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Case Studies by Martin Schlageter

2 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: 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

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