Search results

Rob Griffin, senior vice president and U.S. director of search for Media Contacts, a communications consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France. At the time of the case, SEM had become an advertising phenomenon, with North American advertisers spending $9.4 billion in the SEM channel, up 62% from 2005. Moving forward, Griffin wants to ensure that the team keeps its leading edge and delivers the results Air France requires for optimal Internet sales growth. The case centers upon Air France's and Media Contacts' efforts to find the ideal SEM campaign to provide an optimal amount of ticket sales in response to advertising dollars spent. This optimal search marketing campaign is based on choosing effective allocation of ad dollars across the various search engines, as well as selecting appropriate keywords and bid strategies for placement on the search result page for Internet users.

In determining the optimal strategy, the case presents background information on the airline industry as well as the Internet search options available at the time, including Google, Microsoft MSN, Yahoo!, and Kayak. Additionally, background information is provided on SEM and its associated costs and means of measuring the successfulness of each marketing effort. The case illustrates how one must first determine the key performance indicators for the project to guide analysis and enable comparison of various SEM campaigns. Cost per click and probability to produce a sale differ among publishers. Therefore, using a portfolio application model's quadrant positions can be used to determine optimal publisher strategies. Additionally, pivot tables help illustrate campaigns and strategies that have historically been most successful in meeting Air France's target Internet sales. Multiple recommendations on how Media Contacts can assist Air France in improving its SEM strategy can be derived from the data provided.

Students learn how to optimally leverage the Internet in generating customer sales in a cost-effective manner. Students will analyze and manipulate a variety of data using pivot tables to determine optimal strategies for obtaining maximum total online bookings through the various online channels available. Using a portfolio application model, students can determine an optimal publisher strategy and complete copy improvement analysis.

Students need to know basic capital budgeting techniques to value INFINITI and its competitors. Issues include how to: handle taxes in a discounted cash flow analysis when valuing an S Corp. where incentives depend on current (known) and future (unknown) tax provisions; value a firm using comparable multiples analysis and transactions data; assess the costs and benefits of acquiring a firm versus being acquired; and analyze an industry and perform a ratio and financial statement analysis.

The case information was obtained through interviews with co-founder Mark Schwaiger. In addition, the authors researched industry and comparable company data, along with current events relating to the professional employer organization (PEO). Financial data was obtained from the owners and competitor data was obtained from Thomson One and Bloomberg.

INFINITI HR was a PEO providing comprehensive human resources to their clients. Co-founders Scott Smrkovski and Mark Schwaiger were at a crossroads at the end of 2015 trying to determine the best course of action to take with their company to grow and prosper. One option was for INFINITI to be acquired by a larger company and the second option was for INFINITI acquire a smaller company. In this case, students have the opportunity to do a financial analysis and evaluation of INFINITI and its competitors to determine which option is the best.

This case is intended for an advanced undergraduate or an MBA corporate finance class.

This teaching case focuses on the field of marketing, particularly, the situation of building a global brand as small and medium-sized enterprises (SME) internationalizing from an emerging market.

It is recommended for postgraduate and post-experience students, for example, in MBA programmes and executive education courses.

This teaching case focuses on the field of marketing, particularly, the situation of building a global brand as SME internationalizing from an emerging market. It is recommended for postgraduate and post-experience students, for example, in MBA programmes and executive education courses. BOS Brands provides an interesting case on the internationalisation experience of a Born Global firm, particularly from an emerging market context. This medium-sized South African business develops, distributes and markets Rooibos-based beverages in Southern Africa and Europe, with eyes on a broader global presence. The case provides insights into the strategic decisions required to successfully take a medium-sized business into competitive foreign markets without the capital and support enjoyed by many larger multinational corporations. Among other issues, BOS Brands provides fertile ground to explore the selection of target country and entry mode, overcoming cultural and physical distance, opportunity recognition and the roles of networks and innovation.

The expected learning outcomes are to: analyse the decision-making process of the internationalising SME in terms of internationalisation factors, timing and phases and evaluation of potential target countries and entry mode options and launch marketing approach; understand the complexities of marketing in a foreign cultural and business context (including cultural and physical distance); and develop alternative marketing strategies for an entrepreneurial SME to grow internationally given limited resources.

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CSS 8: Marketing.

This case should be paired with textbook chapters that cover the important roles of leadership, staffing and corporate culture in the strategy implementation effort. The case can also be used to review textbook chapters covering competitive and industry analysis, differentiation strategies, goal setting and financial analysis. In advanced courses, readings on leadership and corporate social responsibility should be assigned to inform debates regarding Vasu’s style and his commitment to creating shared value. Alternatively, instructors in retail management courses could assign readings that investigate the linkages of human resource management, service quality and other behaviors to optimal supermarket performance.

The authors revised this case and Teaching Noes from an MBA student case writing project in Fall 2017. The student conducted focus groups with Pacific Market’s consumers, worked with Vasu and his consultant, Tom Scott, a former CEO of a local grocery chain, supplemented with secondary industry research and demographic information about the cities of Sebastopol and Santa Rosa. Meetings to develop the company mission statement and long-term goals took place over Fall 2017. Tom provided the operating information and trade area analysis used in the case, and Vasu provided financial statements and background information.

After a career as a turnaround specialist for Silicon Valley high-tech startups, Vasudev Narayanan (Vasu) acquired Pacific Market, a two-store chain in Sonoma County, California, in 2013. By Fall 2017, rival local chains had expanded, online vendors threatened in-store shopping, the Amazon-Whole Foods combination threatened disruption, and consumers increasingly insisted on “buying local.” Vasu aimed to grow revenues 50 percent by 2020, and fund Good Karma Foundation, a charity in his native India. Strategies to achieve these objectives included infrastructure investments, employee profit sharing, changing the mix of products and amenities or finding a buyer for the operation.

The Pacific Market case is intended for undergraduate or MBA-level strategic management courses. The case pairs well with coverage of how leaders approach the strategy implementation effort, a topic typically introduced toward the end of the course. The case gives students practice in applying strategy formulation concepts and frameworks, e.g. PESTEL analysis, Porter’s industry forces, key industry drivers, strategic group mapping, SWOT analysis, corporate social responsibility and financial ratio analysis. Instructors might also use this case to cover similar material in retail management courses. The case is highly suitable as a written assignment for an examination and/or for team presentations.

Examines the lease vs. buy decision for investments in technology. Addresses pivotal investment decision issues such as varying the length of the lease, the useful life of the equipment, and alignment with the company's overall financial strategy. The scenario is for a real financial services firm that has been disguised for confidentiality reasons. Presents an investment decision: should a company buy or lease technology with a relatively short useful life? The new controller at AMG, a Fortune 500 financial services firm, has been tasked with determining how to finance the acquisition of 7,542 new PCs to be rolled out over the next 12 months. This is a $6.7 million investment decision and the rollout schedule adds significant complexity to the solution. The controller must choose between buying or leasing the computers over 24- or 36-month time frames. Provides a framework for analyzing similar investment decisions. The key learning point is that leasing information technology can be cheaper than buying. This is contradictory to a car lease, which may be familiar from everyday experience. A new car has a potentially long useful life and can retain significant value after several years, hence, intuition is that buying should always be cheaper than leasing. Shows that this is not the case for information technology. Teaches the correct application of the mid-quarter convention within MACRS depreciation for technology, and the implications of operating vs. capital leases and off-balance-sheet financing. In the process, introduces the four tests for a capital lease. Finally, shows how creative analysis techniques can be used to simplify complex decisions. These techniques aid in arriving at a conclusion faster and with less effort.

To illustrate the fundamentals of lease vs. buy decisions in technology and how they differ from the typical capital equipment lease vs. buy decision. Topics covered include MACRS depreciation and off-balance-sheet financing for a complex leasing scenario staggered in time across multiple business units.

The primary teaching objective is to discuss the capital raising efforts of a firm under financial distress. It also provides supporting data to calculate cost of capital, DuPont/modified DuPont values and Altman’s Z-Score that can appropriately be incorporated into the discussion. Case-B provides information and data of the company’s recent performance and to changes in bankruptcy law in India. Overall, this case study provides ample scope to discuss, understand and provide the solution to the following key corporate finance themes as follows: 1. Analyzing accounting statements and examine potential earnings quality issue. 2. Predicting default and bankruptcy using qualitative analysis, financial ratios, traditional and modified DuPont models and Altman’s Z score model. 3. Examining the capital raising efforts of a distressed firm, which has already defaulted on borrowings. 4. To explore the impact of changes in regulation on the turnaround efforts of the firm as well as on the promoters of the firm.

Since 2005, Amtek Auto moved at a breathtaking speed with the goal of reaching $10bn in sales, from the current level of about $1.2bn. The group had acquired more than a dozen companies spending about Rs.5,000cr. ($850m) during this period primarily through borrowed funds. However, the market and business expansion was not happening as expected. The company’s capacity utilization was just about 40% (approx.) during much of this period. The mounting fixed costs of operation and debt servicing grew to the level of unsustainability, led the firm to default on its borrowing. Now the company had to quickly recapitalize itself to run its operations and retain the premier position in auto component industry. The company and its promoters were considering various methods of debt restructuring, asset sale and further equity infusion.

Introductory and elective level corporate finance.

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CSS 1: Accounting and Finance.

After studying and analysing this case, students would be able to evaluate and understand the importance and need of an infrastructure sector in a country, its inherent risks and scope of infrastructure investment and financing in India – National Infrastructure Pipeline and the important role of Non-Banking Finance Company’s (NBFC) vis-à-vis banks in infrastructure financing in India; critically analyse and recommend alternative decisions in a business problem situation using multi-criteria decision analysis, which is a tool used for business portfolio analysis; understand and evaluate the corporate portfolio management (CPM) tools used for an optimum portfolio mix to turn around companies; identify and suggest an optimum portfolio mix to turn around a finance company using CPM assessment applied to Pidun matrix; and recommend operational and strategic levers for successful turnaround implementation by using the integrated canvas on turnaround.

On 10 May 2020, in New Delhi, India, J. Ray took charge as a full-time director of an Indian Non-Banking Finance Company – Infrastructure Finance Company (NBFC-IFC). The NBFC-IFC of the Indian Government extended long-term financial assistance to infrastructure projects in India. During the financial year (FY) 2017–2018 till FY 2019–2020, the company suffered substantial losses to the tune of US$13.7bn, with profitability experiencing a notable decline – return on assets at a negligible 0.11% and return on equity of only 0.68%.

The NBFC-IFC had a declining yield on advances at 7.05%, net interest margins (NIMs) of 2.08% against a high cost of borrowing at 7.66%, a declining loan book (by 4.35%) of US$336.27bn and a fast-deteriorating asset quality with highest ever non-performing assets (NPAs) at 19.70% of its loan book. Such financial parameters, compared with that of the industry average of banks and finance companies, meant that the NBFC-IFC Ray had taken over was fast bleeding and was on the brink of being declared a sick company. In comparison, private and other government players had profitable and much healthier financials, and Ray felt that there was a need for improvement. To make things worse, Ray got to know that the Indian Government was in the final stages of setting up a new development finance institution focused on long-term infrastructure financing in India. Ray realized the question was not only of the NBFC-IFC remaining relevant but also of its existence in the fast-evolving sector. Ray wondered what could his his integrated canvas be for a turnaround strategy that could include effective management of an optimal portfolio mix.

With a healthy capital-to-risk (weighted) assets ratio of 30.85% and a satisfactorily improved net worth of US$103.1bn, in the given Reserve Bank of India regulatory provisions for the NBFC-IFC including restrictive exposure norms and NBFC-IFC’s operational mandate prescribed by the Indian Government, Ray had to shift the product and sectorial investment of the NBFC-IFC to reduce the NPAs, increase loan book size and improve the yield of advances and its NIM to effectively turn around the company’s profitability. Ray realized that he needed his team to evaluate and select a product and sector strategy for this change.

The present case of financing investment in infrastructure is interesting for implementation in developing economies because a lack of infrastructure is a common problem and there is a necessity of achieving a more developed infrastructure system to support accelerated economic growth in these countries. This case can be used in elective courses on corporate finance strategy and corporate portfolio management for infrastructure finance companies. This case can be taught in elective courses in post-graduate and MBA programs. This case can also be included in management development programs (MDP), executive MBA programs and executive-level courses that have subjects such as corporate finance strategy, corporate portfolio management and strategy management that focus on turnaround strategies including portfolio management for banks and finance companies.

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CSS 11: Strategy.

The theoretical basis for this case is a focus on vertical integration, first-mover advantage and competitive dynamics. Vertical integration is based on Williamson’s (1979) theory of transaction-cost economics as it relates to vertical integration; the discussion on first-mover advantage is built off of Suarez and Lanzolla’s (2005) dynamics of first-mover advantage; and the analyzes on competitive dynamics derives from the MacMillan et al. (1985) early empirical tests of interfirm rivalry dynamics.

The authors conducted extensive research using the following sources: IBISWorld, MergentOnline and academic journals, trade magazines and websites. Additionally, the authors successfully piloted the case on more than 350 undergraduate students enrolled in a business and corporate strategy course.

Peloton used vertical integration to control the creation of its own software, bikes, exercise classes and retail outlets. In doing so, Peloton was one of the first companies in the industry to have near full control of the production process (Gross and Caisman, 2019). Due to this integration, Peloton was one of the fitness equipment industry leaders. However, Peloton’s high level of vertical integration coupled with rapid growth led to lackluster profitability. Given the rise in popularity of in-home exercise equipment, Peloton had room to continue its growth, but the question remained whether it was strategically positioned to do so.

This case is best taught in undergraduate and graduate strategy courses. For undergraduate courses, it could be incorporated into lessons on competitive dynamics, internal analysis and first-mover advantage and strategic positioning. For graduate courses, it could be incorporated into lessons on vertical integration and delving more in-depth into the long-term sustainability of having a first-mover advantage.

The case introduces student to basic understanding of banking sector in Tanzania as well as the strategies and struggle to raise capital through shareholders’ funds. Application of Banking theory and Pecking order theory is evidenced from the case. The case outlines why the bank struggled to raise capital and what triggers the capital raising strategies. It also give students an opportunity to think about applicable theories of capital structure and bank capital, and strategies the bank could use to rescue its capital crunch in the future.

The case provides details of how the Capital Community Bank (CCB) raised its capital through strategic financial engineering which enabled it to raise the minimum regulatory capital required to be licensed as a financial institution unit, to a regional financial institution, to a fully fledged commercial bank. The bank started with a paid up capital of TZS 472.3m in 2002, involving four Local Government Authorities and individual investors. Capital raised to TZS 31.3bn in 2014 and down to TZS 20.6bn at the end of 2016. The minimum regulatory capital required is TZS 15bn, while paid up capital was 16.9bn. With the change of the management team in 2017, the bank is looking for avenues to raise further capital to meet the regulatory limits and continue to survive as a commercial bank, given dramatic changes in the banking sector in Tanzania.

The case is suitable for third year students in Bachelor of Commerce/Economics specializing in banking/financial services. It also suits postgraduate/master's students seeking a Postgraduate Diploma or Master of Business Administration in financial institutions/banking course.

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CSS 1: Accounting and Finance.

This case has multiple theoretical linkages at the micro-organizational behavior level (e.g. job enrichment), but it is best analyzed and understood when examined at the organizational level. Students will learn about shared entrepreneurship, high performance work systems, shared leadership and virtuous organizations, and how they can develop a sustainable competitive advantage.

The case was prepared using a qualitative approach. Data were collected via the following ways: literature search; organizational documents and published historical accounts; direct observations by a research team; and on-site audio recorded and transcribed individual and group interviews conducted by a research team (the authors) with organization members at multiple levels of the firm.

John Lewis Company has been in business since 1864. In 1929, it became the John Lewis Partnership (JLP) when the son of the founder sold a portion of the firm to the employees. In 1955, he sold his remaining interest to the employee/partners. JLP has a constitution and has a representative democracy governance structure. As the firm approaches the 100th anniversary of the trust, it is faced with multiple challenges. The partners are faced with the question – How to respond to the environmental turmoil?

This case has environmental issues – How to respond to competition, technological changes and environmental uncertainty and an internal issue – How can high performance work practices provide a sustainable competitive advantage? Both issues can be examined in strategic management courses after the students have studied traditionally managed companies. This case could also be used in human resource management courses.