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The treasurer of Nortex, a clothing manufacturer and retailer, has been asked to determine Nortex's cost of capital. This will be used in evaluating the merits of future capital expenditures. A follow-up case with the same name (product 9A87B015) is available.

Phil Brooks, a second year university student, was investigating the feasibility of starting an enterprise called the 'Beach Bus'. The Beach Bus would be a daily transit service carrying passengers from the cities of Trenton, Belleville, and Bayside, Ontario to Outlet Beach in Sandbanks Provincial Park. Brooks wanted to evaluate the overall feasibility of the idea.

Corey Manufacturing rebuilt its production equipment and thereby extended its useful life. How should Financial Accounting entries reflect extraordinary repair on a fixed asset?

The general manager of a division of an international cosmetic company must decide hoe to deal with a lack of response to a memo. The general manager wrote to the vice-president of operations to elicit some response from Operations that would lead to better communication between marketing and operations. It is now only three days until the next meeting between operations and marketing and the vice-president has made no response to the general manager's memo.

Johnson & Burgess, one of Canada's most successful and largest advertising agencies, must make a key ethical decision. It has been invited to make a speculative presentation for the largest account it has ever been offered. However, the account creates internal division because it is for a cigarette manufacturer. Key agency personnel may quit if the account is taken, yet other agency workers may not stay if the account is passed over.

Two-party, multi-issue, scoreable negotiation between a manufacturer and a state environmental agency to reach a settlement over the manufacturer's pollution of a local river. Riverside Lumber is a pulp manufacturer in a small town in the Pacific Northwest. Riverside regularly dumps effluent into a nearby river. The Division of Environmental Conservation (DEC) claims that the effluent is toxic and jeopardizes the local salmon catch. Relations between the two parties have deteriorated. DEC has filed suit against Riverside in an attempt to close the plant. The trial date is three days away, and the parties are meeting to see if a last minute settlement is possible. Several issues will surface in the negotiation: Should Riverside be forced to purchase a special scrubber to neutralize the toxic effects of its effluent? Should Riverside be forced to close temporarily or permanently? Can DEC provide Riverside financial incentives to encourage cooperation?

Two-party negotiation between agents for an opera singer and an opera house regarding a possible contract for an upcoming production, under conditions of full disclosure. The basic facts are the same as in Sally Soprano I, except that as a result of a discussion between Sally and the Lyric Opera's Artistic Director, all available information is known by both sides. The principals have left their agents to work out the details of a deal, knowing that something mutually advantageous is possible.

Each team is composed of representatives from its country's Ministries of Foreign Relations, War, and Finance-each of which has a different perspective of the national interest. During the middle of the negotiations, war breaks out. Each side receives a telegram blaming the war on the other side, but the military situation is so fluid that each side is also instructed to seek a cease-fire, a withdrawal of troops, and a resolution of the border, on the best possible terms. Any cease-fire must take into account the fact that where the troops end up will very likely determine the de facto border, unless other arrangements are carefully made.

The taxpayer sold mining company stocks and was to be paid royalty as ore was extracted from the corporation's mine. Because the factual issues of whether ore would be extracted and, if so, how much and when were so indeterminate, the court held that the contract right to royalty payments could not be valued. There was no "realization." Recognition would be postponed until payments were actually received.

Mill manager Carl Adelman learns that a group of senior managers is soon to visit the Tiger Creek mill to learn more about the success of the newly implemented Expense Tracking System. The System had been installed on two paper machines to give workers real time cost data enabling them to optimize the papermaking process. Impressive savings resulted from the operating innovations made by the paper machine operators, and this has engaged corporate attention. However, the savings rate seems to have plateaued. Andelman must discover why before the VIP visit.

Mayers Tap, Inc. has a poorly designed cost accounting system and is in the process of redesigning it. This case provides background details for the rest of the Mayers Tap, Inc. series.

The Wright Line division of Barry Wright sells accessories used to store, protect, and provide access to computer media such as cards, tapes, and diskettes. With the explosive growth in the business computer market and the pronounced trend toward decentralized use, the market for computer accessories has become considerably fragmented. Wright Line's direct sales force, therefore, is finding it impossible to identify and reach prospective customers. As a proposed solution, Wright Line's president has moved to organize the division sales operations into three units, a direct sales force, a telephone marketing staff, and a catalog sales group.

Gulf Oil was pressured into liquidation while under attack by Boone Pickens of Mesa Petroleum Co. Gulf management was unsure whether to sell out or take the firm private. A suitor, Standard Oil of California, tries to decide how much, if anything, to bid for the privilege of owning Gulf.

Describes the development and ongoing operation of the Business Conduct Committee of Dow Corning Corp. as an example of managing corporate values in a multinational enterprise.

Describes the events surrounding the sale of a particular large block of a thinly traded stock. Brings the situation to the point at which the seller has received an offer, and must now decide what to do.

Describes a dilemma faced by Citibank's country manager for Indonesia. His superiors have asked him to raise his profit goal for 1984. But to produce increased profits he would either have to reduce the amount lent at below-market rates, particularly to prime customers and government entities, or to increase the bank's sovereign risk at the time of a downturn in the Indonesian economy. The goal is to illustrate the role of country managers and some of the difficult tradeoffs they face.

Describes the history, management, and organization of an extremely successful bank holding company. The company has had a very charismatic chairman, has made MBAs bank presidents at very early ages, and has a long record of innovation. Now deregulation and a coming change of leadership may threaten the "system" that has made the bank so successful. The teaching objectives are to display the advantages and drawbacks of management based on a strong personality and strong values in the face of major market changes.

A recent business school graduate is asked to analyze three business plans (excerpted) and to make investment recommendations on each to her venture capital firm partners.

Describes the history of Nike, its economic strategy, and the industries in which it competes. The teaching objective is to ask the student to identify and evaluate Nike's economic/technical strategy.

Details changes in the senior management roster at Nike, focusing on the appointment of Robert Woodell as the company's new president.