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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.

A strong and fast‐cycle innovation system has been developed to counter the ongoing threat of computer viruses within computer systems employing vulnerable operating systems. Generally, however, the innovative applications that develop in response to each generation of computer virus can be seen as a reactive, rather than proactive, critical response. The paper seeks to present a critique of the innovation system that has emerged to combat computer viruses by comparing it with its natural system namesake, the human anti‐viral immune system. It is proposed that the relevance of this analogy extends beyond this case to innovation systems more generally.

This paper discusses the biological theory related to the human body's immune system and how immune systems might be mimicked in the development of security systems and anti‐virus software. The paper then outlines the biomimicry framework that can be used for scoping the development and features of the security systems and software, including the population of the framework segments. The implications of biomimetic approaches in the wider innovation management literature are discussed.

Some commercial security products that are undergoing evolutionary development and current research and development activities are used to augment the biomimetic development framework and explicate its use in practice. The paper has implications for the manner in which the objectives of innovation systems are defined. There is implicit criticism of linear models of innovation, that by their nature ignore the recursive and/or adaptive processes evident in natural systems.

This is the first paper, to the best of the authors' knowledge, that discusses the application of natural systems and biomimetics to broaden the scope of innovation process design, and link its findings back to the wider innovation literature.

This article examines how reinsurance coupled with new financial instruments can expand coverage to areas exposed to catastrophe losses from natural disasters, and demonstrates how reinsurance and the catastrophe‐linked financial instruments can be combined to lower the price of protection from its current level. A simple example illustrates the relative advantages and disadvantages of pure catastrophic bonds and pure indemnity reinsurance in supporting a structure of payments contingent on certain extreme events occurring. The authors suggest ways to combine these two instruments using customized catastrophe indices to expand coverage and reduce the cost of protection. This article states six principles for designing catastrophic risk transfer systems and discusses practical issues for implementation, and then concludes with suggestions for future research.

Part 1 of this paper answered in the affirmative that the capital budgeting process for fixed assets can be improved (see Journal of Facilities Management, Volume One, Number One). In part 2 more than 20 improvement tactics are identified and explained. Tactics range from the simple (identifying assets that need to be written off) to the complex (tax segregation strategies). Some can be implemented by individuals (sensitivity analysis), while others (budgeting and planning software) impact all areas of an organisation. In addition to improvement tactics, a framework for improvement is outlined and potential benefits are identified.

A major house‐building corporation in the United States employed an organizational change and development (OCD) strategy during the early 1970s to assist its transformation to a mega‐corporation. The outcome was the development of an autocratic, machiavellian, coercive management style. Initial financial success during a growth phase in the construction industry masked the deficiencies of the approach, which only became apparent during an economic slump. Provides a lesson for managers who ignore the participant needs of employees.

After having negotiated major financial and operating decisions with its parent company, the CFO of this small ready-mix concrete subsidiary is asked to provide a valuation of the subsidiary. A one-year forecast of financial statements is provided along with information on long-term operating expectations and capital costs. This otherwise straightforward valuation exercise is enhanced by (1) the need to select between the parent- or comparable-firm costs of capital, (2) sufficient guidance to perform an illuminating sensitivity analysis, and (3) a sufficiently clear and rich context in which to illustrate the linkages between operating and financing choices. A teaching note and instructor and student Excel spreadsheets are available.