Case studies

In early December 2013, Roxann Biller, Associate at the Chicago-based private equity firm Delta Quantitative Real Estate Capital, was asked to assess the risk associated with the firm's first potential overseas investment. Haifu Sentā Gendaino (HSG) was a large multi-tenant logistics property located in the Gaikando area of Tokyo. High-quality tenants currently occupied the property, so at first glance the risks of investing in the property seemed minimal. However, Biller knew that she had to consider the potential drawbacks. This would mean gaining a better understanding of each tenant, trying to forecast the future condition of the Tokyo logistics market, and considering what new risks her firm would face because the property's cash flows were in a foreign currency.

Roseda is a family-operated business that had its beginnings in a farm that Ed and his wife purchased before his retirement in 1994. The company’s current business strategy emphasizes producing high-quality natural Black Angus beef without using hormones, chemical additives or antibiotics in cattle feeding and by dry aging the carcasses for enhanced flavor. This case focuses on the alternative growth strategies that Ed Burchell confronts for Roseda in early 2015.

The founder of Roseda Beef and the lead author became acquainted many years ago. In 2014, the two owners of Roseda agreed to have a case written about the firm. The case is based on formal interviews, on site observations at Roseda Farms, and an extensive review of the documentation that exists on this privately held company. In addition, the company made some internal documents available including the income statements and balance sheets for this private company.

This course has been taught four times at the MBA level so far: twice in a strategic management course, and twice in a financial strategy course.

Roseda Beef was developed to provide students in a capstone strategy or finance course the opportunity to undertake a situational analysis including the firm’s summary financials and the rudimentary financial analysis of the expansion opportunities that are included in the case. The case is based on capital budgeting principles in finance and fundamentals of strategy development.

Read any news report on the housing market, and inevitably it will include facts or figures from the real estate data giant Zillow.com. The company initially set out to solve two key economic frictions in the real estate industry information asymmetry and the principal-agent problem by empowering users to access real-time housing data and eliminating the need for realtors. The company soon realized, however, that American homeowners and buyers were not willing to give up the traditional real estate agent model and changed course. In the end, Zillow decided to join rather than replace the middlemen in the real estate industry.

The Arbor City Community Foundation (ACCF) was a medium-sized endowment established in Illinois in the late 1970s through the hard work of several local families. The vision of the ACCF was to be a comprehensive center for philanthropy in the greater Arbor City region. ACCF had a fund balance (known collectively as “the fund”) of just under $240 million. The ACCF board of trustees had appointed a committee to oversee investment decisions relating to the foundation assets. The investment committee, under the guidance of the board, pursued an active risk-management policy for the fund. The committee members were primarily concerned with the volatility and distribution of portfolio returns. They relied on the value-at-risk (VaR) methodology as a measurement of the risk of both short- and mid-term investment losses. In its report for the investment committee, the ACCF risk analytics team recommended the daily VaR at 95% confidence as a measure for short-term risk and reported the corresponding numbers. It is now the task of the investment committee to interpret these figures. The case questions guide the executive students to a critical evaluation of both the reported VaR figures as well as of the VaR methodology.

Understanding the concept of value at risk (VaR); Interpreting the results of VaR calculations; Evaluating the appropriateness of VaR calculations; Critical discussion of the VaR methodology.

Describes the career transfer and development system at UPS, showing incentives and policies that move managers across countries and functions, and how this movement develops high quality general managers.

To demonstrate the way in which a cross-functional, cross-cultural career transfer program can break down silo and national barriers and achieve cost effective integration.

The managing director of a steel plant faces the decision of how much of each raw material to order for the plant for the following month. Due to lower and upper bounds on the amounts of each raw material in a batch and varying amounts of electricity and time consumed for different raw materials, one can't simply use the cheapest raw material. A linear program and the solver optimization function of Excel will provide the optimal amounts that meet the constraints. Interestingly, the best mixture for a batch is not the best mixture for a monthly plan. Shadow prices indicate the value of relaxing constraints. The typical monthly model from a student will be nonlinear, although it can be written as a linear model. This case provides the basis for an introductory class on linear programming and linear versus nonlinear models.

This case explores the decision of a fast-growing company to expand its distribution network. Financial information is provided in it so students can understand the basic distribution network design covering inbound transportation, outbound transportation, distribution-center operations, and inventory.