Hbr Case Summary

In: Business and Management

Submitted By lookmeplease
Words 2159
Pages 9
Enterprise Risk Management at Hydro One (A)
An early adopter of Enterprise Risk Management, energy giant Hydro One anticipated new threats and opportunities in an industry that faced climate change and carbon legislation, the deregulation of electricity markets, and the greater adoption of renewable technologies. CEO Laura Formusa felt Hydro One's risk profile had shifted, to the extent that she had to ask herself -- was the strategy tenable? The case provides a rich description of Enterprise Risk Management in action, and shows how Hydro One executives arrive at a shared understanding of the risk profile of the company. In the narrative a diverse group of managers (the chief executive, the chief financial officer, the head of the public relations and the chief regulatory officer) voice their views on the risks, collectively bringing a multiple stakeholder perspective to the risk profile. The case challenges students to define the problems and risks that the company faces, given its strategic objectives, its evolving risk profile, and the changing environment. The case also offers a discussion ground for defining the role of the chief risk officer, and the relationship between risk management, strategic planning and capital budgeting.

Procomp Informatic: Stepping on Ethical Landmines in Asia
The collapse of Procomp Informatics Ltd, a major Taiwanese chipmaker, has been regarded by Taiwan's market watchdogs as similar to the scandal of the U.S. energy giant Enron in 2001. In June 2004, Procomp defaulted on a bond payment and structured for bankruptcy, despite a huge cash balance recorded in its books. It was discovered that the company's executives and its overseas sales agents had colluded in overstating sales revenue, manipulating stock prices, illegally leveraging assets, and arranging bonds through paper companies. The incident left thousands of company…...

Similar Documents

Fashion Channel Case Hbr

...Case Report-1: The Fashion Channel 1) What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios) Ad Revenue Calculator |   |   |   |   | |   | Current | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | TV HH | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | Average Rating | 1,0% | 1,0% | 1,2% | 0,8% | 1,2% | Average Viewers (Thousand) | 1100 | 1100 | 1320 | 880 | 1320 | Average CPM* | $2,00 | $2,00 | $1,80 | $3,50 | $2,50 | Average Revenue/Ad Minute** | $2.200 | $2.200 | $2.376 | $3.080 | $3.300 | Ad Minutes/Week | 2016 | 2016 | 2016 | 2016 | 2016 | Weeks/Year | 52 | 52 | 52 | 52 | 52 | Ad Revenue/Year | $230.630.400 | $230.630.400 | $249.080.832 | $322.882.560 | $345.945.600 | Incremental Programming Expense |   | $ - | $ - | $ 15.000.000 | $ 20.000.000 |   | 2006 Actual | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | Exhibit 5: Financials |   |   |   |   |   | Revenue |   |   |   |   |   | Ad Sales | $230.630.400 | $230.630.400 | $249.080.832 | $322.882.560 | $345.945.600 | Affiliate Fees | $80.000.000 | $81.600.000 | $81.600.000 | $81.600.000 | $81.600.000 | Total Revenue | $310.630.400 | $312.230.400 | $330.680.832 | $404.482.560 | $427.545.600 |   |   |   |   |   |   | Expenses |   |   |   |   |   | Cost of Operations |......

Words: 1027 - Pages: 5

Taco Bell - Hbr Case

...  I ntroduction The given case deals with the growth of a well-known chain of restaurant named Taco Bell over a period of time. During the given period the restaurant’s sales doubled and profits tripled. This was the result of a series of changes made by the management in the functioning of the restaurant. How Taco Bell Evolved PRODUCTION AND PROCESS The company, with the advent of the modern era, keeping in mind the convenience of the customers increased its POA (point of access) and re-engineered its Multilevel Management system to Team-Managed Units. The earlier system was a “commanded and controlled” organizational structure which was changed to a structure that empowered its frontline employees. This induced a sense of ownership amongst the employees and was also in line with the concept of job rotation. Thus, the work load on the Managers and the General Manager considerably reduced and they got a chance to take up other pending yet urgent responsibilities and instead of being the command and control center, they became coaches and trainers. Each crew member was trained on functions of product assembly and delivery, cash registers, dining room attendance, labor scheduling, food ordering, interviewing etc. The time limit for obtaining basic proficiency was 60 days. Amongst the crew members a team leader was selected whose performance was higher than the rest. The job of team leader was to assign work on the basis of “aces in their places” which says that...

Words: 612 - Pages: 3

Case Summary

...Dawei Chen Case Summary- Confucius, Machiavelli, and Rousseau According to the Case context, we can find out many ideas about leadership. First, from the great Chinese ancient philosopher-Confucius that we can learn that a phenomenal leader needs to love people and use virtue to rule a society. The ultimate goal for a leader is to fulfill everyone’s demand. In order to achieve this goal; a leader must be a sage or at least a very wise man to set up a very extraordinary example for others to learn. However, this opinion has a very obvious flaw that people cannot be as good as he think and most people are selfish that this kind of leadership is not going to be successful. Second, From the Machiavelli, we can acquire the idea which is almost opposite from Confucius, in his eyes, people has variable characters and most people are wicked. They are selfish and the only way to rule them is to treat them like objects. To achieve this goal, most leaders need to use the power of government and use many different strategies to control his followers such as military forces and spies. The core of his theory is to make fear in people’s mind and use this fear to set up the leadership and leaders can observe other leaders to make this happen. Third, case describes the great thinker in revolution era- Rousseau. He established the basic ideas of democracy. The core idea of his “The Social Contract “is to gather the “general will” and make the general will into a contract that is the...

Words: 657 - Pages: 3

Hbr L.L.Bean Case Study

...forecasted demand and the actual demand to discover any possible trends. Additionally, he needs the data for the whole industry and the demand for when they offer similar products. For example, Scott Sklar would need the data from when the competitors released the similar item to expect the demand for that new item. The data from L.L. Bean and it’s competitors will help Scott to have an idea of what the demand will be and how to react upon the change. Moreover, Scott would need to do profit margin analysis and liquidation value of the item to calculate the overstocking and understocking costs. 4. How would you address Mark Fasold’s concern that the number of items purchased usually exceeds the number forecast? I think the example in the case study would help in this situation. Let us say that the profit margin on an item is $15, which is the understocking cost. The overstocking cost, which we calculate by subtracting the liquidation value from the cost of item, is $5. If the forecasted demand is 1,000 items and they order 1,300, the cost of making $4,500 is greater than the risk of losing $1,500 on the additional items bought. Consequently, it costs less for L.L. Bean to liquidate an item. 5. What should L.L. Bean do to improve its forecasting process? L.L. Bean should hire someone who can just analyze the demand because Scott Sklar does not seem to suit well for forecasting demand. However, forecasting is a huge issue within the company because L.L. Bean’s lead......

Words: 648 - Pages: 3

Case Summary

...claims and judicial resolution of legal cases. Your ability to achieve these objectives will be evaluated by your performance on the case briefs, class discussions, and an excruciatingly final examination. TEXTBOOK: The textbook is Cheeseman, Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues, 8th ed. (ISBN 978-0-13-289041-0). COURSE ASSIGNMENTS: (1) You must turn in a case brief (i.e., a one-page “executive summary”) each week from Meeting #2 through Meeting #14, inclusive; (2) Lead (when designated by instructor) and participate in weekly class discussions of the cases; and (3) Take an excruciatingly difficult final exam. Each brief must be done in the style and format described at pp. 5-9, below, with the following modifications: a brief may not exceed 1 page, with one-inch margins all the way around, at least 1.5 spacing, and at least 10-point font. To earn an “A,” logic, clarity, cogency, and interest must be evident. An “A” paper must be neatly typed, with virtually no errors in grammar, spelling, and style. A “B” paper will be well-written but will lack the “spark” of an “A” paper and may contain errors. A “C” paper will contain errors and be poorly written and/or organized. Lower grades are awarded for sub-standard papers. Late papers will be penalized according to the following formula: [(awarded points)(.97n)], where “n” = number of days late. You may work together to analyze and brief the cases, but each brief must be......

Words: 1642 - Pages: 7

Hbr Case Study

...EXPERIENCE HBR.ORG Case Study A theme park operator considers whether the boost in ticket sales is worth the trouble. by Marco Bertini, Luc Wathieu, Betsy Page Sigman, and Michael I. Norton The Experts Gideon Lask is the founder of BuyaPowa, a UK-based social commerce business. Do Social Deal Sites Really Work? T he sales reps from DailyDilly had just finished their rollicking video presentation, and the laughter in the meeting room was starting to subside. Ruth Davison, the marketing director of Flanagan Theme Parks, was still smiling when she finally spoke. “I’m thoroughly impressed,” she said. “This would give us the marketing capabilities we’ve always wanted.” Will Eastman, Flanagan’s operations director, was beaming. He had suggested doing the promotion with DailyDilly, a fast-growing Australian social-couponing company similar to Groupon and LivingSocial. “Then I think we’re ready to make a decision,” he said. Everyone looked at Allie James, a consultant decades younger than Will and Ruth. Allie had been working with Flanagan for just over a month. She knew she had to kill the DailyDilly initiative but was reluctant to do it with the reps present. “Let’s discuss this off-line,” she said. Will slapped the table. “Come on,” he demanded. “We’re here now.” The DailyDilly reps became wide-eyed. Allie took a deep breath. If Will was going to push her, she’d be blunt. “No, then,” Allie said. “It’s not on.” Will pushed his chair back and walked out of the room...

Words: 3455 - Pages: 14

Jdcw Hbr Case Study

...John Deere Component Works (A) A.1. How did the competitive environment change for the John Deere Component Works between the 1970's and the 1980's? What information must management accounting systems provide to support effective decision-making in these different environments? The change in the competitive environment greatly influenced JDCW. The early 70s were the end of the post WWII boom period, during which time JDCW was expanding its operations and operating many of its manufacturing plants at capacity. However, there were multiple economic factors in the early 80s that negatively affected the demand for JDCW products. The effect of these economic factors is evidenced in the case study by the fact that during the 1970s JDCW’s operations and equipment had been arranged to support tractor production of 150 units per day and by the mid-1980s, JDCW was producing parts for less than half of that number. One of the reasons for this negative demand shock was the collapse of farmland values and commodity prices. This left farmers with little capital through which they could purchase farming equipment. The collapse of land values had two effects. First, it caused the demand for JDCW equipment to shrink because farmers were no longer aggressively expanding. Secondly, the foreclosure of farms led to an increased supply of repossessed equipment that further reduced the market demand for JDCW’s new equipment. Additionally during this time, the high dollar value reduced...

Words: 1604 - Pages: 7

Netflix Case Study Hbr

...At the time of the case I would have been short on Blockbuster. The primary reason for this is that Netflix had entered a market seemingly dominated by Blockbuster and by employing a differentiation strategy and innovating, they were able identify a market that that no one had thought previously existed. During the time of the case, Blockbuster seemed like it was in still the growth stage but was also clearly approaching maturity in the industry life cycle. Once a firm reaches maturity and doesn’t pursue some type of incremental innovation strategy, the most likely next step is decline. On the other hand, Netflix was in the introduction phase of its industry lifecycle, having created a mail-order rental business with several differentiating aspects from a regular brick and mortar video rental chain. The fact that Blockbuster was slow to acknowledge Netflix as a potential threat at first and subsequently trying to imitate their business model speaks to the fact that they were desperately trying to “catch-up” and being reactive instead of innovating proactively. A clear example of this was one of Netflix’s hallmarks, the non-existence of late fees. When Blockbuster tried to imitate this feature, it did not have the intended consequences. Instead of increasing company performance through increased subscriptions, it resulted in tremendous financial losses for the firm. Also, as soon as the technology for video on demand systems began to appear, observers claimed that it would......

Words: 314 - Pages: 2

Samsung Hbr Case

...SMARTPHONE INDUSTRY IN 2013: SAMSUNG’S DILEMMA1 Mehdi Hossein-Nejad wrote this case under the supervision of Professor W. Glenn Rowe solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-06-18 In April 2014, Samsung released its new high-tech flagship phone, the Galaxy S5. The new Android phone came after another successful year for the company. After becoming the leading global mobile phone manufacturer in 2012, 2 Samsung had maintained that lead in 2013 and sold more phones than rivals such as Nokia and Apple. Samsung was also a major player in the increasingly popular tablet computer market. The success of the Galaxy S3 and S4 had created a lot of expectations for the S5 device, but both Samsung and industry...

Words: 9646 - Pages: 39

Hbr Romeo Case Memo

...quality, productivity, and scrap. The biggest difference in the two plants is their reporting system. REP believes that the trend of actual costs is the best indicator for what they are trying to accomplish, thus explaining why they allow each team to operate as an autonomous business unit under the supervision of senior management. At REP, cost is a result of all other actions performed at the plant, but it is not the driver. In a traditionally organized plant, like Peoria, management focuses on the variance percentage, or the percent deviation of actual cost from budgeted costs. The problem with this is that people begin to focus on avoiding unfavorable variances and they can do this by either reducing costs, or increasing budgets. In the case of Peoria, the demanding improvement factors and lack of investment capital in a mature product line will lead to supervisors lobbying for increased budgets to generate favorable variances which leads to excuses being made for increased costs. Thus, the focus of management has shifted away from decreasing costs to explaining why costs are increasing. REP’s TQM implementation appears to be a phenomenal way of reducing costs through supervisor empowerment. In order to better evaluate the effectiveness of this system I would need to examine their financial statements. The only improvement that I would suggest would be to add a course that educates team members on the financial aspects of their budgeting system, this is the only......

Words: 940 - Pages: 4

Hbr Sterling Case

...Sterling Household Products Company Case Note Adapted from Harvard Business School Sterling Household Products Company (Sterling) is a comprehensive investment analysis case that requires students to consider a broad range of quantitative and qualitative issues in evaluating a significant strategic acquisition. Suggested Questions and Analyses: 1) Determine the risk associated with the proposed acquisition of the germicidal, sanitation, and antiseptic products unit of Montagne Medical Instruments Company (Montagne). Discuss the inputs and assumptions that underlie your calculations. a) What is the cost of equity capital appropriate for evaluating the free cash flows associated with this investment? b) What is the correct capital structure and weighted average cost of capital to use in discounting the investment’s free cash flows? 2) Determine the value of the base case acquisition opportunity. Discuss the inputs and assumptions that underlie your calculations. b) What are the amounts and timing of the investment’s free cash flows from 2013 through 2022? b) What is the terminal value of the final 10 years of the acquisition, as of 2022? c) What is the net present value of this base investment? 3) Determine the value of the follow-up expansion investment opportunity. Discuss the inputs and assumptions that underlie your calculations. c) What are the amounts and timing of the expansion investment’s free cash flows from......

Words: 404 - Pages: 2

Emerson Electric Hbr Case

...Heidi Heckel Prof. Boschen International Finance: Emerson Electric Company Case Write up September 14, 2015 Emerson Electric does the majority of its business in the United States, however foreign sales are growing as a direct result of a new strategy that focuses on offshore production rather than export. It increased its offshore plants from 50 in 1981 to 82 1986 and has seven subsidiaries in Switzerland and one in New Zealand. Emerson’s total foreign assets almost doubled since 1984 and net assets have risen 70%. It also has 200 million in Eurodollar notes outstanding, while concurrently, the dollar started to weaken against other world currencies. Emerson did partially hedge against the exposure created by it’s 7.875 Eurodollar note due in 1998 by acquiring other currencies that, grouped together, had an interest rate of 5.86%. This helped to offset their cost of debt. Emerson needs to raise capital and therefore plans on issuing 65 million in new debt in the spring of 1987. Emerson has three potential opportunities to consider and it must choose wisely. The three possibilities are issuing a domestic bond, a Swiss Eurobond or a New Zealand Eurobond. The economies of these three countries are very different. As stated earlier, it is anticipated that the US dollar will loose some of its value compared to other foreign currencies. If we also look at analyzing the US Treasury Bill against the inflation rate, we can see that the difference is hovering in a positive......

Words: 618 - Pages: 3

Nissal-Renault Hbr Case

...Europe. Nissan was known for their engineering, but was a company on the verge of collapse. Where one company lacked the other flourished and this proved to be beneficial to both. Renault-Nissan had created several different functional teams within Nissan to maximize synergy. These teams covered different departments, management levels and regions for both companies and were meant to ensure that the alliance would be managed strategically.Once allied with Renault, Nissan’s once poor financial performance and debt dramatically decreased, and Nissan’s profits totaled 47% of Renault’s profit for 2001. World market share rocketed at more than 9.2%, placing Renault-Nissan in the top five automakers in the world. 2) Based on your study of this case, what would you say about the meaning of an alliance? An alliance is like a marriage. It is not a one man show but a give and take kind of partnership. Two partners must make continuous efforts to keep a marriage productive and happy. The staff at both Renault and Nissan worked as equals with feelings of mutual respect and company pride while maintaining separate brand and corporate identities. “We were called the marriage of the poor” stated a Nissan executive, referring to Nissan’s financial state when entering the alliance. The contributions and benefits between the two were not balanced but were complimentary. 3) Discuss the role of Mr. Carlos Ghosn. There were many contributions Carlos Ghosn, the president and CEO of......

Words: 519 - Pages: 3

Case Summary

...aExecutive Summary The case gives an idea about how the competition influenced Jollibee's strategy, both domestic and international. Jollibee ,which was a Filipino chain of restaurants, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company .The company faced serious challenges with their international exposure. The challenges included the conflicts with franchisees/Joint venture and conflicts between divisions. Another issue that the company faced was the entry into Papa New Guinea, United States of America and expansion plans in Hong Kong. The company has to consider the financial instability it faces while considering their plans. In the analysis we have tried to cover the effectiveness of strategies adopted by Mr Tony Kitchner (Former International Division head). This case analysis report deals with, firstly the key management challenges faced by the company, followed by some supporting arguments. In the management issues, the report focuses into the conflicting areas or the need to establish a greater cooperation and coordination between the Domestic and International divisions. Then, the recommendations regarding what should the company do differently in each of its department like in Marketing, HR, Finance or Operations, to succeed in its plans of global expansion. Finally, the feasibility of the three decisions that the new management has taken is also discussed. We have also tried...

Words: 6626 - Pages: 27

Subprime Meltdown Hbr Case

...advantage of this when it had initially started and are still happily in their own home, however, I know almost as many that got a 5-yr ARM loan about 5 years ago that have now lost their home. One of the things I feel could have been done differently to avoid this would have been to introduce some sort of regulation of the subprime loans; maybe place a limit to how much of your loans can be in it. I know the chances of this happening would have been very small because we live in America and everyone has the right to make money how they see fit. I also realize that the case mentions there was no precise dividing line so it was difficult to measure the fraction. However, I believe that if effort had been put forth, regulations could have easily been established. There was too much faith by the people, by the government in the fact that the market will govern itself, and unfortunately, that was not the case. We cannot believe that corporations will work for the common good, WorldCom and Enron taught us that. For the most part, everyone acted like the housing boom would last forever; that nothing could happen to make house values fall. And lenders used that notion to further drive their subprime market, because even if the borrower defaulted on their loan it did not matter since housing prices were growing at an alarming rate. They felt that either way they could make a profit; either through the interest on the loan or through the 12% increase in house value that was around......

Words: 1446 - Pages: 6