Ivey Publishing

Business in Action

Bovee, C.L., Thill, J.V.,6/e (United States, Pearson, 2012)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Developing a Business Mindset

Elizabeth M.A. Grasby, Ron Hae

Product Number: 9B14A011
Publication Date: 5/27/2014
Revision Date: 10/31/2019
Length: 10 pages

In early 2013, the 23-year-old owner and designer of Korra Dancewear was brainstorming ideas to garner more attention for her new dancewear collection. Her business sold dance apparel online, and the company needed a comprehensive marketing plan to improve sales. With limited funds, this would be a challenge, but the young owner was keen to examine three pieces of her marketing plan: distribution options; launching a new children’s line; and pricing challenges and promotional options.

Teaching Note: 8B14A011 (12 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Planning; consumer analysis; distribution; retail; Canada
Difficulty: 2 - Intro/Undergraduate

Elizabeth M.A. Grasby, Eric Janssen

Product Number: 9B10A025
Publication Date: 2/4/2011
Length: 12 pages

Kiai Marketing Group is a start-up advertising company providing innovative marketing solutions to businesses in London, Ontario. The company’s first undertaking is aimed at reaching the post-secondary student demographic by attaching a business’s advertising to laptop computers by means of a laptop skin. The proprietor needs an overall strategic marketing plan to secure his first client. The proprietor must decide what clients to target, how to reach the student market, what to charge clients, and what to pay the team of students displaying the laptop skins.

Teaching Note: 8B10A025 (14 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Start-ups; Pricing Strategy; Marketing Planning; Advertising Effectiveness
Difficulty: 1 - Introductory

Elizabeth M.A. Grasby, Julie Gosse

Product Number: 9B08N004
Publication Date: 3/11/2008
Revision Date: 5/31/2018
Length: 10 pages

A shareholder and silent partner in More Vino Ltd. reviews a request for TT$600,000 in additional funding to finance a renovation for the company. He had initially invested a major portion of the start-up capital. Since then, More Vino has grown in popularity and is now considered the most popular spot for food, drink and entertainment. The shareholder believes that More Vino is a good investment, but he is uncertain whether lending additional capital at this time is the best solution for the business.

Teaching Note: 8B08N04 (15 pages)
Industry: Accommodation & Food Services
Issues: Expansion; Financial Analysis; Loan Evaluation; Cash Flow
Difficulty: 1 - Introductory

Chapter 2:
Understanding Basic Economics

Yuran Zeng, Jacob W. Hill

Product Number: 9B14M079
Publication Date: 9/25/2014
Revision Date: 9/22/2014
Length: 4 pages

The owner of an accessory shop in China is unsure whether it was a wise choice to start his own business. The owner has identified that if the shop continues as is, he may face a loss. He must come up with a solution. Should he accept an employee’s suggestion to cut prices in order to compete with low-end street stalls? Should he shut down the shop in the short run or even exit the market? Whichever path he chooses, he can approach the decision using the concepts of elasticity and cost analysis popular in microeconomics.

Teaching Note: 8B14M079 (5 pages)
Industry: Retail Trade
Issues: Managerial economics; cost analysis; elasticity of demand; China
Difficulty: 1 - Introductory

Melissa Jean

Product Number: 9B13A044
Publication Date: 2/4/2014
Revision Date: 1/27/2014
Length: 15 pages

Sweet Leaf Bath Co. is a small, family-operated bath and body products company specializing in fairtrade, environmentally conscious products. The company progressed from initially selling its high-quality, unique products at craft shows and exhibitions to limited sales through local retailers. Through these sales channels, Sweet Leaf’s founding partners learned more about the bath and body industry and the international issues surrounding the sourcing of many raw ingredients used in their products. However, after a year of minimal sales growth, the partners realized that they needed to develop and implement a new marketing strategy that would enable them to grow the business. Out of the many options available to expand the company’s distribution plans and promotional efforts, its owners must select those opportunities that will offer maximum benefits on a limited budget.

Teaching Note: 8B13A044 (18 pages)
Industry: Manufacturing
Issues: Planning; channels; breakeven analysis; fairtrade; Canada
Difficulty: 2 - Intro/Undergraduate

Elizabeth M.A. Grasby, David House

Product Number: 9B11D008
Publication Date: 7/18/2011
Length: 8 pages

The general manager of environmental and engineering services in London, Ontario, is preparing a recommendation regarding the implementation of green bins to collect organic waste from city households. When making this decision, he must consider the costs to the taxpayer to implement this program along with other qualitative issues. The case is written for an engineering economics unit in a general business course for engineering students as an introduction to public-sector decision making.

Teaching Note: 8B11D008 (5 pages)
Issues: Environmental Sustainability; Public Sector and Private Sector; Net Present Value; Waste Collection
Difficulty: 1 - Introductory

Chapter 3:
The Global Marketplace

Won-Yong Oh, Kyle Yoon

Product Number: 9B14M052
Publication Date: 7/8/2014
Revision Date: 7/7/2014
Length: 15 pages

Firms in Korea’s securities and brokerage industries have experienced fierce competition in the domestic market, which has led to international expansion being considered a popular strategic alternative. The chief executive officer of Hyundai Securities Co., Ltd., a Korean securities firm, envisions his company becoming the “pan-Asian market leader.” As a result, he is pursuing an international expansion strategy in Hong Kong and Singapore. However, given the popularity of international expansion in these areas, the markets are highly competitive. Has the CEO made an appropriate strategic decision?

Teaching Note: 8B14M052 (8 pages)
Industry: Finance and Insurance
Issues: Financial services; international expansion; subsidiary; Korea; Hong Kong; Singapore
Difficulty: 3 - Undergraduate

George Peng, Paul W. Beamish

Product Number: 9B12M032
Publication Date: 4/3/2012
Revision Date: 3/29/2016
Length: 17 pages

In mid-2010, the president and chief executive officer of Phase Separation Solutions (PS2) needed to address potential cooperative opportunities with separate Chinese organizations regarding its Thermal Phase Separation (TPS) technology. PS2 was a Saskatchewan-based small environmental solutions company that had grown under the president's entrepreneurial direction to become a North American leader in the treatment of soil, sludge, and debris impacted with various organic contaminants. The company specialized in the cleanup of two waste streams using its TPS technology. The first was the remediation of soil contaminated with persistent organic pollutants (POPs) such as polychlorinated biphenyls (PCBs). The second was recovering usable oil from industrial sludge generated in various industries such as the oil and gas industry.

Teaching Note: 8B12M032 (17 pages)
Industry: Other Services
Issues: Growth Option; Pollution; Technological Change; Joint Venture; Entrepreneurial Business Growth; Entry Mode; Canada; China
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Megan (Min) Zhang

Product Number: 9B12M003
Publication Date: 2/13/2012
Revision Date: 11/17/2014
Length: 11 pages

In early 2011, the senior executives of the venerable Canadian hockey stick manufacturer Sher-Wood Hockey were considering whether to move the remainder of the company’s high-end composite hockey and goalie stick production to its suppliers in China. Sher-Wood had been losing market share as retail prices continued to fall. Would outsourcing the production of the iconic, Canadian-made hockey sticks to China help Sher-Wood to boost demand significantly? Was there any other choice?

Teaching Note: 8B12M003 (15 pages)
Industry: Manufacturing
Issues: Offshoring; Outsourcing; Insourcing; Nearshoring; R&D Interface; Labour Costs; Canada; SME
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Business Ethics and Corporate Social Responsibility

Anna Hawkins, John Melnyk

Product Number: 9B14C036
Publication Date: 8/20/2014
Revision Date: 8/19/2014
Length: 3 pages

A university student is working on a group project for a case-based business ethics course. Just over a week before the project deadline, one of her fellow group members reveals that he has found part (B) of the assigned case on the Internet. He has read this document, which specifies exactly what the company has done to address the challenge in the case they are working on. It is clear to the protagonist that her group cannot use this information, but she is unsure of how to handle the situation.

Teaching Note: 8B14C036 (10 pages)
Industry: Educational Services
Issues: Giving voice to values; ethics; group projects
Difficulty: 1 - Introductory

June Cotte, Seung Hwan (Mark) Lee, Brittany Schuette

Product Number: 9B12A032
Publication Date: 8/13/2012
Revision Date: 8/13/2012
Length: 5 pages

American Apparel, a popular clothing manufacturer, has socially progressive labour policies and uses significant environmental advances in its manufacturing process. In addition, it has a well-established philanthropic arm. Set against these socially responsible policies is the highly sexualized nature of the company’s advertising. This element of the marketing mix seems, at least to some consumers, very much at odds with the other aims and policies of the company. The question facing students is whether this disconnect can be maintained or whether the brand’s advertising should change.

Teaching Note: 8B12A032 (2 pages)
Industry: Retail Trade
Issues: Ethics; Corporate Social Responsibility; Advertising Strategy; Controversial Advertising, United States
Difficulty: 2 - Intro/Undergraduate

James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA

Chapter 5:
Forms of Ownership

Paul W. Beamish, Michael Sartor

Product Number: 9B10M091
Publication Date: 11/5/2010
Revision Date: 5/24/2012
Length: 15 pages

During his 10-year tenure, the president and CEO of CIBC Mellon had presided over the dramatic growth of the jointly owned, Toronto-based asset servicing business of CIBC and The Bank of New York Mellon Corporation (BNY Mellon). In mid-September 2008, the CEO was witnessing the onset of the worst financial crisis since the Great Depression. The impending collapse of several major firms threatened to impact all players in the financial services industry worldwide. Although joint ventures (JVs) were uncommon in the financial sector, the CEO believed that the CIBC Mellon JV was uniquely positioned to withstand the fallout associated with the financial crisis. Two pressing issues faced the JV’s executive management team. First, it needed to discuss how to best manage any risks confronting the JV as a consequence of the financial crisis. How could the policies and practices developed during the past decade be leveraged to sustain the JV through the broader financial crisis? Second, it needed to continue discussions regarding options for refining CIBC Mellon’s strategic focus, so that the JV could emerge from the financial meltdown on even stronger footing.

Teaching Note: 8B10M91 (15 pages)
Industry: Finance and Insurance
Issues: Financial Crisis; Joint Ventures; Leadership; Alliance Management; Managing Multiple Stakeholders; Canada; United States
Difficulty: 4 - Undergraduate/MBA

Seungwha (Andy) Chung, Sunju Park

Product Number: 9B09M015
Publication Date: 2/9/2009
Length: 16 pages

In recent years, greater competition and diminished profits, due to domestic and global oversupplies as well as higher development costs, have led the automobile industry to engage in domestic and international mergers and strategic collaboration. This case examines one of the largest mergers and acquisitions (M&As) in the Korean automobile market in recent years: the acquisition of Kia Motors (Kia) by Hyundai Motors (Hyundai). The case describes the background conditions of the acquisition, the integration processes after the acquisition, and the requisites for Kia Motors to normalize management within a short time. Hyundai, in acquiring Kia, enhanced its competitive power in both domestic and global markets, achieving economies of scale and scope and strengthening its global market basis. That said, Hyundai/Kia faced several pressing challenges, among them the cooperation of Renault and Samsung Motors, the unclear domestic treatment of Daewoo Motors, and M&As taking place among top motor companies worldwide. This case study asks students to analyze the process of post-acquisition restructuring and the resulting synergy effects, inviting them to think through the strategies by which Hyundai/Kia may thrive in the global automobile market. Further, it illustrates both the current state of the domestic Korean automobile industry and recent trends in the global automobile market.

Teaching Note: 8B09M15 (12 pages)
Industry: Manufacturing
Issues: Restructuring; Mergers & Acquisitions; Organizational Change; Integration; Ivey/Yonsei
Difficulty: 4 - Undergraduate/MBA

Jannifer David, Ahmed Maamoun

Product Number: 9B08C019
Publication Date: 10/20/2008
Length: 5 pages

The growing globalization of many industries has led many U.S.-based companies to open facilities overseas. In the process, researchers have counselled U.S. companies to adopt many local customs and policies to increase their probability of success in these new locations. During this same time period, many foreign-owned companies have moved into the United States and either purchased existing facilities or started new operations. The purpose of this case is to investigate how a non-American company (Toivonen) has adapted to the U.S. environment. It assesses the role of the parent company culture in the day-to-day operations of the American subsidiary.

Teaching Note: 8B08C19 (8 pages)
Industry: Manufacturing
Issues: Cultural Customs; Acquisition Strategy; Management in a Global Environment; Human Resources Management
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Entrepreneurship and Small-Business Ownership

Elizabeth M.A. Grasby, Cole Finnbogason

Product Number: 9B14M008
Publication Date: 3/13/2014
Revision Date: 3/13/2014
Length: 8 pages

The owner and founder of a small, independent car-detailing service considers several opportunities for his upcoming busy season. These opportunities include expanding the company’s services, purchasing a truck and becoming a mobile auto detailer, franchising the business or selling the business to pursue other work for the summer. With his undergraduate studies beginning in September, the owner’s top priority is to earn enough money to pay for tuition and to sustain himself during his first year at university.

Teaching Note: 8B14M008 (13 pages)
Industry: Other Services
Issues: Strategic planning; valuation; small business; Canada
Difficulty: 2 - Intro/Undergraduate

Meredith Woodwark, Matthew Wong

Product Number: 9B13M084
Publication Date: 8/23/2013
Revision Date: 11/18/2014
Length: 13 pages

AWARD WINNING CASE - Laurier School of Business and Economics Best Case Award 2013. The owner of Sawchyn Guitars makes fine handmade acoustic guitars and mandolins. After 40 years of operating from a two-storey backyard garage, he contemplates a shift from a solely custom-order business to a storefront location. Although his custom-order business is still strong, the owner sees the opportunity to realize his dream of providing a full-service musical instrument haven for the local music community through a proper storefront. After opening a new retail location, public reception to the new store is overwhelmingly positive, but the success in new business lines restricts the capacity to build new instruments. Despite the enthusiastic response to the store, the business is experiencing unanticipated growing pains related to managing small-business growth.

Teaching Note: 8B13M084 (11 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Small Business Management; Change Management; Opportunity Assessment; Canada
Difficulty: 2 - Intro/Undergraduate

Ilan Alon, Mirela Alpeza, Aleksandar Erceg

Product Number: 9B08A013
Publication Date: 8/14/2008
Revision Date: 4/20/2010
Length: 10 pages

On their return to Croatia following a six-year visit to the United States, a couple has decided to open their own coffee house, one that is new to Croatia — a California-style coffee house that offers the quality, service, product assortment, ambiance, and efficiency found in sophisticated coffee shops in developed markets, and all for a locally affordable price. The major challenge faced by the couple is how to grow. Specifically, should they consider franchising over organic growth? If so, how should they go about franchising in a country where the market is developing and where franchising is under-regulated, underdeveloped, and misunderstood?

Teaching Note: 8B08A13 (10 pages)
Industry: Accommodation & Food Services
Issues: Business Development; Retail Marketing; Corporate Governance; Human Resources Management; Franchising; Brands
Difficulty: 2 - Intro/Undergraduate

Chapter 7:
Management Roles, Functions and Skills

Mary Weil, Chen Rao

Product Number: 9B14C039
Publication Date: 8/12/2014
Revision Date: 8/11/2014
Length: 5 pages

In July 2001, the newly elected president of the board of directors at Dovercourt Recreation Centre in Ottawa, Ontario, faces a dilemma. The facility’s executive director has suggested that in light of a poor performance review, his only option might be to resign. He is revered by his staff and the community for his passionate advocacy of outreach to disadvantaged and marginalized populations and has a successful track record in running the organization and popularizing its programs throughout the city. However, he is under great stress because his informal management style does not fit well with the board’s need for specific monthly accounting. The new president was recruited to improve unproductive board meetings, but he has quickly realized the root issue is the escalating tension between the executive director and the board. Confident that he can use his consulting background to deliver a solution to the conflict that threatens to undermine the centre’s strong reputation, he needs a plan and must act on it decisively and immediately.

Teaching Note: 8B14C039 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Corporate governance; negotiations; internal communications; Canada
Difficulty: 4 - Undergraduate/MBA

Valerie Wallingford, Sharon Gritzmacher

Product Number: 9B11M063
Publication Date: 8/11/2011
Length: 3 pages

This case focuses on a significant problem faced by county-owned Prairie Health Service’s administrators: What could be done to reduce multiple billings and other redundancies among the four divisions of the organization? The administrators’ goal was to implement an integrated records management system that would streamline the registration and billing processes for patients, thereby increasing efficiency and timeliness, as well as reduce financial losses. While this was a fiscally responsible goal for the organization, the records management software package selected by the CEO was inadequate for the task. Rather than listen to the recommendations of his division administrators who had spent considerable time researching potential software, the CEO seemed to be basing his selection decision on the personal relationship he had developed with sales representatives from one of the software firms.

Teaching Note: 8B11M063 (7 pages)
Industry: Health Care Services
Issues: Management Behaviour; Records Management Software; Board/management Relations; Ethics
Difficulty: 3 - Undergraduate

Colleen Sharen

Product Number: 9B09M039
Publication Date: 6/9/2009
Length: 8 pages

In December 2008, Erica Mills and her husband, Craig, were making plans. They had recently decided to start a family within the next 12 months and were now making decisions about how to manage their careers as they were about to take this momentous step. Erica had started Warm Fuzz Cards, a Toronto-based greeting card company, just over two years ago in 2006. The business was growing slowly but profitably. Craig was employed as a human resources executive at a large company. He was very supportive of Erica's business. In fact, he believed that the business could grow much more quickly. Erica, on the other hand, liked her slow growth strategy. However, she was not sure that she could manage the business as it was currently structured and raise a family at the same time. They were going to have to decide what to do soon. They would need time to decide how fast to grow, develop a plan, raise money, and possibly hire staff, all before they started their family. This case provides students with an example of an entrepreneurial start-up and an understanding of: 1) the decision of how fast to grow 2) the decision of how much and where to invest in a growing business 3) how management skills, knowledge and preferences can impact decision-making in entrepreneurial/family business ventures 4) how important cash management is in the early stage of growth 5) how various stages in the development of a new venture will dictate the need for the detailed financial tracking and management of a business. This case is appropriate for a 75-minute introductory entrepreneurship class.

Teaching Note: 8B09M39 (6 pages)
Industry: Manufacturing
Issues: Personal Values; Entrepreneurial Business Growth; Cash Flow
Difficulty: 2 - Intro/Undergraduate

Chapter 8:
Organization and Teamwork

Jean-Louis Schaan, Ramasastry Chandrasekhar

Product Number: 9B14M119
Publication Date: 10/9/2014
Revision Date: 10/10/2014
Length: 13 pages

The world’s second largest home appliances company has introduced a change in its global organization structure. Electrolux AB has consolidated its research and development, marketing and design functions at the top to form what is known as the “Innovation Triangle.” This change is in tune with the pursuit of innovation as a source of differentiation in a competitive industry. The concept has been tested in Electrolux Brazil for four years before being scaled up globally. The amplified version of the Innovation Triangle has a singular objective: to facilitate innovation enterprise-wide by leveraging cross-functional, cross-geographical and cross-business synergies. The ultimate goal is to launch new products faster, better and in greater number. The unveiling of the new organizational structure presents an opportunity for the company's Innovation team to review the company’s ongoing innovation initiatives. The four-member team grapples with issues around improving the company’s innovation pipeline.

Teaching Note: 8B14M119 (7 pages)
Industry: Manufacturing
Issues: Innovation triangle; culture; internal collaborations; best practices; differentiation; scaling up; Sweden
Difficulty: 4 - Undergraduate/MBA

Paul Boothe

Product Number: 9B14M009
Publication Date: 7/11/2014
Revision Date: 7/3/2014
Length: 8 pages

In February 2011, the senior associate deputy minister of Industry Canada was appointed as the Canadian prime minister’s personal representative to the bi-national team charged with developing the “Beyond the Border Action Plan” to both improve security and streamline cross-border commerce and travel between Canada and the United States. He was immediately faced with a range of decisions on how to proceed — whom to consult, which Canadian team members to hire, which of many possible priorities to pursue in discussions with his U.S. counterparts and which steps to take to manage a complex process involving a multiplicity of large and powerful Canadian government departments and agencies as well as private sector interests. While he didn’t yet have strategies to address these issues, he knew that he would have to formulate them rapidly. Both the prime minister and the U.S. president had made clear their desire to move quickly — ideally, an action plan was to be in place within six months.

Teaching Note: 8B14M009 (4 pages)
Industry: Public Administration
Issues: Organizational structure; strategic management; accountability; public service; stakeholder analysis; Canada
Difficulty: 4 - Undergraduate/MBA

Lucia F. Miree, John E. Galletly

Product Number: 9B12M007
Publication Date: 3/19/2012
Revision Date: 3/12/2012
Length: 15 pages

This case is about a software development company, Telerik, which was based in Bulgaria and had international offices. The company was founded in 2002 and had become a world leader in user interface (UI) components for Microsoft’s .NET framework. It was still managed by its original four founders and had grown to 400 employees. In 2006, in response to fast growth and to retain its rapid development product process, Telerik adopted agile development, which was a values-driven process that included decentralization, rapid development cycles, intense customer service, teamwork, and face-to-face communication.

Telerik had moved into a new and modern building and its physical environment was designed specifically to facilitate agile development. The company’s management style was informal, hands-on, consultative, and development-driven, with a youth-focused culture. Its recent innovations in benefits, including concierge services and stock options, had given Telerik an edge in human capital with an employee turnover rate of under five per cent. The founders’ success was based upon the rapid deployment of committed human capital in a culture of teamwork and custom. They were excited about the growth of Telerik, but wondered how the company could continue to be successful and innovate.

Teaching Note: 8B12M007 (10 pages)
Industry: Information, Media & Telecommunications
Issues: Agile Management; Organizational Culture; Information Technology; Employee Engagement; Product Design/Development; Bulgaria
Difficulty: 3 - Undergraduate

Chapter 9:
Production Systems

Rajiv Agarwal

Product Number: 9B12E014
Publication Date: 1/16/2013
Revision Date: 1/4/2013
Length: 6 pages

In 2010, a recent business graduate tries to resolve a constant bottleneck in the printing department of the family business. The two-part case discusses the issues of identifying the need for relevant information and then discusses the staff’s resistance to change and how these objections were handled and overcome.

This pair of cases seeks to identify the pressures faced by small businesses, along with the task of managing the various stakeholders, including the father-owner and the personnel on the factory shop floor.

Teaching Note: 8B12E014 (13 pages)
Industry: Manufacturing
Issues: Change management; identifying bottlenecks; organizational behaviour; India
Difficulty: 3 - Undergraduate

Chapter 10:
Employee Motivation

Karen MacMillan, Meredith Woodwark

Product Number: 9B12C048
Publication Date: 11/15/2012
Revision Date: 11/15/2012
Length: 4 pages

The owner and general manager of a large retail establishment faced a dilemma about whether his long-time yard manager was still the right person for the job. The business increasingly depended on providing superior customer service in order to compete in the market. Recently, the owner had placed a personal friend in the operation as an assistant to the yard manager. This new addition had shown a real talent for developing employees and driving performance improvements. As a result, customer service feedback had drastically improved. The owner realized that the assistant had become the real leader of the yard. He wondered how to keep the momentum of the changes going while still showing due respect to a loyal employee.

Teaching Note: 8B12C048 (16 pages)
Industry: Retail Trade
Issues: Leadership; Performance Management; Employee Motivation; Human Resources, Canada
Difficulty: 4 - Undergraduate/MBA

Karen MacMillan

Product Number: 9B11C034
Publication Date: 9/7/2011
Revision Date: 10/10/2018
Length: 5 pages

The owner of a large hardware, furniture, and building centre faced a dilemma regarding how to manage the upcoming wage review process. After two consecutive years of frozen wages, employees were impatient for financial progress, but there was no extra money in the budget. It was possible to pump savings from upcoming process improvement initiatives into wage increases. However, the owner had limited motivation to channel hard-won funds to underperforming employees. On the other hand, he was eager to reward the people who added value. Yet a plan that rewarded only some employees could result in an angry backlash. He had to decide if he wanted to divert the savings into compensation and, if so, he needed an effective distribution plan.

Teaching Note: 8B11C034 (8 pages)
Industry: Retail Trade
Issues: Motivation; Compensation; Organizational Justice; Bounded Rationality
Difficulty: 4 - Undergraduate/MBA

Ann C. Frost, Kevin Hewins

Product Number: 9B09C008
Publication Date: 1/27/2010
Length: 11 pages

Ruffian Kelowna, one of 19 British Columbia Ruffian Apparel locations, is underperforming. Recent management turnover and low unemployment in the region have left Kelowna short-staffed and in need of a new store manager to take over for the interim manager. Both sales and performance results are far below acceptable levels, and the store appears to be floundering. The newly hired B.C. regional manager for Ruffian Apparel is looking into the problem and needs to report back to Vancouver with his recommendations. This case can be used to demonstrate how different theories of motivation might apply to goal-setting and compensation plans. The case illustrates how an inappropriate or poorly structured compensation plan and motivational goals can lead to ineffective and detrimental results. Students who immediately attribute the problems of the case to the lack of a store manager will fail to explore the potential for increasing employee motivation and productivity across the board.

Teaching Note: 8B09C08 (5 pages)
Industry: Retail Trade
Issues: Staffing; Compensation; Pay for Performance; Motivation
Difficulty: 3 - Undergraduate

Chapter 11:
Human Resource Management

Joo Yong Lowe, Fumiyuki Kosugi, Teng Hwee Ng, Andre Chun Mun Wai

Product Number: 9B13C004
Publication Date: 10/8/2014
Revision Date: 10/8/2014
Length: 16 pages

Yamato Transport Co., Ltd. innovatively used the field cast model of housewives as part-time employees to meet the increasing delivery demands of morning peak-load hours. The housewives provided Yamato with a cost-efficient source of human resources and the nimbleness to adjust its staff deployment to respond reliably and quickly to customers’ needs. A series of recruitment, training, and compensation and appraisal processes was designed for the field cast model.

The case outlines the challenges with the implementation of the field cast model and the decision facing Yamato’s managers of whether to expand it throughout the company’s Japanese operations. Yamato’s managers were largely satisfied with the progress of the field cast model; although field casts made up less than 2 per cent of the delivery manpower at Yamato, they played a crucial role in improving customer satisfaction levels and lowering parcel delivery costs. However, the implications of the expansion plan were multi-dimensional. At an operational level, the inconsistency in the field casts’ performance could be magnified as the number of field casts continued to increase over the coming months. As well, the sales drivers might struggle to cope with the additional responsibility to train and supervise field casts. More broadly, the sustainability of the field cast model was unknown because of Japan’s changing social structure. In addition, with the improvement of the global economy since 2010, the supply of part-time employees was threatened by competition from alternative employment opportunities.

Teaching Note: 8B13C004 (6 pages)
Industry: Transportation and Warehousing
Issues: Human resource management; change management; diversity in the workplace; women in management; Japan
Difficulty: 4 - Undergraduate/MBA

Robert D. Austin, Dana Minbaeva, Simon Schafer

Product Number: 9B14M085
Publication Date: 7/17/2014
Revision Date: 7/17/2014
Length: 11 pages

Tokyo Jane is an accessible fashion jewelry company that makes and markets its products as “luxury for less” by designing, importing and selling fashion jewelry pieces that look luxurious but cost only a fraction of the high-priced items that inspired them. Finished products are air-shipped to company headquarters in Copenhagen, Denmark from factories in China, stocked in the head office and delivered to 400 retail partners —small fashion boutiques, big department stores and online shops — who then sell to consumers in Europe, Scandinavia, the United Kingdom and Canada. The two partners who founded the firm in 2005 are facing several problems: the brand definition is not well enough developed to support the next stage in the firm’s growth, certain challenges have outstripped available human resources — they have only three permanent employees and a revolving number of interns — and distribution operations and management need to be rethought as the firm rapidly increases the scale of its operations. Things come to a head in April 2013, when they are confronted by an important customer about quality issues with their products. How can they not only save their company but continue to grow?

Teaching Note: 8B14M085 (7 pages)
Industry: Retail Trade
Issues: Fashion; brand management; human resources; Denmark
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Aloysius Newenham-Kahindi

Product Number: 9B07C040
Publication Date: 10/30/2007
Length: 18 pages

The case examines how the best practices of two banks were organized and managed to provide financial services to a small niche of foreign customers in the mining, tourism and construction sectors in Tanzania. The two banks claimed to be similar in many ways. They both were from countries whose economies were run broadly on neo-liberal lines, in that there was little state intervention in either economy, however, differences existed with respect to how they managed their operations. The case is ideally suited to illustrate the on-going tension and different types of best practices in cross-market integration. It provides opportunities to explore the challenges faced by multinational company banks in managing global workforces, the evolution of the banking sector, and the influence of technology in shaping work in organizations.

Teaching Note: 8B07C40 (16 pages)
Industry: Finance and Insurance
Issues: International Management; Expatriate Management; Trade Unions; Management Training; Emerging Markets; Performance Evaluation; Recruiting; Subsidiaries; Career Development; Employee Selection
Difficulty: 4 - Undergraduate/MBA

Chapter 12:
Labor Relations

Karen Robson, Stefanie Beninger, Sudheer Gupta

Product Number: 9B13M111
Publication Date: 11/19/2013
Revision Date: 11/19/2013
Length: 10 pages

Walmart has decided to expand into Africa through the acquisition of the South African consumer goods retailer Massmart. In doing so, the world’s largest retailer faces significant backlash from South Africa’s largest union. The company must also contend with price-sensitive consumers and a lack of supplier relationships on the African continent. Will Walmart appeal to South African consumers and achieve the volume of sales needed to make its first African presence a success.

Teaching Note: 8B13M111 (9 pages)
Industry: Retail Trade
Issues: Globalization; cross-cultural management; emerging markets; South Africa
Difficulty: 4 - Undergraduate/MBA

Charlene Zietsma, Ken Mark

Product Number: 9B06M085
Publication Date: 11/6/2006
Revision Date: 9/21/2009
Length: 10 pages

The vice-president of human resources of the British Columbia Automobile Association (BCAA) had just concluded negotiating the first collective agreements for two separate bargaining units with the association's union, who represented about 25 per cent of BCAA's workforce. BCAA's senior management wanted to find a way to reconcile with its unionized employees while still carrying on with the biggest cultural change in the company's century-long history. They wondered how best to proceed. The case serves as a discussion vehicle for how companies can manage labor relations post-strike, while attempting to implement strategic change.

Teaching Note: 8B06M85 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategy and Resources; Services; Small Business; Competitive Advantage
Difficulty: 4 - Undergraduate/MBA

Tieying Huang, Junping Liang, Paul W. Beamish

Product Number: 9B04M033
Publication Date: 5/14/2004
Revision Date: 10/14/2009
Length: 6 pages

Jinjian Garment Factory is a large clothing manufacturer based in Shenzhen with distribution to Hong Kong and overseas. Although Shenzhen had become one of the most advanced garment manufacturing centres in the world, managers in this industry still had few effective ways of dealing with the collective and deliberate slow pace of work by the employees, of motivating workers, and of resolving the problem between seasonal production requirements and retention of skilled workers. However, the owner and managing director of the company must determine the reasons behind the deliberately slow pace of the workers, the pros and cons of the piecework system and the methods he could adopt to motivate the workers effectively.

Teaching Note: 8B04M33 (11 pages)
Industry: Manufacturing
Issues: China; Productivity; Employee Attitude; Piece Work; Performance Measurement; Work-Force Management; Peking University
Difficulty: 4 - Undergraduate/MBA

Chapter 13:
The Art and Science of Marketing

Elizabeth M.A. Grasby, Ian Dunn

Product Number: 9B14B006
Publication Date: 5/7/2014
Revision Date: 6/20/2019
Length: 11 pages

During the summer of 2013, the company founder and operations manager of Hockley Valley Brewing Co. Inc., a microbrewery situated in rural Ontario, were reviewing the company’s product mix. Sales at a recent summer festival showed a strong demand for light beers, rather than the dark ales that made up the majority of Hockley’s sales. Not only did the company compete with large multinational brewing companies, but they faced stiff competition from the established and new microbreweries that were springing up all over Ontario to meet consumer demand for fresh, local and unique beers. They had to decide whether the company should launch a new lager to further penetrate the light beer market; if so, they also had to make recommendations on pricing, distribution and promotional strategies for the new brand.

Teaching Note: 8B14B006 (9 pages)
Industry: Accommodation & Food Services
Issues: New products; marketing mix; pricing; distribution; brand positioning; Canada
Difficulty: 1 - Introductory

Elizabeth M.A. Grasby, Robert Bremner

Product Number: 9B14B004
Publication Date: 4/17/2014
Revision Date: 4/19/2016
Length: 8 pages

The CEO of a newly formed corporation had just finalized several outsourcing agreements to manufacture MoxiMed’s flagship product, the MoxaLamp. The MoxaLamp was designed to replace the practitioner’s role in administering moxibustion, a popular form of traditional Chinese medicine therapy. Now that the MoxaLamp was ready for production, the CEO must select a target market and set the appropriate selling price.

Teaching Note: 8B14B004 (9 pages)
Industry: Health Care Services
Issues: Marketing mix; consumer analysis; cost accounting; China
Difficulty: 1 - Introductory

Thomas Funk, Wendy Lange-Faria

Product Number: 9B13A037
Publication Date: 11/28/2013
Revision Date: 1/9/2014
Length: 8 pages

An owner was concerned about the condo she bought in Mont Tremblant, Quebec in 2006 as an investment property and for occasional use by her family. A beautiful, five-bedroom unit with a panoramic view over the La Bête golf course, it was close to the ski area, the village of Tremblant, shopping, spas, restaurants and a casino. It was fully furnished with many upgrades. However, by 2010, the number of rentals was disappointing, and the unit was operating well below expectations. Something had to be done to increase occupancy or she would have to sell the property. She considered changes in all aspects of marketing: her target, positioning, product features, pricing, distribution and promotion. She needed to assess the situation and determine what could be done to generate more bookings and make the venture profitable.

Teaching Note: 8B13A037 (7 pages)
Industry: Real Estate and Rental and Leasing
Issues: Marketing strategy; integrated marketing; hospitality and tourism; Canada
Difficulty: 2 - Intro/Undergraduate

Chapter 14:
Product and Pricing Strategies

Raymond L. Paquin, Catherine Bedard, Genevieve Grainger

Product Number: 9B12A035
Publication Date: 12/18/2012
Revision Date: 12/18/2012
Length: 18 pages

Bio-Vert is a leading Canadian brand of eco-cleaning products manufactured by Quebec-based Savons Prolav. Run by a brother and sister team, Savons Prolav bases its products on their vision, which includes eco-friendliness, affordability and effectiveness. Demand for Bio-Vert’s phosphate-free detergents has increased dramatically since the 2007 blue-green algae bloom outbreaks in Quebec’s waterways and subsequent legislation restricting phosphate use in cleaning products. However, now that “green” cleaning products have become more mainstream, Savons Prolav faces the issue of how to adapt and grow in an increasingly crowded marketplace. This discussion considers how Savons Prolav can remain competitive in this difficult industry segment while maintaining its environmental focus.

This case highlights the pressures that an SME with strong environmental values faces in a competitive market. It includes a portrait of the cleaning products industry, consumer patterns with regards to eco-friendly products, and a background of the provincial socio-environmental event that triggered increased demand for green cleaning products in Quebec. Savons Prolav’s history, business model and core values are discussed along with potential growth options. Details on related industry, societal and marketing perspectives are provided to guide the reader through the advantages and disadvantages inherent to each opportunity.

Teaching Note: 8B12A035 (9 pages)
Industry: Other Services
Issues: Sustainability; SME; product strategy; Canada
Difficulty: 3 - Undergraduate

Elizabeth M.A. Grasby, Nadine Ramrattan

Product Number: 9B11B019
Publication Date: 5/22/2012
Revision Date: 2/10/2012
Length: 10 pages

A young business student at a university in Ontario must decide whether to launch her entrepreneurial venture — selling women’s foldable flats — and how, in the Toronto market. Damn Heels (A) highlights the research done by the entrepreneur leading up to this decision, including the marketing (product, price, promotion, and placement) decisions she faces, consideration of the competitive retail shoe industry, and some of the first steps for a new business evaluation — unit contribution and financial profitability projections.

Teaching Note: 8B11B019 (9 pages)
Industry: Retail Trade
Issues: Unit Contribution; Break-even Analysis; Fixed and Variable Costs; Market Entry; Financial Projections, 4 Ps; Canada
Difficulty: 1 - Introductory

Srinivas Krishnamoorthy, Ramasastry Chandrasekhar

Product Number: 9B09M058
Publication Date: 9/23/2009
Length: 7 pages

Beck Taxi is Toronto's leading cab brokerage. In May 2009, the company's chief executive officer (CEO) is wondering whether the company could change the radio fee for the limited duration of summer, usually a lean season for the cab trade. The fee, paid by drivers for the dispatch service connecting them to customers in waiting, has not been increased in over a decade. That is enough reason to go for a straight upward revision on a permanent basis. The CEO is also considering introducing a variable component to pricing - a novelty in the cab trade. There are several forces at stake in the trade and any decision by Beck Taxi, as the market leader, will shake it up. Status quo is therefore an option in its own right for the CEO. The case provides the background against which the CEO will have to make a call on pricing Beck's service.

Teaching Note: 8B09M58 (6 pages)
Issues: Entrepreneurial Problem Solving; Pricing; Spreadsheet Modeling
Difficulty: 2 - Intro/Undergraduate

Chapter 15:
Distribution and Marketing Logistics

Elizabeth M.A. Grasby, Ian Dunn

Product Number: 9B13B007
Publication Date: 4/23/2013
Revision Date: 4/19/2013
Length: 8 pages

The president of a new venture that sells a high-quality men's made-to-measure clothing line is considering opening the company’s first retail store in the downtown core of major city. He wants to grow the business to become the next big luxury fashion brand, and he believes that opening a flagship retail store is a logical step, but he first wants to analyze its financial feasibility and the investments required to pursue this strategy. The analysis includes a differential analysis, ROI and payback calculations.

Teaching Note: 8B13B007 (7 pages)
Industry: Manufacturing
Issues: Cost/Benefit Analysis; Return on Investment; Retailing; Growth Strategy; Brand Management; Canada
Difficulty: 2 - Intro/Undergraduate

David Wood, Ken Mark

Product Number: 9B11D001
Publication Date: 8/8/2011
Length: 12 pages

New legislation in Ontario, Canada, might require all appliance manufacturers and brand owners to take responsibility for end-of-life collection and recycling of products. The senior manager of government relations for Whirlpool Corporation was updating his colleagues on Ontario’s proposed extended producer responsibility (EPR) legislation. Whirlpool was the Canadian market share leader in household appliances such as washing machines, dryers, and cooking ranges. With EPR, Whirlpool and other firms would now have to manage — or pay to manage — a more complex model involving reverse logistics. Each appliance manufacturer had at least three options from which to choose: it could argue the legislation was unnecessary, it could join an industry-funded organization (IFO) to meet EPR’s requirement, or it could set up its own IFO.

Teaching Note: 8B11D001 (9 pages)
Industry: Transportation and Warehousing
Issues: Reverse Logistics; Recycling; Supply Chain Management; Corporate Social Responsibility; Household Appliances
Difficulty: 3 - Undergraduate

Elizabeth M.A. Grasby, Nina Gupta

Product Number: 9B07B004
Publication Date: 5/15/2007
Revision Date: 4/28/2014
Length: 9 pages

A successful Canadian jewelry manufacturer and distributor contemplates entering the U.S. market and how best to do it. Students are required to: 1) identify costs relevant to the decision and categorize them as either investments, fixed costs or variable costs; 2) calculate unit contribution, contribution-margin ratio and weighted-average-contribution-margin rates; 3) perform a breakeven analysis and interpret its meaning using relevant parameters; 4) project profitability of a chosen distribution strategy; and 5) perform sensitivity analysis with respect to the expected sales level. Students are required to understand and analyse the opportunities and risks associated with entering a new geographic market and combine their qualitative and quantitative analysis when deciding which distribution strategy to pursue.

Teaching Note: 8B07B04 (14 pages)
Industry: Manufacturing
Issues: Distribution; Doing Business in the U.S.; Profitability Analysis; Management Accounting
Difficulty: 1 - Introductory

Chapter 16:
Customer Communication

Mary Weil, Julia Cutt

Product Number: 9B14A036
Publication Date: 7/30/2014
Revision Date: 9/13/2016
Length: 8 pages

On March 27, 2014, the new chief executive officer of Lululemon Athletica Inc., headquartered in Vancouver, British Columbia, has just announced the previous year’s flat fourth quarter results. These unimpressive financial figures have amplified the need to address the company’s damaged reputation. In 2013, the apparel brand faced a product recall and a public relations backlash after a controversial interview and botched apology by its founder, as well as the resignation of several key executive employees. A communications strategy must be devised to repair the company’s reputation and regain the trust of both investors and customers.

Teaching Note: 8B14A036 (7 pages)
Industry: Retail Trade
Issues: Reputation management; stakeholder; public relations; communication strategy; Canada; United States
Difficulty: 3 - Undergraduate

Elizabeth M.A. Grasby, Eric Silverberg

Product Number: 9B12A003
Publication Date: 3/8/2012
Revision Date: 3/8/2012
Length: 13 pages

The owner and director of a residential summer camp for children recognizes the need to make some changes to achieve his primary objective of increasing the number of campers. Specifically, marketing initiatives are needed to bolster the August sessions, a month when the camp experiences declining enrolment. He has some key decisions to make, including which group to target, how to promote the camp sessions, and what to charge for any new product offerings.

Teaching Note: 8B12A003 (12 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Consumer Analysis; Market Analysis; Marketing Planning; Marketing Communication; New Products; Canada
Difficulty: 1 - Introductory

Elizabeth M.A. Grasby, Jamie Hyodo

Product Number: 9B09A029
Publication Date: 10/30/2009
Length: 16 pages

The general manager of a not-for-profit Ultimate Frisbee club seeks a marketing strategy to increase membership. For-profit clubs had claimed an ever-growing portion of the market, and the general manager has been asked to review current offerings in the marketplace and to develop a formal marketing plan that would ensure the club's viability in the coming years.

Teaching Note: 8B09A29 (15 pages)
Industry: Social Advocacy Organizations
Issues: Marketing Planning; Advertising Strategy; Marketing Communication; Market Analysis
Difficulty: 1 - Introductory

Chapter 17:
Financial Information and Accounting Concepts

Nicola Young, Karen Lightstone

Product Number: 9B13B020
Publication Date: 10/4/2013
Revision Date: 10/3/2013
Length: 8 pages

The Brooklyn Warehouse, a popular restaurant in Halifax, Nova Scotia, is cramped for space because of its popularity within its neighbourhood and as a tourist destination in the city. The restaurant is a private company with two shareholders, one of whom is not involved in operations. Because of the economic downturn, the risky nature of the business and the fact that it has been open only four years, the owners are having trouble securing financing for their expansion plans from their bank and other conventional lenders. However, while negotiating a renewal of their lease in late 2011, their landlord offered to pay for half the cost of building a patio to increase the size of the restaurant. To raise the other half, the owners turn to crowdfunding as a method of raising capital through social media by tapping into their community of friends, family and loyal customers. In return for their donation, which may vary from $100 to $2,500, sponsors are offered various packages, including free meals, a company T-shirt and their name listed on a wall of honour. However, little is known about the appropriate accounting or tax treatment for money raised in this manner. The owners had heard horror stories about businesses that used innovative ideas to raise funds only to have fines and penalties levied by government agencies for income tax and sales tax or even by the Securities Commission for improper accounting. The owners turn to their accountant for advice.

Teaching Note: 8B13B020 (10 pages)
Industry: Accommodation & Food Services
Issues: Crowdfunding; innovative financing; Canada
Difficulty: 3 - Undergraduate

Elizabeth M.A. Grasby, Robert Bremner

Product Number: 9B13B006
Publication Date: 4/3/2013
Revision Date: 1/29/2020
Length: 4 pages

The chief financial officer (CFO) and major shareholder of a small charter sport fishing company must prepare the company books for the fiscal year according to international financial reporting standards (IFRS) rules. The CFO must deal with both finance and operating leases.

Teaching Note: 8B13B006 (5 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Accounting Transactions; Accounting Methods; Accounting Principles; Lease Accounting; Fiji
Difficulty: 1 - Introductory

Elizabeth M.A. Grasby, Ian Dunn

Product Number: 9B11B009
Publication Date: 6/21/2011
Revision Date: 4/20/2016
Length: 7 pages

An entrepreneur and her father have purchased exclusive Canadian distribution rights to Nutrifusion, a new health supplement that provides servings of fruits and vegetables when added to a variety of foods. They are contemplating launching Healthy Life Group, a company to market and distribute Nutrifusion in Canada. They want to evaluate the product’s financial feasibility for the company’s first year of operations, ending December 31, 2011. If the financials look favourable and the business plan seems feasible, the father and daughter will proceed with the new venture.

Teaching Note: 8B11B009 (10 pages)
Industry: Retail Trade
Issues: Food and Drug; Forecasting; Feasibility Analysis; Distribution; Health Supplements
Difficulty: 1 - Introductory

Chapter 18:
Financial Management

Brian Lane, Nathalie Johnstone

Product Number: 9B13N005
Publication Date: 7/17/2013
Revision Date: 5/24/2013
Length: 6 pages

The Smith family is in a cash crunch. Even with a combined gross family income of $80,000 per year, monthly cash outflows are still greater than inflows. Joel and Amber Smith are aware of these cash flow problems, but do not understand where their money goes and struggle to set financial goals. They have contacted a financial advisory firm to help them develop a plan and set realistic future goals. The Smiths face financial problems common to young families such as saving for their retirement and children’s education, paying down credit card debt, paying down (and possibly refinancing) their mortgage, buying a new vehicle, and providing adequate healthcare insurance. Students are tasked with playing the role of the family’s financial advisor and helping them bring their finances under control.

The case is built in two parts, (A) and (B). These can be used in separate 75- to 90-minute classes, with Smith Family Financial Plan (A) covered at the midpoint of the course and Smith Family Financial Plan (B), product 9B13N006, covered near the end. Alternatively, it can be used as a two-part major assignment, with Part (A) as the first major submission and Part (B) as the second.

Teaching Note: 8B13N005 (11 pages)
Industry: Finance and Insurance
Issues: Personal finance; financial planning; personal taxation; retirement planning; Canada
Difficulty: 3 - Undergraduate

Chuck Grace

Product Number: 9B12N012
Publication Date: 7/31/2012
Revision Date: 7/31/2012
Length: 15 pages

Mary Spencer was putting the final touches on her personal financial plan before graduating from the Richard Ivey School of Business HBA program in spring 2012. Generally, Mary was happy with her plan. Her goals, investment policy statement, and financial budget all made perfect sense to her. However, she kept returning to one number — a 43 per cent tax rate! It did not seem fair that just when she started to make some serious income, she would have to give 43 per cent of it to the government. During one of her courses, Mary had spent some time learning about tax strategies available to Canadians. They all seemed to involve three- and four-letter acronyms — TSFA, RSP, RHOSP, etc. — but she wondered which ones would have the optimal impact on her tax situation, and if there was a combination that would work best together.

Teaching Note: 8B12N012 (7 pages)
Industry: Finance and Insurance
Issues: Financial Planning; Investment Management; Retirement; Taxes; Canada
Difficulty: 2 - Intro/Undergraduate

Dan Thompson

Product Number: 9B10N019
Publication Date: 1/21/2011
Length: 4 pages

High Mountain Technologies is a diversified research and manufacturing company that produces a wide array of products based on patented technology. A certified management accountant has been given the assignment of completing a capital budgeting analysis of two projects — a GPS transmitter and surveillance aircraft. Rogers has been instructed to calculate the net present value for each project, including an appropriate cost of capital, so that the company can make its final decision.

Teaching Note: 8B10N19 (6 pages)
Issues: Innovation; Capital Budgeting; New Product Development; Cost of Capital
Difficulty: 1 - Introductory

Mary Gillett, Stephen Rene Frey

Product Number: 9B06B001
Publication Date: 1/13/2006
Revision Date: 9/14/2009
Length: 3 pages

At the end of the harvest season, the owner of a family-owned farm had to decide whether to purchase a new combine or perform significant repairs on the existing machine. He realized that the decision needed to be made before the next harvest season, but was unsure of which option would best fit the company. This case outlines a simple capital budgeting decision in the farming industry. It can be used to educate individuals on the farming industry with concepts required to make an investment decision.

Teaching Note: 8B06B01 (6 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Agriculture; Capital Budgeting; Capital Investment; Equipment Investment
Difficulty: 1 - Introductory

Chapter 19:
Financial Markets and Investment Strategies

Martin Dirks

Product Number: 9B12N007
Publication Date: 7/26/2012
Revision Date: 8/21/2017
Length: 18 pages

Green Mountain Coffee Roasters is considered a short sale candidate (a stock sold short makes money if the stock price declines). The business is growing quickly, but there are signs of potential problems. The case provides a realistic illustration of bullish versus bearish investors. Like in a mystery novel, there are spies, possible misrepresentation, and conflicting information here. Decision-making under uncertainty is explored — a factor professional investors must deal with every day.

Case discussion topics include risks in short selling, margin loan calculation, investor behaviour, stock valuation analysis, forecasting business growth potential, forecasting earnings reports, management incentives, actions taken by management to increase the stock price, aggressive accounting practices, assessing the business impact of a patent expiration, and the impact of a business growth rate on stock market valuation.

Teaching Note: 8B12N007 (12 pages)
Industry: Finance and Insurance
Issues: Short Selling; Hedge Funds; Investment Analysis; Stock Valuation; Earnings Management; Bullwhip Effect; United States
Difficulty: 4 - Undergraduate/MBA

Elizabeth M.A. Grasby, Jaclyn Cairns

Product Number: 9B12B009
Publication Date: 5/18/2012
Revision Date: 1/29/2020
Length: 2 pages

The sole shareholder of a national supplier of evergreen trees is expanding its product line. This expansion requires a $6.5 million investment. The company decides to finance this expansion through the issuance of bonds and must record the accounting entries involved with this issuance, along with the related interest payments and amortization of the bonds.

Teaching Note: 8B12B009 (6 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Accounting Transactions; Investments; Bonds; Canada
Difficulty: 1 - Introductory

Larry Wynant, Ken Mark

Product Number: 9B09N023
Publication Date: 9/10/2009
Revision Date: 5/15/2013
Length: 15 pages

In August 2009, a portfolio manager for Resolute Funds Inc. is considering adding WestJet Airlines to his fund’s holdings. WestJet, a fast-growing airline based in Calgary, Alberta, has grown rapidly from a start-up to the second-largest airline in Canada. Despite its recent successes, its share price has halved from its high in December 2007, due to the economic crisis. The portfolio manager is trying to determine whether WestJet’s shares are attractive. To support his analysis, he has asked his team to assemble comparative financial data on WestJet and its key competitors. The portfolio manager wants to know if he should buy, hold, or sell WestJet’s shares.

Teaching Note: 8B09N23 (6 pages)
Industry: Transportation and Warehousing
Issues: Investments; Investment Analysis; Financial Analysis; Airline Industry
Difficulty: 4 - Undergraduate/MBA

Chapter 20:
Money Supply and Banking Systems

Mingkang Liu, Hugh Thomas, Gang Du

Product Number: 9B14N016
Publication Date: 7/23/2014
Revision Date: 7/23/2014
Length: 16 pages

The chairman and chief executive officer of China Merchants Bank (CMB) had led CMB through a decade of rapid development, implementing two transformations to save capital, develop culture and serve the financial needs of China’s new businesses and consumers. Notwithstanding successes, however, CMB’s capital constraint was biting and the stock market was punishing CMB’s shareholders. Slower domestic growth, an uncertain international economy and increased government regulation increased the challenge facing the chairman: to set CMB’s future strategy.

A video is available for viewing online.

Teaching Note: 8B14N016 (10 pages)
Industry: Finance and Insurance
Issues: Banking; capital; leadership; China
Difficulty: 4 - Undergraduate/MBA

David W. Conklin, Danielle Cadieux

Product Number: 9B10M008
Publication Date: 1/20/2010
Length: 11 pages

A recession in the U.S. economy began at the end of 2007. Concerns deepened as an epic financial crisis shattered business and consumer confidence. By the fall of 2008, the United States was in the midst of the worst recession since the 1930s, and major financial institutions were on the verge of bankruptcy. The financial crisis and recession spread around the world. Many saw a risk that the global financial system might collapse, perhaps precipitating a repetition of the lengthy economic devastation of the 1930s depression. Governments reacted by creating huge stimulus packages that greatly increased national deficits and debts, and by loosening monetary policies with interest rates close to zero and huge expansions of the money supply. In their efforts to save the financial system, governments also offered bail-out packages to banks, including loans, guarantees and equity. By the fall of 2009, the crisis had stabilized, and the appearance of green shoots gave promise of recovery. By 2010, it was possible to put the financial crisis in perspective, and to raise questions about the causes and consequences. Of particular concern was whether new regulations might be needed to prevent a recurrence, and whether some of the tighter regulations should be international in scope. A related concern was whether such regulations should be applied to non-bank financial institutions as well as banks. Governments were also trying to determine how to exit the unique fiscal and monetary positions that now seemed to put their economies at risk of ongoing deficits and future inflation.

Teaching Note: 8B10M08 (5 pages)
Industry: Finance and Insurance
Issues: Business and Society; Government and Business; Government Regulation; Financial Institutions
Difficulty: 4 - Undergraduate/MBA