Ivey Publishing

Business Essentials

Ebert, R.J., Griffin, R.W., Starke, F.A., Dracopoulos, G.,6/e (Canada, Pearson, 2012)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Understanding the Canadian Business System

WHOLE FOODS MARKET INC.: EXPANSION IN CANADA
Cara C. Maurer, Valentina Bardorf

Product Number: 9B14M130
Publication Date: 5/6/2015
Revision Date: 6/5/2015
Length: 18 pages

In December 2012, the senior management team of Whole Foods Market Inc. was contemplating the company’s options for international expansion, including further expansion in Canada. The company, headquartered in Austin, Texas, was a natural and organic foods supermarket that had become known and trademarked as “America’s Healthiest Grocery Store.” It had seen steep growth since its inception in 1977 and had an appetite for more. Ten years ago, its first Canadian store was opened in Toronto, followed by three more stores in Ontario and four in British Columbia. Was it time to expand deeper now and, if yes, into which provinces? It would be interesting to expand into Quebec with a store location in Montreal, but that province had a strong union presence, which was inconsistent with the company’s culture. Also unclear was which management team should be running an extensive Canadian operation. Should the current U.S. team facilitate the expansion, or should a Canadian management team be developed? A systematic approach to assessing the options was needed.

Teaching Note: 8B14M130 (13 pages)
Industry: Accommodation & Food Services
Issues: Organic and natural foods; growth; resources; capabilities; cross-culture; Canada; United States
Difficulty: 4 - Undergraduate/MBA



TIM HORTONS INC.
Karin Schnarr, W. Glenn Rowe

Product Number: 9B14M114
Publication Date: 11/10/2014
Revision Date: 4/22/2019
Length: 15 pages

In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete with Starbucks, McDonald’s and Dunkin’ Donuts, the world’s largest and best known providers of fast food such as coffee, donuts and sandwiches. However, while the brand is almost synonymous with Canada, it is far less known beyond that country’s borders. In mid-August, the company announced its potential acquisition by 3G Capital, the Brazilian parent of Burger King, but this still has to be approved by its shareholders and likely by Canadian and U.S. regulators. The potential merger might help the company move forward, but will it be enough to create a competitive advantage on a global scale?

Teaching Note: 8B14M114 (11 pages)
Industry: Accommodation & Food Services
Issues: Industry analysis; competitive strategy; merger and acquisition; strategic choice; Canada; United States
Difficulty: 4 - Undergraduate/MBA



GLOBALIZATION THREATENS CANADA'S AUTO INDUSTRY: IMPLICATIONS FOR THE ECONOMY AND SOCIETY
David W. Conklin, Danielle Cadieux

Product Number: 9B06M008
Publication Date: 1/13/2006
Revision Date: 9/17/2009
Length: 12 pages

For many decades, the automobile industry had played a major role in Canada's economy. A large portion of Canadian jobs depended on the auto industry, both directly and indirectly. However, by 2005, Canada faced serious globalization threats. Analysts were stating that in the future the number of automobile-related jobs in Canada would depend upon the international competitiveness of Canadian plants. To continue to increase wages would raise Canadian production costs so far above the levels in Mexico, China and other emerging nations, that the assemblers would shift production to low-cost jurisdictions. Meanwhile, the Big Three were losing market share to their non-union competitors, especially Toyota and Honda.

Teaching Note: 8B06M08 (9 pages)
Industry: Manufacturing
Issues: Globalization; International Business; Business and Society
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
The Environment of Business

LASSONDE INDUSTRIES VERSUS OLIVIA'S OASIS INC.
Christopher A. Ross

Product Number: 9B13A029
Publication Date: 11/6/2013
Revision Date: 11/5/2013
Length: 7 pages

La Presse, a French language newspaper in Montreal and the largest French language newspaper in North America, published an article summarizing the judgment of a trademark infringement case involving Lassonde Industries, a large Quebec conglomerate with sales of almost Cdn$760 million, and Olivia’s Oasis, a small Quebec manufacturer of health and beauty products with sales of Cdn$250,000. Initially, Olivia’s Oasis had successfully defended itself and it was awarded damages and costs by the courts. However, Lassonde appealed, which resulted in Olivia’s Oasis having to pay its own legal costs — a judgment that could bankrupt the small company. By the end of the day, thousands of readers and members of the public had reacted via social media with such vehemence that Lassonde felt pressured to pay Olivia’s Oasis’ costs. The issues are related to the management of a company’s reputation and the potential impact of negative public reaction in the long term.

Teaching Note: 8B13A029 (6 pages)
Industry: Manufacturing
Issues: Social media; reputation marketing; marketing communication; branding; food products; beauty products; Canada
Difficulty: 4 - Undergraduate/MBA



GREEN-TECH: BIO-FUELS HIGH GROWTH STRATEGY
Federico M. Berruti, Heng-Yih (Gordon) Liu

Product Number: 9B11M123
Publication Date: 1/20/2012
Length: 12 pages

Green-Tech Inc., a Canadian company founded in 2006, was dedicated to developing, manufacturing, and marketing portable and stationary systems for the production of bio-oils and bio-char from biomass residues and wastes. Green-Tech was a recent spinoff from a large university research centre with a very good reputation for providing bio-energy solutions. Although focused and well positioned, Green-Tech had to manage relationships with large companies such as Shell that controlled vast and complete supply chains of oil-related businesses, as well as small firms and clients that were unable to manage their waste effectively. Large firms could provide plenty of business opportunities for Green-Tech, but could also jeopardize the company’s autonomy. Small customers on their own might not bring in enough cash flow, but could give Green-Tech sufficient freedom to pursue its own strategic goals. Both relationships seemed to lead to a promising future for this entrepreneurial start-up company, but also created serious risks. At the time of the case in 2011, Fernando Bruteque, vice president and one of the principal engineers of Green-Tech, was seeking the appropriate growth approach for Green-Tech. Being in charge of business operations, Bruteque also had to maintain a balance between research and development (R&D), investor and client concerns, and business opportunities. What would be the appropriate growth strategies and business operation strategies for a resource-constrained firm such as Green-Tech? How should it proceed?

Teaching Note: 8B11M123 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Bio-fuels; Renewable Energy; Research and Development; Canada
Difficulty: 4 - Undergraduate/MBA



NETFLIX IN CANADA: ENTERING THE FRAY
Neil Bendle, Ken Mark

Product Number: 9B11A020
Publication Date: 8/22/2011
Revision Date: 9/26/2012
Length: 14 pages

Netflix, Inc. was a fast-growing U.S. DVD-rental and video-streaming service that had just entered the Canadian market. This case covers the period immediately following its entry into Canada with a low-price monthly subscription service through which viewers could get video content streamed to their TVs or multimedia devices. Netflix’s entry threatened to change the way video content was viewed in Canada and, as such, it had the potential to heavily impact a number of incumbents in Canada, such as Blockbuster. Netflix’s streaming-only model in Canada created a new service for customers that was not necessarily as strong as the offering in the United States; for instance, the range of titles was relatively limited. The Netflix entry also provided potential benefits for some players, such as Rogers, who could profit from increased Internet usage. This meant that the reaction from players was not immediately obvious.

Teaching Note: 8B11A020 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Competition; Strategy Implementation; Strategic Positioning; Competitor Analysis; Video Rental; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Conducting Business Ethically and Responsibly

REFFICIENT: PREPARING FOR GROWTH
David Sparling, Ken Mark

Product Number: 9B14M062
Publication Date: 3/6/2015
Revision Date: 3/6/2015
Length: 13 pages

In early 2011, the founder of REfficient, an asset recovery service based in Hamilton, Ontario, was thinking about how she should manage the rapid growth that seemed just around the corner. Founded in 2010 to help cable firms generate value from their stock of surplus equipment, REfficient, with no direct competitors in the Ontario market, had grown rapidly and had a list of corporate customers, two warehouses and five employees. The company was positioned as the efficient way for customers to recover value from their surplus assets; it would collect and inventory them, provide an online list and track the environmental impact of selling or discarding them. The company was now looking to secure a pilot project with the Ontario provincial government. Innovative in the “green” sense because of its innovative reuse, recycle or resell model, as well as its integrated carbon footprint estimator, REfficient was a good match for the program. But how would it deal with an increasingly large variety of items, given its limited resources and space?

Teaching Note: 8B14M062 (7 pages)
Industry: Other Services
Issues: Operational change; strategic choices; process flows; project management; efficiency; Canada
Difficulty: 4 - Undergraduate/MBA



CAUSE-RELATED MARKETING: 3M AS A CORPORATE SPONSOR OF THE CANADIAN BREAST CANCER FOUNDATION
Allison Johnson, Laurie Dudo

Product Number: 9B11A003
Publication Date: 4/8/2011
Length: 18 pages

3M Canada has been a corporate sponsor of the Canadian Breast Cancer Foundation (CBCF) since 2005. In support of the CBCF, 3M Canada has produced and sold pink products (i.e. products that bear the pink ribbon, such as Post-it notes, flag pens, Nexcare bandages and Scotch-Brite sponges), with a contribution of each sale benefiting the CBCF. This case examines this corporate sponsorship relationship, and specifically how 3M Canada’s brand manager for Post-it brand office products can further engage the relationship with the CBCF. The brand manager’s marketing campaign for 2009 was successful; however, she now needs to determine the best approach for her 2010 campaign.

Teaching Note: 8B11A003 (15 pages)
Industry: Manufacturing
Issues: Cause-related Marketing; Sponsorship; Product Placement; Corporate Social Responsibility; Breast Cancer Awareness; Canada
Difficulty: 4 - Undergraduate/MBA



MAPLE LEAF FOODS, INC. (A): THE LISTERIOSIS CRISIS
Jeffrey Gandz

Product Number: 9B11C001
Publication Date: 2/3/2011
Revision Date: 4/4/2018
Length: 15 pages

The chief executive officer of Maple Leaf Foods, Inc., a food processing company employing 23,000 people in more than 50 locations, has just been advised that a deadly outbreak of Listeriosis has been linked to products shipped from a Maple Leaf Foods plant and that there have been several fatalities and many more severe illnesses linked to this contamination. He must decide what to do immediately, within the next few days, and in the longer term to deal with the problem and the effect that the negative publicity will almost certainly have on the company.

Teaching Note: 8B11C001 (5 pages)
Industry: Manufacturing
Issues: crisis management; brand reputation; risk management; food processing
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Entrepreneurship, Small Business and New Venture Creation

STACK BREWING: A LITTLE BREWERY IN THE BIG NICKEL
Ron Mulholland, Cameron Brooks, Benoit Roy, Katarina Schwabe, Cassidy Stewart

Product Number: 9B15A004
Publication Date: 5/21/2015
Revision Date: 5/21/2015
Length: 9 pages

Stack Brewing, a start-up craft brewery, has a capacity of approximately 5,600 litres per month based on twelve 117-litre batches per week. A government grant based on growth and job creation potential will help boost production capacity by five times, necessitating the development of additional distribution and marketing communication strategies. The owner cannot afford a listing in the Beer Store, the distribution monopoly owned by Labatt Breweries of Canada and Molson-Coors Canada Inc., and his budget for communications is small. While this case provides an opportunity for students to perform quantitative analysis based on revenues and market size, the focus of the case, however, is on an improved distribution and communication plan.

Teaching Note: 8B15A004 (10 pages)
Industry: Accommodation & Food Services
Issues: Communications; segmentation; management of growth
Difficulty: 4 - Undergraduate/MBA



UNCLE BETTY'S: TORONTO'S MOST INNOVATIVE CHEF-QUALITY DINER
Ariff Kachra, Qasim Pirani

Product Number: 9B14M050
Publication Date: 2/27/2015
Revision Date: 2/27/2015
Length: 15 pages

A couple who had moved to a new home in Toronto noticed that the area did not offer any dining options similar to the New York diners they had loved in their four years of living there. The couple, who had two young children, could not find a place nearby that was child-friendly and served chef-quality food. Rather than waiting for someone else to fill the gap in the upscale neighbourhood, the couple opened Uncle Betty’s. The restaurant was successful from day one. Now the owners want to grow Uncle Betty’s but they have some key questions. What growth options are realistic in light of their current resources and capabilities? What would be the right pace for growth to prevent others from copying the Uncle Betty’s experience?

Teaching Note: 8B14M050 (12 pages)
Industry: Accommodation & Food Services
Issues: Growth; scale; value chain; competitive positioning; resources; capabilities; Canada
Difficulty: 4 - Undergraduate/MBA



SAWCHYN GUITARS: CAN AN OLD BUSINESS LEARN NEW TRICKS?
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



ENTREPRENEURIAL LEADERSHIP AT MARITIME BUS
Edward Gamble, Simon Parker, Peter W. Moroz, Parker Baglole, Ryan Cassidy

Product Number: 9B14C037
Publication Date: 8/19/2014
Revision Date: 8/11/2014
Length: 12 pages

An entrepreneur in Atlantic Canada believes he has a five to six year window to capitalize on the growth of his newest venture, Maritime Bus, a passenger transportation and parcel delivery service, before his retirement. Having turned around a business that lost $12 million over the previous eight years in less than six months, he believes he has the opportunity to continue this success. However, he is unsure what strategies to follow to achieve growth: expand the parcel service, partner with other transportation operators to attract more riders, increase marketing efforts or move into Newfoundland and Labrador. He is also unsure about the value of the business and how he can smoothly and profitably transfer his ownership shares to his partner, one or more of his children or an external investor. Any decision needs to be made in consultation with his family.

Teaching Note: 8B14C037 (9 pages)
Industry: Transportation and Warehousing
Issues: Entrepreneur leadership; exit strategy; valuation; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
The Global Context of Business

ABLE TRANSLATIONS: INTERNATIONAL STRATEGY AT THE CROSSROADS
Anthony Goerzen

Product Number: 9B15M009
Publication Date: 4/2/2015
Revision Date: 7/15/2016
Length: 10 pages

The founder of Toronto-based Able Translations has grown the company since 1990 from a single-man operation that did on-site interpreting to a firm of 100 staff in 2014. The firm provides a range of interpreting and translation services on three continents by more than 3,500 qualified language professionals in more than 100 languages. Although an industry leader, the company faces both strong global competitors and a myriad of microbusinesses and freelancers. Moreover, the language service providers industry is experiencing rapid technological change. The founder wonders whether to pursue international growth of his established translation and interpreting businesses (on-site and telephone) or to focus on its emerging capabilities in software development in the North American market — a strategic choice that will have a profound effect on the future of the firm.

Teaching Note: 8B15M009 (5 pages)
Industry: Information, Media & Telecommunications
Issues: Competitive strategy; growth; competitive advantage; Canada
Difficulty: 4 - Undergraduate/MBA



IMAX EXPANSION IN BRIC ECONOMIES (REVISED)
Dwarkaprasad Chakravarty, Paul W. Beamish

Product Number: 9B15M028
Publication Date: 3/16/2015
Revision Date: 8/26/2016
Length: 14 pages

In 2014, IMAX is a Canadian-based company synonymous with large-format, high-quality cinematic experiences. Following four decades of innovation, the bulk of its revenue now comes from providing technology to mainstream movie studios and multiplex exhibitors. IMAX has more than 900 cinema screens in 58 countries, with nearly half of them located in North America. Its chief executive officer believes that the route to becoming a billion-dollar company involves adding 1,100 screens in growth markets outside of North America. If about 400 of the new worldwide screens are designated for Brazil, Russia, China and India—the BRIC economies—how should IMAX allocate these new screens by country and by city?

Teaching Note: 8B15M028 (16 pages)
Industry: Information, Media & Telecommunications
Issues: Expansion; emerging markets; FDI; Canada
Difficulty: 4 - Undergraduate/MBA



TAVAZO CO.
Paul W. Beamish, Majid Eghbali-Zarch

Product Number: 9B10M093
Publication Date: 11/12/2010
Revision Date: 9/21/2011
Length: 13 pages

In June 2010, Naser Tavazo, one of the three owner/manager brothers of both Tavazo Iran Co. and Tavazo Canada Co., was considering the company's future expansion opportunities, including further international market entry. Candidate cities of interest were Los Angeles, Dubai and other cities with a high Iranian diaspora. Another question facing the owners was where to focus on the value chain. Should the family business use its limited resources to expand its retailer business into more international markets, or to expand their current retailer/wholesale activities within Canada and Iran?

The objectives of this case are: (A) to discuss the typical problems that small companies confront when growing internationally and the implication of being a family business in this transition; (B) to provide a vehicle for developing criteria for market selection; (C) to highlight the importance of focus in the value chain regarding horizontal vs. vertical integration.

This case can be used in international business, strategic management or family business (entrepreneurship) courses. In international business, it may be used as an internationalization case and positioned early in the course. In a strategic management course, it might be positioned in sections dealing with managerial preferences, or diversification.


Teaching Note: 8B10M93 (9 pages)
Industry: Agriculture, Forestry, Fishing and Hunting, Manufacturing
Issues: Market Selection; Family Business; Internationalization; Imports; Exports; SME
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Managing the Business Enterprise

LULULEMON ATHLETICA INC. - MOVING FORWARD WITH HUMILITY
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



GENERAL MILLS CANADA: BUILDING A CULTURE OF INNOVATION (A)
J. Robert Mitchell, Ken Mark

Product Number: 9B14M015
Publication Date: 1/24/2014
Revision Date: 5/1/2015
Length: 6 pages

The president of General Mills Canada wants to build a culture of innovation in his firm. Prior to a senior management meeting in 2010 to review the company’s plans for 2011 and beyond, he met with the vice-president of Human Resources and asked him to provide feedback and suggestions about what the organization could do to change its corporate culture. A conservative organization with a collegial atmosphere where consensus and support were essential to moving projects ahead, General Mills Canada had developed an analysis-based, detail-oriented culture that was not necessarily conducive to innovation. This case provides an opportunity to engage in a discussion about the uncertainty faced by senior management in terms of specifically how to build a culture of innovation. While the senior leaders know they want to build a culture of innovation, the real question is how they should go about doing this. Also available is supplement case 9B14M016.

Teaching Note: 8B14M015 (20 pages)
Industry: Manufacturing
Issues: Culture; innovation; change management; marketing; human resources; Canada
Difficulty: 5 - MBA/Postgraduate



CIBC MELLON: MANAGING A CROSS-BORDER JOINT VENTURE
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 (13 pages)
Industry: Finance and Insurance
Issues: Financial Crisis; Joint Ventures; Leadership; Alliance Management; Managing Multiple Stakeholders; Canada; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Organizing the Business Enterprise

BIXI GOES TO NEW YORK
Yves Plourde, Jean-Louis Schaan

Product Number: 9B15M013
Publication Date: 4/10/2015
Revision Date: 4/10/2015
Length: 14 pages

In May 2011, the Public Bike System Company, based in Montreal, Canada, was preparing to answer a request for proposal by New York City to create a financially self-sustaining public bike-sharing system. Three years earlier, the company, owned by the Montreal Transit Authority, had created Bixi, a service that made bikes available to members through docking stations, powered by solar energy, spread across the city. Although its financial structure was still unproven, it was a promising solution that aimed to revolutionize urban transportation. In partnership with other private bike-sharing organizations, the company had successfully expanded to Minneapolis-St. Paul and Washington D.C. but had experienced problems with its implementations in Melbourne, London and Boston. Furthermore, the system in Montreal could not provide evidence of profitability, forcing the city government to step in by guaranteeing loans and providing additional cash flow. It also did not have a clear business plan as to how, when and where its international expansion should take place. Now, news of its problems in Montreal had made headlines in New York, putting the future of its expansion ambitions in doubt.

Teaching Note: 8B15M013 (13 pages)
Industry: Other Services
Issues: Growth; strategy; expansion; Canada; United States; Australia; United Kingdom
Difficulty: 4 - Undergraduate/MBA



SIRIUS XM RADIO CANADA
David Wood, Craig Dunbar

Product Number: 9B11N026
Publication Date: 12/8/2011
Length: 16 pages

On April 11, 2011, the merger between Canadian Satellite Radio Holdings Inc. (the parent company of XM Canada) and SIRIUS Canada Inc. received the approval of CRTC (Canadian Radio-television and Telecommunications Commission). This was the last obstacle standing in the way of the president and CEO of the new organization. The president had had plenty of time to prepare for this merger since it was first announced in November of 2010. However, with only a few months before the implementation plan was to go into place, the president was once more reviewing the proposal that he had prepared. The merger of XM Canada and SIRIUS Canada was not going to be easy. Both organizations had been fierce competitors, but it was clear that their survival was dependant on a successful merger. The president’s plan had to consider the make-up of the management team, the consolidated marketing strategy, operations and information systems integration, and how all of this was to be financed.

Teaching Note: 8B11N026 (18 pages)
Industry: Information, Media & Telecommunications
Issues: Mergers & Acquisitions, Capital Structures; Organizational Structure; IT and Operations Integration; Marketing Strategy; Canada
Difficulty: 4 - Undergraduate/MBA



VICTORIA HEAVY EQUIPMENT LIMITED
Tom A. Poynter, Paul W. Beamish

Product Number: 9B08M037
Publication Date: 4/15/2008
Revision Date: 5/18/2017
Length: 12 pages

Victoria Heavy Equipment (Victoria) was a family owned and managed firm which had been led by an ambitious, entrepreneurial chief executive officer who now wanted to take a less active role in the business. Victoria had been through two reorganizations in recent years, which contributed to organizational and strategic issues which would need to be addressed by a new president.

Teaching Note: 8B08M37 (7 pages)
Industry: Manufacturing
Issues: Growth Strategy; Organizational Structure; Leadership; Decentralization
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Managing Human Resources and Labour Relations

DELOITTE CONSULTING GTA: THE DELOITTE DADS INITIATIVE
Alison Konrad, Amy Shuh

Product Number: 9B13C046
Publication Date: 12/20/2013
Revision Date: 5/3/2019
Length: 9 pages

Deloitte Dads is a firm-sponsored diversity and inclusion initiative aimed at supporting working fathers within Deloitte (Canada) LLP, an independent member of the Deloitte Touche Tohmatsu Limited global network. With support from senior management, Deloitte Dads was founded in 2010 by a junior consultant in the management consulting division in the company’s Greater Toronto Area office and quickly gained both members and media attention. The group not only had to be distinctly separate from other parenting initiatives already in place but had to negotiate with the company’s performance management practices, which historically had not considered flexibility in appraising employees. In 2013, the founder was wondering not only if the group could be rolled out to other divisions within the company across the country and perhaps across the world but also how best to handle its success while managing his own career and the demands of being a father of two small children. He had mastered the quarterly events within his office, but how could he create a formal governance model? Already working 80 to 90 hours per week, with no end in sight, how was he going to make Deloitte Dads sustainable and successful?

Teaching Note: 8B13C046 (11 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Gender; diversity; human resource management; change management; family-work interaction; Canada
Difficulty: 4 - Undergraduate/MBA



HITTING THE BRICK WALL: THE CHALLENGE OF FINDING MORE FOOD SERVICES WORKERS
Mark Julien, Cathy McCann

Product Number: 9B11C015
Publication Date: 6/6/2012
Revision Date: 5/29/2012
Length: 6 pages

The district manager of Sodexo was faced with the task of increasing the company’s staffing levels in its food-service operations within the Ontario Power Generation plant facilities. He knew his team was anxious about the prospect of hiring more food-service workers in order to deal with the anticipated increase in the number of customers served. Such a recruitment initiative would be challenging given the perception that all possible recruitment channels had already been explored.

Teaching Note: 8B11C015 (8 pages)
Industry: Accommodation & Food Services
Issues: Recruitment; Retention; HR Planning; Branding; Canada
Difficulty: 4 - Undergraduate/MBA



RECRUITING FOR A MULTINATIONAL ENTERPRISE IN CHINA
Sarah Perchey, Diana E. Krause

Product Number: 9B12C026
Publication Date: 5/29/2012
Revision Date: 5/22/2012
Length: 12 pages

The CEO of a multinational company wanted the new human resource team of their subsidiary in Guangzhou, China, to recruit and select 85 individuals for different positions throughout the company. These positions included finance managers, production managers, factory workers, secretaries, and interns. The members of the human resource team were highly diverse in terms of educational backgrounds (marketing, law, human resources, public relations, general business administration) and countries of origin (Canada, China, Germany). The team had to deal with a series of challenges to ensure the project’s success. These included a decision about task-specific job requirements, methods to assess job requirements, strategies for recruitment, methods for personnel selection, and final decision-making. The team also had to deal with diversity within the team, cross-cultural issues, and the leadership behaviour of its CEO.

Teaching Note: 8B12C026 (10 pages)
Industry: Wholesale Trade
Issues: Recruitment; Personnel Selection; Leadership; Diversity; International Teams; China
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Motivating, Satisfying, and Leading Employees

HOUSE, HEARTH AND HOME: MANAGING LEADERSHIP CHANGE
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



A ZERO WAGE INCREASE AGAIN?
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



KYLE EVANS AT RUFFIAN APPAREL: STAFFING A RETAIL ESTABLISHMENT
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 10:
Operations Management, Productivity, and Quality

PUROLATOR INC.: LAUNCHING INNOVATION
Jean-Louis Schaan, Ramasastry Chandrasekhar

Product Number: 9B15M032
Publication Date: 3/25/2015
Revision Date: 3/25/2015
Length: 12 pages

The newly appointed innovation manager at Purolator, a market leader in the parcel delivery industry in Canada, is under pressure to deliver quick wins. The manager faces three dilemmas in his role, which is the first-of-its-kind in the company. How should he bring innovation to the attention of Purolator employees, particularly the senior managers? How should he develop the roadmap and set an agenda for unveiling innovation at Purolator? How should he ensure that innovation becomes a source of long-term competitive advantage at Purolator?

Teaching Note: 8B15M032 (10 pages)
Industry: Other Services
Issues: Competitive strategies; managing change; process rigor; Canada
Difficulty: 5 - MBA/Postgraduate



SONNEN TRUCKING COMPANY
Stephan Vachon, Tessa Weidner

Product Number: 9B15D005
Publication Date: 2/5/2015
Revision Date: 2/3/2015
Length: 8 pages

In January 2013, the new chief executive officer of the Sonnen Trucking Company, a family-owned business, is considering how to reduce fleet insurance costs. As profit margins are very tight and continuing to shrink, she has to think about variables she can control in order to affect the bottom line positively. Insurance costs are the logical item to address since they are based on the company’s safety and accident records and the extent that it is willing to support a deductible. Should she institute a self-insured model or stick with the standard insurance model? She also must choose a risk mitigation/prevention strategy involving either disciplinary measures or the newly developed Drive Safe program. Whatever she decides to do, she must make sure that she retains good drivers and attracts new trainees who will be motivated to focus on safety and good customer relations in order to build the business.

Teaching Note: 8B15D005 (7 pages)
Industry: Transportation and Warehousing
Issues: Operating risk; insurance; Canada
Difficulty: 4 - Undergraduate/MBA



BEST OPTICAL
Michael Taylor, Ken Mark

Product Number: 9B11A013
Publication Date: 11/21/2011
Length: 5 pages

The new vice president and general manager of Best Optical Ltd. is trying to formulate a strategy in response to his competitors’ actions. Best Optical is a distributor of vision hardware and other distributors are buying up retail outlets and threatening to shut Best Optical out of the market. The vice president has to decide how to respond to the threat and what implications his response will have on Best Optical’s business.

Teaching Note: 8B11A013 (3 pages)
Industry: Retail Trade
Issues: Competition; Competitor Analysis; Operations Management; Operation Analysis; Eyeglasses; Canada
Difficulty: 4 - Undergraduate/MBA



TORONTO SUN AND CARIBANA
Kenneth J. Klassen, Leanne Miele

Product Number: 9B10D002
Publication Date: 6/10/2010
Length: 7 pages

It was June 5, 2008 and the senior promotions coordinator was beginning to feel the pressure of managing a major sponsorship event for the Toronto Sun, a daily newspaper publication in Ontario, Canada. She had recently been hired and had received the responsibility of organizing the Toronto Sun's presence in the city's annual Caribana Parade after her colleague failed to make any progress following months of handling the assignment. With only eight weeks until parade day (August 2), she felt challenged to make the company's float a success. The Toronto Sun earned its place in the parade as the primary print media sponsor for the event. Pulling the company's float from the biggest parade event in the city would mean forfeiting valuable marketing exposure. This case was designed for use in an undergraduate or MBA operations management or introductory project management course. Developed to aid instructors in facilitating discussions of key project management concepts, the case content allows for an analytical approach to covering the basic skills in planning a project, including precedence relationships, critical path, due dates, uncertainty (PERT tasks), crashing, etc. It can be used to teach students MS Project or other project management software. It can also be used for a less analytic, more managerial discussion of project management.

Teaching Note: 8B10D02 (13 pages)
Industry: Manufacturing
Issues: Media; Scheduling; Project Design/Development; Project Management; Critical Path
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Understanding Accounting

LOBLAW AND SHOPPERS DRUG MART
Mary Gillett, Chris Sturby, Leanne Bowden

Product Number: 9B14B003
Publication Date: 7/3/2014
Revision Date: 3/19/2018
Length: 16 pages

In mid-2013, the executive chairman of Loblaw Companies Ltd. was considering whether it was in his company’s best interest to acquire Shoppers Drug Mart. In December 2012, Loblaw had announced a proposal to create a real estate investment trust to which it would initially transfer approximately 75 per cent of its substantial real estate holdings, thus unlocking value for its shareholders. At the same time, Shoppers’ shares were trading at an historically attractive valuation. On the other hand, competition was heating up with the move of big box stores, such as Wal-Mart and Target, into Canada and the growth of online purchasing. Moreover, new government regulations aimed at decreasing the high cost of drugs had an immediate impact on pharmaceutical companies. With Loblaw’s shares trading near a six-year high, there was now the attractive opportunity to use them as currency to make an acquisition whose potential synergies were estimated to be in excess of $300 million per year. Was this a good time to act on what had been perceived for a number of years as an attractive merger option? Did it make strategic sense? If so, what price should Loblaw pay for Shoppers?

Teaching Note: 8B14B003 (12 pages)
Industry: Retail Trade
Issues: Mergers and acquisition; financial analysis; valuation; Canada
Difficulty: 4 - Undergraduate/MBA



AZTEK CHOCOLATE STUDIO: ACCOUNTING SYSTEM SOFTWARE
Derrick Neufeld

Product Number: 9B14E004
Publication Date: 3/13/2014
Revision Date: 3/13/2014
Length: 4 pages

In late 2013, the founder of Aztek Chocolate, a candy manufacturer, in Winnipeg, Manitoba, is confronted with making an accounting system selection decision. He has two traditional options — outsourcing to an accounting or bookkeeping firm versus using an internally developed spreadsheet or commercial software package — as well as a third “hybrid” option — using an accounting cloud, or Software-as-a-Service, service provider. Sales are starting to flow in, and chocolates are shipping out, but he realizes he must now attend to setting up financial control and reporting systems before he loses control of the new firm’s financial performance. Should he hire an accountant, manage the finances himself with a commercial accounting software package or use an accounting cloud service provider?

Teaching Note: 8B14E004 (5 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Software-as-a-Service (SaaS); accounting; computer applications; Canada
Difficulty: 4 - Undergraduate/MBA



RAWHIDE BREWERY
Michele Stewart

Product Number: 9B12B030
Publication Date: 10/25/2012
Revision Date: 10/25/2012
Length: 6 pages

Rawhide Brewery (Rawhide), a small Canadian brewery, is considering an opportunity to share its excess production capacity with another brewery, Tabby Cat Beer (Tabby). Three proposals are under consideration, each requiring a different accounting treatment by Rawhide. The first option is an arrangement under which Tabby would outsource its production to Rawhide. The second is a more complex arrangement under which both parties would invest in the common shares of a newly formed entity into which Rawhide would transfer its existing brewery operations and related debt. Because Rawhide would guarantee the debt of the new entity, it would make all key decisions. Under the third alternative, Rawhide would own 60 per cent of the common shares and Tabby would own the remaining 40 per cent, and all key decisions would be made jointly by both parties. The CFO of Rawhide has been asked to assess the accounting implications, advantages and disadvantages of the various options, taking into account the impact on Rawhide’s debt-to-equity ratio.

Teaching Note: 8B12B030 (4 pages)
Industry: Manufacturing
Issues: Joint Ventures; Consolidation; Variable Interest Entity; Accounting Methods; Canada
Difficulty: 3 - Undergraduate


Chapter 12:
Understanding Marketing Processes and Consumer Behaviour

CUSTOMER SEGMENTATION AND BUSINESS MODEL EVOLUTION AT UNBOUNCE
Raymond Pirouz, Ken Mark

Product Number: 9B14A029
Publication Date: 7/8/2014
Revision Date: 7/8/2014
Length: 7 pages

In December 2011, the co-founder of Unbounce, a Vancouver-based software services start-up, is considering expanding into the enterprise user space. Unbounce got its start providing turnkey landing pages — web pages specific to current advertising campaigns — to the small and medium-sized enterprise market. Within 18 months, the company has achieved thought leadership in this space, has a list of paying customers and has built its support team from six to 25 people. The challenge is that since the entire company is focused on its core market segment, entering the enterprise user space means that different capabilities will have to be developed. Will developing the enterprise user market prevent the competition from invading this space or will it mean alienating and perhaps losing its current customers? What is the best plan for going forward?

Teaching Note: 8B14A029 (4 pages)
Industry: Information, Media & Telecommunications
Issues: Social media; landing pages; monetization; growth; pricing strategy; Canada
Difficulty: 4 - Undergraduate/MBA



PILLSBURY COOKIE CHALLENGE
Allison Johnson, Natalie Mauro

Product Number: 9B11A001
Publication Date: 2/3/2011
Revision Date: 3/8/2018
Length: 14 pages

The Canadian Pillsbury ready-baked goods cookie line is experiencing disappointing performance, and the marketing manager at General Mills Canada Corporation is under pressure to make strategic decisions that will help turn around the segment. The marketing manager has engaged the help of the consumer insight team to conduct market research studies that will shed light on consumers and their attitudes, behaviours, and preferences towards the product. The results from the market research studies have arrived, and the students, assuming the role of the marketing manager, must filter through them to determine how this information can be used to improve the performance of the cookie segment. More specifically, students will need to determine where the greatest opportunities lie, who the team should target, what brand messaging is the most relevant, and what type of communication plan would be most effective.

Teaching Note: 8B11A001 (11 pages)
Industry: Manufacturing
Issues: Cross-cultural Differences; Customer Segmentation; Brand Positioning; Value Proposition; Market Research
Difficulty: 4 - Undergraduate/MBA



MOLSON CANADA: SOCIAL MEDIA MARKETING
Deborah Compeau, Israr Qureshi

Product Number: 9B08A014
Publication Date: 10/23/2008
Revision Date: 5/4/2017
Length: 13 pages

This case describes Molson’s experiment with social media for creating brand awareness. In November 2007, Molson, part of the Molson Coors Brewing Company, ended a social media promotion after facing criticism that it promoted binge drinking. Molson was faced with the difficulty of how quickly the contents of social media could spread to various audiences. The case encourages readers to ponder whether Molson’s action was the only option available and to consider what its next steps might be.

Teaching Note: 8B08A14 (4 pages)
Industry: Manufacturing
Issues: Privacy Issues; Internet Culture; Management Information Systems; Social Media; Facebook; Breweries
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Developing and Promoting Goods and Services

COLGATE-PALMOLIVE CANADA: FIGHTING FOR A SHARE OF THE TOOTHPASTE MARKET
Michael Taylor, Ramasastry Chandrasekhar

Product Number: 9B14A044
Publication Date: 1/6/2015
Revision Date: 11/10/2014
Length: 15 pages

After several years of near steady state, the market share of Colgate Palmolive Canada Inc. in the toothpaste category has gathered momentum in 2012. In a bid to extend the gap between the company and its primary competitors in the category in 2013, the vice-president of customer development is discussing the options with his team at company headquarters in Toronto. Market share is an important performance metric at the company. One suggestion is to increase the marketing budget. There is a general consensus that marketing dollars should not be diffused across activities during the year, but there are differences of opinion about what to focus on — trade promotions, consumer promotions or advertising — in order to sustain the momentum in market share in 2013.

Teaching Note: 8B14A044 (25 pages)
Industry: Retail Trade
Issues: Market share; retailing; consumer promotions; trade; advertising; growth strategy; Canada
Difficulty: 4 - Undergraduate/MBA



THE KINKAJOU BOTTLE CUTTER
Ron Mulholland

Product Number: 9B13A034
Publication Date: 11/14/2013
Revision Date: 11/7/2013
Length: 10 pages

The inventor of the Kinkajou, a portable glass bottle cutter, has successfully completed a crowd-sourced financing campaign. His funding goal of $75,000 was considered to be quite ambitious and the timeframe in which he aimed to secure the funding was only 30 days. He managed the campaign impressively and exceeded his goal on the last day of the campaign. At this point in his business development, this entrepreneur has secured an offshore manufacturer, all backers have received their products and he has resolved a number of technical and operational problems. With so many challenges behind him, he now faces questions of future distribution through multiple wholesalers and is considering the opportunity of joining with a major international retailer.

Teaching Note: 8B13A034 (9 pages)
Industry: Retail Trade
Issues: New product; start-up; crowd-source financing; Canada
Difficulty: 4 - Undergraduate/MBA



VIDEO-CATS: WIREFRAMING AND PROTOTYPING
Derrick Neufeld

Product Number: 9B13E012
Publication Date: 4/9/2013
Revision Date: 4/9/2013
Length: 1 pages

The owners of a wedding videography startup, which offers three levels of services at different price points, are looking to hire someone to design a website prototype for the fledgling business. They believe the website should allow their customers to scroll through the various services included with each package, display standard prices and provide an order/contact form. They are unsure if they expect their customers to access the site using mobile devices as well as computer-based browsers, since they are worried about the cost of the different design approaches required for different screen sizes. This sets the stage for an introductory demonstration of a free visual wireframing and process prototyping tool called justinmind (www.justinmind.com).

Teaching Note: 8B13E012 (5 pages)
Industry: Other Services
Issues: Information System Design; Product Development; Computer Applications, Website Design; Canada
Difficulty: 4 - Undergraduate/MBA



MOUNTAIN EQUIPMENT CO-OP: THE PRIVATE LABEL STRATEGY
Matthew Thomson, Ken Mark

Product Number: 9B12A028
Publication Date: 7/13/2012
Revision Date: 9/14/2012
Length: 15 pages

Mountain Equipment Co-op (MEC) is a well-known Canadian retailer of outdoor clothing and equipment. While it stocks a range of branded products in its stores, a key source of profits is its private-label line. The challenge MEC faces is how to continue to develop and launch innovative private-labeled products while recognizing that they may be direct competitors of MEC’s assortment of global brands. MEC needs to develop its line-up without being seen as infringing on intellectual property or being too much of a “follower.” In assessing how MEC can develop its line-up, students can review MEC’s philosophy as a co-operative (in which it positions itself as being different from corporations) and its design philosophy.

Teaching Note: 8B12A028 (11 pages)
Industry: Retail Trade
Issues: Private Label; Retail Strategy; Product Development; Product Assortment; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Pricing and Distributing Goods and Services

SPARTAN BUILDING PRODUCTS
P. Fraser Johnson

Product Number: 9B15D009
Publication Date: 5/8/2015
Revision Date: 8/2/2017
Length: 9 pages

The logistics analyst at Spartan Building Products, a large, national distributor of building materials, needs to prepare a report analyzing the company’s logistics practices. Management is particularly concerned about the high cost of servicing customer deliveries. Students are asked to evaluate factors contributing to the logistics problems at Spartan, including freight costs and the sales mix. Students will analyze the cost implications of supporting a broad product line and servicing customer orders that have a small dollar value.

Teaching Note: 8B15D009 (18 pages)
Industry: Wholesale Trade
Issues: Supply chain; logistics; distribution; transportation; Canada
Difficulty: 4 - Undergraduate/MBA



BUILDING SUSTAINABLE DISTRIBUTION AT WALMART CANADA
Robert Klassen, P. Fraser Johnson, Asad Shafiq

Product Number: 9B13D010
Publication Date: 4/5/2013
Revision Date: 11/12/2013
Length: 9 pages

The director of logistics at Walmart Canada, was developing plans for a new distribution centre in Alberta. Senior management had presented her with a challenge: why not build the most sustainable distribution centre in the world? Yet, much remained unclear about how to translate this challenge into specific actions, while keeping in mind corporate goals for sustainability. Her team now was exploring three options that promised to be significantly greener: hydrogen fuel cells for forklift trucks, LED lighting and renewable energy generation from on-site wind turbines. Any investment in these sustainable technologies had to make business sense, and any decision could dramatically affect the distribution centre’s operating performance.

Teaching Note: 8B13D010 (12 pages)
Industry: Retail Trade
Issues: Environmental Management; Supply Chain; Renewable Energy; Distribution; Canada
Difficulty: 4 - Undergraduate/MBA



A COUPLE OF SQUARES: PRICING FOR THE FUTURE (A)
Dante Pirouz, Raymond Pirouz, Dina Ribbink, Emily Chen-Bendle

Product Number: 9B13A004
Publication Date: 3/14/2013
Revision Date: 3/21/2013
Length: 14 pages

In 2012, small upscale bakery produces artisan-quality, hand-decorated cookies, generating $1 million in annual revenue. In the (A) case, the two co-owners investigate the role of pricing in driving growth for their business and allowing them to achieve several fundamental financial goals. In the (B) case 9B13A005, the partners explore the possibility of a website to drive direct-to-consumer sales on an e-commerce platform.

The multimedia elements of the case 7B13A004 will add to the richness of the conversation. (A higher price applies to this case due to color exhibits.)


Teaching Note: 8B13A004 (4 pages)
Industry: Manufacturing
Issues: Pricing; Operations; Small Business; Social Media; B2C; B2B; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Money, Banking and Securities Market

SMITH FAMILY FINANCIAL PLAN (A)
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



CANADA WIDE SAVINGS, LOAN AND TRUST COMPANY
David C. Shaw

Product Number: 9B12N009
Publication Date: 7/9/2012
Revision Date: 7/9/2012
Length: 11 pages

The chief executive officer of a financial institution must decide whether or not to grant a $3 million loan to an investor in mutual funds. The financial institution makes loans of $2 for every $1 invested in mutual funds to qualified investors. The issue here is to determine whether the risks associated with this loan application justify the investment. The case involves assessing the various risks associated with the loan, including the credit risk attached to the borrower, the market risk of the planned investment program, and the currency risk of a loan in Canadian dollars and investments in foreign securities.

Teaching Note: 8B12N009 (4 pages)
Industry: Finance and Insurance
Issues: Investment Decision Making; Risk Assessment; Canada
Difficulty: 4 - Undergraduate/MBA



BCE INC.: BONDHOLDERS VERSUS SHAREHOLDERS SUPREME COURT SHOWDOWN?
Stephen R. Foerster, David Kunsch

Product Number: 9B09N027
Publication Date: 10/30/2009
Revision Date: 11/10/2011
Length: 5 pages

In May 2008, the board of directors of BCE Inc., one of Canada’s leading integrated communications companies, was dealing with the fallout of a Quebec Court of Appeal decision. The court had ruled to disallow a $50 billion privatization deal as, according to the court, the process was flawed and did not consider the debenture (bond) holders of Bell Canada (a wholly owned subsidiary of BCE). The court had ruled that the board had allowed a deal in which benefits accrued only to the shareholders (a 40 per cent increase in value since the firm was in play) at the expense of the bondholders, who were dealt an 18 per cent decrease in value over the same period. In deciding whether or not to launch a last-ditch appeal to the Supreme Court of Canada, management and the board needed to determine who were the key stakeholders involved in the decision to take the firm private, what their interests were, and how those interests should guide the board.

Teaching Note: 8B09N27 (6 pages)
Issues: Stakeholder Analysis; Legal System; Leveraged Buyout; Valuation; Corporate Strategy; Bonds
Difficulty: 4 - Undergraduate/MBA



AIR CANADA: BOND RATINGS AND OFF-BALANCE SHEET OPERATING LEASES
Christine I. Wiedman, Heather Wier

Product Number: 9B03B009
Publication Date: 8/6/2003
Revision Date: 10/15/2009
Length: 18 pages

An investor is considering investing in Air Canada bonds after reading an article on the attractiveness of the bonds. Trading at US$0.80 on the dollar, the bonds are yielding approximately 14 per cent. The investor must conduct some financial analysis on her own to assess whether the company's financial position has improved or deteriorated since a bond rating downgrade eight months ago. She must also evaluate how off-balance sheet operating leases would affect the analysis. The case illustrates how financial statement users can use lease disclosures to restate financial statements to fully reflect liability arising from operating leases.

Teaching Note: 8B03B09 (11 pages)
Industry: Transportation and Warehousing
Issues: Corporate Financial Reporting; Leasing; Accounting Methods
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Financial Decisions and Risk Management

LOBLAW COMPANIES LIMITED - ACQUIRING SHOPPERS DRUG MART
James E. Hatch, Gina Kalboneh

Product Number: 9B15N006
Publication Date: 5/6/2015
Revision Date: 6/30/2015
Length: 12 pages

The equity analyst for a large investment bank is in the process of evaluating a potential takeover of Shoppers Drug Mart, Canada’s largest drugstore retailer, by Loblaw Companies Limited, Canada’s largest grocery retailer. Rumours of the takeover have been circulating for some time, and the analyst wants to provide her buy-side clients with both her comments on the proposed transaction and her assessment of a reasonable offering price.

Teaching Note: 8B15N006 (13 pages)
Industry: Retail Trade
Issues: Acquisition; takeover; price offering; Canada
Difficulty: 3 - Undergraduate



GARRY HALPER MENSWEAR LIMITED: A LOAN REQUEST FOR AN EXPORT ORDER
James E. Hatch, Stephen R. Foerster, Steven Cox, Manpreet Hora

Product Number: 9B13N010
Publication Date: 5/1/2013
Revision Date: 4/18/2017
Length: 17 pages

Garry Halper Menswear Limited (GHM) is a medium-sized manufacturer of superior-quality men’s suits and jackets that up to now have largely been distributed in Canada. The firm has landed a very large order for men’s suits with Sutton’s in the United States. To meet the order, the firm has decided to import partly completed suits from China. The treasurer of GHM must assess the financing needs and related risks that result from this large increase in sales. At the same time, he believes that the company’s present bank is timid in its response to the firm’s needs, and he would like to consider another banking relationship.

Teaching Note: 8B13N010 (17 pages)
Industry: Retail Trade
Issues: Exporting; Foreign Currency Exposure; Working Capital; Lending; Canada; United States; China
Difficulty: 4 - Undergraduate/MBA



AIR CANADA - RISK MANAGEMENT
David Wood, Craig Dunbar

Product Number: 9B10N037
Publication Date: 12/13/2010
Length: 11 pages

The chief executive officer (CEO) of Air Canada was reviewing the company's risk management program with the intent to suggest changes to the policy. Risk management was a topic all corporate boards were dedicating time to since the financial collapse of 2008, and boards had come to realize that hard questions needed to be asked about the source of risk, how it was disclosed, how it was to be accounted for and how it was managed. The CEO knew that he needed to consider the impact of his view of the economy, interest rates, exchange rates and the commodity markets on how aggressive Air Canada should be with its appropriate hedges. He decided to start by identifying the most relevant sources of external risk that could materially affect Air Canada's short and long-term financial performance. He then wanted to understand how these risks were managed today and how they compared to West Jet, their main competitor. Finally, he wanted to determine what changes should be made to either eliminate the source of risk or better manage any significant risks that remained.

Teaching Note: 8B10N037 (16 pages)
Industry: Transportation and Warehousing
Issues: Operations Management; Corporate Strategy; Risk Exposure; Hedging Risk; Risk Management; Defining Financial Risk
Difficulty: 4 - Undergraduate/MBA