Economic Environment & Public Affairs
Halo Top Ice Cream & Behavioral Economics AH1-003-I
How do you go about making difficult decisions and what are the key psychological shortcuts and biases that may impair your rationality? This case uses the real-life example of the successful launch of Halo Top’s ice cream brand in the United States as the basis to construct a psychological review of the decision-making process of the company founder, advisers and consumers, helping to identify and illustrate some of the most common principles, heuristics and biases of Behavioral Economics. To do so, the case puts students in young entrepreneur Justin Woolverton’s shoes when he has to decide whether to launch the brand or keep his job as a lawyer, and then goes beyond to review the marketing process and consumer insights that are normally present in product introductions and promotions.
Should Justin quit his highly lucrative day job as a lawyer and pursue his ice-cream making dreams? And, if he were to decide to launch his brand, what are the psychological biases and mind-traps that he would have to avoid (when making his decisions) or factor in (when considering those of his potential consumers)?Academic Area:Organisational Behaviour | Economic Environment & Public Affairs | Others
Ethiopia: Doing business at the bottom of the pyrami … EC1-139-I-M
What is it like to live and do business at the base of the pyramid? This multimedia is the second part in a series of reports from students who have spent time living, working and volunteering in Ethiopia.
This installment focuses on the different types of businesses that exist and operate in the East African country and begins to explore both the opportunities and challenges that business owners face. Here we display the first-hand accounts from those who have spent time in large and small companies and can relay the challenges of doing business in the bottom of the pyramid.
The students´ experiences are brought to life through images and video interviews. The conclusion posing the ultimate question: Can money be made doing business at the bottom of the pyramid?Academic Area:Economic Environment & Public Affairs
QE Liquidity in search of profitability: the dilemma … EC1-135-I
This case seeks two purposes. First, illustrating the relevance of the economic environment for determining business profitability. Second, putting in practice students acquired macroeconomic analytical skills by using them to support a real life financial investment decision. The students are asked to endorse one of two options, US or Brazil, for the launching of a new investment fund by FTInvest, a financial investment company. The recommendation is made by students acting as members of the Economic Research Department of the company. Therefore, it should be based on the country identified by them as providing the most favorable economic environment for the profitability of the investment in the medium/long run. The decision takes place in the second half of 2011, at a time when the US economy showed a hesitant recovery after the Great Global Recession of 2008 and when the Brazilian economy was booming after a very short blip. It was also at a time when, due to ultra-loose US monetary policy, interest rates and yields were at historical lows in the US while they were relatively high in Brazil.Academic Area:Economic Environment & Public Affairs | Finance
A Rose by any other name? Socially conscious investm … EC1-133-I
Private enterprise often financed by foreign capital is the most direct and lasting route to economic development and poverty reduction for countries at the bottom of the pyramid. However those investments and economic development itself also have potentially large negative effects on society and the natural environment which may or may not outweight their benefits. If an outside investor is seeking to be socially responsible while setting in motion the dynamics of development that would alleviate poverty how should it juggle these issues? This case presents the situation of a socially conscious private investment firm which is deciding whether to invest in a rose farm in Ethiopia.Academic Area:Economic Environment & Public Affairs
The Housing Market in Spain EC1-138-I-M
Have house prices stopped falling? What is their natural resting place? The Housing Market in Spain provides a framework for analyzing and predicting house prices. The case study focusses on Spain, however, the analysis can be extrapolated to other countries. Students are presented with different information across six steps. In each step they must make a prediction, modifying their previous decision according to their analysis of the new information. The case takes a look at such topics as speculative bubbles, income trends, disposable income and income elasticity of demand.
A dedicated professor’s page, designed to be shown in the class session, allows for a full analysis of decisions in each of the steps. As well as seeing the tendency of the predictions for the whole class, the professor can highlight a specific student’s analysis and use this to encourage class discussion.
* This material will have personalized links for each student and the professor will have the ability to see individual and aggregate responses before and during the class session.Academic Area:Economic Environment & Public Affairs
Ethiopia: Life at the base of the pyramid EC1-132-I-M
This multimedia case tells the story of three groups of IE International MBA students who embarked on volunteer and research projects in Ethiopia. The first phase involved students staying and working in an NGO in Dilla whilst researching the three pillars of poverty: health nutrition and education. The second stage will look at the opportunities to do business in Ethiopia and the final phase plans to focus on attracting foreign investment to the country.
The students' experiences are brought to life through images and video interviews. The conclusion section for the first phase considers whether NGOs can solve the problems in Ethiopia and possible solutions to the poverty trap.Academic Area:Economic Environment & Public Affairs
Providing quality health care under budget constrain … EC1-131-I
Minister of Health Vicent Cremades finds himself faced with the daunting task of meeting rising health care needs with reduced funding from the government in Spain’s coastal autonomous community of Valencia. With a population of over five million with 17.5% aged over 65, hospitals were already at capacity and in need of improvements. Forced to find solutions, Cremades considers the private sector as a solution to provide part or all of the health care services needed. In this case, students will look into PPPs (Public-Private Partnerships) as a potential solution to this dilemma and decide which model would best suit the particular needs of the Valencian people.Academic Area:Economic Environment & Public Affairs
The Logistics of the Roman Grain Trade: Details and … AH1-002-I
Goes over the logistics of the Roman grain trade in a language that is accessible to the non-specialist. It explains how grain was transported across the Roman Empire and covers the challenges of doing this. It also explains who the key people were who played a role in the grain trade and how it was financed. It is intended to uncover many of the managerial difficulties implied in such a task back then and what it means for management nowadays.Academic Area:Organisational Behaviour | Economic Environment & Public Affairs | Operations & Supply Chain Management | Others
African Parks: An NGO in action saving Africa´s wild … EC1-127-I
This case focuses on one of the thorniest problems of the 21st century, which is how to save wilderness and ecosystems at a time when the countries where they are concentrated in are immersed in a rapid development process and resource hunger around the world is stronger than ever. The NGO that is analyzed in the case, a South African-based NGO called African Parks, has developed an innovative approach to preserving natural spaces and species that combines private, charitable finance and efficient private management with local government cooperation. African Parks now spans seven countries in sub-Saharan Africa and sees its task as preserving the iconic ecosystems of the continent from destruction. The case poses critical questions about: how to solve the “tragedy of the commons” while promoting local development; how private managers can address social issues, especially through the PPP (Public-Private Partnership) formula; and how the unique traits of NGOs make them ideal partners to tackle problems that the free market does not easily solve, in cooperation with governments and the private sector.Academic Area:Economic Environment & Public Affairs