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An assistant treasurer at J.C. Penney is looking at various alternatives for financing the company's $2.5 billion store expansion and modernization program. The case provides a listing of different ways/capital markets issues to obtain this financing. Designed to be used as an introduction to capital markets.

Describes a conflict between the corporate controller and a division president about labor standards, which the division purposefully overstates to protect its margins. Illustrates the multiple roles of standards, and the roles of controllers and line management in resolving such conflicts.

Describes the market for high-yield, or "junk," bonds and includes summaries of academic research on the risk/return characteristics of high-yield securities. Describes the role of Drexel Burnham Lambert in the primary and secondary markets for high-yield debt. Decision focus is on a public offering of four high-yield securities issued by Metromedia Broadcasting Corporation in November 1984. The offering was used to refinance bank borrowings incurred in connection with Metromedia's June 1984 leveraged buyout. The securities offered included Serial Zero Coupon Notes due 1988-93, Senior Exchangeable Variable Rate Debentures due 1996, 15 5/8% Senior Subordinated Debentures due 1999, and Adjustable Rate Participating Subordinated Debentures due 2002. Proceeds from the offering totaled $1.2 billion.

Presents an analysis of Harnischfeger's quality of earnings, and the investment potential of the company's stock in light of the company's turnaround strategy.

A negotiation exercise between Riverside Lumber Co. and the Division of Environmental Conservation about reducing the effects of effluent discharge in a river. Students are assigned to a role and receive confidential information including a scoring system detailing the costs and benefits of various proposals. Though their interests conflict, joint gains beyond simple agreement can be found. Students come to see that joint gains must be created and divided and that the tension between competitive and cooperative urges often lead to inferior agreements. Means for managing this tension can then be discussed. This game can be used as a complex example of bargaining with incomplete information.

Confidential information for students assigned the role of the Division of Environment Conservation. See Riverside and DEC--General Information.

Outlines alternative mechanisms for getting into business. Shows the means by which an experienced entrepreneur can gain control over the necessary resources in order to lower the fixed costs of business entry. Provides a mechanism for discussing the role of experience, credibility, and contacts in the development of a nonbusiness venture.

Signode Industries' packaging division manufactures steel and plastic strapping. In 1981 the company underwent the largest leveraged buyout in U.S. corporate history. The case focuses on the packaging division's need to maintain high profitability in a declining market for steel strapping. Since 1974, Signode has been losing 1% per year of the steel strapping market. Since then, there has also been significant erosion of prices. The division president is faced with 1) decreasing price to increase market share, or 2) maintain/increase prices to increase cash flow. The specific decision revolves around the potential adoption of a price-flex system that is designed to authorize selective discounting by the division's sales personnel.

This game is a highly structured exercise in labor-management bargaining. If union and management cannot reach agreement within two days, then the union will strike. The costs of a strike are not the same for the two sides. Similarly, the cost of a settlement to management differs from its benefits to the union. Union and management players frequently feel that they are more powerful, hold out, endure a strike, and do poorly relative to other players.

Population Services International (PSI) was a not-for-profit agency founded to disseminate family planning information and to market birth control products, primarily in less developed countries seeking to curb their population explosions. In 1976, PSI concluded an agreement with the government of Bangladesh to conduct a social marketing program, with the objective of using modern marketing techniques to sell subsidized contraceptives through commercial outlets. Seven years later, three PSI managers were meeting at PSI's Washington, D.C. headquarters to discuss 1984-86 marketing strategy for two products: Raja condoms and Maya birth control pills. Of particular concern was the fact that the marketing approach that had proven extremely successful for Raja was yielding poor sales results for Maya. The PSI managers needed to devise an action plan for improving Maya Sales.

Contains a description of a decision confronting an employee of IBM in late 1981. Should he leave IBM to become head of a new venture capital fund which will specialize in technology investments? The case is designed to expose students to the nature of the opportunity confronting venture capitalists. The students will have to assess the fit between Peter Wendell, the particular opportunity, and the terms being offered.

Contains brief introductory material for the body of the case, which is Nixon's August 15, 1971, speech announcing the suspension of the convertibility of gold and wage-price controls. The case will allow discussion of the problems of the Bretton Woods system, the relationship of domestic and international economic problems, and the process of institutional change.

The Heinz Ketchup product manager must decide whether or not to launch a new plastic bottle and, if so, what marketing program and support to place behind it.

Describes three years of the Volcker monetary policy experiment. The Federal Reserve changed the focus by its operating procedure from an interest rate instrument to a reserve instrument and it reaffirmed its commitment to hitting its preannounced monetary growth target. At the same time Congress initiated widespread deregulation of financial institutions. The case encourages discussion on the best strategy and implementation of monetary policy, the effect of deregulation on its conduct, the causes of the recession and disinflation, and the competitive implications of the recent changes in monetary policy for competitive institutions.

Provides background information on the high performance liquid chromatography (HPLC) industry and the Waters Chromatography Division, an operation engaged in the development, manufacture and sale of HPLC instrument systems and chemical products. An overview of Waters' marketing effort in general and sales/service operations in particular provides a lead-in to the focus of the case: a diary-style account of a day in the field with Ray Burnett, a Waters field sales representative. Includes information on Ray's background and his current supervisor, a general description of Ray's job responsibilities, and a detailed account of one day's customer calls. Written for use in the communication section of the first year marketing course taught at HBS. The primary teaching objective is to show how one company executes the selling function.

The manager of international finance of a major U.S. electronics company is concerned about the exposure of the firm to changes in exchange rates. Of particular concern is the exposure of operations to changes in real exchange rates. The teaching objectives include: 1) understanding operating exposure and contractual exposure; 2) understanding the issues in estimating operating exposure; 3) understanding possible actions to neutralize operating exposure; and 4) assigning responsibility for the management of operating exposure.

Robert Malott, Chairman and CEO of FMC, must decide whether or not to continue his work on product liability law reform, an issue on which he has worked for almost 10 years. Malott must decide how extensive his own involvement should be and what arguments he can or should make to persuade fellow members of the Business Roundtable and other business leaders to join him.

A recent college graduate decides to buy a small multiple-unit building in Boston as a residence and an investment. He learns about finding and valuing properties, property management, construction, and mortgages. After some difficulty he finds a building in an area that is increasing in value. The previous owner has run out of funds to complete renovations.

Two forest products manufacturers negotiate the sale of a group of assets. ACRS would allow the buyer to rapidly depreciate the stepped up basis to justify a high valuation. The seller recently paid greenmail, and this transaction may be linked to its desire to avoid paying off a second investor.

American Hospital Supply, the largest firm in the U.S. hospital supply industry, has achieved success in part through the use of information systems. Changes in the hospital marketplace suggest a shift in strategy would be appropriate. What role should information systems play in future strategies?