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  • November 1994 (Revised January 1995)
  • Background Note

A Note on Capital Cash Flow Valuation

By: Richard S. Ruback
Presents the capital cash flow method for valuing risky cash flows. In this method cash flows are calculated to include the benefits of interest tax shields. In a capital structure, with just ordinary debt and common equity, capital cash flows equal the flows available... View Details
Keywords: Capital; Cash Flow; Valuation
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Ruback, Richard S. "A Note on Capital Cash Flow Valuation." Harvard Business School Background Note 295-069, November 1994. (Revised January 1995.)
  • November 2003
  • Case

Procter & Gamble 2000 (A): The SpinBrush and Innovation at P&G

By: William A. Sahlman and Ryland Matthew Willis
Describes a set of decisions confronting some managers in the oral care division of Procter & Gamble. They must decide whether to buy a company that has developed an inexpensive, battery-operated toothbrush. The company's product has done well in one market, but... View Details
Keywords: Valuation; Innovation and Management; Corporate Entrepreneurship; Mergers and Acquisitions; Product Launch; Corporate Finance; Retail Industry
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Sahlman, William A., and Ryland Matthew Willis. "Procter & Gamble 2000 (A): The SpinBrush and Innovation at P&G." Harvard Business School Case 804-099, November 2003.
  • January 2000 (Revised May 2007)
  • Case

Dressen

By: Thomas R. Piper and Jeremy Cott
Divisional management must decide whether to support a leveraged buyout by a private equity group and, if so, what percent of ownership should go to the various partners involved. The appropriateness of the financing structure and the value of the equity depend on the... View Details
Keywords: Leveraged Buyouts; Capital Structure; Valuation; Ownership Stake; Forecasting and Prediction
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Piper, Thomas R., and Jeremy Cott. "Dressen." Harvard Business School Case 200-041, January 2000. (Revised May 2007.)
  • December 1994 (Revised December 1995)
  • Case

The JKJ Pension Fund

By: William J. Poorvu and John H. Vogel Jr.
The JKJ pension fund currently has $187 million invested in 14 properties. Sarah Griffin, the portfolio manager for real estate, needs to value each of the properties and recommend which ones should be sold and which ones to hold. She further needs to recommend... View Details
Keywords: Property; Investment Portfolio; Valuation; Investment Funds; Financial Management; Real Estate Industry; Financial Services Industry
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Poorvu, William J., and John H. Vogel Jr. "The JKJ Pension Fund." Harvard Business School Case 395-133, December 1994. (Revised December 1995.)
  • January 1996
  • Background Note

National Cultures and Work-Related Values: The Hofstede Study

People from different national cultures often operate under different assumptions about what is appropriate behavior. In organizational settings, these cultural differences in underlying assumptions can significantly affect interactions when individuals from various... View Details
Keywords: Behavior; Organizations; Attitudes; Cross-Cultural and Cross-Border Issues; Computer Industry
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Ibarra, Herminia M. "National Cultures and Work-Related Values: The Hofstede Study." Harvard Business School Background Note 496-044, January 1996.
  • August 2013
  • Background Note

A Simple Free Cash Flow Valuation Model

By: William A. Sahlman
Explores some of the issues involved in valuing cash flow streams. A simple model is presented that reveals the effect on value of changing assumptions about the appropriate discount rate, the level of profitability, the growth rate of sales, the asset intensity ratio,... View Details
Keywords: Cash Flow; Valuation
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Sahlman, William A. "A Simple Free Cash Flow Valuation Model." Harvard Business School Background Note 814-027, August 2013.
  • October 1987 (Revised January 2013)
  • Background Note

Note on Free Cash Flow Valuation Models

By: William A. Sahlman
Explores some of the issues involved in valuing cash flow streams. A simple model is presented that reveals the effect on value of changing assumptions about the appropriate discount rate, the level of profitability, the growth rate of sales, the asset intensity ratio,... View Details
Keywords: Cash Flow; Valuation
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Sahlman, William A. "Note on Free Cash Flow Valuation Models." Harvard Business School Background Note 288-023, October 1987. (Revised January 2013.)
  • 2023
  • Working Paper

Evaluation and Learning in R&D Investment

By: Alexander P. Frankel, Joshua L. Krieger, Danielle Li and Dimitris Papanikolaou
We examine the role of spillover learning in shaping the value of exploratory versus incremental R&D. Using data from drug development, we show that novel drug candidates generate more knowledge spillovers than incremental ones. Despite being less likely to reach... View Details
Keywords: Research and Development; Forecasting and Prediction; Valuation; Pharmaceutical Industry
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Frankel, Alexander P., Joshua L. Krieger, Danielle Li, and Dimitris Papanikolaou. "Evaluation and Learning in R&D Investment." Harvard Business School Working Paper, No. 23-074, May 2023. (NBER Working Paper Series, No. 31290, May 2023.)
  • May 2015
  • Case

Venture Republic, 2011

By: W. Carl Kester and Mayuka Yamazaki
In December 2011, the founders of Venture Republic, a Japanese developer and operator of on-line search engines for shopping and travel, faced a decison about whether or not to take the company private in a management buyout transaction just three years after an... View Details
Keywords: Management Buyout; MBO; Valuation Methodologies; Financing Decisions; Conflicts Of Interest; Governance; Japan; Search Engines; Going Private; Conflict of Interests; Internet and the Web; Valuation; Privatization; Financing and Loans; Corporate Governance; Web Services Industry; Japan
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Kester, W. Carl, and Mayuka Yamazaki. "Venture Republic, 2011." Harvard Business School Case 215-076, May 2015.
  • 2017
  • Book

Geography, Location, and Strategy

By: Juan Alcácer, Bruce Kogut, Catherine Thomas and Bernard Yin Yeung
Changes in both technology and global political economy have vastly accelerated the pace of globalization in the last 40 years, eroding barriers that limited firms' geographic scope and unleashing a seemingly unlimited set of new threats, challenges, and opportunities... View Details
Keywords: Geographic Location; Global Strategy; Value Creation
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Alcácer, Juan, Bruce Kogut, Catherine Thomas and Bernard Yin Yeung, eds. Geography, Location, and Strategy. Vol. 36, Advances in Strategic Management. Emerald Publishing Limited, 2017.
  • June 2006 (Revised January 2007)
  • Case

e-Types A/S

A successful young design firm faces a difficult decision: whether to compromise its creative values to win a big job. The client brief is very conservative. The company is pretty sure it can win the design competition, but the design staff hates what they think they... View Details
Keywords: Business Model; Mission and Purpose; Value Creation; Creativity
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Austin, Robert D., Shannon ODonnell, and Silje Kamille Friis. "e-Types A/S." Harvard Business School Case 606-118, June 2006. (Revised January 2007.)
  • November 1999
  • Background Note

Recognizing Revenues and Expenses: Realized and Earned

By: Robert S. Kaplan
Describes a key concept in financial accounting: choosing an appropriate revenue recognition point. The accrual process requires revenue recognition and expense matching for reporting on the value creation process of companies. Describes the two key criteria for... View Details
Keywords: Accounting Audits; Accrual Accounting; Cost Accounting; Budgets and Budgeting; Revenue; Profit; Cost Management; Value Creation; Competitive Strategy; Financial Statements; Accounting Industry
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Kaplan, Robert S. "Recognizing Revenues and Expenses: Realized and Earned." Harvard Business School Background Note 100-050, November 1999.
  • 07 Sep 2012
  • Working Paper Summaries

IP Modularity: Profiting from Innovation by Aligning Product Architecture with Intellectual Property

Keywords: by Joachim Henkel, Carliss Y. Baldwin & Willy C. Shih
  • October 2018
  • Article

Competing with Complementors: An Empirical Look at Amazon.com

By: Feng Zhu and Qihong Liu
Platform owners sometimes enter complementors' product spaces to compete against them directly. Prior studies have offered two possible explanations for such entries: platform owners may target the most successful complementors so as to appropriate value from their... View Details
Keywords: Amazon; Complementors; Co-opetition; Entry; Platform-based Markets; Competition; Digital Platforms; Competitive Strategy
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Zhu, Feng, and Qihong Liu. "Competing with Complementors: An Empirical Look at Amazon.com." Strategic Management Journal 39, no. 10 (October 2018): 2618–2642.
  • January 2024
  • Case

The Financial Times (FT) and Generative AI

By: Andrew Rashbass, Ramon Casadesus-Masanell and Jordan Mitchell
In September 2023, John Ridding, CEO of the Financial Times, was considering the possible impact of Generative AI on the industry and his business. Having navigated successfully the seismic shift from print to digital, and reporting record results, the company... View Details
Keywords: AI and Machine Learning; Technology Adoption; Change Management; Journalism and News Industry
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Rashbass, Andrew, Ramon Casadesus-Masanell, and Jordan Mitchell. "The Financial Times (FT) and Generative AI." Harvard Business School Case 724-410, January 2024.
  • February 1997 (Revised July 2001)
  • Background Note

Introduction to Activity-Based Costing

By: Robert S. Kaplan
Introduces the fundamental notions of activity-based costing (ABC). Motivates ABC by means of a simple example, a single and a diversified pen factory. Proceeds to show how ABC assigns costs more accurately to products and customers by: 1) identifying the activities... View Details
Keywords: Activity Based Costing and Management
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Kaplan, Robert S. "Introduction to Activity-Based Costing." Harvard Business School Background Note 197-076, February 1997. (Revised July 2001.)
  • 2007
  • Working Paper

Global Competitors as Next-Door Neighbors: Competition and Geographic Concentration in the Semiconductor Industry

By: Minyuan Zhao and Juan Alcacer
Despite the many advantages offered by technology clusters, firms located in them face the risk of losing valuable knowledge to nearby competitors. In this study, we argue that multi-location firms strategically organize their R&D activities to appropriate the value of... View Details
Keywords: Information Technology; Industry Clusters; Innovation and Invention; Geographic Location; Competitive Strategy; Globalization; Semiconductor Industry
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Zhao, Minyuan, and Juan Alcacer. "Global Competitors as Next-Door Neighbors: Competition and Geographic Concentration in the Semiconductor Industry." Michigan Ross School of Business Working Paper, No. 1091, March 2007. (Available at SSRN.)
  • Teaching Interest

Compensation Committees

By: Suraj Srinivasan
Executive compensation has become a flashpoint issue for board members, institutional investors, regulators, and the media. Compensation committees are challenged to design compensation programs that not only tie business or corporate strategies to company performance,... View Details
  • 18 Feb 2015
  • First Look

First Look: February 18

scientifically grounded way to align our speech and nonverbal behavior with our beliefs, abilities, and values to produce a synchronized inner state that resonates and connects with others. In this way, we can capture the inner strength... View Details
Keywords: Sean Silverthorne
  • October 2009 (Revised October 2010)
  • Case

Cosan: Thinking Outside the Barrel

By: Forest L. Reinhardt, Noel Maurer and Ricardo Reisen de Pinho
The Cosan case introduces students and executive education participants to political economy and business strategy in the biofuels industry. Cosan, based in Brazil, is the largest grower and processor of sugarcane in the world and the largest sugar and ethanol producer... View Details
Keywords: Renewable Energy; Global Strategy; Governing Rules, Regulations, and Reforms; Industry Structures; Business and Government Relations; Business Strategy; Vertical Integration; Agriculture and Agribusiness Industry; Energy Industry; Brazil
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Reinhardt, Forest L., Noel Maurer, and Ricardo Reisen de Pinho. "Cosan: Thinking Outside the Barrel." Harvard Business School Case 710-017, October 2009. (Revised October 2010.)
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