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T Education is a leading educational science and technology enterprise in China with technology-driven, talent intimacy and quality leadership as the core development objectives. Since its inception, it has been committed to creating better learning experience for children. As the predecessor of T-education, X-education was founded in Beijing in 2003. At first, it mainly provided after-school math counseling for school-age children. Over the past 10 years, its business has been expanding, covering almost every aspect of school-age education. This case studies accounting issues and business ethics challenges that firms may face when they transform from a single (traditional education) line of business to a multiple channel business.

This case investigation used firsthand statements, reports, testimony and regulatory records. While widely publicized in the popular press, this case is based on primary documents. On their website, many documents were obtained from Wells Fargo’s Corporate newsroom, such as the internal audit report shared with shareholders and press releases. Most other sources were from US regulatory websites (.gov) or congressional testimony. In a few places, quotes and comments came from reliable journalistic sites that cite their sources and follow a journalist’s code of ethics and conduct, ensuring that the reported remarks and data were verified.

Since 2016, Wells Fargo Bank has faced multiple customer mistreatment investigations and resultant fines. Public outcry and distrust resulted from Wells Fargo employees creating hidden accounts and enrolling people in bank services without their knowledge to meet desired levels of sustained shareholder growth. Over the past five years, Wells Fargo has been fined and returned to customers and stockholders over $3bn. Wells Fargo executives spent the first year of the scandal citing improper behavior by employees. Leadership did not take responsibility for setting the organizational goals, which led to employee misbehavior. Even after admitting some culpability in creating the extreme sales culture, executives and the Board of Directors tried to distance themselves from blame for the unethical behavior. They cited the organizations’ decentralized structure as a reason the board was not quicker in seeing and correcting the negative behaviors of these ‘bad apple’ employees. Wells Fargo faced multiple concurrent scandals, such as upselling services to retirees, inappropriately repossessing service members’ vehicles, adding insurance and extra fees to mortgages and other accounts and engaging in securities fraud. As time has passed, the early versions of a handful of “bad apples” seem to be only a part of the overall “poison tree.”The dilemma, in this case, is who is responsible for the misbehavior and the inappropriate sales of products and services (often without the customer’s knowledge)? Is strategic growth year-over-year with no allowances for environmental and economic factors a realistic and reasonable goal for corporations? This case is appropriate for undergraduates and graduate students in finance, human resources, management, accounting and investments.

An active case-based learning pedagogical approach is suggested. The materials include a short podcast, video and other materials to allow the faculty to assign pre-class work or to use in the classroom before a case discussion.

This public-sourced case describes the latest restructuring efforts by Deutsche Bank (DB) and gives a short history of prior restructuring efforts from the decade before. In July 2019, Christian Sewing, the new CEO of DB, announced a series of measures that included, among others, the elimination of global equity trading, the layoff of 18,000 employees, the creation of a “bad bank” to transfer noncore assets, and the suspension of dividends until 2022. The case describes key decisions a bank CEO makes when a bank needs to change course to return to profitability and growth. The case offers an opportunity to debate these key decisions, as well as discuss some of the prior ones during earlier restructuring efforts, and put the students in the CEO's shoes: What would you do and why? The case also describes key banking performance metrics (e.g., ROE, ROA) and other critical variables such as those reflecting capital health (Tier 1 ratio), as well as gives an overview of the bank business model and factors impacting bank profitability and value.

This case is about the way Pragati Software Private Limited, a small but profitable software training company set up in Mumbai by an alumnus of Indian Institute of Management Ahmedabad sent away half its employees in three rounds of layoff in its tenth year.

This case raises the question: How does a company reasonably estimate and record entries for uncollectible trade receivables, and under what circumstances are receivables written off as uncollectible? The required accounting transactions for the case involve estimating a receivables allowance both as a percentage of sales and as a percentage of accounts receivable and making specific account judgments under the direct write?off method. The subjective issues involve analyzing and assessing a company's methods of collection and accounting for bad debts.

Analysis of public sources.

The bank named “Novo Banco” (New Bank in Portuguese) was created because of an emergency intervention by the Bank of Portugal to save the “good” assets of the once great but bankrupt Banco Espírito Santo (BES) on August 4, 2014. The toxic assets remained in BES (dubbed “bad bank”). BES was one of the biggest private banks in Portugal, with origins mounting back to the year 1869. In 2013, it was headed by the founder’s great-grandson, Ricardo Salgado, when an external audit revealed several problems with the bank’s accounting and concluded that BES had a severe financial problem (the risky credit represented 11.1% of the bank’s accounts). The bank underwent a public capital increase (endorsed by several public figures, including the Portuguese President at the time, Cavaco Silva) of €1.045m to reposition itself, which was 100% successful (demand of about 160%, with a significant part of foreign investors). However, continued amounts of suspicions led Ricardo Salgado to be replaced by Vitor Bento (via a settlement between BES’s shareholders and the Bank of Portugal) in July 2014. At the end of that same month, BES announced imparities totaling the amount of €4.2535m. This led the European Central Bank to suspend BES’s access to the financial operations, forcing it to reimburse its credit to the Eurosystem in the value of €10.000m. In two days, the stock prices dropped by 80% to around €0.03 per share. It was later proven that the administration led by Ricardo Salgado had disobeyed the Bank of Portugal 21 times between December 2013 and July 2014, apparently acting against the institution’s best interests. Some carousel schemes with companies within the Espirito Santo Group were also detected in BES’ financial movements to improve the bank’s financial statements.

Finance Valuation, Strategy

The writing of this case study was triggered by the numerous media reports in 2020 that talked about the EU nations losing its solidarity. EU being a very appropriate example of economic, monetary and customs union while teaching theories of economic integration and international relations, the post-pandemic approach of EU leadership to rebuild the crisis-ridden member nations seemed an excellent material for developing a teaching case study.

The case study was written based on secondary data and published information available. Enough desk research was undertaken to build the characterisation of the protagonists and due diligence done to chronologically report all facts of the case as the story developed. It was decided to build the epilogue into the case study so that the case analysis had enough depth.

The case is set in 2020 when the global economy was reeling under the massive impact of a lockdown and the aftermath. The case study examines the model of economic union in international business and the various challenges that governance of an association of nations such as the 27 member EU can throw up. It examines the conflict of interest that can arise among member nations during critical circumstances such as the pandemic and its massive tolls.

EU had established itself as a critical international trade player and had already proven their might as a united entity to the world trade partners, given the fact that they were not only a customs union but also a monetary union. In this scenario when the pandemic threw them into the whirlwind of lockdown-induced crisis, the united front of the mighty EU all but crumbled. As the worst-hit economies of Italy and Spain struggled to pull themselves back to normalcy, EU experienced one of its worst solidarity crises.

EU’s president Angela Merkel and ally French President Emmanuel Macron with support from the EU Council’s President Charles Michel stepped forward to resurrect the badly hit economies. They viewed this as the best opportunity to bring about a united front by coming together at Brussels for a summit when lockdown eased up in July 2020. It was to be a show of unity to jointly bail out the severely affected member nations by grants rather than loans. The summit, however, snowballed into bitter arguments and open bickering between the wealthy and not-so-wealthy members, and they could not agree upon the issue of debt vs aid. The fact that the EU was an agglomeration of 27 nations, which were far from homogenous in socioeconomic status, not to speak of divided political ideologies, only added dimensions to the dispute. Negotiations repeatedly hit roadblocks. Can the EU leaders lead their bitterly divided house to a consensus?

The case is suitable for graduate and post-graduate levels. Management courses where international business studies, international trade blocs and global leadership are part of curriculum can use the case to teach concepts of “Regional economic integration”, “Economic and Political union” and theories of “International relations” and “Negotiation”. It can also be ideally used in an executive management programme on “Global Leadership” to highlight the complexities of “governance of international associations” and “consensus building amidst diversity”.

Jason has had a string of bad luck: he was fired from his job, his car got repossessed, he had to move back in with his mother when he was unable to make rent on his apartment, and his girlfriend dumped him. He is feeling unmotivated and discouraged, but also recognizes—at his mother's insistence—that he needs to start contributing to the household. Following his mother's orders, he heads to the local strip mall seeking employment.

How hard could it be to get a job, anyway?

The Greenland case describes the experience of four young Norwegian men determined to set a world record for unsupported crossing of Greenland. The case describes the team, their preparations, and their experiences as they crossed in “good” weather that was often whiteout blizzard conditions with temperatures dropping as low as −78 degrees F. Throughout the case, one of the team members reflects on things he learned about himself, about the team, and about leadership from the experience (recorded in italics). The teaching note (available to registered faculty) is supplemented by a PowerPoint presentation that helps introduce the expedition to Greenland, other “risky recreation,” and the concepts related to resonance or flow. A video supplement is also available. The case lends itself to a profound discussion of leadership on its own and leads in nicely to a discussion of world-class performance and the purpose of life, which both startles and pleasantly surprises most students and participants.

This case explores the turnaround and corporate renewal of the Chicago Blackhawks professional hockey team, which transformed from one of the worst-run organizations in all of professional sports in 2007 to one that won the Stanley Cup (the National Hockey League championship trophy) in 2010. W. Rockwell “Rocky” Wirtz was faced with making critical decisions shortly after inheriting the team from his father, who was the individual most associated with the organization's decline. The team faced financial trouble and had narrowly avoided missing payroll; the previous customer relations strategy (which included refusing to televise home games or to conduct effective marketing) had resulted in significantly diminished brand value; and management and player personnel were devoid of effective leadership. At its nadir, the team was named “The Worst Franchise in Professional Sports” by ESPN in 2004. After assuming control, Rocky embarked on an ambitious corporate renewal strategy that included the following components: leadership: install a new management team with clear goals and creative ideas about how to turn around the organization; culture: reward players for accomplishing their goals and establish a performance-based culture; financial: seek new corporate sponsorships and increase ticket prices once the team established a winning record; and brand and marketing: send a clear message that the team was intent upon winning the championship and design a customer-focused marketing strategy.

After analyzing the case, students should be able to: recommend strategic, financial, and operational changes needed to turn around the organization, and identify key leadership qualities that enable execution of a turnaround plan.