Ivey Publishing

Product Details

Business Development Bank of Canada
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5 pages (4 pages of text)
Product Type:
Case (Field)
On January 28, 2009, the president and CEO of the Business Development Bank of Canada is considering the impact of the minister of finance’s announcement in his recent 2009 budget that the bank would offer a new financial product to help auto and heavy equipment dealers suffering through the global financial and economic crisis. A wholly owned Government of Canada Crown corporation, the bank’s mandate is to help create and develop Canadian businesses through financing, subordinate financing, venture capital and consulting services, with a focus on small and medium-sized enterprises. It is expected both to complement private-sector financial institutions and to earn a rate of return on common equity greater than or equal to the government’s average long-term cost of capital. Taken by surprise due to budget secrecy, the president has spent the last two days in conversations with his staff, senior government officials and his board chair. He needs a plan to quickly launch this new and completely unfamiliar line of business while navigating the complex governance and stakeholder environment that BDC faces.
Learning Objective:
  • To illustrate the way government uses Crown corporations to assist business in times of financial and economic crisis.
  • To illustrate how organizations plan to launch new products in unfamiliar markets.
  • To illustrate the complexity of Crown corporation governance.
General Management/Strategy
Finance and Insurance
Canada, Large, 2009
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