Mr. Toppo had just graduated from Indian Institute of
Management (IIM), Ahmadabad, and joined his
family's small business, which employs 25 semiskilled workers. After observing Toppo during the first
week on the job his father called him in and
said, "Toppo, I have had a chance to observe your
working with the men and women for the past two
days and although I hate to say something but I must.
You are just too nice to people. I know they taught
you human relations stuff at the IIM but it just does
not work here. I remember when the Hawthorne
Studies were first reported and everybody in the
academic field got all excited about them, but believe
me, there is more to managing people than just being
nice to them".
1; Do you think Toppo's father understood and
interpreted theHawthorne Studies correctly?
2; How would you react to your father's
comments if you were Toppo?
The case brings to the fore Microsoft's dividend policy.
Founded in 1975, the company declared cash dividends for
the first time in 2003 and continued its returns to the
shareholders both in the form of cash dividends and share
repurchases after that. In 2010, the company decided to raise
a debt in order to pay the dividends and to repurchase shares
while avoiding an adverse impact on its debt rating. The case
deals with the dividend behavior of Microsoft Corporation
and the fact that that it was not averse to taking a debt in
order to pay dividends despite having a huge cash surplus.
dividend and repurchase.
Understand the usage of cash after Profit after tax (PAT).
Understand the different ways of Repurchase of Shares.
Analyze which is the better way to ensure returns to a
shareholder - through cash dividends or repurchase of
shares, or both?
Discuss and debate the pros and cons of the dividend
policy in comparison to cash
On August 10, 2011, at the 24th Annual General
Meeting (AGM) of Mahindra Satyam, minority
shareholders opposed a proposal by Vineet
Nayyar, Chief Executive Officer, Mahindra
Satyam, and the management team to merge
Mahindra Satyam with Tech Mahindra.
However, Vineet Nayyar's proposal during the
AGM earned mixed reactions from many
observers. Initially, the minority shareholders of
Mahindra Satyam were apprehensive about the
timing of the merger with regards to the
unattractive valuations and the number of shares
they would receive in exchange for one Tech
Although, both companies had strong presence
globally, the companies had to resolve few other
problems before going for the merger.
Merger and acquisition and types of synergies.
Valuation of company.
Exchange ratio of the share
This case is about the "Get up to 100% Cash Back"
promotional offer announced by ICICI Bank, the largest
private sector bank in India, in October 2006. According to
this offer, a customer could get back cash ranging from a
minimum of 1% to a maximum of 100% of the transaction
amount for any purchase transaction of over Rs. 2,000
made on his/her ICICI Bank credit card.
This case will enable students to discuss the impact of the
"Get up to 100% Cash Back" offer on ICICI Bank's credit
card business. Students can also discuss the pros and cons
of the scheme from the consumer's perspective
Understand the impact of a cash back
promotional offer on the credit card issuer
Discuss the pros and cons of the cash back
scheme from the consumer's perspective
The case discusses the rise and fall of Lehman
Brothers Inc (Lehman Brothers) from a small
dry goods store to one of the leading investment
banks in the US. It examines in detail the
reasons that led to the subprime crisis since the
year 2007 in the US and how it led to the
collapse of 158 year old Lehman Brothers.
The case highlights the role of several stake
holders in the mortgage business that contributed
to the crisis. It examines the various factors that
contributed to the fall of Lehman Brothers
including leadership issues, excessive leverage,
failure of risk measures employed like 'Value at
Risk' and poor regulation of the investment
banking industry. It also explains the role of
certain OTC derivative instruments that led to
the collapse of the company.
Understand the reasons that led to the subprime crisis in the US
and its impact on financial institutions.
Analyze the aggressive strategies that Lehman Brothers
followed in the mortgage business.
Study the role of leadership at Lehman Brothers behind the
company's rise and subsequent collapse.
Appreciate the significance of risk management and the
drawbacks of excessive leverage.
The case study examines the massive 'Ponzi Scheme' run
by Allen Stanford (Allen), one time honored with the
'Sir' title by the Antigua government and ranked the
239th richest person in America by Forbes. Stanford was
famous for his philanthropy and luxurious life style
before he was caught by federal agents in February 2009
just a few weeks after an article published in
VenEconomy Monthly written by Alex Dalmady.
This article had raised, for the first time in 13 years
(1996-2009), some very basic questions about the
financials of Stanford International Bank (SIB), one of
the companies run by Stanford
Later, the Securities and Exchange Commission (SEC)
alleged in its complaint to the US District
Court for the Northern District of Texas, Dallas Division
that Stanford and his group had sold more than US$ 7.2
billion of self styled very high interest bearing
'Certificate of Deposits' (CDs) by touting that the bank
was safe and strong. The bank had continuously earned
double digit returns on its investment portfolio since
1992. However, experts raised questions on the
functionality of the SEC which had had some suspicions
about Stanford but did not take any serious action
against him and his companies before the scam broke out
Analyze how the scam was carried out
Analyze the impact of fraud on the economy of
Analyze the need for overhauling SEC
Understand the impact of fraud on investors'