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A student can evaluate the variables related to the corporate governance decision for the future of the companies while simultaneously facing other internal factors, such as understanding the owner's address style. In addition, the student will be able to balance and weigh current resources, understanding that the conceptual frameworks of agency theory, resource dependence theory, agency and transaction costs, as well as the types of leadership and power are useful to understand this type of companies, common in emerging markets.

This case describes the actions of Nestor Salcedo Guevara, founding partner of Industrial Andina S.A. and owner of NSG Service Stations, companies focused on industrial manufacturing and retail fuel sales, respectively. The case covers a period of 40 years, from the founding of Industrial Andina S.A. in 1978, its restructuring into a family business in 1982, the strategic decisions concerning the political and economic situations from the eighties to the new millennium, and the creation of NSG Service Stations in the year 2000, until August 2018, when Nestor faced the decision to expand NSG Service Stations and reactivate Industrial Andina SA with new projects. Therefore, Nestor must decide the next steps for the future of both companies. This case study highlights several challenges of business economics and administrative strategy facing entrepreneurs or experienced managers and allows to discuss in class concepts of corporate governance such as ownership structure, incomplete contracts, management styles and defensive strategies associated with the power of the CEO - Owner.

Undergraduate students in Business Administration or Economics and post-graduate MBA. Business Economics courses, Strategic Management, Corporate Governance courses.

Teaching Notes are available for educators only.

CSS 11: Strategy.

The central lesson to be learned from studying the case is to understand the challenges and constraints posed by contextual conditions in designing contracts in public–private partnerships (PPP) for financing and delivering health care in emerging economies such as India.

Perverse incentives, along with contextual conditions, led to extensive opportunistic behaviors among involved agencies, limiting the effectiveness of otherwise highly regarded innovative design of the program.

India’s “Rashtriya Swasthya Bima Yojana” or National Health Insurance Program, launched in 2007 provided free health insurance coverage to protect millions of low-income families from getting pushed into poverty due to catastrophic health-care expenditure. The program was implemented through a PPP using standardized contracts between multiple stakeholders from the public and private sector – insurance companies, hospitals, intermediaries, the provincial and federal government.

Teaching Notes are available for educators only.

CSS: 10 Public Sector Management.

In mid-February 2009, amid the global financial crisis, the news was grim. The U.S. economy had been in recession since December 2007. If the downturn lasted into early spring, it would become America's longest postwar recession. The economy had shed 3.5 million jobs over the previous 12 months, the worst 12-month period on record. Bank lending was plummeting; the few banks with funds available were holding onto them. With this massive shift into liquid assets (cash and cash equivalents) and away from lending of any sort (even for productive uses or, in many cases, the working capital firms needed to survive), the economy would likely grind to a halt. On this brisk mid-February day in Washington, Timothy Geithner and Ben Bernanke rolled up their sleeves and reevaluated their plans to address the nearly impossible task of righting the ship. In terms of monetary and fiscal policy, were they doing all they could to halt this epic slide? Were they doing too much?