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In January 2010, global automotive manufacturer Toyota faced the task of notifying customers of a recall that involved a faulty accelerator pedal on 1.7 million vehicles. Toyota had already come under intense public scrutiny the previous year over a floor mat recall that affected 4.2 million vehicles. In an attempt to reach the masses for the current recall, Toyota created a letter to customers that was featured in major newspapers and on its website. The letter caused outrage as Toyota did not apologize to consumers. Instead, it talked about the company’s 50-year heritage and how Toyota was halting production to focus on fixing the vehicles that were on the road. The president of Toyota Motor Sales, U.S.A. Inc. needed to identify the problems with the letter before drafting a new one.

In May 2011, Alan Joyce, chief executive officer of Qantas Group, needed to think about the future strategy of the airline group. Over the past few years, it had launched a number of strategic initiatives to defend its current position and penetrate new markets and segments. Qantas had discontinued its first-class service on many flights, opting to bolster its business-class service instead. Its forays into the budget travel segment through Jetstar proved to be successful and contributed to the overall financial performance of the group. Qantas had also placed a bet on emerging economies such as China, despite experiencing adverse performance in its international routes. However, the financial performance of the company was far from healthy. Qantas was fighting hard to retain its Australian position in the face of attempts by Virgin Blue and Tiger Airways to compete aggressively and gain market share. Analysts wondered whether Qantas was trying to do too much and, in the process, spreading itself too thinly. Would the Qantas Group be better off simply prioritizing across its various alternatives, or did it have sufficient resources (financial as well as managerial) to pursue all the initiatives? And if a narrow focus was better, then which strategic alternatives should Qantas pursue aggressively?

Netflix, Inc. was a fast-growing U.S. DVD-rental and video-streaming service that had just entered the Canadian market. This case covers the period immediately following its entry into Canada with a low-price monthly subscription service through which viewers could get video content streamed to their TVs or multimedia devices. Netflix’s entry threatened to change the way video content was viewed in Canada and, as such, it had the potential to heavily impact a number of incumbents in Canada, such as Blockbuster. Netflix’s streaming-only model in Canada created a new service for customers that was not necessarily as strong as the offering in the United States; for instance, the range of titles was relatively limited. The Netflix entry also provided potential benefits for some players, such as Rogers, who could profit from increased Internet usage. This meant that the reaction from players was not immediately obvious.

This case depicts a financial analyst trying to make sense of Starbucks’ finances and drawing from recent projects of the IASB and FASB to identify lease accounting as a key issue for the firm. The case underscores the importance of having a full picture of a company’s obligations in order to understand its overall performance.<br><br> In reviewing the case, students examine Starbucks’ extensive use of leases and use spreadsheet tools to understand the full extent of the corporation’s indebtedness. Although heavy users of leases such as Starbucks have argued that lease accounting is complex, an estimation of lease indebtedness can be made using relatively simple tools that are easy for students to understand. The case allows issues of high-level accounting standards to be elucidated, using a well-known company with which students identify. The case illustrates the real-world consequences of accounting policy choices.

In October 2005, PPG pioneered a new business model for online apparel retailing in China. Targeting men’s low-end apparel, PPG’s new model met with great initial success due to its responsive supply chain, lighter distribution channel (i.e. no physical stores), and costly advertising. However, underlying limitations of PPG’s business model led to its eventual failure. Followers learned from both PPG’s successes and failures. VANCL, another online apparel retailer, provided a good example of the evolution of a business model that created a leader in the online retail industry. To show the evolving characteristics of the apparel retailing business model, this case describes a successive two-stage story, in which each company made improvements based on other forerunners.

On April 11, 2011, the merger between Canadian Satellite Radio Holdings Inc. (the parent company of XM Canada) and SIRIUS Canada Inc. received the approval of CRTC (Canadian Radio-television and Telecommunications Commission). This was the last obstacle standing in the way of the president and CEO of the new organization. The president had had plenty of time to prepare for this merger since it was first announced in November of 2010. However, with only a few months before the implementation plan was to go into place, the president was once more reviewing the proposal that he had prepared. The merger of XM Canada and SIRIUS Canada was not going to be easy. Both organizations had been fierce competitors, but it was clear that their survival was dependant on a successful merger. The president’s plan had to consider the make-up of the management team, the consolidated marketing strategy, operations and information systems integration, and how all of this was to be financed.

In February 2009, Andrew Witty, CEO of GlaxoSmithKline (GSK), reflected on his vision for big pharma as a catalyst for change which focussed on two key issues: 1) promoting innovation for the products that treat or prevent neglected tropical diseases and 2) improving access to medicines in the world’s poorest countries. He had announced the creation of the Pharmaceutical Patent Pool and wondered if it was the right strategy to deliver results on these two key issues.

This case examines AT&T’s wireless business with a focus on its text messaging services. The industry features a high proportion of fixed costs in relation to acquiring spectrum and building a network. Variable costs are relatively low, especially in the case of SMS text messages. Pricing and margins in text messaging have attracted regulatory scrutiny in the Unites States, Canada, and elsewhere. The case requires the use of key concepts in cost behaviour, cost volume profit analysis, and product costing to understand the nature of the business and the profit margins involved. Many service or high-tech businesses exhibit similar cost behaviours, and so the case gives students insight into the management of such enterprises.

Beginning in the 1990s, Wal-Mart sought to maintain its rapid growth by investing outside of the United States. It chose to enter other countries through the purchase of existing retail chains. This process created a new set of challenges, since the existing chains had their own corporate cultures and operating procedures, and Wal-Mart experienced several surprising defeats. In 2000, Wal-Mart launched a chain of what it called Neighborhood Markets, limited to the sale of groceries. Meanwhile, its Latin American acquisitions included stores of only 4,000 square feet. In 2010, Wal-Mart announced a strategy to create a major chain of mini-Supercenters, each of some 40,000 to 60,000 square feet, to be located within cities. Some of the new smaller stores would be focused on local ethnic groups, with Hispanic neighborhoods being an obvious target for this paradigm. In addition to the need to change its inventory levels and to rely on parking buildings rather than large parking lots, Wal-Mart encountered strong opposition from labour unions. Meanwhile, Wal-Mart was using its new small-format stores in China. It was also experimenting with online grocery sales with home delivery. Wal-Mart was continuing to cut costs by consolidating its global purchases and shifting to more global supply chains with the elimination of many wholesalers. At the same time, Wal-Mart was taking a dramatic position in compelling its suppliers to adopt green practices, conducting audits of its suppliers, and refusing to purchase from those who failed to measure up to new environmental standards.

Rapid increases in obesity and chronic disease rates are stressing health care systems and government budgets globally. They are also causing individuals, governments, and businesses to examine closely the relationship between food and health. The issue is complex and involves many stakeholders from government and non-governmental agencies, as well as businesses. Food and health can have both positive and negative impacts on the food industry.<br><br>As the director of strategic policy at the Ontario Ministry of Agriculture, Food and Rural Affairs, Mike Walters has to decide whether to engage his ministry in the issue and, if so, what approach to use. He must carefully assess the risks and rewards for the government, the ministry, and himself. As part of his strategy on food and health, he has to make an immediate decision on partnering with the Lawrence Centre for Policy and Management at the Ivey School of Business on a proposed food and health policy workshop.

An equity analyst uses a variety of methods to value Wal-Mart shares with a view to making a buy/sell or hold recommendation for the stock. Her key task is to use an intrinsic value approach to price the shares and to then compare the resulting price with the price at which the stock is traded in the market.

The general manager of environmental and engineering services in London, Ontario, is preparing a recommendation regarding the implementation of green bins to collect organic waste from city households. When making this decision, he must consider the costs to the taxpayer to implement this program along with other qualitative issues. The case is written for an engineering economics unit in a general business course for engineering students as an introduction to public-sector decision making.

November 29, 2010, was “Cyber Monday,” one of the busiest online shopping days of the year, with the potential to approach $1 billion in online sales in North America. The chief designer of fashion company Donna Karan New York (DKNY) was facing a difficult situation. On this particular Cyber Monday, activists for the animal rights group People for the Ethical Treatment of Animals (PETA) had posted simultaneous messages on DKNY’s Facebook page. Anyone viewing the page could not fail to discern the “DK Bunny Butcher” message. This action by PETA was the culmination of several years, beginning in 2005, of attempting to convince DKNY to stop using fur in its collections. This November 29 message was a sharp reminder to both DKNY and its Cyber Monday customers that, up to this point, the company had refused to stop using fur. It was available to be viewed by DKNY’s over 200,000 Facebook fans as well as millions of online Cyber Monday shoppers. The chief designer was unsure how to respond: on one hand was the desire to clearly explain the use of fur, but on the other was the desire to avoid escalating the publicity surrounding the matter. She needed an immediate strategy that would retain her brand’s image and protect future sales.

Barrick Gold, the largest gold producer in the world, has taken steps to eliminate its longstanding gold hedging program. In its early years, Barrick’s hedging program was a key factor allowing the firm to grow amid falling gold prices. But Barrick’s management team faced questions about its hedging program when gold prices started to rise in the 2000s. The case allows students to review Barrick’s hedging program and consider the impact of its decision not to hedge going forward.

A consumer goods analyst has been asked to understand the governance structure and various risks facing Compagnie Financiere Richemont SA, a Swiss-based luxury goods conglomerate. Richemont has emerged as one of the premier luxury brand houses in the world and is controlled by a single person, Johann Rupert. The case describes the development of Richemont and provides information on various aspects of the firm, including its many luxury brand houses, management’s preferences, and competitor information with which to conduct a comparator analysis.

It was early 2010, and the Twitter Trio, the founders of Twitter, were faced with a changing market situation and pressures to make money. Twitter was a free service that had been operating without a viable business plan since 2006. In early 2010, Twitter was still not making enough money and it was time that Twitter showed a real return on investment. The Trio had to decide on a business model that was competitive. There was a data-mining project that could bring all the funds Twitter needed to stay in business, make profit, and compete with others. However, the founders were concerned that this project might be perceived to intrude on users’ privacy, even in a company that was founded on the basis of sharing information publicly.

An acquisition decision by Satyam Corporation created discontent among shareholders and led to a series of investigations that revealed fraud of about INR 50 billion, leading to resignations by several board members and the CEO. This episode became a mockery of corporate governance practices, raising questions about the efficacy of well-accepted governance norms.<br><br>This case covers the events that led to the failure of Satyam. The roles of not only the “promoter” but also other parties, such as the managers, board of directors, auditors and bankers, are discussed in detail. The case draws attention to various corporate governance and ethical issues and provides an opportunity to discuss measures that should be taken by regulators, auditors, and other bodies to prevent fraud.

In the midst of massive growth in the oil sands, Suncor’s chief executive officer (CEO) is growing concerned about the local government’s inability to cope with unprecedented growth of oils sands development in Fort McMurray, Alberta. Crime, prostitution, drug use, social inequality, and ecological deterioration have begun to cripple Fort McMurray and the surrounding area largely because the local government has been unable to support the massive growth with appropriate public services and environmental protection. As part of a major oil and gas company in the region, the CEO is aware of the harsh lessons learned by Shell in Nigeria in 1995, where the company’s reluctance to get involved in political activities led to a massive boycott and tarnished reputation. The CEO is concerned that inaction may make Suncor complicit in the social and ecological issues in the region.

The China national image film “People Chapter” — officially a sub-series of the “Experience China” campaign — was launched by the Chinese government to coincide with President Hu Jintao’s visit to the United States in mid-January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per day, and had appeared approximately 8,400 times when the broadcast ended on February 14, 2011. The video showed a series of Chinese people, ranging from ordinary citizens to celebrities. It was a publicity effort aimed at promoting a truer image of China abroad, and signalling that China was opening to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly mixed since the initial release of the promotional film. Experts from China and abroad were skeptical of the effectiveness of the campaign in promoting the national image of modern China to the world. This case presents the opportunity to examine the basic elements in the marketing communication process, analyze how decisions in marketing design affect outcomes, and understand the differences between nation and product promotion.

An equity analyst at Nova Funds, an investment firm, is in the process of analyzing an investment in SIGA Technologies (SIGA), and potentially its competitor, PharmAthene Inc. (PIP). SIGA is currently the only company in the world that has developed a treatment for smallpox, with its ST-246. In late 2010, the U.S. Department of Health and Human Services (HHS) announced the intention to award SIGA a contract valued at up to $2.8 billion, which significantly exceeds SIGA’s current market value, making the company potentially an excellent investment. However, SIGA is prevented from realizing the profit on this contract due to two uncertainties. First, PIP, a partner throughout the development of the ST-246, has sued SIGA over the rights of the ST-246, with the payout of the lawsuit unknown. Second, since the HHS announcement is for the intention to award the contract, the actual contract for SIGA may take on various possibilities. Given these uncertainties, the equity analyst needs to find ways to invest in the situations that produce the most attractive outcome. She may potentially invest by buying or shorting the stocks of the companies involved or through the use of options. Moreover, she may do this over multiple timeframes, if that is justified.