Heinz: Warren Buffett´s bid for the Ketchup giant DF1-225-I-M
In 2013, 3G and Berkshire Hathaway acquired the Heinz group in a multi-billion dollar deal. But how much did they pay? And how did Warren Buffett, one of the richest people on the planet, even know what was a reasonable amount to offer?
In this interactive case study, students assume the role of finance managers advising Mr. Buffett. Through video animations and Excel spreadsheets, they will need to make forecasts and ultimately predict a reasonable price for the acquisition of H. J. Heinz Company.Academic Area:Finance
Innovation at play: Gold certificate financing by Am … DF1-226-I
Mariam Fatima has recently joined Amana Bank as a member of the New Product Initiatives Division. Seeing the need for a Shariah-compliant pawn service (Qard Hasan) in Sri Lanka, Fatima presents this product gap to her team. During two years, she and her team develop a pawn service that complies with Islamic banking principles - finally offering lower-middle-class individuals the opportunity to borrow money more securely.Academic Area:Finance | Innovation
Jordan's Sovereign Sukuk: A dual solution to bo … DF1-221-I
The Sukuk sector is the fastest growing sector of the Islamic Finance Industry. Indeed, it grew by 14% within just one year (between 2014 and 2015). The total outstanding Sukuk globally stood at US$ 342 billion at the end of 2015. Sukuk has been widely embraced globally as Sovereign Sukuk has been issued by various countries such as UK, Malaysia, Hong-Kong and South Africa. Supranational entities such as World Bank affiliates International Finance Facility for Immunization (IFFI), the Islamic Development Bank Group and even companies such as Dubai Islamic Bank, Goldman Sachs and Zorly Energy have all issued Sukuk.
The Jordan Sovereign Sukuk transaction was the pioneer Sovereign Sukuk issuance by the country. Jordan, which is one of ICD’s member countries, has been very active for the past couple of years in terms of Islamic Finance regulations and framework given that it has four Islamic banks in operation in Jordan and passed the Islamic Finance Sukuk Law in 2012.Academic Area:Finance | Innovation
General Hospital Coronary Unit DO1-157-I
This case begins by telling about what happened to a woman named Carmen when she thought she may have been having a heart attack so she called 911. After answering a number of questions, the operator transferred her call to a doctor. She had to explain her situation again and answer even more questions. Then the ambulance came, where she answered the same questions again. Next, she went to the emergency room where a different doctor asked her the same questions, some tests were done and then told her she needed an X-ray. Unfortunately, after waiting two more hours, she was told that she the tests needed to be redone because the doctor hadn’t signed the authorization for the first ones. She finally got the results and although everything was normal, she still had to be admitted for further tests. Due to a shortage of beds, she had to be moved to another hospital (General Hospital). But she still did not get a bedroom and had to go through the process of answering the same questions for a doctor and nurse again…
Lopez Vega, a cardiac surgeon at General Hospital, and his colleagues agreed that the way patients were handled needed to be changed. In order to make improvements, they did a failure mode effect analysis in order to expose recurring errors and inefficiencies. At the end of the case, readers are asked to analyze the hospital service chain problems they saw in Carmen’s story and the process flow diagrams with the associated failure models. Then they are asked how they would apply the recommendations to eliminate or reduce the root causes of process failure.Academic Area:Operations & Supply Chain Management
Communicating intangibles during a process of change … DF1-219-I
At a time when public opinion of the financial sector was low at best, "la Caixa", a Catalonian bank founded in 1904, found itself in need of a transformation from a savings bank into a banking foundation. In order to communicate this transformation, "la Caixa" would need to convey that while the transformation would entail numerous changes in terms of its legal framework and corporate structure, it would still maintain the values and identity that identified it from its inception.Academic Area:Finance
J. Rutz. Developing a Strategic Continuous Improveme … DO1-156-I
The case study describes the experience of Javier Rutz as operations director and later as general manager of NERTUS, a leading company in the sector of railway maintenance services in Spain.
The company was founded by Spanish rail operator Renfe and Siemens, a leading train manufacturing company, to provide maintenance services for Siemens’ trains. From the beginning, NERTUS stands out for the high quality of its services and its great capacity for continuous improvement.
Shortly after its Foundation, Javier Rutz joined the company, first as director of operations and later as general manager. During this period, the philosophy of continuous improvement reached its maximum splendor.
After concluding a highly successful professional stage, Javier Rutz leaves the company and asks himself which is the best way to exploit his experience for his professional future: should he continue as a senior executive in another company or undertake a different challenge through his own company to provide consulting services that offer “the design and implementation of management models based on continuous improvement, with a strategic perspective?”
Aims to identify what are the key strategic and organizational elements that allow the successful implementation of a continuous improvement methodology. These strategic and organizational variables, such as customer orientation, company culture, leadership, transparency of information, etc., are shown throughout the case in a general way and in some examples presented by J. Rutz on NERTUS.Academic Area:Operations & Supply Chain Management
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 | Finance
Iberian Lifts, S.A. DO1-155-I
Iberian Lifts is a manufacturer of elevators, which is experiencing a serious financial crisis. The shareholders—the founder’s sons—are selling their shares for a nominal €1 to their main supplier Nomo Electronics. The new owner of the company, Alberto Nogales, has appointed Lucas Alemany as managing director of Iberian Lifts. Up until this time, Alemany has been director of operations at Nomo Electronics.
The morning after signing the share purchase agreement, Nogales is visiting the plant. During his tour of the factory, an incident involving two workers occurs which leads to their dismissal without any warning. The manager of that section is also fired for not carrying out orders.
In the afternoon, Nogales leaves the factory to return to Nomo Electronics’ offices, situated in another city. Alemany remains as the top executive and is unsure about what will happen the following day with the union representatives regarding the dismissal of three colleagues. He is not sure if Nogales’s actions will increase the social tension in the factory even more, or, on the contrary, if it will facilitate the management of the changes to be made.
This case is very well suited as a first approach to the case method for students, especially given its short and concise format.Academic Area:Operations & Supply Chain Management
Tradition-based innovation for strategic Change in B … DF1-216-I
In 1993 Bank Muscat was among the smallest banks in the Sultanate of Oman but over the last decade has grown to be the largest with a 40% market share in 2013. This increase in terms of market relevance has been driven by both organic growth and external factors. In 2014 Franco Álvarez a foreign consultant is trying to help Bank Muscat build a comprehensive innovation model. His first step is focused on understanding the current state of innovation within the bank. The ´Ibda (Innovation) competition organized by the bank offers him a first glance of how internal innovation could be fostered in the bank.
The case provides insight into the innovation process in the Middle Eastern financial sector, focusing on Bank Muscat in Oman. It describes how an international consultant tries to help create an innovative model for the bank by asking top management questions and delving into the bank’s strategy. Through the questions he asks, readers learn about the history of the bank, the business culture and banking industry in Oman and Islamic banking. They also hear about an Ibda competition that ends up being a big inspiration for innovation at the bank.Academic Area:Finance | Innovation