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Case study
Publication date: 20 January 2017

David Besanko and João Tenreiro Gonçalves

Rede Alta Velocidade, SA (RAVE), the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials…

Abstract

Rede Alta Velocidade, SA (RAVE), the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials and lenders that the project is worth undertaking. It must also make a recommendation on the appropriate organizational form for the enterprise. Specifically, it must determine the role of the Portuguese government in financing and operating the high-speed rail network, with options ranging from full development and management of the project by the public sector to completely private development and management. Lying in between these two polar cases were a variety of hybrid models, often referred to as public-private partnerships (PPPs). Using data in the case, students have the opportunity to perform a benefit-cost analysis of the project. They also must think carefully about the optimal role of the government in a major new infrastructure project.

After analyzing and discussing the case, students will be able to:

  • Understand the nature of a global public good

  • Perform a back-of-the-envelope benefit-cost analysis of polio eradication

  • Discuss the appropriate strategy for eradicating an infectious disease

  • Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

  • Discuss the role of private organizations in the provision of global public goods

Understand the nature of a global public good

Perform a back-of-the-envelope benefit-cost analysis of polio eradication

Discuss the appropriate strategy for eradicating an infectious disease

Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

Discuss the role of private organizations in the provision of global public goods

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Abstract

Subject area

Management: human resources management.

Study level/applicability

Undergraduate and postgraduate.

Case overview

This case gives critical insights in the complex issues surrounding the management of employment relationship in Africa, specifically focusing on Botswana. It is set in the context of explosive industrial relations involving Debswana Diamond Mining Company and the Botswana Mine Workers Union over the contentious issues of pay bonus and collective bargaining. Failure to reach an amicable compromise by both parties' results in a debilitating strike which costs the company millions of funds and affected it's the corporate image contrary to its well crafted social responsibility. More painfully, the end game is a loss of employment and dreams shattered for 461 dismissed workers who depended solely on this work as their only source of income.

Expected learning outcomes

At the end of reading the case students are expected to: understand the limits of managerial prerogative and the right to manage; appreciate the inherent conflict of interests between labour and capital; consider more equitable compensation schemes in dealing with collective bargaining; and discuss the concept of social responsibility in the context internal customers-employees.

Supplementary materials

Teaching note.

Details

Emerald Emerging Markets Case Studies, vol. 4 no. 2
Type: Case Study
ISSN: 2045-0621

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