy should be emotional-based or rational-based. The data and associated regression results are included. Useful for an introductory course on statistics, market research, or regression analysis.

A paper company is unable to compete on cost as a result of the installation of three very efficient paper machines by competitors. Prices for its products are falling by the day, and the company is making a loss. In the face of such competition, management feels that the only course of action is to improve "flexibility" and/or take advantage of the flexibility they already have. The problem is that no one knows quite what flexibility is, let alone how to implement an improvement plan. The case describes four improvement paths, each of which might be considered to improve "flexibility." The conflicts between these plans are also considered by the company. In addition, the sales force gives a look at the flexibility requirements of the company from the customer's viewpoint.

ImmuLogic Pharmaceutical Corp., a development-stage biotechnology company, is considering making an initial offering of common stock. The diverse perspectives of the entrepreneur, venture capitalist, investment banker, and institutional investor are explored. Problems of valuation are highlighted. The challenges posed by "windows" for public offerings are considered.

Deals with the general mission and strategy of a large mutual fund complex.

Explores the circumstances under which a specialty store chain can profitably engage in large-scale non-price advertising.

McDonald's has over many years built an operating strategy based on consistency and quality through a limited product range. Competitive forces have drawn the company into a much wider variety of foods and services in order to maintain growth. Now, new competitors threaten to beat McDonald's at its own, original game. In addition, McDonald's faces unprecedented challenges in its environmental policy. The case teaches approaches and dangers arising from flexibility, and the identification of capabilities that support different types of flexibility. The integration of environmental concerns with operations strategy is also addressed.

The owner of a lumber and building supply business is interested in finding out how much the business is worth and how to go about selling it. The business is currently enjoying considerable success and earnings are at record levels. She must decide which valuation method to choose.

In an effort to improve its global distribution system and thus enhance customer service in its shops around the world, Laura Ashley entered into a path-breaking strategic alliance with Federal Express Business Logistics Services. Under the terms of a loosely structured partnership, Federal Express essentially takes over the warehouse and distribution activities formerly handled by Laura Ashley. The alliance is path breaking due to its largely informal structure, based more on trust and mutual benefit than on complicated rules and measures.