Case Studies

Case Studies Results (187)


Pricing of Emirates Airline’s Unrated Bond Issue

Dr Emir Hrnjić and Prof David Reeb
7 November 2024

In early 2015, many economies around the world were already dealing with a downturn in the markets when the price of oil dropped steadily, which had a strong impact on oil-dependent economies in the Persian Gulf region. As the corporate debt market decreased considerably, the airline Emirates (owned by The Emirates Group) decided to try a distinctly new approach by issuing a sukuk, or Islamic bond, with the backing of the United Kingdom’s Export Credits Guarantee Department. If successful, it would become the first sukuk certificate guaranteed by an export credit agency. It would also be the largest-ever debt capital markets offering in the aviation sector with a guarantee from an export credit agency. Surprisingly, the sukuk was not rated by any of the three major global credit rating agencies. Why was the sukuk issued by Emirates not assessed by a major credit agency? If it had been, what rating would it have received? Most importantly, what were the sukuk’s risks and how should such an innovative bond be priced?

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Finance
: Finance, General Management/Strategy
: IVEY Publishing

DBS Bank Ltd. (Singapore): Digitalization and Service Disruptions

Prof Thompson S.H. Teo, Mr Yu Zhe Goh (BBA student), Ms Mavis Ker Hui Ng (BBA student) and Mr Rowell Zheng Jie Tan (BBA student)
15 October 2024

In 2023, DBS Bank Ltd. (Singapore), a leading financial institution, experienced significant service disruptions. These disruptions, which affected online banking, payment services, and automated teller machine operations, led to the failure of approximately 2.5 million transactions. The disruptions eroded customer confidence and impacted the company’s reputation, with repercussions for both individual users and businesses that relied on the bank’s digital infrastructure. The repeated nature of these incidents prompted a response from the Monetary Authority of Singapore (MAS), which introduced stringent requirements and penalties to safeguard the banking ecosystem against further instability. What actions should DBS take to prevent future disruptions?

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Analytics and Operations
: General Management/Strategy, Operations Management
: IVEY Publishing

Cruise in Crisis: Navigating the Autonomous Vehicle Industry

Prof Thompson S.T. Teo, Ms Jessy Lene Deserva Amolar (BBA student) and Ms Hazel Lye Hwee Woon (BBA student)
2 October 2024

Founded in 2013 and acquired by General Motors (GM) in 2016, Cruise was a trailblazer in the autonomous vehicle industry. Cruise had rapidly expanded under the guidance of GM, but this growth was marred by crashes and disruptive interactions with emergency vehicles. By November 2023, the company had become the focus of intense public and regulatory scrutiny following a serious incident in San Francisco, California, on October 2, when a Cruise robotaxi caused severe injuries to a pedestrian. In the aftermath of the incident, Cruise faced significant backlash from regulators and consumers. The California Department of Motor Vehicles suspended the company’s operational permits, and Cruise temporarily halted its driverless operations, shifting to vehicles operated with safety drivers. The co-founders resigned, and Cruise appointed a new president and chief technology officer. What actions should the new president take to prevent such an incident from happening again, regain the public’s trust, and ensure rigorous safety standards and transparent communication? The decisions the company made in the coming months would be crucial in shaping its future trajectory.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Analytics and Operations
: General Management/Strategy, Operations Management
: IVEY Publishing

A Note on Stablecoins

Dr Emir Hrnjić and Mr Ben Wee (BBA graduated student)
25 September 2024

Stablecoins represent digital assets whose value is pegged to that of a fiat currency, commodity, or financial instrument. As non-volatile assets that enable relatively easy cross-border transfers and minimal price fluctuation relative to the reference asset, stablecoins are especially useful as a medium of exchange.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Finance
: Finance
: IVEY Publishing

FRESH: Setting Sight on the Future of Food

Assoc Prof Sarah L. Y. Cheah, Dr Benjamin Smith (Monell Chemical Senses Center), Mr Colin Lim (Agency for Science and Technology Research, A*STAR)
8 August 2024

The Future Ready Food Safety Hub (FRESH) was a Singapore-based food safety research organization with a global reputation as an authority on assessing the safety and suitability of novel food products meant for sale in the Singapore market. As Singapore had become the first country in the world to approve the sale of laboratory-grown chicken, more and more companies were approaching FRESH for guidance in their safety dossier submissions to the Singapore Food Agency. With a small team of 10 members to keep up with the growing demand for its services, FRESH considered two options: engaging companies one-on-one to address the specific challenges they faced to meet novel food safety requirements, or adopting a consortium approach engaging multiple companies to collaboratively identify and prioritize common problems and develop optimal solutions for the industry. FRESH had to decide which option would best achieve its goals in advancing food safety research and building the novel food ecosystem.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Management and Organisation
: General Management/Strategy, Sustainability
: IVEY Publishing

Quadria Capital: Doing Well by Doing Good in Asian Institute of Gastroenterology Hospitals

Assoc Prof Doreen Kum and Prof Jochen Wirtz
12 July 2024

Founded in 2012, Quadria Capital Investment Management Private Limited (Quadria Capital) was committed to its mission of using its expertise to do well by doing good through bringing affordable quality health care to Asia. In July 2013, it found such an investment opportunity in the Asian Institute of Gastroenterology (AIG) Hospital in India. AIG was one of the largest gastric sciences hospitals in India that specialized in gastroenterology. It performed more endoscopic procedures per day than any other hospital in the world. It had earned a global reputation for clinical excellence, being among only twenty centres globally to be conferred World Organization of Digestive Endoscopy (recognition. This clinical excellence in the gastric science specialty and reputation put AIG in a strong leadership position and drove demand for its services. It was also renowned for its research and education in gastric sciences. As exciting as the opportunity was, the two founders of Quadria Capital knew this investment would use up a sizable portion of their funds, and they had to carefully consider the risks and what needed to be done to decide whether AIG was the right investment opportunity for Quadria Capital.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Marketing
: General Management/Strategy, Marketing
: IVEY Publishing

UnaBiz: Advancing Aviation Sustainability through Smart Solutions

Assoc Prof Sarah L.Y. Cheah and Mr Joshua Jun-Zhi Ng (BBA graduated student)
17 May 2024

In October 2021, UnaBiz Pte. Ltd., a Singapore service provider of Internet of Things technology for the aviation industry, secured US$25 million in series B funding. In April 2022, it acquired the French start-up Sigfox and later doubled its series B funding. The company’s managing director was then planning a series C funding round for June 2023 but had to make a decision regarding the company’s future growth and expansion from two potential paths. The first option was to focus on the aviation sector, in which the company could leverage major clients such as Changi Airport Group and Airbus SE. However, there were serious concerns regarding vulnerability and regulatory challenges in the aviation sector. The second option was a broader strategy that involved diversifying into logistics and supply chain, with aviation as a subset. This option presented significant market opportunities but required convincing stakeholders to adopt new technologies and to navigate a fragmented landscape. The managing director had to make a critical decision before presenting his expansion strategy for UnaBiz Pte. Ltd. to potential investors.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Management and Organisation
: General Management/Strategy, Sustainability
: IVEY Publishing

A Note on Tokenization and Tokenized Assets

Dr Emir Hrnjić and Mr Ben Wee (BBA graduated student)
9 April 2024

This note is about tokenization and tokenized assets. Tokenization refers to the process of creating a representation of a particular asset on a blockchain via digital tokens. Tokenized assets typically derive their value from the value of the underlying asset. This note explores the benefits and risks of tokenization, as well as use cases. Moreover, it explores Security Token Offerings, considerations for tokenized asset issuers, and the Howey Test. It concludes with a consideration of how possible future trends may affect tokenization.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Finance
: Entrepreneurship, Finance
: IVEY Publishing

Zentaku Kogyo Company: Less Is More

Assoc Prof H. Brian Hwarng and Assoc Prof Xuchuan Yuan (Singapore University of Social Sciences)
8 April 2024

Contrary to the typical practice of cutting operating expenses by compromising on employees’ benefits, the chairman of Zentaku Kogyo Company Ltd. (Zentaku), David Wu Chongrang, aimed to improve the standard of living of his staff by steadily raising their salaries and benefits. In fact, the key performance indicator David had set for himself was to raise his employees’ salaries regularly to a preset target benchmark. Contrary to conventional approaches, over the past sixteen years (2006–2022) David had reduced Zentaku’s revenue by 28 per cent and the number of employees by two-thirds, while raising the annual gross profit per employee to 239 per cent. Zentaku had achieved more with less by transforming itself through the rigorous implementation of lean production, inspired by the famed Toyota Production System, but Zentaku’s future leadership now faced challenges in sustaining the success Zentaku had achieved. Were the management methods adopted in the past applicable to the younger generation of workers? How could the current management pass the enterprise to the younger generation while ensuring employees remained fulfilled in the workplace?

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Analytics and Operations
: General Management/Strategy, Operations Management
: IVEY Publishing

Energy Transition: Enabling Singapore Small and Medium Enterprises to Go Solar

Assoc Prof Weina Zhang, Ms Vigillia Ang (Research Associate, Sustainable & Green Finance Singapore) and Mr Yannis Yuan (Research Associate, Sustainable & Green Finance Singapore)
20 February 2024

Green Consultant, a Singapore-based environmental consulting firm, had worked with several financial institutions before 2023 and was aware that many were interested in expanding their loan portfolios to include more environmentally inclined clients. In January 2023, one such client, a Singapore-based small and medium enterprise (SME) named Chang & Lee Manufacturing (CLM), approached Green Consultant to prepare a business proposal on how the SME could transition to solar energy. A green finance analyst at Green Consultant had one month to deliver a proposal to CLM. He had to consider the type of solar business model, the financing option, and the CLM stakeholders to engage, alongside CLM’s operational and financial conditions, to recommend the most economically feasible solar solution for CLM.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

: Finance
: Finance, Sustainability
: IVEY Publishing