Shawmut National Corporation's Merger with Bank of Boston Corporation (A)

Benjamin C. Esty

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Case | HBS Case Collection | May 1994 (Revised November 1995)

Shawmut National Corporation's Merger with Bank of Boston Corporation (A)

by Benjamin C. Esty

Abstract

Presents the merger negotiations between Bank of Boston (BOB) and Shawmut National Corp. (SNC), two of the country's largest bank holding companies and requires students to value BOB's current offer for SNC. Provides an overview of recent events and trends in the commercial banking industry including the rise of interstate mergers and bank failures.

Keywords: Mergers and Acquisitions; Banks and Banking; Ethics; Negotiation; Valuation; Management; Banking Industry; United States;

Format: Print

15 pages

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Citation:

Esty, Benjamin C. "Shawmut National Corporation's Merger with Bank of Boston Corporation (A)." Harvard Business School Case 294-119, May 1994. (Revised November 1995.)

About the Author

Benjamin C. Esty

Roy and Elizabeth Simmons Professor of Business Administration

Finance

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Supplement | HBS Case Collection | January 2020

MoviePass: The 'Get Big Fast' Strategy

Benjamin C. Esty and Daniel Fisher

In August 2017, MoviePass dramatically lowered its subscription price from $50 per month to just $10 for up to one movie per day. The idea was to rapidly scale the business to the point where they could generate incremental revenue streams form related businesses (e.g., a share of ticket and concession revenues from theaters, advertising revenue from movie studios; and revenue from ride-sharing companies). Within two days, Moviepass had gotten 150k new subscribers; within six months, they had more than 2 million. But as of February 2018, the company faced three challenges: theaters were resisting the concept, investors were shorting the stock in record numbers, and competitors were beginning to appear. Could CEO Lowe convince investors that they did, indeed, have a viable business model and could monetize their growing subscriber base? At the same time, Lowe had to decide whether to raise subscription prices to cover the growing losses or keep prices low to attract subscribers as quickly as possible.

Keywords: Market entry; growth strategy; profit vs. growth; subscription business; cash burn; Data Analytics; get-big-fast; Business Strategy; value creation; buyer power; strategy implementation; entrepreneurship; United States; movie industry; Racing; Business Strategy; Value Creation; Consolidation; Cash Flow; Growth Management; Business Startups; Entrepreneurship; Disruptive Innovation; Mobile Technology; Motion Pictures and Video Industry; Entertainment and Recreation Industry; Advertising Industry; Information Industry; United States;

Citation:
Esty, Benjamin C., and Daniel Fisher. "MoviePass: The 'Get Big Fast' Strategy." Harvard Business School Spreadsheet Supplement 720-854, January 2020. View Details

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Supplement | HBS Case Collection | November 2019

Gillette: Cutting Prices to Regain Share

Benjamin C. Esty and Daniel Fisher

After losing market share to low-priced competitors such as Harry’s and Dollar Shave Club for several years, Gillette decided to fight back by cutting prices on its razors and blades in April 2017. Bonnie Herzog, an equity analyst at Wells Fargo, must assess how the recently announced price cuts are likely to affect Gillette’s earnings and its parent company’s earnings (Procter & Gamble owns Gillette). As part of her analysis, Herzog must estimate the price elasticity of demand for Gillette’s razors and blades. The case contains scanner data which allows students to calculate both price elasticities for a sample of Gillette products.

Keywords: Marketing Strategy; Product Positioning; Business Strategy; Competition; Price; Public Equity; Retail Industry; Consumer Products Industry; United States;

Citation:
Esty, Benjamin C., and Daniel Fisher. "Gillette: Cutting Prices to Regain Share." Harvard Business School Spreadsheet Supplement 720-853, November 2019. View Details

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Case | HBS Case Collection | November 2019

Hapag-Lloyd AG: Complying with IMO 2020

Benjamin C. Esty, Mette Fuglsang Hjortshoej and Emer Moloney

A new environmental regulation known as IMO 2020 was creating what one industry analyst called “the biggest shakeup for the oil and shipping industries in decades.” According to the new regulation, all ocean-going ships would have to limit their sulfur emissions by January 1, 2020. Senior leaders at Hapag-Lloyd, one of the world’s largest shipping companies, were evaluating three ways their ships could comply with the new regulation: use low-sulfur fuel, use high-sulfur fuel but install scrubbers to clean the exhaust, or convert ships to use liquid natural gas (LNG) as fuel. Each of the options had its advantages and disadvantages, and the most attractive option depended on not only the values of key parameters (e.g., future fuel prices and equipment costs), but also the strategies adopted by the owners of the other 60,000 ocean-going ships subject to the regulation. For the industry as a whole, annual compliance could cost as much as $60 billion; for Hapag-Lloyd, annual compliance might cost as much as $1 billion or more. For a company with net income of $34 million (€28 million) in the prior year, and losses in two of the past four years, getting this decision right was of the utmost importance. Senior executives at Hapag-Lloyd had created a proposed compliance plan and were scheduled to present it to the firm’s supervisory board for approval in June 2018. Whether the team had the right plan and whether the board would approve it are the key questions in the case.

Keywords: Valuation; Ship Transportation; Strategic Planning; Game Theory; Pollution and Pollutants; Supply Chain; Corporate Accountability; Capital Budgeting; Environmental Sustainability; Shipping Industry; Transportation Industry; Germany;

Citation:
Esty, Benjamin C., Mette Fuglsang Hjortshoej, and Emer Moloney. "Hapag-Lloyd AG: Complying with IMO 2020." Harvard Business School Case 220-003, November 2019. View Details

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Shawmut National Corporation's Merger with Bank of Boston Corporation (A)

Abstract

Citation:

About the Author

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