Other People's Money

  • Reference: F-858-E

  • Year: 1990

  • Number of pages: 4

  • Geographic Setting: América del Norte

  • Publication Date: Jan 30, 2012

  • Source: IESE (España)

  • Type of Document: Case

Grouped product items
Format Language Reference Use Qty Price
pdf English F-858-E
As low as €8.20

You already have a subscription

To order please contact the person in charge of academic purchases in your university.
You'll be able to order once your profile has been validated.

Description

This case - based on the movie "Other People's Money" (1991) directed by Norman Jewison - provides an excellent basis for the discussion on what is the fundamental goal of business. A Wall Street tycoon intends a hostile takeover of an esteemed industrial company on which the local community is dependent, with the aim of liquidating it. The case features the dichotomy between short-term vs. long-term objectives, management accountability to stakeholders vs. to shareholders, and Corporate Social Responsibility vs. Shareholder Value Maximization. This case has been replaced by case F-887-E: Other People’s Money: The Fight for Control of The New England Wire & Cable Company.

Learning Objective

The students take the role of shareholders during the Extraordinary General Shareholders Meeting. Should they pass the management of the company from its long-time dedicated President, shareholder and Founder's son to a Wall Street financier who wants to liquidate it? The case highlights: Short-term vs. long-term goals of the firm: the is stable and low debt, but its profitability is low, its assets are more valuable than the stock price, and its future is uncertain.

Related Documents

Keywords

Company Valuation investment Mergers and Acquisitions Social responsibility