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In August 2007 the Mainsail II SIV-Lite was frozen by its trustee as a result of the ongoing credit crisis. The state of Maine held $20 million of Mainsail commercial paper in its Cash Pool portfolio, a short-term portfolio that puts temporary, excess state revenues to work. When word of the potential loss became public, the Treasurer came under attack. The case introduces the functions of a state Treasury department, with particular emphasis on the investment objectives and guidelines for the cash pool as well as its composition. The case reviews the events leading up to and including August 2007, the month when the credit markets first began to seize and when the financial crisis effectively began. It examines securitization, structured finance, and the Mainsail SIV-Lite structure in some detail.

For 28 years Alaska, like the vast majority of the nation, has struggled with growing prison populations and shrinking budgets. In 1995, the Alaska Department of Corrections, faced with sanctions unless they ameliorated their crowded prison conditions, looked to the popular practice of contracting out its correctional operations by sending 650 prisoners to a private out-of-state prison. But, as the costs of prisoner litigation and transportation mounted, the state began to consider building its own private prison, a decision which many state lawmakers and business entrepreneurs argued would allow the state to stretch scarce dollars by providing cheaper and better quality prisons, return millions of dollars to the state economy, and create permanent jobs. In this decision case, students are required to put themselves in the role of the Alaska Legislature to determine whether they should permit the building and operation of a private prison in one of Alaska's remote communities. The students must analyze and juggle the complex and often competing set of objectives, values, and political tensions intrinsic to all privatization decisions.

To recapture lost market share, tobacco giant R. J. Reynolds (RJR) developed Uptown, the first cigarette brand created and targeted specifically at a minority group—in this case, African-Americans. RJR planned to launch a six-month test market in Philadelphia in February 1990, which coincided with national Black History Month. The launch generated grassroots opposition from the black community in Philadelphia, which became intent on ensuring there was “No Uptown in our town or any town.”

After analyzing the case, students should be able to:

• Identify some of the complex issues surrounding targeting specific populations

• Recognize the importance of understanding cultural context

• Recognize the limits of profit-based decision-making

Identify some of the complex issues surrounding targeting specific populations

Recognize the importance of understanding cultural context

Recognize the limits of profit-based decision-making