Established in 1930 in Basel, Switzerland, to expedite and supervise the payment of reparations by Germany to the victors of World War I, the Bank for International Settlements (BIS) quickly evolved into a banking establishment for various national central banks to negotiate and work out mutually-beneficial monetary policies and financial arrangements outside of the usual political and national channels. During World War II the BIS stayed open as a neutral central bank for central banks and provided significant back-channel communications between the Allied and Axis powers that could not have occurred any other way. As an example, discussions for the reconstruction of post-WWII Germany were underway between German and Allied representatives to the BIS at least two years prior to Germany’s surrender in May 1945. The post-WWII BIS then went on to become a global central bank for the world’s national central banks. In spite of the BIS holding so much effective financial power on an international scale and, hence, affecting nearly everyone in the world, few have ever heard of the BIS. This includes many economists and financial-economists. Why? Although technically not a secret organization, the BIS has always maintained an intentionally low profile. The BIS has never advertised its existence. It operates through many other organizations it has either directly created or where it holds major influence. This paper discusses the BIS, its history, and its impact and influence on world events. Questions concerning the role the BIS should possibly play in world events and central banking are raised for discussion near the end of this paper. This paper is focused primarily towards both upper-level undergraduate and graduate finance and economics courses, particularly in the areas of money, banking and financial institutions, financial markets, and monetary policy. However, other courses, to include those outside of the financial-economic arena, can find great use for this subject matter as well. Such outside arenas could include political science and history courses.
This case study concerns how the personal behavior of students involved in fraternal organizations is depicted in social media, and how that behavior impacts the organization and its image. The legal and ethical implications of individuals’ behaviors in social media has become a major issue for many organizations. This case follows an example of a fraternal organization and how the governing body must handle the information members post on social media. The mission of many fraternal organizations is to champion or contribute to specific causes. Members’ social media postings may reflect poorly on the organization and may not always align with the principles of the organization. This case examines how those postings impact the organization, and what it can do to mitigate the effects. The ethical issues that can affect the actions of both the governing body and the members are probed throughout the case.
The case involves an athletic director at a fictitious mid-sized university (Northwestern Midwest College) who is thinking about how to enhance the productivity of the investments in the various sports programs on his campus. Using concepts from marketing, this athletic director develops a series of ideas, which could be used to reshape the allocation of resources within the athletic division at his university. Faced with the need to effectively manage enrollments, endowments and the branding of their institutions, colleges and universities are looking to successful sports programs as one way to further differentiate their institution in the marketplace. For smaller and some medium-sized institutions, it is becoming increasingly difficult to field a cadre of successful sports programs which both generate both positive revenues and national exposure for the institution. As a result, some of these schools are beginning to think more critically about the portfolio of sports teams which represent the institution, in an effort to increase the efficacy of those institutional investments.
Most family owned small businesses are so concerned about keeping the doors open on a daily basis that not a lot of time is spent on researching their customer satisfaction. As well, funds for such marketing research are often limited. Trying to keep personal bias out of such research is difficult. Thanks to the Ultimate Question/Net Promoter Score now there is a simple way to measure customer satisfaction by asking a single question. Can this work for a small dance business in mid-Michigan?
This case study is designed to provide detailed information about the water crisis in Flint, Michigan brought on by a series of decisions that could have been researched better prior to enactment. The results were catastrophic to the citizens that public officials were sworn to protect. This case study will provide university classes with information to use while analyzing the causes and decisions that lead to the Flint Water Crisis. This study is not designed to provide all information, but to supplement class research in order to determine what happened and what should have happened. Available research offers numerous issues and plenty of blame, but no definitive answers.
College student attendance at campus sporting events has been declining for a number of years with administrators looking for ways to reverse that trend. There are multiple reasons for the declining attendance and a multitude of possible solutions have been proposed. This case examines the situation for the football program at one mid-sized university, providing data from a representative cross section of the student population. Readers are tasked with making recommendations based on the data and to describe methods of evaluating the success of any changes.
The primary purpose of this teaching case is to aid students in understanding how executive compensation plans are utilized to achieve organizational goals and to then construct their own executive compensation plan for the CEO of Greenleaf Grocery, a fictional retail business based on an actual company. Students have the opportunity to create a comprehensive executive compensation plan using salary, bonuses, stock options, benefits, and other compensation tools. Additionally, the case provides the opportunity to discuss the use of both short-term and long-term incentive compensation. The company in this case is poised to undertake an initial public offering of stock and retaining the current CEO is viewed as critical for this next phase. The case affords the class the opportunity to explore ethical issues in executive compensation as well as other aspects of the organization’s overall compensation structure.
E.Z. Pickens Conglomerate, S.A. is a large, multi-national manufacturing organization. Approximately six months ago an anonymous tip was left on the company’s fraud hotline. The tip pertained to a division manager of the company who had allegedly perpetrated a fraudulent vendor scheme in collaboration with their significant other. Your company’s internal audit department conducted a review of the vendor file, corroborated the allegation, and forwarded their findings to your department. You supervised a complete investigation into the matter which will now culminate with an admission-seeking interview of the fraudster. Your task is to review the investigative file, prepare to confront the alleged perpetrator, and then conduct the admission-seeking interview to obtain an oral and written confession.
This case reviews the background of a new entrepreneurial firm, LidSuperior*on the launching of a new patented hot beverage cup lid in the United States for disposable hot beverage cups. The United States hot beverage cup lid industry is highly concentrated with a few major competitors who have dominated the market in sales volume over several years. One brand in particular, the Dart “Solo Traveler” lid has been the market share leader for several years. LidSuperior designed, after multiple preliminary design attempts, an innovative X lid that enhances aroma of hot beverages, reduces the possibility of spills, and increases safety in drinking and transporting a hot beverage cup. LidSuperior’s lid design also allows room on the side of the lid for advertising or shared lid-costs with co-marketing partners. The firm secured a patent on the design and functionality of the lid as claimed benefits were validated with independent marketing research sensory tests. LidSuperior is working on developing a marketing plan to introduce the hot beverage lid within the United States to be later followed by a cold beverage lid design and launch.
Sweeny Electronics is a family-owned S Corporation based in St. Paul, Minnesota. The company was started in 1946 by a returning army veteran, Frank Sweeney, and focused on the heating, air quality and cooling markets. The company has survived numerous recessions, market consolidations, and manufacturing challenges. The company is currently run by the third generation of the Sweeney family, George Sweeney, who is the current owner and CEO, is approaching retirement age. The board of directors has seven members: George Sweeney, his wife Jane and five members of the business community. Under the direction of the CEO, the board has determined that there is no “heir apparent” in the family or in the current management team. They have elected to hire an investment banking firm to position the company for an asset-based sale. Sweeney would like to sell the company for estate planning purposes and allow him to transition to a consulting role with the new owner.
Many high school and college graduates that have excelled in their sport at either or both levels are not able to maintain their edge once they finish matriculating and/or enter the work force. The demands on their time coupled with the gradual deterioration of their fitness and athleticism that comes along with life beyond the academic setting reduces them to weekend warrior status. But the desire to be part of a winning team and pushing the limits of competition do not end there. In fact, many former athletes volunteer to take on leadership roles off the field that are connected to the sport that they excelled at in school. To some, those roles can be no more than administrative functions that fail to scratch the competitive itch of the former athlete. Eric Miller, an accomplished college soccer player and recent business school graduate had a different idea when he volunteered to take on the team manager role of a local youth sports team. Eric looked at this as an opportunity to apply what he learned in his business classes about strategy development and managerial accounting. Eric started his analysis by looking at the team’s financial situation. Eric then framed out what he believed to be the areas that he needed to address and is seeking your assistance in helping with his analysis so that he can meet his goal of creating the most value for his team.
The case involves a small local business (family-owned) which produces and sells an interesting food product – the pasty. The business is quite profitable, and potential growth options are contemplated, including but not limited to geographic expansion, online sales, focus on developing brand equity, product line extension, or maintaining the status quo.
Radio has been a part of the American advertising landscape since the 1920s. Many threats to the industry have been thwarted by the strength and effectiveness of the medium. Prior to the deregulation of the industry in the 1990s and the technological change of the 21st century, there were literally hundreds of small entrepreneurs, owning one or two stations, spread across the country. This is the mythical story of Gus Rowekamp, who owns two stations in a midsize Midwestern market. He hangs on as an owner/operator, putting most of his focus on the efforts of his advertising sales staff.
Given the significance of accrual accounting to financial reporting, it is important for students to understand why accounting standard setters have chosen accrual basis over cash basis accounting. This teaching case illustrates the superiority of accrual basis earnings over cash flows when financial statement users wish to evaluate past operating performance and/or predict future performance. The case, which requires only 20-25 minutes of class time, enables students to discern for themselves the relative advantages of accrual accounting.
Based on actual events, this case is concerned with the practical and managerial challenges associated with analyzing, designing and implementing a Business Intelligence (BI) / Corporate Performance Management (CPM)information technology solution in a large national retailer. Secondary issues examined include strategy, project management and conflict resolution. This case is appropriate for upper-level undergraduate and masters-level graduate courses in information technology, accounting information systems and project management. It is designed to be taught in about one class hour, and requires four to six hours of outside preparation by students.
The shortage of academically qualified accounting professors makes this a relevant time to increase the use of online tools for content delivery, assignment completion and assessment. Accounting students employed as teaching assistants (TA) can develop professional skills including skepticism, problem solving, analysis, organization and electronic documentation, while in academia. Certified Public Accountants (CPA) and educators are held accountable to high ethical standards through a code of conduct and academic integrity policies. This teaching case incorporates ethical decision making from an experience in an online virtual classroom where power differentials and analysis of student activity require research in a learning experience.
Founder of BRICKK, a fitness lounge, Kathy Pavlik was determined to create a friendly, healthy, non-intimidating atmosphere where clients would feel welcome. Pavlik believes ‘fear’ causes many people to begin then quit working out. Inspired by her own experiences, Pavlik created a new concept in the health club business in Alma, Michigan. Now that BRICKK is a reality, the next steps need to be determined in the effort to make the fitness lounge a financial success. Pavlik is considering a number of marketing strategies in order to build up attendance in the classes. She’s also considering marketing ideas on how to increase business with her lunches/smoothie bar and possible lunch delivery within the county.
In this case, students are required to conduct an initial assessment of a potential audit client and provide a well-supported recommendation to the audit partner. Specifically, students are assigned a company and asked to gather and evaluate data on it and its upper management. Based on that information, students are to make an objective recommendation to the firm on whether to accept, accept and consider a risk-adjusted audit fee, or reject the client; they are also required to provide the reasoning or argument for the decision. This case has many learning objectives. First, students will demonstrate their research and critical thinking skills and apply those skills by evaluating the information to make a judgment similar to that required of audit professionals. Second, students will create a memorandum that concisely summarizes the obtained information and provide a well-supported recommendation. Third, students will understand and be able to communicate the various types of risk in the business environment. Finally, the case assists students in converting their perspective from that of an accountant to that of an evaluator or auditor. Moreover, the case can be used to introduce professional skepticism and the importance of maintaining objectivity when making a judgment.
Cost accounting textbooks typically contain extensive technical coverage of standard costing and variance analysis in a manufacturing context. Covering the material adequately usually requires multiple class lectures, due to the complexity of the material. The calculations involved are detailed, multi-step, and can be numerically intensive. In order to make the material accessible to the learner, most textbook problems focus on the individual steps inherent in the budgeting, calculation, analysis, and interpretation process of standard costing and variance analysis. This simplification makes it feasible to deliver the material efficiently in the classroom. However, this pedagogical efficiency occurs at a cost, in that students may fail to understand the overall process and how the individual steps are interrelated. This case has been used over the course of 10 semesters with over 500 students in a junior level Cost Accounting class for accounting majors. It has proven to be an effective tool for both reinforcing the variance analysis content that is delivered in the classroom, as well as for giving students an opportunity to practice and extend their Excel skills.
This student case study is intended for use in the accounting classroom to develop a stronger understanding of potential fraud indicators and their level of significance. Auditing standard setters have responded to high profile accounting frauds by increasing the responsibility of auditors to find and report on accounting frauds. This case study presents a number of fraud indicators that can be investigated and discussed as part of a class assignment. This case study is unique in that it makes a clear differentiation between quality of revenue and quality of earnings.
