This online exercise describes the beginnings of the product-design process at a fictitious firm, PFG Bank (PFG). PFG has a variety of different products (12 versions of a credit card) and detailed information, summarized by a credit score, about several thousand potential customers. The question at hand is which product(s) should be offered through direct mail to which customers. PFG's answer (so
Effective, persuasive analytical writing is a critical management skill. This note trains students to write to the needs and expectations of their readers with objectivity and efficiency, whether they are writing memos, emails, research reports, technical briefings, position papers, or recommendations for action.
The Beer Game is a competitive supply chain simulation that improves on the learning outcomes of the classic Beer Game developed at MIT. Students still assume one of four supply chain positions, but in the second game, profile participants can have full visibility of the entire supply chain (information regarding inventory on hand, incoming shipments, and demand), and each member of the supply cha
The Strategist's Toolkit is designed for anyone needing to engage in any kind of strategic planning exercise: basic or advanced. Paired with case studies, the toolkit trains adherents to think strategically by developing a mechanized way to think through problems. With practice, readers will develop a seamless process for analyzing strategic problems and presenting coherent solutions. Arranged in
This case is used in Darden's FY Finance course, but it would be appropriate in any course introducing firm valuation. The case examines the 2012 decision by American Greetings (AG) to repurchase shares. Students can build a simple model of the company's future cash flows and derive an implied value. Because the company is arguably in a state of maturity or decline, a discussion of steady-state ec
As 2007 drew to a close, Panera Bread Company faced a new challenge. To date, it had relied on retained earnings and minor equity infusions to finance operations. But a decline in margins would limit future financing from internally generated funds. Complicating matters was the fact that its stock price was at a historic low and management was contemplating a large equity repurchase. This case can
This note provides an introduction to the standard approaches used to value businesses from the perspective of the investor (e.g., discounted cash flow, market multiples). Each approach is illustrated with a specific practical application. The note provides an in-depth example of discounted cash flow valuation of a firm including cash flow forecasting, terminal value estimation, and cost of capita