Clare Minchington
Open University Business School
Walton Hall
Milton Keynes MK7 6AA
United Kingdom
Tel +44 1908 858444
Fax +44 1908 655 898
e-mail c.minchington@open.ac.uk
Abstract
The Hotelco CD-ROM is a valuation
case study based on the Hotel industry for use on the distance learning MBA
elective Financial Strategy. The case centres on a fictitious company, Hotelco
and requires the student to take the part of an analyst who must study the
Hotel sector and Hotelco in particular.
Main Interface Screen
This is the main screen from which the student can
navigate to other areas of the CD-ROM. On the left hand side is the flowchart,
which represents the systematic method taught within the course to analyse
information in order to predict a company's future cash flows. On the right
hand side the student can access resources such as newspaper clippings, a
brokers report or video footage of meetings of the Directors. They can use the
information they gather to estimate future cash flows for the company.
Whilst working through the CD-ROM the
student can connect to an asynchronous electronic conference to share and
discuss their analysis of the company's performance and also to gain assistance
on any problems they encounter with the technology. At the end of the case they
must value Hotelco using a discounted cash flow model and make a buy, sell or
hold recommendation for the shares. Completion of the CD-ROM generates a
validation code unique to that student. The decision and validation code are
then submitted via the Internet to the Open University's central site in Milton
Keynes. Completion of the CD-ROM forms part of the students' assessment for the
course.
This innovative use of a range of new
technologies in support, teaching and assessment roles is shown
diagrammatically [click here].
Learning
Working with the CD-ROM helped
students understand the link between accounting numbers and the underlying
business, and reach and implement decisions based on their own analysis. It
also enabled them to actively engage with a financial case study whilst
studying in a distance learning environment. A large number of the students
felt that the CD-ROM was a valuable learning experience and gave written
feedback such as
'excellent teaching
medium'
'anything that can captivate
someone's mind for 4 hours on figures must be good'
'very well put together, one of the
best educative tools I've used'.
The inclusion of the requirement to
submit their validation code to the website resulted in the majority of
students working through the CD-ROM. By the cut-off date, 553 students had
successfully submitted their decision, representing 63% of the student
population.
Practice
The use of electronic conferencing,
CD-ROMs and the Internet are technical skills that are becoming increasingly
important in the business world.
Looking specifically at the academic
content of the CD-ROM, amongst the aims in developing it were to:
- challenge every student to apply and
interpret the core tools of financial analysis
- introduce the student to various
sources of information
- provide the student with the model
of a systematic approach to sorting information
The ability to analyse a range of
information from a variety of sources is an important skill that students will
be required to demonstrate repeatedly in a world which is drowning in data and
information and searching for knowledge and understanding.
Resources
http://oubs.open.ac.uk/b821