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The Noranda Board of Directors is considering four major capital budgeting proposals: development of a new mine, a mine shaft extension, purchase of an existing pulp and paper mill and purchase and installation of a continuous casting mill. A key issue is whether to use one overall cost of capital for the company or individual hurdle rates for each division.

President and CEO of Finning Tractor, has seen the earnings of the company drop below profitable levels because of a deep recession. Several restraint measures were instigated with little apparent impact. The case takes place at the point where a decision is impending on dividend policy with issues ranging from effect on stock price to the fact that the two majority shareholders may be adverse to taking a cut in the over $1.5 million in dividend income they were receiving annually.

A minority shareholder in a new operation has been offered a sum of money by the majority shareholder to buy up his shares. The question is whether or not the price offered is fair, in light of the fact that the market for these new golf clubs is highly unpredictable and the production costs are not truly representative of the actual amounts that will be required.

The president and general manager of a franchised automobile dealership investigates a capital expenditure for a new body shop to replace a smaller, leased facility. The case is designed to test students on their knowledge of capital expenditure analysis, to underline the impact that inflation adjustments have on capital expenditure analysis, and to push students to make judgements on the key analytical figures that may have an impact on the net present value calculation.

A consulting engineering firm, is involved in a road construction project in Asia which is plagued with difficulties. The firm is working with the local government highway department on the project and has the status of advisor. Actual construction is done by the government department. The problems that the firm must contend with include technical problems, a budget process, differing objectives and intercultural relations. Two years into the project, only 17 kilometres of the 245-kilometre highway were under construction. This case provides the background briefing for the in-basket exercise, An International Project Manager's Day, consisting of three cases, An International Project Manager's Day (A), An International Project Manager's Day (B) and An International Project Manager's Day (C). An alternative teaching approach, as a decision-making exercise, is presented in the teaching note 5A84C40 and supplementary case, An International Project Manager's Day (D).

The director of the Victoria Hospital Pharmacy has been forced by a request from his superior to confront and consider the possibility that people could die because of weaknesses in his operating systems. In a health care system, the operating environment must support, not only ideally, but in reality, 100% quality control with no defects. The one-time failure or lapse in the performance of the operating system(s) can have tragic consequences for all involved. The director must decide if Victoria Hospital Pharmacy is delivering the level of quality service expected of it by the public through its existing systems.

The assistant credit manager for a jewellery wholesaler, must assess and compare the credit standing of two of their retail clients. The assessment, which would be used to determine if changes in credit policy were necessary, had to be submitted to both the credit manager and the sales manager in one week. This case provides students the opportunity to calculate financial ratios and use them in decision making. The focus should be on the development of the ratios and trying to appraise one business versus the other. If time is available, the instructor may wish to spend some time on credit appraisal. A follow-up to this case is available, Gardiner Wholesalers Incorporated (B), case 9A84J003.

In response to dismissal of a newly hired administrative assistant, all 10 of this company's executive assistants have vacated their posts and demanded that the plant's manager reverse the young woman's discharge. Otherwise, the 10 women have threatened to walk out in order to air their protest on a national news program.

Disc Importers is a classical record importer and wholesaler which has just completed its first year of operations. The controller has asked other executives for assistance in choosing an inventory valuation method. The choices revolve around the four standard inventory valuation options (LIFO/FIFO/average cost/specific identification), and the uses which the executives wish to make of the financial statement information. As well, the controller wants to evaluate the impact of the lower-of-cost-or-market rule on ending inventory evaluation. There has been substantial increases in the unit cost of discs throughout the year, and hence the inventory valuation method chosen will impact the financial statements.

The president of Petro-Canada Products Limited proposes to restructure his division of the company. His proposal is for an unusually decentralized organization, by oil industry standards, and it needs to be approved by the company's executive council. The case presents background material on the oil industry, West's division, and the specifics of his proposal. The reaction of other executives in the firm to the proposal is also presented.

A consulting engineering firm, is involved in a road construction project in Asia which is plagued with difficulties. The firm is working with the local government highway department on the project and has the status of advisor. Actual construction is done by the government department. The problems that the firm must contend with include technical problems, a budget process, differing objectives and intercultural relations. Two years into the project, only 17 kilometres of the 245-kilometre highway were under construction. This case provides the background briefing for the in-basket exercise, An International Project Manager's Day, consisting of three cases, An International Project Manager's Day (A), An International Project Manager's Day (B) and An International Project Manager's Day (C). An alternative teaching approach, as a decision-making exercise, is presented in the teaching note 5A84C40 and supplementary case, An International Project Manager's Day (D).

Two-party negotiation between the lawyers for business partners concerning the ownership of a new computer program one of them has developed. HackerStar, Inc. is a small closely-held corporation that develops and markets software for microcomputers. The six-year-old company was founded by Hacker, a brilliant programmer who is responsible for the company's products and became its manager, and Star, a dentist and computer hobbyist who provided the capital. Hacker and Star are each 50% owners. The company has done moderately well, but now faces a crisis resulting from a dispute between the partners over the ownership and disposition of PowerScreen, a new product developed by Hacker, at least partly on his own time and definitely against Star's wishes. The company lawyer has referred Hacker and Star to separate counsel in order to avoid a conflict of interest. The exercise revolves around the meeting of these lawyers. At issue is the ownership of PowerScreen and the future of HackerStar, Inc.

The assistant credit manager for a jewellery wholesaler, must assess and compare the credit standing of two of their retail clients. The assessment, which would be used to determine if changes in credit policy were necessary, had to be submitted to both the credit manager and the sales manager in one week. This case provides students the opportunity to calculate financial ratios and use them in decision making. The focus should be on the development of the ratios and trying to appraise one business versus the other. If time is available, the instructor may wish to spend some time on credit appraisal. A follow-up to this case is available, Gardiner Wholesalers Incorporated (B), case 9A84J003.

GE is considering introducing a "just-in-time" production system to reduce inventory in its thermocouple manufacturing area. The case presents students with a description of the present inventory management system, the production process, and the perspectives of different individuals in the plant. The issue is how GE should proceed with introducing this system.

The behavior of the Federal Reserve System during the early years of the Great Depression has been a topic of considerable controversy. The Fed, it has been argued, pursued a contracting policy, thereby helping to turn what might have been only a brief recession into an economic catastrophe. This case explores the reasons behind the Fed's behavior, showing students how existing institutional values may be inappropriate to novel situations.

Describes the controls used in the casino over the blackjack game and cash stocks, and movements of cash. Also describes the results measures available in the casino and their limitations for control purposes.

Mr. Kenneth Treece, marketing director of Frito-Lay's Grandma's (R) Cookie division has received the final test market figures for the new supermarket line of Grandma's Ready-To-Eat cookies. One set of data, the Kansas City test results, was extremely encouraging; market share was 50% higher than management had projected. Although the results of the Northwest region test were not as positive, they seemed to justify continuing the rollout. In light of these conflicting test figures and the previously less than satisfactory performance of Grandma's in single-serve packages, Mr. Treece wonders how he can change the rollout specifics to better ensure the success of the new packaged Grandma's line.

Describes P&G's expansion in Europe, including the development of a strong country subsidiary management, responsive to local market differences. The launch of a new product presents strategic and organizational challenges as P&G considers making this their first Eurobrand, and managing it in a coordinated Europewide fashion.

Frontier, once a relatively small regional carrier, expanded rapidly after deregulation of the airline industry. By 1982 it found further growth difficult, due in part to its rivals' aggressive--and, according to Frontier, unfair--use of their computer reservations systems. Describes Frontier's current systems and its strategy for future systems. Frontier Airlines, Inc. (B) provides a follow-up.

On January 2, 1983 Pepsi-Cola United Kingdom had to develop a plan to defend its successful Diet Pepsi brand against the about to be introduced diet Coke. Contains useful material on competitive behavior and on U.S. versus U.K. consumer behavior.