Case Studies

Case Studies Results (125)


Xiaomi Corporation: Initial Public Offering

Prof Allaudeen Hameed, Assoc Prof Ruth Tan, Dr Weina Zhang and Mr Marshall Too (BBA graduated student)
30 June 2019

The initial public offering of the Chinese company, Xiaomi Corporation (Xiaomi), would start trading on the Hong Kong Exchanges and Clearing Market (HKEx) on July 9, 2018. The CEO of Xiaomi argued that the company should be priced like an internet firm, since internet services and internet of things formed a major part of the firm’s strategy and profit, and hence should command a higher valuation. Some analysts, however, attached a lower value to Xiaomi, which was viewed as a smart phone manufacturer since this segment contributed the majority of the firm’s revenue. Hence, this case provides an opportunity for students to value a company that operates in diverse business segments: smartphone manufacturer, internet services and internet of things

: Finance

SingTel: Philanthropic or Strategic Corporate Social Responsibility?

Dr Weina Zhang, Assoc Prof Ruth S.K. Tan, Ms Shirley Jing Min Lim (BBA graduated student), Mr Joan Jia Xin Loke (BBA graduated student), Mr Wei Lim (BBA graduated student) and Mr Su Yuan Liow (BBA graduated student).
18 June 2019

In 2014, the vice-president of Group Corporate Social Responsibility at Singtel, a Singapore-based provider of telecommunications products and services, was scrutinizing his proposal for the company’s corporate social responsibility (CSR) transformation. He wanted to reposition Singtel’s CSR approach to create greater social impact while demonstrating greater benefit to the company beyond promoting its branding and reputation. In doing so, he was mindful that the proposal would require greater financial investment on the part of the company. The proposal would also need to leverage the company’s capabilities and partnerships and address the possibility of dropping its current beneficiaries. His team needed to convince the board of directors and senior management that the potential benefits of the proposed changes would be worth the financial investment and the possibility of reduced brand exposure.

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, General Management/Strategy, International
: IVEY Publishing

CapitaMalls Asia: A Buyout Offer from CapitaLand

Assoc Prof Ruth S.K. Tan, Dr Zsuzsa R. Huszar (Visiting Professor, Department of Economics and Business, Central European University), Dr Weina Zhang and Mr Shao Yu Hong (MSc graduated student)
17 June 2019

On April 14, 2014, CapitaLand Limited, a Singapore-based real estate company, launched a voluntary conditional cash offer of SG$2.22 for each share (SG$3.06 billion in total) of its subsidiary commercial property development and management company, CapitaMalls Asia Limited (CMA). CMA’s principal business strategy was to invest in, develop, and manage a diversified portfolio of real estate used primarily for retail purposes in Asia. CapitaLand’s offer represented a 22.3 per cent premium over CMA’s closing price of SG$1.815 on April 11, 2014. The intention was to delist CMA and fully integrate it into CapitaLand. As an investor in CMA, you are seeking a reasonable valuation of CMA based on its past financial performance and other relevant market information. You also need to compute the premium, net present value (NPV), and synergy of the acquisition.

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, International
: IVEY Publishing

StarHub Ltd.: Paving the Way for Innovation

Assoc Prof Sarah Lai-Yin Cheah and Assoc Prof  Foo Maw Der (Nanyang Technological University).
7 June 2019

In 2018, the Singapore-based telecommunication operator StarHub Ltd. (StarHub) acknowledged that in 2017 its total revenue was relatively flat and its net profit had declined. In the face of rising competition and a slowing global economy, the company needed to explore new sources of revenue growth. Two areas of growth seemed promising. The first area involved the launch of StarHub’s smart retail analytics for small and medium enterprises in the retail food and beverages industry, which had been experiencing a high churn rate. The second area would apply StarHub’s new robotics and automation solutions in the labour-intensive hospitality industry, which suffered from an oversupply of properties and would likely see exits and consolidation. StarHub needed to choose between the two investment options.

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
: Entrepreneurship, General Management/Strategy, International
: IVEY Publishing

Kapap Academy: A Hermit Warrior’s Mission

Assoc Prof Sarah L. Y. Cheah and Mr Luke Shineng Wu (Manager, SMU Institute of Innovation and Entrepreneurship)
16 January 2019

Kapap Academy Pte. Ltd. (Kapap Academy) was established in 2007, following the tragic death of the founder’s older brother, with a mission to empower everyday people to learn realistic self-defence skills. The founder and his apprentice-turned-business partner formulated a simple yet functional brand of self-defence, which they named the Modern Street Combatives method. Kapap Academy’s social mission was evident in its provision of both heavily discounted and completely free training sessions for needy and vulnerable segments of society—in particular, women who were victims of domestic abuse and sexual assault, as well as the elderly. Kapap Academy was able to sustain this social mission with a dual income stream. After its 10th-year anniversary, Kapap Academy was looking to export its brand of Modern Street Combatives overseas. This posed various challenges; in particular, whether to adopt a licensing model or a franchise arrangement. Each model had its pros and cons, but a decision had to be made.

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
: Entrepreneurship, General Management/Strategy, International
: IVEY Publishing

Swiggy: Optimizing Cash Burn

Assoc Prof Singfat Chu and Mr Venkata Praneeth Tammiraju  (FT MBA student)
21 December 2018

By August 2015, Swiggy, an on-demand food delivery start-up, had been operating for almost one year in Bengaluru, India. The exponential growth of the business was expected to persist. However, Swiggy was incurring a loss, or a cash burn, on each delivery it was making. The company’s current cash reserves were also drying up, and its chief executive officer had been unsuccessful in attracting new venture capital funding to finance the cash burn estimated for the next four quarters. Swiggy must figure out how to pursue its growth without the injection of any fresh funds.

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
: Entrepreneurship, General Management/Strategy, International
: IVEY Publishing

Kimly Limited: Initial Public Offering

Assoc Prof Ruth S.K. Tan, Dr Zsuzsa R. Huszar (Visiting Professor, Department of Economics and Business, Central European University), Dr Weina Zhang and Dr Ling Yue (Research Fellow, NUS Risk Management Institute)
20 December 2018

On March 8, 2017, Singapore-based food outlet operator Kimly Limited (Kimly) announced its intention to go for an initial public offering (IPO). Through this IPO, it aimed to raise SG$43.5 million. Altogether, 173.8 million new shares would be issued at SG$0.25 per share, comprising a retail tranche of 3.8 million shares and a placement tranche of 170 million shares. The chances of successfully getting Kimly’s IPO shares were slim, given the small retail tranche. In addition, the controlling shareholder and other key shareholders were subject to lock-up periods, which would prevent a short-term overhang of the shares. These factors implied that the supply of Kimly’s shares would be scarce in the initial six months after the IPO, which could have a positive impact on the share price. A retail investor, drawn to the issue because of Kimly’s identity as a family firm, applied for the IPO and was also considering purchasing shares in the aftermarket later in March. Was this a worthwhile investment, and if so, what should this investor’s maximum price be? Should such an investor plan to sell immediately or hold for the long term?

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

Strategic Asset Allocation During Global Uncertainty

Dr Weina Zhang, Dr Man Zhang (University of Sydney), Assoc Prof Ruth Tan and Dr Zsuzsa Huszar (Visiting Professor, Department of Economics and Business, Central European University)
9 October 2018

This exercise places the reader in the position of an investor, who, before 2017, had invested for almost 20 years. Since the financial crisis in 2008–09, this investor had stayed away from the US market. The investor’s return from the previous year stood at a mere 2 per cent. Given that many political events would likely occur in 2017, the investor hoped to revise their investment strategies at the time by developing a more internationalized portfolio. Specifically, the investor was considering how to allocate capital among the existing 10 broker-recommended exchange-traded funds traded on the Singapore stock exchange and two exchange-traded funds in alternative assets traded in the US market. The investor also needed to provide additional cash flows for the education of their two daughters from year two onward for a total of four years. The investor was also willing to reshuffle the investment portfolio to put more weights into the US market. However, before making the revised investment decision, the investor needed to consider the expected returns and risks.

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, International
: IVEY Publishing

A Note on Dividend Policy

Dr Emir Hrnjić (Visiting Senior Research Fellow, CAMRI) and Prof David Reeb
1 October 2018

Profit-making corporations returned cash to investors through dividends or share repurchases. Market participants referred to the fraction of the profits paid to shareholders in the form of dividends as the “payout ratio.” However, a large number of firms have never paid a dividend. For instance, over the past decade, more than half of the listed firms in the United States neither paid a dividend nor repurchased shares. For example, only 20 per cent of firms on the Singapore Stock Exchange consistently paid dividends over the past decade, with similar proportions observed in both US and European stock markets. The percentage of dividend-paying firms plummeted to a record low of 17 per cent in 2000. In fact, most of the “new economy” firms such as Amazon, Facebook, and Google, reinvested their entire savings. This note describes rational dividend theories, behavioural dividend theories, and outlines the four categories of dividend strategies followed by firms.

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

Singapore Airlines Limited: Dividends

Dr Emir Hrnjić (Visiting Senior Research Fellow, CAMRI) and Prof David Reeb
1 October 2018

A new analyst has been asked to forecast the upcoming dividends for Singapore Airlines Limited. However, unlike most dividend-paying firms, which typically maintain stable, transparent, and simple dividend policies, Singapore Airlines maintained an opaque, complex, and irregular pattern of dividends. Further, the company did not respond to requests for information about expected dividends or the company’s dividend policy. The analyst decided to gather historical data about the company and its competitors to gain insights on Singapore Airlines’ dividend policy and to forecast its upcoming dividend.

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, International
: IVEY Publishing