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Case Studies by Gourang Shah

5 case studies

by Publication Date
published: 29 Sep 2014

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

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Abstract:
One of the biggest challenges for multinational corporations (MNCs) is to determine and consolidate their borders. In order to do so, MNCs increasingly strive to create value innovation, particularly within their internal capital market. Accordingly, their corporate treasury functions have witnessed three stages of major evolution in the 21st century.

Pedagogical Objectives:
This case aims to provide an in-depth analysis of MNCs' treasury evolution based on Blue Ocean Strategy and the Coase theorem. In particular, we discuss how corporate treasury can help MNCs to consolidate their borders and how its different stages of evolution can result in either value creation or value innovation.

Keywords:
Blue Ocean, Corporate Treasury, Coase Theorem, Globalization, In-House Bank, Re-Invoicing, Internal Capital Market, Shadow Banking

published: 23 Jun 2014

  • Topic: Economics & Finance
  • Region: Asia

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Abstract:
China represents a significant share of global foreign direct investment but its currency comprises a mere 1.5% of all global foreign exchange transactions. This case describes the measures introduced by the Chinese government to promote the use of the renminbi (RMB) in cross-border trade, financing and other internationalization initiatives, as well as the associated challenges.

Pedagogical Objectives:
The case introduces and discusses: 1. Countries and currencies 2. China’s economic development and emergence on the global stage 3. Process and policies for the renminbi's internationalization 4. Key stakeholders and implications 5. Potential problems and challenges 6. 3 case scenarios involving the RMB

Keywords:
Renminbi, Currency, Treasury Globalization, Internationalization, Globalization, Monetary Policies, Economic Development, Cross-Border Finance, Corporate Governance, Corporate Governance for Family Firms

published: 25 Jun 2012

  • Topic: Economics & Finance
  • Industry: IT products and services
  • Region: Asia

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Abstract:
This case explains how Lenovo succeeded in achieving its goals of financial globalization. This was largely accomplished through the combination of its corporate treasury centre and a re-invoicing structure. Lenovo’s experience would be of special interest to both emerging market companies pursuing globalization strategies and multinational corporations interested in developing market businesses.

Pedagogical Objectives:
The case aims to help students to: 1. Understand the role of treasury operation in implementing Corporate Strategy 2. Obtain an overview of how financial globalization is necessary to achieve broader global strategies 3. Recognize the properties/challenges of implementing innovative treasury structures 4. Gain insights on types of companies which can benefit from similar financial practices

Keywords:
Liquidity, Corporate Treasury Operations, Cash Concentration Hub, Cash Pooling, Centralized Treasury, Re-Invoicing Center, Stages of Treasury Centralization, Treasury Platforms, Corporate Governance, Value Creation, Strategy and Implementation

published: 25 Jun 2012

  • Topic: Economics & Finance
  • Industry: Pharmaceutical, Diagnostic, Vitamin, Fine Chemical
  • Region: Europe

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Abstract:
Until 2002, Roche’s treasury activities were decentralized. Then a number of external factors resulted in the multinational company recording a loss of CHF5,192 million. Determined to build a more robust centralized treasury system, Roche conceptualized and implemented an in-house bank (IHB) coupled with cash pooling from its affiliates worldwide.

Pedagogical Objectives:
The case aims to help students to: 1. Understand the role of treasury operations in implementing corporate strategy 2. Obtain an overview of Corporate Treasury and the stages of centralization 3. Recognize the properties/limitations of combining outsourcing and centralization through an IHB 4. Understand the benefits of centralized treasury in a financial crisis

Keywords:
Liquidity, Corporate Treasury Operations, In-House Banks, Cash Pooling, Centralized Treasury, Payment Factory, Stages of Treasury Centralization, Treasury Platforms, Corporate Governance, Value Creation, Strategy and Implementation, European Competitiveness, Europe

published: 25 May 2011

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

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Abstract:
In 2002, Tyco International experienced a corporate crisis which put the conglomerate in danger of bankruptcy. The case follows how the company successfully tackled a short-term liquidity crisis as well as the steps taken to establish a global treasury management structure to position Tyco going forward.

Pedagogical Objectives:
This case allows students to learn and understand (i) the role and practice of corporate treasury (ii) the current trend for corporations to move from decentralised to centralised corporate treasury (iii) the regulatory environment of corporate treasury, and (iv) the importance of debt-maturity profile planning to avert a corporate liquidity crisis.

Keywords:
Tyco Conglomerate, Corporate Treasury, Centalised Corporate Treasury, Liquidity, Debt Maturity Profile, Convertible Debt, Crisis Restructuring, Regulations in Asia, Corporate Governance, Investors, Stakeholders and Accountability

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