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Are hedge funds heroes or villains? Management of Blockbuster, Time Warner, Six Flags, Knight-Ridder, and Bally Total Fitness might prefer the “villain” appellation, but Enron, WorldCom, Tyco, and HealthSouth shareholders might view management as the real villains and hedge funds as vehicles to oust incompetent corporate managers before they run companies into the ground or steal them through fraudulent transactions. Could the pressure exerted by activist hedge funds on targeted companies result in increased share prices, management accountability, and better communication with shareholders? Or does it distract management from its primary goal of enhancing long-term shareholder value?

To determine the benefits and disadvantages of activist hedge fund activity from the perspective of corporate management and shareholders; to examine if a hedge fund's suggested corporate restructuring could create greater shareholder value; and to explain the changing roles and perspectives of hedge funds.

Set in September 1992, this exercise provides teams of students the opportunity to negotiate terms of a merger between AT&T and McCaw Cellular. AT&T, one of the largest U.S. corporations, was the dominant competitor in long-distance telephone communications in the United States. McCaw was the largest competitor in the rapidly growing cellular-telephone communications industry. Prior to the negotiations, AT&T had no position in cellular communications. This case and its companion (F-1143) are designed to allow students to be assigned roles to play. The case may pursue some or all of the following teaching objectives: exercising valuation skills, practicing strategic analysis, exercising bargaining skills, and illustrating practical aspects of mergers and acquisitions.

This case provides a vehicle for discussing analytical approaches to understanding bidding strategies in a hostile tender offer setting. In 1997, Hilton Hotels Corporation offered to acquire ITT Corporation in an unsolicited tender offer. ITT resisted in several ways. At the date of the case (July 17, 1997), ITT announces a restructuring of the firm aimed at delivering about $70 a share to its shareholders. The task for the student is to understand why Hilton's takeover attempt has failed thus far, and what the possible responses might be at this stage. The case contains a completed valuation analysis of ITT (prepared by the casewriter), which suggests that ITT is worth, at most, $89 a share to Hilton. In preparing a possibly higher bid for the firm, the student must weigh the probability of another bidder's entering the fray and that competitor's bid price. The instructor can use this setting to compare the target shareholders' outlook with the classic “prisoner's dilemma” and to discuss the expected value of not tendering—both concepts are important in devising a bidding response.

Gary Parr, deputy chairman of Lazard Freres & Co. and Kellogg class of 1980, could not believe his ears. “You can't mean that,” he said, reacting to the lowered bid given by Doug Braunstein, JP Morgan head of investment banking, for Parr's client, legendary investment bank Bear Stearns. Less than eighteen months after trading at an all-time high of $172.61 a share, Bear now had little choice but to accept Morgan's humiliating $2-per-share, Federal Reserve-sanctioned bailout offer. “I'll have to get back to you.” Hanging up the phone, Parr leaned back and gave an exhausted sigh. Rumors had swirled around Bear ever since two of its hedge funds imploded as a result of the subprime housing crisis, but time and again, the scrappy Bear appeared to have weathered the storm. Parr's efforts to find a capital infusion for the bank had resulted in lengthy discussions and marathon due diligence sessions, but one after another, potential investors had backed away, scared off in part by Bear's sizable mortgage holdings at a time when every bank on Wall Street was reducing its positions and taking massive write-downs in the asset class. In the past week, those rumors had reached a fever pitch, with financial analysts openly questioning Bear's ability to continue operations and its clients running for the exits. Now Sunday afternoon, it had already been a long weekend, and it would almost certainly be a long night, as the Fed-backed bailout of Bear would require onerous negotiations before Monday's market open. By morning, the eighty-five-year-old investment bank, which had survived the Great Depression, the savings and loan crisis, and the dot-com implosion, would cease to exist as an independent firm. Pausing briefly before calling CEO Alan Schwartz and the rest of Bear's board, Parr allowed himself a moment of reflection. How had it all happened?

An analysis of the fall of Bear Stearns facilitates an understanding of the difficulties affecting the entire investment banking industry: high leverage, overreliance on short-term financing, excessive risk taking on proprietary trading and asset management desks, and myopic senior management all contributed to the massive losses and loss of confidence. The impact on the global economy was of epic proportions.

Marketing management, digital marketing, advertising and promotion management, and technology management.

The case is suitable for BBA and MBA students. It can also be considered in executive education programs.

Venkatesh Kothapalli, the marketing head at Reebok India headquarters at Gurgaon, was in a decision dilemma about the effectiveness of using social media marketing and its employment in the current scheme of marketing strategy being planned. He had been able to generate a fair amount of awareness and excitement amongst potential users on Reebok's social media sites. However, these often fail to convert into topline sales. In addition, Alex his superior had given clear instructions that no separate budget would be earmarked for this type of medium. So Venkatesh had to divert some parts of his existing budgets (which he did from the PR budget and the DM budget) and channel these into the new area of social media marketing. This had also created concerns in Venkatesh's mind about the possibility of the new media not showing favourable results while budgets of the traditional and tried and tested media like PR and direct marketing were being chopped.

These include: understanding the dilemma of an organization's adoption of newer marketing tools as opposed to traditional marketing practices; evaluating the role of newer mediums like social media marketing and its long term and short term relevance; understanding the origins and development of social media marketing to grasp the full scale of its usefulness; and appreciating the complexities of measuring the effectiveness of social media marketing initiatives.

Teaching notes are available, please consult your librarian for access.

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.

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.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

The learning outcomes of this study are to assess the shared value model and elaborate on new multi-stakeholder approaches to business, where the stakeholders include the founders, investors, partners, employees, clients and the surrounding community; to consider the synergies between community development, environmental stewardship, sustainable business practices and the long-term health of organisations and communities, considering these as the new fundamentals of business; to examine the interconnectedness of vision, strategy, purpose and leadership in creating and evolving the shared value model; to explore the relationship between shared value practices and collective well-being, and a specific reference to nurturing transformative experiences through nature, personal development and community upliftment is made; and to assess Grootbos’ ability to translate their purpose and value proposition into a strategy and sustainable vision with a possibility of Grootbos achieving global impact through its evolving model, beyond the founder.

This case study explores the evolution of Grootbos Private Nature Reserve and Foundation, a luxury hospitality lodge and award-winning ecotourism destination, from humble beginnings in the Western Cape of South Africa to a global example of conservation, community, commerce sustainability and transformative experiences. The establishing of Grootbos and its growth and widespread recognition can be attributed to the vision and inspirational leadership of its founder, Michael Lutzeyer. Although much success has been achieved in conservation, community upliftment and individual development of community members within their region, Lutzeyer’s and ultimately, Grootbos’ vision extended well beyond South Africa and aspired to elevate their floral kingdom and model of development and conservation to a global platform of awareness. Although a shared value vision and strategy had transformed the business, placing Grootbos as a leader in transforming their industry and sparking an evolution in the shared value model itself through the interjection of transformative experiences, the larger question remained: How can Grootbos extend the impact, towards people and planetary well-being, beyond the scope of their individual place-based business and their industry? And in terms of the dilemma Lutzeyer and the management team at Grootbos faced: How will this vision and global ambition continue through succession, beyond Luzeyer’s personal drive at the helm?

Experienced leaders within a graduate degree program, executive Master of Business Administration (MBA) or executive education in the areas of leadership development, strategy, shared value and international business.

Teaching notes are available for educators only.

CSS4: Environmental management.

Corporate entrepreneurship; Intrapreneurship; Human Resources.

MBA students in Human Resource, entrepreneurship and/or PhD students in the areas of Human Resource, Corporate Entrepreneurship and/or on Intrapreneurship studies.

This case reveals that progressive change originated from individual’s positive deviance approaches, opportunistic sensitivity, ability to learn, evaluate and the ability to develop ideas on how to exploit or pursue identified opportunities (intrapreneurial behaviour).

The student will learn to deal with the complex nature of organisations and the tendencies of institutional processes to be uncertain, unpredictable, and uncontrollable; appreciate the internal workings of an organisation, the external environment; and understand the role of generative leadership, positive deviance, novelty ecosystems and intrapreneurial behaviour and the fact that connections and interactions in a social network are non-linear or non-proportional. This means that complex system predictions can be much more than simple regression predictions. They will be able to apply both bottom-up and top-down influences from proactive leadership or generative leadership events and benefit from positive results and the emergence of innovation.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS: 3 Entrepreneurship.