Examines the problems facing South West Enterprise (WSE), a mutual insurance company, at the end of 1996. His investments in stocks Cincinnati Bell was phenomenally successful, but left the company potentially biased in stocks in general, and one share in particular. Cost diversification declaration and payment of tax on large capital gains. Possible solutions include maintaining the position by selling the position, or the position of defense by issuing long shifts on the overall security of (OIC). Asks students to compromise the benefits of diversification (which they have to live) for the cost of ad capital gains (which they should be quantified). In defense of their choice, students were asked to rate various benefits, tax and non-tax and expenditure of each solution. Because the client (WSE) has several potentially conflicting goals, the case presents a situation where safety design can improve the simple alternatives. Provides details of structuring DECS, allowing discussion of why various features have been incorporated into their design. "Hide
by Mitchell A. Petersen Source: Kellogg School Management 11 pages. Publication Date: January 1, 2004. Prod. #: KEL075-PDF-ENG
Related Case Solutions & Analyses:
La Martina (B): Selling the Passion
Entrepreneurs Foundation
Running and Growing the Small Company Course Overview
Diamond Chemicals PLC (A): The Merseyside Project
Ally or Acquire How Technology Leaders Decide
Pandesic: The Challenges of a New Business Venture (A)
Performance Management
Managing Innovation at Nypro Incorporation
VINSUN Infra Engineering Pvt. Ltd
Environmental Risk Management At Chevron Corporation
