Publications

November 2019 (Revised January 2020)
Supplement

Taiwan Semiconductor Manufacturing Company Limited: A Global Company's China Strategy (B)

By: William C. Kirby, Billy Chan and Dawn H. Lau

After the legendary founder of Taiwan Semiconductor Manufacturing Company (TSMC) retired, the new chairman had to grapple with fresh challenges related to its China market: a recently opened factory in China had to find ways to reverse its financial loss and meet its... View Details

Keywords: Cross-cultural; Foreign Investment; Government; Business and Government Relations; Globalization; Change Management; Customer Relationship Management; Innovation Strategy; Global Strategy; Leadership; Semiconductor Industry; Taiwan; China

August 2024 (Revised October 2024)
Case

Discerene Group: Long-Term Public-Markets Investing

By: Luis M. Viceira and Brent Schwarz

This case discusses active investing based on fundamental valuations and price distortions created by market events, and whether contractual terms between investment managers and their investors can help align incentives between long-term investors and active managers.... View Details

Keywords: Financial Strategy; Investment Funds; Valuation; Financial Markets; Financial Services Industry; Connecticut

November 2007 (Revised January 2013)
Case

Indonesia: Attracting Foreign Investment

By: Michael E. Porter and Christian H.M. Ketels

Describes the economic development of Indonesia from independence after World War II to 2006 and the post-Suharto period. The coverage of the post-Suharto period provides evidence of how political and economic conditions are intertwined after a change in the political... View Details

Keywords: History; Situation or Environment; Competitive Strategy; Emerging Markets; Policy; Foreign Direct Investment; Business and Government Relations; Public Administration Industry; Indonesia

February 2006 (Revised August 2006)
Case

Investment Banking at Thomas Weisel Partners

By: Malcolm P. Baker and Lauren Barley

Thomas Weisel Partners (TWP), a San Francisco-based bank focusing on emerging growth companies, is considering its strategy in the context of regulatory, competitive, and legal changes. Blake Jorgensen, the chief operating officer and co-director of investment banking,... View Details

Keywords: Strategy; Business or Company Management; Conflict of Interests; Change Management; Investment Banking; Financing and Loans; Laws and Statutes; Financial Strategy; Corporate Finance; Banking Industry; San Francisco

Article

Survive Another Day: Using Changes in the Composition of Investments to Measure the Cost of Credit Constraints

By: Luis Garicano and Claudia Steinwender

We introduce a novel empirical strategy to measure the size of credit shocks. Theoretically, we show that credit shocks reduce the value of long-term relative to short-term investments. Empirically, we can therefore compare the reduction of long-term relative to... View Details

Keywords: Credit Constraints; Credit Crunch; Spain; Investment Behavior; Credit Squeeze; Financial Crisis; Economic Growth; Investment; Credit; Manufacturing Industry; Spain; European Union

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December 2006
Case

Southern Company's Investment in CEMIG

In the spring of 1997, Southern Company had the opportunity to acquire a significant portion of the electric utility in the Brazilian state of Minas Gerais. The shares in the utility, CEMIG, were being sold by the state government as part of a comprehensive... View Details

Keywords: Corporate Strategy; Privatization; Investment; Acquisition; Globalized Markets and Industries; Utilities Industry; Brazil

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2019
Chapter

Return on Invested Capital (ROIC)

By: Carliss Y. Baldwin

Return on invested capital (ROIC) is a financial measure of the profitability of a firm or business unit. If it is greater than the business's cost of capital, then reinvestment of earnings increases shareholder VALUE. The ROIC also determines a maximum self-sustaining... View Details

Keywords: Capital Efficiency; Dupont Analysis; Financial Metrics; Schumpeterian Competition; Sustainable Growth; Competitive Advantage; Financial Strategy; Resource Allocation; Valuation; Value Creation

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June 2005 (Revised January 2006)
Case

Investment Policy at the Hewlett Foundation (2005)

By: Luis M. Viceira

In early January 2005, Laurance Hoagland Jr., VP and CIO of the William and Flora Hewlett Foundation (HF), and his investment team met to finish their recommendations to the HF Investment Committee for a new asset allocation policy for the foundation's investment... View Details

Keywords: Investment Portfolio; Risk and Uncertainty; Public Equity; Globalization; Investment; Property; Risk Management; Asset Management; Financial Services Industry

September 2008 (Revised July 2012)
Case

Khosla Ventures: Biofuels Strategy

By: Joseph B. Lassiter III, William A. Sahlman and Alison Berkley Wagonfeld

By 2008, a number of the firm's early cleantech investments were showing promise, and the companies were starting to need significantly more money to create the massive scale required in the energy sector. As Khosla thought about the hundreds of millions of dollars... View Details

Keywords: Entrepreneurial Marketing; Entrepreneurial Finance; New Product Development; Partnerships; Entrepreneurial Management; Venture Capital; Strategy; Partners and Partnerships; Renewable Energy; Entrepreneurship; Investment Funds; Environmental Sustainability; Product Development; Biotechnology Industry; Financial Services Industry

2007
Working Paper

Intra-Industry Foreign Direct Investment

By: Laura Alfaro and Andrew Charlton

We use a new firm level data set that establishes the location, ownership, and activity of 650,000 multinational subsidiaries -- close to a comprehensive picture of global multinational activity. A number of patterns emerge from the data. Most foreign direct investment... View Details

Keywords: Multinational Firms and Management; Business Subsidiaries; Foreign Direct Investment; Geographic Location; Supply and Industry; Vertical Integration

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October 2001 (Revised February 2002)
Case

Acme Investment Trust: January 2001

By: Josh Lerner

The managers of a large corporate pension fund must decide whether to invest in a private equity fund that is offering a guaranteed rate of return of 20% on part of its portfolio. The background behind and implications of the guarantee are explored. View Details

Keywords: Decisions; Private Equity; Motivation and Incentives; Asset Management; Investment Funds; Financial Strategy; Financial Services Industry

23 Aug 2004
Research & Ideas

Strategy for Small Fish

series of ecosystems, they urge, with "keystone" companies such as Microsoft and Wal-Mart providing for the health of all who do business with them. What are the best strategies for companies living in these ecosystems? This... View Details

Keywords: by Marco Iansiti & Roy Levien

16 Apr 2001
Research & Ideas

Strategy and the Internet

entire value chain, across almost every company and industry. And because it is an open platform with common standards, companies can often tap into its benefits with much less investment than was required to capitalize on past... View Details

Keywords: by Michael E. Porter

Research Summary

Managing International Trade and Investment

By: Debora L. Spar

Introduced by Debora Spar in 1995, Managing International Trade and Investment is an elective course that prepares students to deal with the distinct set of management challenges that face cross-border businesses. Building on experience that suggests that what works... View Details

January 2005 (Revised February 2006)
Background Note

Note on Corporate Strategy

By: Mikolaj Jan Piskorski

Introduces students to the study of corporate strategy. Focuses on questions of scope and ownership. Examines both horizontal and vertical integration. Underscores the point that economies of scope, or the existence of relationship-specific investments, are... View Details

Keywords: Investment; Contracts; Ownership; Corporate Strategy; Horizontal Integration; Vertical Integration

April 2015 (Revised April 2015)
Case

Yale University Investments Office: February 2015

By: Josh Lerner

David Swensen and the Investments Office staff must decide whether to continue to allocate the bulk of the university's endowment to illiquid investments—hedge funds, private equity, real estate—given the impact of the recent market turmoil. The case explores the risks... View Details

Keywords: Asset Management; Resource Allocation; Investment; Venture Capital; Investment Funds; Property; Private Equity

June 2010 (Revised September 2013)
Case

IDFC India: Infrastructure Investment Intermediaries

By: John D. Macomber and Viraal Balsari

Indian financial intermediary matching international capital to local infrastructure decides how to balance range of services, risk-adjusted return, margin pressure, and nation building. IDFC was chartered with partial ownership from the Indian government to help... View Details

Keywords: Investment; Infrastructure; Corporate Social Responsibility and Impact; Mission and Purpose; State Ownership; Business and Government Relations; Business and Shareholder Relations; Partners and Partnerships; Financial Services Industry; India