This case explores how the retail customers of the Bank of China lost an astounding RMB10bn (USD1.27bn) by investing in a structured product. The product, Crude Oil Treasure, was linked to West Texas Intermediate (WTI) futures. These crude oil futures were traded on the New York Mercantile Exchange and were used as a benchmark in oil pricing. The negative futures price of -USD37.63 per barrel on 20 April 2020 was a "black swan" event. Never .....more

This case explores the corporate finance issues arising from the suspension of HSBC Holdings plc''s (HSBC, stock code: 5.HK) dividend payout in March 2020. Such abrupt change in pattern was immediately met with tremendous reverberation and discussion in the market. The case seeks to highlight the considerations of HSBC in deciding on a dividend policy, both from a corporate finance and behavioral finance perspective. Through the case, students .....more

This case examines a universal question: How can a tech startup (such as an AI or big data startup) address the pain points of traditional vertical industries through technological innovation and create value? Some tech startups set ambitious goals, which demand significant and sustained investments in R&D, but fail to plan for commercial development in order to remain viable: when funding runs out, they go bust. Others aim for low-hanging fruit .....more

Launched in 2010, CredEx Fintech Co. Ltd. (CredEx) operated until 2017 as a mobile credit platform, connecting lenders and borrowers in the Chinese small- and microcredit market. In 2017, the Chinese government introduced a regulation to address misconducts in the credit market. As a result, CredEx needed to transform by utilizing mobile credit technology to enable and support licensed financial institutions to explore mobile credit markets. In 2018, .....more

Kathy Ayers, Vice President of Marketing and Communications for Land and Nature (L&N) Jerky Company, needs to make a recommendation about L&N''s 2020 promotional spending. L&N''s CEO, Tim Ryan, wants her to calculate different scenarios using historical data to determine which option to recommend. Specifically, Ryan wants Ayers to recommend one of the three options: reduce the promotion budget by 30%, increase spending .....more

Spreadsheet supplement for case 920563.

Hunley, Inc. manufactures rods for the niche sport of fly fishing. It specializes in freshwater rods that are perceived as ""middle-market"" products, targeted at ""avid"" fly fishers, In the face of declining revenue and a decreasing price per unit sold, the company''s president is considering several growth options, including introducing a rod made from state-of-the-art materials (moving up-market) .....more

Since China''s reform and opening up, in merely four decades, the GDP of the city of Shenzhen has grown more than 10,000-fold. The city''s development in the past 40 years has been underpinned by industry transformation and innovation, and the Huaqiangbei area in the city epitomizes this development process. Forty years ago, Huaqiangbei was a completely inconspicuous street in Shenzhen, but riding the wave of China''s reform .....more

The Caesan Cheese Cooperative is considering introducing a new high-quality, high-margin artisan whiskey cheddar cheese. Deidra Kelly, vice president of marketing and product development at Caesan, must recommend to the Board of Directors whether to launch the product using Jameson whiskey as a branded ingredient or using a generically branded whiskey. Use of the branded ingredient would involve a licensing agreement with a leading spirits and wine .....more

In 2017, Chinese clothing manufacturer Qingdao Kutesmart Co. Ltd. (Kutesmart) had been transformed into a customer-to-manufacturer platform company, where customers could order individualized products directly from the makers over the Internet. Since 2000, Kutesmart had been upgrading its information system as its business strategy evolved, and the company had become a widely known, successful case study of mass-customization-based manufacturing in .....more