Search results
1 – 10 of 34This case is a vehicle for discussing the theory and practice of option pricing through the valuation of warrants of Chrysler held by the U.S. government and of the loan guarantee…
Abstract
This case is a vehicle for discussing the theory and practice of option pricing through the valuation of warrants of Chrysler held by the U.S. government and of the loan guarantee provided by the U.S. government to Chrysler.
Details
Keywords
Robert F. Bruner and Sean Carr
In November 2003, a vice president of Deutsche Bank Securities received a request from a client to finance the acquisition of a large hospital-supply distributor. The client…
Abstract
In November 2003, a vice president of Deutsche Bank Securities received a request from a client to finance the acquisition of a large hospital-supply distributor. The client needed to present to the seller an offering price and indication of financial commitment within two weeks. The contemplated transaction entailed a highly leveraged acquisition of the target. The tasks for the student are to value the target firm and projected synergies, assess the creditworthiness of the target (i.e., the ability to bear the high debt), and critically evaluate the general design of the transaction.
Details
Keywords
The spin-off of Iridium, a global telecommunications system, represented a significant business risk for Motorola, as many talented Motorola executives joined the venture in the…
Abstract
The spin-off of Iridium, a global telecommunications system, represented a significant business risk for Motorola, as many talented Motorola executives joined the venture in the late 1990s. This bold technology gamble suffered from numerous marketing missteps, which led to Iridium's bankruptcy in August 1999.
Details
Keywords
A successful, multigeneration manufacturing family business, with progressive human resources policies, weighs the pros and cons with family owners and company employees of…
Abstract
A successful, multigeneration manufacturing family business, with progressive human resources policies, weighs the pros and cons with family owners and company employees of selling the business to meet the challenge of global competition.
Details
Keywords
Adam Waytz and Vasilia Kilibarda
In 2011, Sherry Hunt was a vice president and chief underwriter at CitiMortgage headquarters in the United States. For years she had been witnessing fraud, as the company bought…
Abstract
In 2011, Sherry Hunt was a vice president and chief underwriter at CitiMortgage headquarters in the United States. For years she had been witnessing fraud, as the company bought billions of dollars in mortgage loans from external lenders that did not meet Citi credit policy and sold them to government-sponsored enterprises (GSEs). This resulted in Citi selling to GSEs such as Fannie Mae and Freddie Mac pools of loans that were considerably defective and thus likely to default. Citi had also approved hundreds of millions of dollars' worth of defective mortgage files for U.S. Federal Housing Administration insurance. After reporting the mortgage defects in regular reports, notifying and working closely with her direct supervisor (who was subsequently asked to leave Citi after alerting the chairman of the board to these issues) to stop the purchase of defective loans, leaving anonymous tips on the FBI's and the Department of Housing and Urban Development's websites, and receiving threats from two of her superiors who demanded that she change the results of her quality control unit's reports, the shy and conflict-avoidant Hunt had to decide who she should tell about the fraud, and how.
The case gives students the opportunity to recommend how Hunt should proceed based on their analysis of the stakeholders involved. To aid instructors, the case includes Kellogg-produced videos of Hunt—the only on-camera interviews she has ever given—explaining what happened after she reported the fraud to Citi HR and, later, the U.S. Department of Justice. Within the case, students are also briefly exposed to legislation and bodies pertinent to whistle-blowing in the United States, including the Dodd-Frank Act, the Sarbanes-Oxley Act, and the SEC Office of the Whistleblower.
This case won the 2014 competition for Outstanding Case on Anti-Corruption, supported by the Principles for Responsible Management Education (PRME), an initiative of the UN Global Compact.
Analyze stakeholders' motivations to prepare counter-arguments to the resistance one might encounter when reporting unethical behavior
Write a script for who to tell, how, and why
Discuss how incentive structures, management, and culture play roles in promoting or hindering ethical behavior in organizations
Identify behaviors that help a whistle-blower be effective
Gain experience resolving ethical dilemmas in which two values may conflict, such as professional duty and personal ethics
Analyze stakeholders' motivations to prepare counter-arguments to the resistance one might encounter when reporting unethical behavior
Write a script for who to tell, how, and why
Discuss how incentive structures, management, and culture play roles in promoting or hindering ethical behavior in organizations
Identify behaviors that help a whistle-blower be effective
Gain experience resolving ethical dilemmas in which two values may conflict, such as professional duty and personal ethics
Details
Keywords
Katherine Karl, Nai Lamb and Olivia Young
Information about Volkswagen’s human and animal testing was obtained from the secondary sources cited.
Abstract
Research methodology
Information about Volkswagen’s human and animal testing was obtained from the secondary sources cited.
Case overview/synopsis
In 2014, Volkswagen (VW), BMW and Daimler funded an institute to conduct research to support their position that diesel engines are cleaner and safer than other fuel alternatives. One of the research studies conducted by the institute examined the effects of diesel fumes on humans and monkeys. Researchers put ten macaque monkeys in sealed rooms and pumped in exhaust fumes from a Volkswagen Beetle for four hours. For comparison, another group of monkeys was exposed to fumes from an older Ford pickup. The monkeys were later anesthetized and examined to see what the fumes did to their bodies. Other tests involved willing human subjects who were exposed to similar conditions.
Complexity academic level
This case is applicable to upper-level management or business ethics class.
Details
Keywords
This case study draws on interviews conducted with officials from the Rhode Island Department of Environmental Management (DEM), City of Woonsocket and Town of North Smithfield…
Abstract
Research methodology
This case study draws on interviews conducted with officials from the Rhode Island Department of Environmental Management (DEM), City of Woonsocket and Town of North Smithfield. Additionally, it pulls from relevant legal documents, recordings and minutes from meetings of the Woonsocket City Council and North Smithfield Town Council, City Council resolutions, state legislation and local press coverage.
Case overview/synopsis
From 2012–2017, the communities of Woonsocket and North Smithfield engaged in a protracted dispute concerning wastewater disposal. For 30 years, the two jurisdictions had maintained a signed service agreement. Following its expiration; however, Woonsocket imposed a new host fee on North Smithfield. Woonsocket needed to upgrade the facility to comply with mandates from the RI DEM. Over the next five years, leaders from both jurisdictions vociferously fought over the new fee. At the same time, leaders within communities experienced their own divisions. This case study highlights the challenges that decision-makers faced in both communities.
Complexity academic level
This case is appropriate for graduate and executive level courses in environmental policy, communication and leadership.
Details
Keywords
Key State Blue Cross and Blue Shield Plan (a disguised case of an actual BCBS Plan) is the merged product of three state plans. Initially burdened with a reputation of poor…
Abstract
Key State Blue Cross and Blue Shield Plan (a disguised case of an actual BCBS Plan) is the merged product of three state plans. Initially burdened with a reputation of poor customer service, Key State's executives decided to invest heavily in service improvement, eventually achieving superior levels. Key State's high-quality customer service emerged as a true competitive advantage for its customers, who were primarily businesses and health benefits consultants who influenced corporate purchasers of health insurance. The Key State brand came to be synonymous with personal service, security, choice, and dependability. But the health care insurance market was changing under Key State's feet. Spiraling costs meant that high-quality service became less of a competitive advantage as employers were lured by low-cost, low-service providers. Many employers cut or dropped health care benefits entirely, swelling the ranks of the under- and uninsured, who in turn were extremely price-sensitive when shopping for health insurance on their own. Finally, the health care insurance market was being revolutionized by financial institutions willing to hold health benefit accounts and pay providers directly, thereby eliminating the need for Key State as a mediator. Key State executives were aware of these changes but were challenged by the mindset, culture, and organizational design custom-fit to their business accounts. The case asks the reader to consider whether Key State has the right number of target markets, whether it should have one brand or several for its different target markets, what it should do for the uninsured, and how it should improve its brand experience in light of the industry's changing landscape. All of these decisions will have significant implications for the organizational design of Key State.
To better understand the challenges involved in a successful health insurance company to cope with a rapidly changing and unpredictable environment; to formulate a new strategy and a new organizational design to accomplish this adaptation.
Details
Keywords
Gaurav Tripathi and M. Durgamohan
The political and economic environment of business.
Abstract
Subject area
The political and economic environment of business.
Study level/applicability
The case is suitable for students of MBA and equivalent courses; courses on the international business environment, international marketing and related subjects.
Case overview
The case focuses on cross border acquisitions in the sub-Saharan economy of Zimbabwe. It discusses Essar Steel's attempt to acquire a stake in Zimbabwe Iron & Steel Company (ZISCO) with long term goals. However, recent political developments have led to the situation hanging by a thread. The case attempts to provide an overview of the complex business environment in Zimbabwe.
Expected learning outcomes
Students are expected to highlight the economic and political factors during the analysis of any country's business environment.
Supplementary materials
Teaching notes are available; please contact your librarian for access.
Details
Keywords
Jamie O’Brien and John-Gabriel Licht
The technical reports released by the National Transportation Safety Board, along with secondary data in the form of available public data, such as news reports, interviews and…
Abstract
Research methodology
The technical reports released by the National Transportation Safety Board, along with secondary data in the form of available public data, such as news reports, interviews and memos, were used to round out the synopsis of the case study.
Case overview/synopsis
This case explores the events that led up to the crash of United Airlines Flight 717 (for anonymity), in Sioux City, Iowa, on July 19, 1989, and the subsequent investigation. The case uses secondary sources to highlight the positive team interactions between the pilots that led to the crash landing not being as catastrophic as it might have been with 185 survivors in an extreme crisis scenario. The teaching note focuses on the importance of cognitive bias, psychological safety and teamwork in a crisis situation, and practical recommendations for managers at all levels.
Complexity academic level
Organizational Behavior at the undergraduate and graduate level. Leadership and Change at the graduate and graduate level.
Details