Papers by Olga Kandinskaia
ENGINO Toys: Staying in China or Moving to Europe?
Business Case Journal of the Society for Case Research, Volume 23, Issue 2, 2015
The ENGINO case presents a decision situation. ENGINO was a small company based in Cyprus. The co... more The ENGINO case presents a decision situation. ENGINO was a small company based in Cyprus. The company produced educational construction toys. During 2007-2011, the company outsourced the manufacturing in China. ENGINO construction toys became an international success and won numerous awards. In 2011, the owner, Costas Sisamos, became concerned with the growing production costs in China and began searching for alternative solutions. His idea was to bring the manufacturing to Cyprus, his homeland. However, Costas was worried whether the company would be financially viable in Cyprus. Continuing to outsource in China seemed a safer choice while the decision to move to Cyprus would be most unorthodox. This strategic decision would have a major impact on the company’s future. Should he stay in China or should he move to Europe? Learning Outcomes: Demonstrate knowledge and comprehension of the specific non-financial considerations that would be critical in this case (Question 1), and of the investment appraisal theory (Questions 5 and 6) (Bloom’s Taxonomy learning outcome levels 1 and 2) Construct cost calculations in Excel (Questions 2 and 3) (Bloom’s Taxonomy learning outcome level 3) Perform an analysis of a decision situation after building a financial planning model in Excel (Questions 4, 6 and 7) (Bloom’s Taxonomy learning outcome levels 3 and 4) Synthesize what they have learned, evaluate the decision situation, and recommend a specific course of action for the company’s owner (Questions 8 and 9) (Bloom’s Taxonomy learning outcome levels 5 and 6)
Financial Troubles at Cyprus Airways
Journal of Case Studies of the Society for Case Research, Vol. 35, No. 1, 2017
Cyprus Airways was the national carrier of the Republic of Cyprus. Established in 1947 and predom... more Cyprus Airways was the national carrier of the Republic of Cyprus. Established in 1947 and predominantly state-owned, the airline became known for being poorly managed and consistently losing money. The latest public money injection took place in December 2012 - January 2013, and amounted to €103 million of state funds – prompting soon afterwards an in-depth investigation by the European Commission. The Commission was not sure if the capital increase was made on market terms. Indeed, if the company faced severe financial problems and its viability was at stake, it would explain why the majority of private shareholders decided not to participate in the capital increase. Cyprus Airways published its latest audited financial results in 2011, and released some unaudited results for 2012. What was the airline’s financial situation, as revealed in those reports? What specific financial problems can be identified via the company’s financial statements? How did the airline’s situation look to a potential investor? Learning Outcomes: Demonstrate thorough knowledge and full comprehension of the information contained in the three annual financial statements such as Income Statement, Balance Sheet and Cash Flow Statement (Questions 1-3) (Bloom’s Taxonomy learning outcome levels 1 and 2) Interpret and use the information from the financial statements to calculate relevant ratios, and apply acquired knowledge and facts to compare the situation of the company to the key competitors (Questions 1-3) (Bloom’s Taxonomy learning outcome levels 3 and 4) Perform an analysis of the situation to examine the company’s financial strengths and weaknesses and critically evaluate its financial situation (Question 4) (Bloom’s Taxonomy learning outcome levels 4 and 5) Appraise the company from an investor’s point of view by performing SWOT analysis (Question 5) (Bloom’s Taxonomy learning outcome level 6)
Wait or Act Fast? Best Strategy to Recover an Investment
Journal of Critical Incidents of the Society for Case Research, Volume #10, 2017
In 2012, a couple from Cyprus, Andreas and Elena Ioannou, faced the challenge of recovering their... more In 2012, a couple from Cyprus, Andreas and Elena Ioannou, faced the challenge of recovering their investment in the capital securities of Laiki Bank, the second largest bank in Cyprus. They had purchased the securities in 2009–2010, tempted by their high return. They believed the bank securities were safe investments. On May 22, the couple was shocked to receive a tender offer from Laiki Bank for voluntary exchange of their capital securities into either the Bank’s ordinary shares or a new type of capital securities. As it turned out, Laiki Bank was in serious financial trouble. How should they proceed? Should they wait or should they act fast? This critical incident provides an illustration of the irrational reluctance to exit investment at a loss, known as the disposition effect. Students are also challenged to formulate lessons learned by individual investors in the current volatile markets disrupted by the European debt crisis. Learning Outcomes: Demonstrate knowledge and comprehension of different types of financial instruments available to individual investors Calculate the losses/returns for different scenarios and do break-even analysis (using Excel tools) Explain how the disposition effect and related theories apply to this situation Evaluate the situation and recommend the best course of action to recover the investment Formulate the lessons learned from this example.
Friendly Laser: Can we boost sales?
Journal of Critical Incidents of the Society for Case Research, Fall 2018 Volume #11, 2018
This critical incident is about a strategic marketing decision. Andrew, the young marketing direc... more This critical incident is about a strategic marketing decision. Andrew, the young marketing director of Dobry Svet (“Friendly Light”), faced a tough dilemma: how to provide further expansion of the Moscow-based business. Dobry Svet had been assembling and selling medical lasers in the Russian market since 2000. All component parts were supplied by Aerolase, U.S. Aerolase was successful in the U.S. due to the portability and low prices of its advanced technology products. Annual sales in Russia in 2012 were 65 lasers—the same total the company had attained in each of the previous ten years. For 2013, Dobry Svet set a new goal: to achieve sales of 120 units of laser systems by the end of the year. This critical incident provides an opportunity to analyze the use of “push and pull” strategies, including the added challenges of “pulling” demand in an emerging market which is very different from U.S. or other developed markets. Learning Outcomes: Demonstrate a comprehension of “push and pull” promotion strategies Distinguish between B2B and B2C marketing, and explain how these apply to this critical incident Identify the market challenges the company is facing, focusing on the specifics of the demand in the local market Develop a new marketing program to meet the new business goals, critique the market potential, and evaluate the newly set sales target.
Norilsk Nickel: the longest corporate war in a leading Russian company
CASE Journal by Emerald Publishing, Vol. 15, issue 3, 2019
Theoretical basis In any company, there are conflicts of interest and different opinions on the b... more Theoretical basis In any company, there are conflicts of interest and different opinions on the business strategy. However, a well-established system of corporate governance allows us to minimise those conflicts and enables most disagreements to be solved in a civilised way. The case provides an opportunity to examine the specifics of corporate conflicts in Russia and improves decision-making skills with a view to increase business efficiency. Research methodology This descriptive case was written using the secondary sources from the Russian and foreign media, as well as other publicly available information about Norilsk Nickel. No information was disguised in any way. Case overview/synopsis This case study is a story of a dramatic corporate conflict at the Russian company Norilsk Nickel, one of the world’s leading producers of precious metals. In 2008–2012, the company went through a painful conflict between the majority shareholders (oligarchs Mr Potanin and Mr Deripaska) for the control over the business. The case of Norilsk Nickel was indeed a crucial case for Russia which helped define the “rules of the game”. In 2019, however, the situation looked prone to the escalation of the old conflict. The fact that from 2018 both oligarchs were under the US sanctions added further tensions. Complexity academic level This case is most appropriate for courses in corporate governance, business ethics and doing business in Russia at the undergraduate or graduate level. There is a sufficient number of extenuating circumstances to make for a good discussion of strategic and tactical factors in this type of a corporate governance decision analysis. The complexity of the case is a perfect illustration of the Russian business environment: it is never easy in the Russian business environment to figure out what is important and what is not.
Paranoiabox.ru: Russian start-up growth decision dilemma
The CASE Journal
Theoretical basis The novelty of this case is the multidisciplinary focus where the aspects of en... more Theoretical basis The novelty of this case is the multidisciplinary focus where the aspects of entrepreneurship, marketing strategy and finance are mixed together. Students are expected to apply their knowledge of Business Model Canvas and Marketing 4.0, as well as learn about the new type of entrepreneurial finance such as crowdfunding. The setting of this case is novel too – the new quest games industry in Russia. Finally, the novelty of this case is its format where the protagonists’ interview is available as a podcast, and thus, the students will need to review only the tables and the appendices. Research methodology This decision case was field researched by the authors who interviewed the founders of this start-up and the business incubator (BI) director. No information was disguised in any way. Also, the secondary research on the main trends in the development of the international and Russian quest markets was completed by the authors in the preparation of this case. Case ove...
Tonka Perfumes Moscow (Russia): Growth Strategy Dilemma and Choice of Digital Marketing Tools
SSRN Electronic Journal, 2021
Friendly Laser: Can We Boost Sales?
Financial Troubles at Cyprus Airways
Journal of Case Studies, 2017
This case was prepared by the author and is intended to be used as a basis for class discussion. ... more This case was prepared by the author and is intended to be used as a basis for class discussion. The views presented here are those of the author based on her professional judgement and do not necessarily reflect the views of the Society for Case Research. Copyright [c] 2017 by the Society for Case Research and the author. No part of this work may be reproduced or used in any form or by any means without the written permission of the Society for Case Research. Introduction Governments have supported airlines as if they were local football teams. But there are just too many of them. This is the only industry I know that has lost money consistently and makes money infrequently. --Richard Hannah, airline analyst with UBS in London, Fortune magazine, February 1996. Cyprus Airways was the national carrier of the Republic of Cyprus. Established in 1947 and predominantly state-owned, the airline became known for being poorly managed and consistently losing money. The latest public money in...
Assessing value of a digital company: Uber’s IPO 2019
The CASE Journal, 2021
Theoretical basis Via this case, students are introduced to several alternative methods of valuat... more Theoretical basis Via this case, students are introduced to several alternative methods of valuation, including the valuation based on the “real options” theory. The novelty of the case is the link between valuation and the type of innovation that the company represents. The suggested valuation frameworks, which include both quantitative and qualitative assessments, are applicable not only in the context of an IPO valuation but also in the context of any kind of M&A activity. Research methodology This case was prepared mostly via secondary research. All the information about Uber and the industry was collected via publicly available sources. No internal documents of the company were used in the preparation of this case. The primary research consisted of an interview with the protagonist Catherine (whose name is disguised). Other disguised elements in the case include the name of the Value Investor conference organizer (Spyros Spyrou, not his real name), the country of the Value Inve...
Norilsk Nickel: the longest corporate war in a leading Russian company
The CASE Journal, 2019
Theoretical basis In any company, there are conflicts of interest and different opinions on the b... more Theoretical basis In any company, there are conflicts of interest and different opinions on the business strategy. However, a well-established system of corporate governance allows us to minimise those conflicts and enables most disagreements to be solved in a civilised way. The case provides an opportunity to examine the specifics of corporate conflicts in Russia and improves decision-making skills with a view to increase business efficiency. Research methodology This descriptive case was written using the secondary sources from the Russian and foreign media, as well as other publicly available information about Norilsk Nickel. No information was disguised in any way. Case overview/synopsis This case study is a story of a dramatic corporate conflict at the Russian company Norilsk Nickel, one of the world’s leading producers of precious metals. In 2008–2012, the company went through a painful conflict between the majority shareholders (oligarchs Mr Potanin and Mr Deripaska) for the ...
Zorbas Bakeries (Cyprus): An Option to Expand
Case Research Journal of the North American Case Research Association (NACRA), 39 (2), 2019
Zorbas Bakeries Case presents a decision situation. The case setting is Nicosia (Cyprus, EU), Dec... more Zorbas Bakeries Case presents a decision situation. The case setting is Nicosia (Cyprus, EU), December 2014. Zorbas Bakeries, a large family-owned Cypriot company, was considering a bold new initiative – opening a new concept store abroad, in New York. Moreover, it wasn’t just about opening one shop, but the shop that would be used as the pattern for all future international franchise stores. Such a project would be most unorthodox for a local family-owned company and would involve multiple risks. The managing director of the company Demetris Zorbas took up the responsibility for this project in early 2014. He had to finalize the plan before the decision by the management team at the end of 2014. “Are we fully ready to go to New York? Will we be able to compete in this difficult market? What are the projected financials for the new ‘test case’ store? Will this project add value?” The case requires students to do first a standard NPV analysis, and then presents an opportunity to introduce students, in a relatively easy way, to the rather complex but increasingly important concept of ‘real options’ in finance, an extension of the traditional DCF analysis. Students who are aware of the limitations of the standard NPV model, and can identify and understand real options, become ultimately more sophisticated users of the traditional DCF analysis and are ultimately able to make better investment decisions. The case also emphasizes that a financial analysis is an important determinant of the future strategy, although clearly not the only determinant. It is crucial for students to understand the strong link between finance and strategy. This case intends to expose students to a wide range of issues related to the strategic investment decision process which are covered within the corporate finance course for MBAs. In completing this case, students should be able to evaluate a proposal using capital budgeting approaches including NPV and IRR, to demonstrate knowledge and comprehension of both financial and non-financial considerations that would be critical in this decision, and to apply the concept of ‘real options’ to this case.
Voting to save TRANSAERO, Russian N2 Airline
Journal of Case Studies of the Society for Case Research, Volume 37 (1), 2019
This descriptive case is a captivating story of Russia’s No. 2 airline, TRANSAERO, which was forc... more This descriptive case is a captivating story of Russia’s No. 2 airline, TRANSAERO, which was forced to abruptly suspend its flights in October 2015 due to bankruptcy proceedings filed against the company by its key creditors. The bankruptcy came against a backdrop of severe turmoil in the Russian economy, and was precipitated by a number of factors beginning with Western sanctions in March 2014 retaliating for Russia’s annexation of Crimea. On the other hand, the airline’s demise occurred during a fall in global oil prices—a time that would normally be particularly favorable for an airline. The case challenges students to understand how the bankruptcy of what had been a safe and successful airline happened. The 2014 assessment of TRANSAERO’s brand value also introduced an interesting twist; one that led to a qualified opinion by independent auditors on the airline’s intangible assets. The case is a good illustration of both the business practices of large enterprises in Russia as well as the challenges posed by the recent economic crisis and continuing Western sanctions. The case is most appropriate for courses in accounting which cover analysis of financial statements. It is suitable for both undergraduates and the early part of an MBA program. Supplementary Excel files are also included with the case: a template file for students and a solutions file for instructors. Additionally, the case may be used in courses that discuss doing business in Russia provided the participants have a basic grasp of financial analysis. Learning Outcomes: In completing this assignment, students should be able to: 1. Demonstrate the ability to understand and summarize complex information 2. Perform financial statement analysis 3. Conduct an analysis of strengths, weaknesses, opportunities, and threats Application The case is most appropriate for courses in accounting which cover analysis of financial statements. It is suitable for both undergraduates and the early part of an MBA program. Supplementary Excel files are also included: a template file for students and a solutions file for instructors. Additionally, the case may be used in courses that discuss doing business in Russia provided participants have a basic grasp of financial analysis.
WDP: Challenge of a Speedy Equity Offering to Finance Growth in the Highly Competitive European Market of Semi-Industrial Real Estate
Business Case Journal of the Society for Case Research, Volume 26 (2), 2019
In 2016, Warehouses De Pauw (WDP), a key player in the semi-industrial real estate market in Euro... more In 2016, Warehouses De Pauw (WDP), a key player in the semi-industrial real estate market in Europe, was one of the 17 publicly listed RRECs (Regulated Real Estate Companies), in Belgium. RREC was as a type of REIT (real estate investment trust). Belgium was one of the first countries in Europe to adopt the U.S. REIT approach. WDP had developed an ambitious growth strategy, and was in urgent need of extra capital. Mr. Van den Hauwe, the CFO of WDP, and Mr. Uwents, the company’s co-CEO, had a challenging decision to make: “Shall we suggest to the Board an experimental speedy equity offering to secure funds ahead of the competition? What shall be the appropriate SEO price?” The uncertainties in the financial markets in anticipation of the Brexit and the upcoming U.S. elections were adding even more pressure to the extreme competition among RRECs in Belgium and overall in Europe. Learning Outcomes In completing this assignment, students should be able to: 1. Perform a SWOT analysis to demonstrate if an equity offering fits with the needs of a company 2. Explain the unique SEO structure that was chosen by WDP in this case, and comment on its pros and cons as compared to the traditional rights offering 3. Apply quantitative methods to the case, such as the Multiples valuation model, and relate the results to the company’s stock market price 4. Synthesize the results of the qualitative and the quantitative analyses and recommend the final decision 5. Calculate the SEO offer price Application This decision case will be particularly useful in a specialized Master programme in real estate. It is also appropriate in a company valuation course or any other course which covers the topics of equity financing and business valuation at the graduate or executive level. The case also brings students in contact with an important industry, of which they typically have not heard much, and introduces them to the most important ‘working principles’ of that industry, including concepts such as rotation and occupancy rates, sale-and-rent back operations, EPRA earnings, etc. Moreover, it demonstrates how companies, when confronted with strict regulatory requirements, may try to find effective solutions, and it also stimulates students’ creative thinking. The case is accompanied by the WDP Template Excel file for students and the WDP Solutions Excel file for the instructor.
Sizable: Crowdfunding Campaign! ... Again
Case Research Journal of the North American Case Research Association (NACRA), 41(2), 2021
The Sizable Case presents a decision situation. The case setting is Brussels, early November 2017... more The Sizable Case presents a decision situation. The case setting is Brussels, early November 2017. Marie Martens was at that time the newly appointed CEO of the start-up company Sizable, which was a specialist in men's undergarment made from eco-friendly bamboo, eucalyptus, and organic cotton. Since its start-up in January 2015, the company had shown high growth potential, and Martens felt confident that by further scaling up the business, Sizable could be leveraged into a position in which it would be highly profitable. Martens was not the only one who had faith in Sizable's attractive prospects. Since March 2015, multiple investors had put their money at stake, either directly as private investors in the company or via the company's three crowdfunding campaigns. In November 2017, Sizable needed 100,000 euros of additional financing. Together with the other members of the management team, Martens had prepared a business plan and proposed prompt action to secure extra funding over the month of November. While the decision to move forward with a new crowdfunding campaign was made, Martens worried about the risks of a fourth round of crowdfunding. Failing would not only mean a lack of funds, but also a stained reputation. Martens wondered how she could make this campaign even more successful than the previous rounds. She had several concerns: first, how would the market react to the change in the management team, with the firm now led by a female CEO; second, whether to use a different crowdfunding platform or rely on one of the platforms used in the past; third, would she be able to deal with investors' typical concerns about break-even and dilution; and finally, what share price would be most appropriate. She had to decide very quickly on these issues since the new crowdfunding round was set to begin before the end of the month.
Assessing Value of a Digital Company: Uber’s IPO 2019
The CASE Journal by Emerald Publishing, Vol. 17 No. 4, 2021
Theoretical basis Via this case, students are introduced to several alternative methods of valuat... more Theoretical basis Via this case, students are introduced to several alternative methods of valuation, including the valuation based on the “real options” theory. The novelty of the case is the link between valuation and the type of innovation that the company represents. The suggested valuation frameworks, which include both quantitative and qualitative assessments, are applicable not only in the context of an IPO valuation but also in the context of any kind of M&A activity. Research methodology This case was prepared mostly via secondary research. All the information about Uber and the industry was collected via publicly available sources. No internal documents of the company were used in the preparation of this case. The primary research consisted of an interview with the protagonist Catherine (whose name is disguised). Other disguised elements in the case include the name of the Value Investor conference organizer, the country of the Value Investor conference (omitted) and the conference venue.
Case overview/synopsis In 2019, Uber, the famous ride-sharing company, made waves in financial markets as the most controversial IPO valuation. With a wide range of proposed values, Uber puzzled investors, once again living up to its fame of a rebel and a disruptor. When Uber finally went public in May 2019, its IPO valuation stood at $82.4bn. The heated discussion in the media continued even after the IPO: “Is Uber worth this amount? Is there an upside potential for the investors who bought shares at the IPO price? What if this is a hype and markets are simply embracing higher valuations?”
Complexity academic level This case can be used at the undergraduate, graduate (MBA) or executive level in finance-related courses such as Company Valuation or Valuing Innovation, which cover the topic of valuation and specifically the topic of valuing innovative companies.
Recticel: Financing Via A Rights Offering
Journal of Finance Case Research, Volume 19, Number 1, pp. 1-22., 2021
In early 2015, Recticel, the leading European manufacturer of polyurethane products, was in need ... more In early 2015, Recticel, the leading European manufacturer of polyurethane products, was in need of new capital to reduce its debt ratio and to implement an extensive investment program that would secure its market share and create the base for steady long-term growth. By the end of 2014, Recticel’s debt had reached 194.93 million euros and its gearing ratio had risen to 101.57%. The Board of Directors gave authorization to the CFO, Jean-Pierre Mellen, to increase the company’s share capital via a preferential rights issue. Mr. Mellen had to prepare the detailed implementation plan for this SEO, which promised to be the largest capital increase in Belgium in 2015. “What story shall we offer to the shareholders to convince them to participate in the capital increase? Is it the right timing for an SEO? At what price can we offer the preferential rights, given our current stock market price of 4.25 euros? Will we have enough financial resources, including the net SEO proceeds, to finance the company’s operations and investments in the coming two years? Which investment banks shall we choose to advise us on this transaction and what type of underwriting contract should we negotiate with those banks?” LEARNING OBJECTIVES In completing this case, students should be able to: 1. Explain the different types of financing and the advantages of equity financing and a rights offering in particular (Question 1) (Bloom’s Taxonomy learning outcome levels 1 and 2) 2. Explain why an equity offering can contribute to the firm’s plans and remedy weaknesses (Question 2) (Bloom’s Taxonomy learning outcome levels 2 and 3) 3. Apply quantitative methods to the case, such as the DCF valuation model and determine the SEO discount to set the SEO offer price, and relate those results to the company’s stock market price (Questions 3 and 4) (Bloom’s Taxonomy learning outcome levels 3 and 4) 4. Determine whether the company is able to finance all its operations and investments in the coming two years from the net SEO proceeds (Bloom’s Taxonomy learning outcome level 5) 5. Investigate the structure of the syndicate of investment banks advising the company on its transaction and evaluate the choice of underwriting contract with the investment banks (Question 6) (Bloom’s Taxonomy learning outcome levels 5 and 6)
Paranoiabox.ru: Russian start-up growth decision dilemma
The CASE Journal by Emerald Publishing, ISSN: 1544-9106, 2022
Theoretical basis The novelty of this case is the multidisciplinary focus where the aspects of en... more Theoretical basis The novelty of this case is the multidisciplinary focus where the aspects of entrepreneurship, marketing strategy and finance are mixed together. Students are expected to apply their knowledge of Business Model Canvas and Marketing 4.0, as well as learn about the new type of entrepreneurial finance such as crowdfunding. The setting of this case is novel too – the new quest games industry in Russia. Finally, the novelty of this case is its format where the protagonists’ interview is available as a podcast, and thus, the students will need to review only the tables and the appendices. Research methodology This decision case was field researched by the authors who interviewed the founders of this start-up and the business incubator (BI) director. No information was disguised in any way. Also, the secondary research on the main trends in the development of the international and Russian quest markets was completed by the authors in the preparation of this case. Case overview/synopsis Paranoiabox.ru case presents an entrepreneurial and strategic marketing decision situation. In May 2019, in Moscow, Russia, two young residents of the MGIMO University BI, Anastasia and Max, founded the start-up business called Paranoiabox.ru. This project was a quest in a new format with home delivery: a mixture of escape, detective and board game. The player received by post a box containing various objects. Interacting with them, he/she unraveled the plot thread, found clues and gradually approached the final clue. The game with complex copyright puzzles had a built-in hint system and provided mechanisms for interaction online. By July 2019, 30 boxes for their first quest were sold. The subscribers were waiting for a new quest. Despite the first sales, Anastasia and Max had no budget for hiring freelancers or outsourcing. They were faced with an urgent and challenging dilemma: whether to concentrate on the current product sales and spend all the budget on promotion or, alternatively, to launch a series of new quests and focus on the target market with high brand awareness. There was an additional funding dilemma: should they apply for crowdfunding? Complexity academic level This case is a multidisciplinary case with the aspects of entrepreneurship, marketing strategy and finance. This case is intended primarily for a course in entrepreneurship at the undergraduate or graduate level. This case is also ideal to be used as a capstone project in a degree programme for entrepreneurs.
Green Energy Project in Cyprus: A Financial Appraisal.
Case Focus Journal by The Case Centre, Issue 3, Case Reference no 122-0034-1., 2022
This finance case is set in Cyprus in October 2018 and is a decision-oriented case. It presents a... more This finance case is set in Cyprus in October 2018 and is a decision-oriented case. It presents an innovative project by a local cement plant undertaken as part of the company’s corporate social responsibility (CSR) strategy to manage the demands for environmentally responsible business practices. This case addresses the reduction of the negative climate impact of the cement industry. In 2018, George Savva, the Deputy General Manager and CFO of Vassiliko Cement Works (VCW), oversaw the preparation of a feasibility study for a photovoltaics park. VCW was the biggest industrial consumer of electricity in Cyprus. Savva’s task was to investigate the project’s impact on the company’s finances. How would this project affect the company’s financial performance? What if the project drained financial resources? It was an big and important decision to make. Savva had to prepare realistic financial projections for a 20-year period, make an investment appraisal, and evaluate possible risks. The board were waiting to see if there was indeed a strong business case for this green energy project.
This case offers a framework to assess the financial viability of a green energy project. Running such a case in an MBA finance module gives students an opportunity not only to learn the basics of financial management, but also to increase awareness of the environmental impact of production systems. The case may serve as an illustration to the concept of sustainability, which is now emphasised in all business and public management programmes. The analysis confirms a strong business case for this clean energy project, and therefore, the dogmatic view on renewable energy sources as too expensive should be dismissed. Moreover, as the case highlights, there are significant strategic advantages for companies in heavy industry if efforts are made to introduce zero-emissions technologies. The learning outcomes from this case will hopefully contribute to overcoming the still existing inertia of both the public and private sector in promoting ‘green’ projects.
Central European Review of Economics and Management (CEREM), vol. 6, No 2. , 2022
Study programmes in economics and management should be more focused on developing students' criti... more Study programmes in economics and management should be more focused on developing students' critical thinking skills and the capabilities to solve practical problems. Case method is admittedly one of the best techniques to accomplish these goals. Thus, disseminating the benefits of case method in academic teaching as well as supporting case writing among scholars is of great importance. Despite the many proven benefits of the case method and the growing use of cases in teaching management and economics, it seems that the writing of cases is undertaken by not so many academics. There is evidence of the lack of support at smaller schools to potential case writers from administrators, in terms of motivation, recognition, training, time, and funding, and on the other hand, there is little awareness among faculty about international scholarships, available peer-reviewed publishing opportunities for cases, and peer support via international case conferences. This paper attempts to fill in the existing information gap and offer helpful guidance to faculty and school administrators.
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Papers by Olga Kandinskaia
Case overview/synopsis In 2019, Uber, the famous ride-sharing company, made waves in financial markets as the most controversial IPO valuation. With a wide range of proposed values, Uber puzzled investors, once again living up to its fame of a rebel and a disruptor. When Uber finally went public in May 2019, its IPO valuation stood at $82.4bn. The heated discussion in the media continued even after the IPO: “Is Uber worth this amount? Is there an upside potential for the investors who bought shares at the IPO price? What if this is a hype and markets are simply embracing higher valuations?”
Complexity academic level This case can be used at the undergraduate, graduate (MBA) or executive level in finance-related courses such as Company Valuation or Valuing Innovation, which cover the topic of valuation and specifically the topic of valuing innovative companies.
This case offers a framework to assess the financial viability of a green energy project. Running such a case in an MBA finance module gives students an opportunity not only to learn the basics of financial management, but also to increase awareness of the environmental impact of production systems. The case may serve as an illustration to the concept of sustainability, which is now emphasised in all business and public management programmes. The analysis confirms a strong business case for this clean energy project, and therefore, the dogmatic view on renewable energy sources as too expensive should be dismissed. Moreover, as the case highlights, there are significant strategic advantages for companies in heavy industry if efforts are made to introduce zero-emissions technologies. The learning outcomes from this case will hopefully contribute to overcoming the still existing inertia of both the public and private sector in promoting ‘green’ projects.
Case overview/synopsis In 2019, Uber, the famous ride-sharing company, made waves in financial markets as the most controversial IPO valuation. With a wide range of proposed values, Uber puzzled investors, once again living up to its fame of a rebel and a disruptor. When Uber finally went public in May 2019, its IPO valuation stood at $82.4bn. The heated discussion in the media continued even after the IPO: “Is Uber worth this amount? Is there an upside potential for the investors who bought shares at the IPO price? What if this is a hype and markets are simply embracing higher valuations?”
Complexity academic level This case can be used at the undergraduate, graduate (MBA) or executive level in finance-related courses such as Company Valuation or Valuing Innovation, which cover the topic of valuation and specifically the topic of valuing innovative companies.
This case offers a framework to assess the financial viability of a green energy project. Running such a case in an MBA finance module gives students an opportunity not only to learn the basics of financial management, but also to increase awareness of the environmental impact of production systems. The case may serve as an illustration to the concept of sustainability, which is now emphasised in all business and public management programmes. The analysis confirms a strong business case for this clean energy project, and therefore, the dogmatic view on renewable energy sources as too expensive should be dismissed. Moreover, as the case highlights, there are significant strategic advantages for companies in heavy industry if efforts are made to introduce zero-emissions technologies. The learning outcomes from this case will hopefully contribute to overcoming the still existing inertia of both the public and private sector in promoting ‘green’ projects.