Professional Documents
Culture Documents
Accounting: Accounting For Bitcoin at Tesla
Accounting: Accounting For Bitcoin at Tesla
Accounting
Accounting for Bitcoin at Tesla - New!
In February of 2021, Tesla revealed that it had purchased $1.5 billion of Bitcoin, totaling
7.5% of the company's cash. This announcement came after a series of cryptocurrency-
related tweets from Elon Musk, the company's CEO, and a surge in cryptocurrency values.
The announcement was met with mixed reactions by stock investors and market
participants. This case centers around the accounting treatment of Bitcoin at Tesla: what
does the company's choice of accounting treatment say about Bitcoin as an asset, and
what are its implications for Tesla's profitability measures under the Generally Accepted
Accounting Principles? The case also raises questions about whether investing in Bitcoin is
consistent with the company's strategy, and whether Musks' public communications
constitute a form of market manipulation.
The four founders need to determine whether they would infuse their own equity and grow
the business or sell the business plan and existing contracts to Hulin Partners. To decide
what to do, the team first needed to understand the current business environment, evaluate
the product and marketing strategy, and project the new venture’s financial performance for
the first three years of operations.
Entrepreneurship
BauZentral: Compensation and Governance in the Family
Firm - New!
In 2017, the chief executive officer (CEO) and chief financial officer (CFO) of Swiss-based
BauZentral, a privately owned family business, faced a restructuring challenge. BauZentral
produced and sold electrical systems, plumbing systems, and smart security and energy
solutions. In 2014, when the current CEO took over from his father, the company needed to
address the growth associated with its successful international acquisition strategy.
However, the firm’s historical structure maintained tight family control, which needed to
change to address the realities of the international expansion. The CEO and CFO
recognized that the firm had too many different regions with different market conditions,
products, and competitive environments to be effectively run from the head office. The CEO
and CFO planned to use the family constitution and the firm’s financial targets as criteria to
devise a governance system to align the interests of management with the interests of the
family owners. Their aim was to restructure the organization to achieve the firm’s goal of
becoming a global supplier while also respecting the family’s values. What type of new
governance and compensation structure should they design for the firm?
Madeline-Coho has been doing research for her potential business and has some
decisions to make, such as what services to offer these dogs and what to charge for them,
and if and when she should hire any employees. Another decision was whether to expand
her services to include cats as well as dogs.
May 2021
Enigmo - New!
Finance
MJD Manufacturing: Capital Budgeting Decisions during a
Pandemic – New!
In April of 2020, an Ivey Business School HBA graduate, and chief executive officer of
automobile parts manufacturer MJD Manufacturing (MJD), recognized the potential
opportunity to invest in new machinery and retool some of MJD’s operations to produce
COVID-19-related supplies. Specifically, she was considering whether or not MJD should
produce personal protective equipment. Aside from analyzing the financial viability of the
potential investments, she had to consider three factors: First, how long the COVID-19
pandemic might last, as the timeline of the pandemic underpinned the potential investment
decision; second, how an investment would be financed; and third, the qualitative aspect of
the decision. Specifically, she had to consider how she could help her community at a time
when many businesses were shrinking and furloughing employees.
to the rules governing its industry as well as the lengths to which the Chinese government
went to ensure the stability of its financial system, even at the expense of its development.
strong competition in the non-profit milieu, the CEO knew securing funds in the individual-giving
category would be difficult. How could she outline Sunshine’s differences and highlight why the
prospective client would be interested in becoming a donor? How could she convert these
prospects into new Sunshine donors?
Information Systems
BTS: Success and Risk with Fans and Influencers on Social
Media - New!
Korean pop music (K-pop), once limited to an Asian market, broke its cultural boundaries
and became global in 2012 when Psy’s song-and-dance video “Gangnam Style” went viral
around the world. The subsequent global success of the Korean idol boy band BTS
confirmed that K-pop had a place in an international music market. With international
performances and major US awards since its debut in 2013, BTS was carefully analyzed by
those who wanted to identify the reasons for its success. Factors such as the band’s active
use of social media and quality transgenerational content were commonly identified, but
media reports pointed mainly to the influence of the band’s fan group, or ARMY, and its
social media influencers, known as hommas, as reasons for BTS’s success. Big Hit
Entertainment (Big Hit), BTS’s talent agency, needed to sustain the band’s unprecedented
success. What should Big Hit consider in developing a sustainable competitive advantage
in a global music market increasingly taking advantage of new media?
out the issues and the priorities, and began working on an implementation strategy and a
project plan.
Marketing
Kinsip: Marketing Spirits, Maple Syrup, And Hand
Sanitizer - New!
In May 2020, the three cofounders of Kinsip House of Fine Spirits (Kinsip), a craft distillery
located on a farm in Prince Edward County, Ontario, Canada, felt a great sense of
accomplishment. The distillery had a varied product mix that included light and dark spirits,
a broad variety of bitters, and cask-aged maple syrup. However, in March of 2020, the
business had retooled to produce hand sanitizer in response to the shortages resulting
from the outbreak of the COVID-19 pandemic. As a distillery, Kinsip already produced
ethanol for its regular products, which was also a key ingredient in the composition of hand
sanitizer, and in combining this with their production and bottling expertise, were able to
meet the needs of the community quickly and effectively. Before long, Kinsip had added
hand sanitizer to its list of products for sale to the public. Should the cofounders make hand
sanitizer a regular Kinsip product offering?
wide array of quality products and deep connections with consumers, retailers, and
licensing and business partners. By March 2020, Crayola had achieved category
leadership and was outselling the majority of its competitors. It was on trend with new
products and online content for educators, parents, and children—all with the goal of
inspiring creativity among children. Crayola had also created strong relationships with and
earned the respect of retailers, who had come to value the role Crayola played in their
business, especially during the two most important retail seasons: back-to-school and
Christmas. At the beginning of the second quarter of 2020, Crayola had to make some
critical decisions. The rapid spread of the COVID-19 virus across the United States had led
to business and school closures across the country (and the world), as well as personal
physical restrictions. Crayola needed to immediately focus on three key areas: maintaining
company culture, collaborating with partners to preserve the volume of back-to-school
revenue, and ensuring a strong supply chain to meet consumers’ needs. These three
actions would ensure that Crayola could take advantage of key opportunities and continue
creating strong and sustainable relationships with educators, parents, and children.
Management Science
Skyrose Marketing Agency: Predicting Consumer
Demand - New!
As a result of recent success and rapid growth, the Skyrose Marketing Agency team was
becoming overwhelmed with significant variation in workload levels. The vice-president,
who was responsible for managing the company’s clients from the beverage industry,
wanted to smooth the team’s workload level to improve morale. She also wanted to remain
attentive to her clients’ needs, which could increase as peak holiday seasons approached.
The vice-president was considering using Google Trends to predict how popular certain
beverage products would be in the future so that her beverage company clients could
predict future sales volumes. She hoped that by forecasting proxy sales for three specific
clients she could gain key insight to help her smooth the volume levels of her team’s
workload, without having a negative impact on her client relationships.
techniques and to provide insight for a better decision-making process that would help the
professor in her next hotel booking.
Operations Management
Atrae: Human Resources with Humanity - New!
Atrae Inc. was a Japanese software firm providing platform matching services for job
recruitment in the software engineering industry. As compared to traditional Japanese
firms, Atrae adopted a unique approach to managing its employees. Instead of the rigid
hierarchy and top-down management approach that typified a Japanese firm, Atrae had a
flat organizational structure and heavily relied on decentralized decision-making and
individual motivation. The company’s unique culture was viewed as a key driver of its
business success—success that the company’s founder and chief executive officer wanted
to advance with a public listing on the Tokyo Stock Exchange. However, while the public
listing would allow Atrae to grow substantially, it would also necessitate formal
organizational checks and balances that could harm the company’s organizational culture.
Would a public listing propel Atrae to greater heights or would it result in the company’s
demise?
After creating a minimum viable product (MVP), Cowan set out to test his idea using
qualitative interviews, learner personas, jobs-to-be-done descriptions, emails, social media
May 2021
posts, and a landing page for the prospective course. If he offered this course to the public,
would people enroll?
This case would be suitable for use in a first-year operations or decision analysis course or
inan elective or course module covering optimization.
California, struggled to hire enough temporary workers to meet the increased staffing
demand resulting from the COVID-19 pandemic. The new assistant manager, who had
been recently transferred to the company's flagship store, was tasked with figuring out what
had gone wrong and recommending changes to ensure that the store would have enough
qualified workers for the remainder of the pandemic (or until store sales returned to pre-
pandemic levels, whichever occurred first). The assistant manager looked into the
company’s hiring and socialization processes, spoke with both temporary and permanent
workers, and identified at least two reasons for the challenges in hiring temporary workers:
insufficient advertising of the job listing for temporary workers, and little or no effort to
socialize temporary workers once they were hired. Based on these conclusions, what
changes should the assistant manager recommend when hiring the next group of
temporary employees?
first flight and triple flight certification. The case explores how the project team created work
groups and teams embedded within the company and leadership values to guide actions
and decisions during this project, which was large in both scale and scope. Throughout the
case, executives execute a change process and use influence and project-management
tools, especially critical chain analysis, to align business practices with human behavior and
scale the program with 98.5% scheduled reliability.