Student Educational Loan Fund, Inc.
Institution: University Gadjah Mada
Program: Master of Management
Course: Risk Management
Tutor: Mrs. Erni Ekawati, PhD.
Title: Case 2: Analysis of Options
Subtitle: Student Educational Loan Fund, Inc.
Date: November 17, 2008
Place: Yogyakarta
Authors: Martin Koopman Doddy Handaryadi Anindito Prabowo Gumirlang Wicaksono
Introduction
This report describes the situation which Rick Melnick faces in the fall of 1995, when assuming the responsibilities as Associate Director of Financial Management at Harvard Business School (HBS) (Ekawati, 2008). Rick had to oversee the Student Educational Loan fund (SELF), analyze a change of plans and incorporate these changes into the strategy of SELF. This report will describe the analysis of the solutions to his problems.
In chapter 3 we will provide a brief overview of SELFs activities and strategy and give a schematic overview of how SELF is incorporated in HBS. Chapter 4 deals with the problems which arise when SELF is proposed a change of plans regarding their main business activities.
We have made different scenarios by using the different alternatives and calculated the resulting interest rates which SELF would have to pay, when the LIBOR is high or low. In Appendix B we have included the input information and resulting interest rates, which we have calculated in Excel. Following this, we have included graphs of several scenarios, which are explained in chapter 6: Analysis and chapter 7: Discussion. In Appendix C we have included the graphs for the different situations and comparison graphs for chapter 7 in Appendix D.
We finish the report with providing a recommendation of the most suitable solution to the problems which SELF faces.
Martin, Dhito, Doddy, Gilang
Table of Contents
1. Introduction 2
2. Table of Contents 3
3. Case Overview 4
3.1. SELF Strategy 4 3.2.
References: Ekawati, E. (2008), Case 2: Student Educational Loan fund, Inc. (SELF), Risk Management, Readings and Cases, Master of Management, University Gadjah Mada, International Class, p.301-310 Heroux, P