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
The British connection:A ransom negotiation NG1-141-I
What is the best approach to negotiating the release of a person who has been kidnapped for ransom?
This case details the step-by-step process used by LondonX, a large British insurance company, to help families of individuals who have been taken hostage negotiate their safe release with their captors. It examines negotiation techniques used by both sides and can be used to analyze various issues including negotiation techniques, alignment of interests between the insurer and the family, advice to victims and families, and ethical issues in high-stakes negotiations.Academic Area:Others | Negotiation
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
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
ABB and Galindo: Winning the Peace (A) RH1-148-A-I
The complexity of restructuring of large companies can hardly ever be ignored. ABB & Galindo brings up the dilemma of Esther, Human Resources director at the factory, when she is faced with the transition of a factory into a service center. This meant either relocating, retraining or letting go most if not all of the current workers, with the additional complication that even after the official announcement the factory still had to run for another 18 months. This case also has a part B.Academic Area:Human Resources | Negotiation
ABB and Galindo: Winning the Peace (B) RH1-148-B-I
Part B of this case goes beyond the organizational problems of the restructuring described in part A, and addresses the personal situation, commitment and management of the emotions during the mentioned process. This part goes into details of how Esther decided to go above and beyond in many aspects to help resolve the personal situation of workers and managers alike with the best of all of their abilities.Academic Area:Human Resources | Negotiation
ABB & GALINDO: Stretching managerial responsibil … DE1-212-I
The case follows the implementation of ABB´s decision to restructure its operations in Spain and close the manufacturing line at its Galindo factory in the Basque Country. ABB was required to enter into formal negotiations with its workers towards a Labor Force Reduction Procedure (ERE). The workers at Galindo strongly objected to ABB´s restructuring proposals and were not placated by the company´s generous offers of compensation and employee retraining. The workers employed a number of strategies to derail the ERE including appealing to local politicians and engaging in public protests. After negotiations failed, a final decision was made to approve the ERE by the Ministry of Labor in Madrid.Academic Area:Strategy | Negotiation