Cases Analysis of Risk, Uncertainty and Managing Incentives

Select a company of your choice, any company but Southwest Airlines, and write a six to eight (6-8) page paper in which you:

  1. Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty.
  2. Offer advice for improving risk management.
  3. For the company you selected examine an adverse selection problem and recommend how it should minimize its negative impact on transactions.
  4. For the company you selected determine the ways in which it is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
  5. For the company you selected identify a principal-agent problem and evaluate the tools it uses to align incentives and improve profitability.
  6. For the company you selected examine the organizational structure and suggests ways it can be changed to improve the overall profitability.
  7. Use at least five (5) quality academic resources in this assignment.  Note: One of your references regarding your research should have been published within the last 6 months. Note: Wikipedia and Investopedia do not qualify as an academic resource.

Prof Note: Lot’s of the time student tell me they just can’t think of a company that might be facing risk or uncertainty.   So where do you look for ideas?  The place to start is any of the major business publication/programs:  Bloomberg, Forbes, WJS, Reuters… PLUS THERE REALLY ARE SOME very cool problems. 

  • Will Boeing ever really get the Max 737 back in service? 
  • Is SofBank depending too much on it employees to generate investment capital, are they on the Enron path? 
  • Is now the right time for Facebook to spend a huge amount of money on establishing its own version of crypto currency? 
  • Why is the CBD industry asking to be regulated? 
  • Can Planned Parenthood manage the financial challenges as the exit the Title X program? 
  • Can Victoria’s Secrets stop the slid in sale? 
  • Kohl’s, a sort of lone Department doing well, is now feeling the department store retail blues, can they get back to sales growth after 3 quarters of declining sales? 
  • Bayer is selling it’s animal-health business to Elanco as Bayer looks for cash over the mounting liability for the Roundup herbicide, they are feeling a lot of woe over the earlier acquisition of Mondsanto! 
  • Is Domino’s go it alone delivery strategy the way to go? 
  • How will Capital One manage it recent data breach?
  • Tesla is proposing to rent residential based solar systems to homeowners, but can they deal with the mounting liability over fires cause by their commercial grade solar systems?
  • Marriott is being sued for deceptive pricing at it resorts, how with this impact the bottom line?
  • MGM decides to move into the Boutique Hotel Business with the goal to diversity and attract a younger crowd?

There is a lot going on.  If you have questions as you select a company or organizations please ask.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
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