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Case Studies by Claudia Zeisberger

29 case studies

by Publication Date
published: 28 Jun 2010

  • Topic: Economics & Finance
  • Industry: Industry and Finance
  • Region: Global

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Abstract:
Attempting to classify, rank and understand the different types of risk we face in our businesses, investments and in day to day life is not easy. Degrees of magnitude are difficult to sort if outcomes are non-linear, subject to crowd valuation and part of complex systems. We need a broad framework to understand risk and a roadmap to guide us when we get lost.

Pedagogical Objectives:
It is safe to assume that all MBA students will face risk management responsibilities at one point in their career. Every decision involving growth and the pursuit of a better life (for yourself or others) involves risk. The broad framework of risk presented here, with four major classifications, will not only help with case studies in class, but also offer guidance for future risk management challenges.

Keywords:
Risk Management, Resilience and Redundancy, Risk Management Tools, Types of Risk, Four Quadrants, Coconut Uncertainty, Complexity, Fat Tails, Corporate Governance, Auditing, Risk Control and Performance

published: 25 May 2010

  • Topic: Entrepreneurship
  • Region: Global

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Abstract:
Ever since author Nassim Taleb introduced Black Swans into our lexicon and after the devastating financial events of 2007 and 2008 supported his thesis, Corporate Risk Departments, Hedge Funds and Individuals have been searching far and wide in a Don Quixote-esque hunt for the elusive bird. But most Black Swans are just Dirty White ones. They catch us by surprise, but shouldn’t. This is due to our human bias to dismiss obvious evidence, restrict historic observation to our personal set of life experiences and refrain from hedging an identified risk believing that it probably won’t occur. This article defines six simple techniques that can help protect your business from Black Swans, from an extreme event that might take you out of business.

Pedagogical Objectives:
The purpose is to set the scene for a risk management discussion that goes beyond the off-hand excuse from risk managers when they point to "unexpected events" . Students will realise that most of what we call Black Swans, unpredictable events with massive consequences, are in reality just Dirty White Swans; entirely plausible and hedgeable events if you study history, perform basic due diligence, employ value-based hedging and listen to those highlighting dangers.

Keywords:
Risk Management, Black Swans/ Fat Tails, Eccentric, Extreme Events, Business Continuity, Value-Based Risk Management, Calling a Spade a Spade, Hedging

published: 25 Jan 2010

  • Topic: Economics & Finance
  • Industry: Alcoholic Beverages
  • Region: Asia

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Abstract:
The case outlines the investment details regarding Gem India Advisors equity investment in Sula Wines. After winning a 19% marketshare in the Indian Wine market in less than four years, Sula Wines is looking for additional investment to expand its business. The case descibes the opportunities, risks and assumptions associated with the investment.

Pedagogical Objectives:
The case is designed to walk students through the valuation and deal structure of a growth capital investment, using the Sula Wines example. Key topics covered are valuation using DCF and comparables, deal structure, assumptions and post-investment growth initiatives.

Keywords:
Wines, Alcoholic Beverages, Venture Capital, India, Private Equity, Adec, Gpei, Gpei-Case

published: 18 Dec 2009

  • Topic: Economics & Finance
  • Industry: Venture Capital, Telecommunications
  • Region: Europe

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Abstract:
Bredbandsbolaget is a broadband provider that started in the midst of the dot-com bubble in the late 90s. With very high capital expenditure requirements and having struggled to meet its business plan objectives in previous years, its majority investors are now faced with the dilemma of whether to extend further funding, and, if so, how to circumvent anti-dilution provisions that lie in the way of diluting co-investors that can not match them pro-rata.

Pedagogical Objectives:
The case presents a late stage, multi-round venture investment and the accompanying opportunities and problems that shareholder turbulence can engender. The objective is to provide a basic understanding of the problems, questions and deliverables typical in a multi-round VC investment by posing questions at a medium-to-high level of difficulty. Key learnings include: - Investment attractiveness and risk assessment - Portfolio fit and the investment horizon - Investment valuation based on DCF and comparable multiples - Term sheet structuring and anti-dilution provisioning

Keywords:
Venture Capital, Investor Growth Capital, Late Stage Investing, Exit Strategy, Bredbandsbolaget, Term Sheet, Anti Dilution Provisions, Valuation, Broadband, Add-On Acquisition, Acquisition Synergies, Opportunity Cost of Investment, Minority Shareholder Issues, Pro-Rata, Ntl, Gpei, Gpei-Case

published: 18 Dec 2009

  • Topic: Economics & Finance
  • Industry: Venture Capital, Utilities
  • Region: Europe

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Abstract:
Direct Energie is a highly successful start-up in the French electricity distribution industry, providing electricity to SMEs. Due to its rapid expansion, the company is looking to raise additional funds, weighing its options whether to do so simply in France or also in the UK. NBGI Ventures, which has a chance to make such an investment, now needs to assess the opportunities and risks involved, and from this formulate a term sheet and a valuation to present to Direct Energie.

Pedagogical Objectives:
The case frames the venture investment opportunity and the accompanying items - term sheet and PPM - as presented to the VC fund. The objective is to provide a basic understanding of the problems, questions and deliverables typical in a VC investment. It can be used for self study and in-class teaching. By putting the student in the VC?s position and making references to term sheet vocabulary and structure, students can proceed at a pace and depth they are comfortable with. If used for self study, the solution material (TN) should be made available to students.

Keywords:
Venture Capital, Nbgi Ventures, Early Stage Investing, Exit Strategy, Direct Energie, Term Sheet, Electricity Provider, Valuation, Edf, Oil Price Sensitivity, Electricity Spot Prices, Benefit of International Investor, Negotiations with Founders, Pro-Rata, Gpei, Gpei-Case

published: 30 Nov 2009

  • Topic: Entrepreneurship
  • Industry: Private Equity
  • Region: Asia

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Abstract:
This case examines issues faced in closing a first-time private equity fund, including determining the size of the fund to raise, integrating principals who have never worked together, and marketing a first-time fund to potential limited partners.

Pedagogical Objectives:
This case aims to introduce participants to the following issues: different approaches when calculating desired total private equity investment fund size; team building for a first-time fund; securing an anchor investor; marketing the fund to subsequent investors; and achieving the first and subsequent closes for the fund.

Keywords:
Private Equity, Fundraising, General Partner, Limited Partner, Evolvence, Life Sciences, India, Growth Investing, Adec, Gpei, Gpei-Case

published: 15 Sep 2009

  • Topic: Entrepreneurship
  • Industry: Turnaround in Transportation/ Railways
  • Region: Asia

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Abstract:
The case describes the transformation of Indian Railways, the world's largest employer with over 1.4 million employees, from near-bankruptcy to a profitable and viable business. We follow Sudhir Kumar, Officer on Special Duty to the Minister of Railways, as he deals with the various constituencies in this highly successful turnaround of a government-run institution.

Pedagogical Objectives:
- Highlight the importance of managing stakeholders in a turnaround process - Delivering results in a highly political environment

Keywords:
Turnaround and Transformation in Corporations, Negotiating with Stakeholders, Managing Stakeholders in a Turnaround Situation, Financial Distress, Gpei, Gpei-Case

Related:

published: 30 Jun 2009

  • Topic: Strategy
  • Industry: Banking & Financial Services
  • Region: Global

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Abstract:
The case is set in the financial services industry during the financial crisis of 2008/09 and discusses issues when deciding on "fair" compensation packages for both senior management as well as risk managers. How can banks justify multimillion dollar bonuses to top management, when the institution is showing a loss/accepting government money to survive? Can compensation packages be competitive and please both employees and shareholders at different stages of the cycle? The case highlights the industry's soul-searching and attempts to appease an outraged public and manage possible future stress situations better.

Pedagogical Objectives:
- Set the stage to discuss compensation practices within the financial industry. - Understanding the risks (and un-intended consequences) when designing compensation packages to encourage/discourage risk taking. - Highlight the issues when trying to satisfy different stakeholders within listed companies.

Keywords:
Risk Management, Bonus and Incentive Payments, Best Practices in Compensation Packages, Incentivizing Employees, Aligning Shareholder Value with Company Interests, Regulatory Involvement in Banks, Incentivizing Risk Managers, Corporate Governance, Board Process and Remuneration at the Top

published: 30 Apr 2009

  • Topic: Entrepreneurship
  • Industry: Private Equity
  • Region: Global

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Abstract:
The case describes the issues arising in Private Equity Partnerships once multiple funds have been raised and are being managed by the same set of partners. In addition, one LP is in financial distress and has asked to be given preferential treatment.

Pedagogical Objectives:
- Understand the importance of a professional relationship between LPs and GPs in a Private Equity partnership - Discuss possible solutions GPs can offer to LPsin financial difficulties - Satisfy LP expectations with regards to the time allocation of GPs to individual funds raised

Keywords:
Private Equity, Gp Lp Relationship, Lp Default, Financial Distress, Term Sheets, Gpei, Gpei-Case

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