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Illinois Superconductor Corp. a technology start-up, came up with an innovative new superconducting filter for use in cellular base stations. It needed to estimate the demand for its filters. The manager came up with a simple chain-ratio-based forecasting model that, while simple and intuitive, was too simplistic. The company had also commissioned a research firm to develop a model-based forecast. The model-based forecast used diffusion modeling, analogy-based forecasting, and conjoint analysis to create a forecast that incorporated customer preferences, diffusion effects, and competitive dynamics.

To use the data to generate a model-based forecast and to reconcile the model-based forecast with the manager's forecast. Requires sophisticated spreadsheet modeling and the application of advanced forecasting techniques.

This case features a county planning director as he approves or turns down a permit application for the Harvest Wind Farm Project, located in Klickitat County on the Columbia Plateau in Washington State. The utilities involved and Klickitat County stood to benefit through new revenue generation and a favorable federal construction grant associated with the American Recovery and Reinvestment Act of 2009, and certain landowners stood to make substantial royalties. However, other landowners were also worried about declining property values, environmental groups had raised objections to the effect of turbines on the pristine Columbia River view, and uncertainty about health effects had recently become more of an issue. Nationally, “wind turbine syndrome” and “shadow-flicker” effects had been linked to wind farm operations. Given these concerns and the uncertainty, would the gains to stakeholders justify signing off on the project?

This case requires students to evaluate alternative dual-share-class corporate structures that allow companies and entrepreneurs to pursue profit with purpose. The case explores Impact Makers, an IT consulting company based in Richmond, Virginia. While original founders of the firm hold all voting rights, the cash flow rights belong to two nonprofits setting the stage for a Newman's Own model of management consulting. The case discusses whether and how the alternative corporate structure aids the firm's overall strategy to attract top-quality employees, pay them competitive salaries, and provide superior service to its clients while donating 100% of its lifetime value to charitable causes, largely through partnerships with various nonprofit organizations. More importantly, the case asks students to evaluate how such a dual-share-class and dual-purpose company can raise capital to fund continued growth.

The case opens with CEO Michael Pirron reminding himself of all the questions he had run through to execute a strategy to further grow Impact Makers' consulting business both through expanding a menu of services and through conquering new geographical markets. To do either, or both, the company needed a cash infusion. Internal cash was limited, as up to 40% of it flowed to charitable partners, demonstrating Impact Makers' commitment to its mission. Raising debt for a company without fixed assets was challenging and time consuming. Complicating it all was that being structured as a nonstock corporation rendered equity raising difficult. Could Impact Makers raise money to grow and stay true to community values at the same time?

This case is one of a pair of cases used in a merger negotiation. It is designed to be used with “British Petroleum, Ltd.” (UVA-F-1263). One-half of the class prepares only the British Petroleum (BP) case, and one-half uses this case. BP and Amoco are considering a merger, and are in the process of negotiating a merger agreement. Macroeconomic assumptions, particularly forecasting future oil prices in an uncertain environment, and assumptions about Amoco's ability to reduce exploration and production costs make Amoco's future cash flows difficult to predict.

This case is one of a pair of cases used in a merger negotiation. It is designed to be used with “Amoco Corporation” (UVA-F-1262). One-half of the class prepares only the Amoco case, and one-half uses this case. BP and Amoco are considering a merger, and are in the process of negotiating a merger agreement. Macroeconomic assumptions, particularly forecasting future oil prices in an uncertain environment, and assumptions about Amoco's ability to reduce exploration and production costs make Amoco's future cash flows difficult to predict.

This case focuses on the business rescue of South African Airlines. SAA, four times rated the best airline in Africa (SAA, 2019), was already insolvent when in early 2020 COVID-19 decimated the world. The state-owned airline, which had last made profits in 2011, continued to lose millions of passengers to competitors over the next decade and, despite bailouts of more than R40bn, entered Business Rescue in December 2019, still owing creditors more than R26bn. To the surprise of many, Public Enterprises minister Pravin Gordhan was determined to rescue the airline. In May 2021, the business rescue practitioners handed SAA back to the interim board and Thomas Kgokolo (CA) (MBA) was appointed interim CEO. In June 2021, Gordhan announced a “born again” SAA, “almost ready to take off” and promised no more bailouts. But, with several billion rand outstanding to complete the rescue plan, a grounded fleet, unresolved labour problems, an critical but unnamed “strategic-equity partner” and a largely unvaccinated country entering its third COVID wave – what were the chances?

Within the framework of a country desperately in need of jobs and short of capital, the case raises questions about ethics, accountability, responsibility, management, economics and strategy. Should retrenched workers in airlines feel the consequences of their unfortunate career choices? Ought government’s bail-out already failed industries? Should governments run airlines? What sources of funds are available? Have all the necessary requirements for “restructuring” to succeed been satisfied?

Teaching notes are available for educators only.

CSS 11: Strategy.

MBA, Exec-ed.

Entrepreneurship, Strategic Management, Social Sector.

The case can be used in undergraduate, graduate and executive education courses in entrepreneurship and strategic management. It is a perfect fit for executive sessions at incubation centers for not-for-profit (NPO) start-up social enterprises. The case is aimed at early-phase social entrepreneurs and those interested in the field.

Anthill Creations (hereafter referred to as Anthill) is a NPO organization engaged in building low-cost sustainable playscapes for underprivileged children. Their mission is to “Bring Back play” in the lives of millions of children of marginalized communities by building sustainable playscapes. It is an effort that contributes toward the objectives of clause 1.2 (Ministry of Human Resource Development, Government of India, 2020), on “Early Childhood Care and Education” (ECCE) in the new National Education Policy (NEP) 2020 of India as released on July 30, 2020. The ECCE clause emphasizes the importance of “learning through play”; and recognizes it to be central to quality early childhood pedagogy and education. Anthill has been working on the same philosophy since its inception in 2016. They have successfully built 300 playscapes across 18 states of the country and impacted the lives of more than 200,000 children. The playscapes are built using upcycled waste material, such as scrap tires, waste cable and oil drums; further, they use local resources and contextual designs and built them by mobilizing community participation. The playscape play elements provide for unstructured free play for children and encourage them to use their imagination to invent new games.

Pooja Rai – the founder and CEO of Anthill Creations, an architect by discipline started the NPO immediately after her graduation. It was her “calling” in life that pushed her to quit a corporate job in the early stages of her career and instead pursue a career in the social sector. The case details her methodical approach in pursuing her intuitive response to a social need, the way she adopts a lean start-up framework to set-up Anthill, her frustrations, personal resilience and ability to balance different stakeholder interests as she treads the difficult journey of building the awareness of inculcating play as a pedagogy in the early years of childhood development.

The case provides data on the large proportion of the marginalized population in India and the abysmal conditions of the Indian Government schools. The objectives of clause 1.2 on ECCE in NEP 2020 show the Indian Government’s good intent. And yet with the prevailing conditions, the policy’s ambitious target of universalization of ECCE by 2030 (Chanda, 2020), seems a mammoth task, even for the Indian Government.

On the other hand, Anthill as a small NPO of young dedicated individuals is invested and experimental in their approach; they have a tested model but financial dependency limits their activities. The ECCE clause is a sign of new hope for NPOs such as Anthill who want to reach out to millions of Indian children from marginalized communities. What could be a compatible, perhaps complementary or even skillful pathway to integrate Anthill’s tested model of building sustainable playscapes with the Indian Government’s good intentions of universalization of ECCE by 2030? How could Anthill “scale” for a systemic “impact”? Should not the NPOs, early childhood development researchers, funders and government authorities study collaboratively instead of the present siloed approach so as to bring about a systemic change in the thinking lenses about “play” to be an integral part of early childhood development? Rai ponders on the above questions.

To explain the importance of one’s purpose (calling) in life and how the authors can identify with it.

To explain how an intuitive response to social need can be complemented with a methodical approach to social entrepreneurship.

To discuss the importance of business model canvas from the social sector lens.

To explain the important elements in sustaining small start-up social organizations.

To discuss and evaluate the options an early-stage social enterprise can engage into “scale” for “impact.”

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

In July 2004, J.P. Morgan Partners (JPMP), the private equity arm of JPMorgan Chase & Co., was in the midst of formulating the final terms of a public-to-private buyout proposal for AMC Entertainment Inc. (AMCE), a publicly traded movie theater company.

This is an illustrative case analyzing shareholder and accounting outcomes and legal issues resulting from a merger of two major publicly traded companies. In today's business world, the “urge to merge” is tempered by heightened shareholder activism. In response to this activism, boards must proceed with care when negotiating mergers. Challenges to mergers that appear to be in the shareholders' best interest occur often. As is the case here, shareholders and their well funded legal representatives, seek damages for alleged bad decisions. Conoco Oil and Phillips Petroleum announced their intention to merge in November 2001. At that time the cost of gasoline spiraled ever upward and large oil firms put heavy competitive pressure on smaller oil producer/refiners. The merger described as a “merger of equals”, intimated that neither Conoco nor Phillips shareholders would receive a financial advantage (or disadvantage) over other merging shareholders following the completion of the merger. Immediately following the announcement, Michael Iorio, a Conoco shareholder, filed a lawsuit, claiming damages to Conoco shareholders from the merger of the two firms.

This case describes the evolution of MHFC, a player in the Indian informal housing sector. As a new entrant offering micro home loans to the financially excluded lower income families of urban India in 2008, MHFC had grown to an annual number of 18,000 loans worth INR 8 billion with an average ticket size of INR 0.43 million (USD 6,000).

With a 53.5% purchasable equity stake in MHFC, Chopra and his team were left with certain decisions to make. Should the company on-board a new social investor? Or should it bring on the more readily available and capital-rich private equity investors interested in the lucrative prospects of the microfinance housing sector?

The case discusses two key objectives: (1) to understand the entire entrepreneurial journey of a group of entrepreneurs and how they plan to exit the venture, and (2) to enable classroom discussion on how to develop a business model from scratch, get it funded, achieve scale and then exit.