Estrategia y dirección · Estrategia corporativa

Your Corporate Theory — Cascade Industrial Holdings Under Activist Fire

A four-round, advanced corporate-strategy simulation set inside Cascade Industrial Holdings, Inc., a Salt Lake City diversified industrial-technology company ($3.4bn revenue, $510m operating profit, 11,000 employees, four segments: Flow Control, Industrial Sensing, Water Treatment, and a small Software & Analytics

4 rondas Ejecutivo English, Español
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Sobre la simulación

A four-round, advanced corporate-strategy simulation set inside Cascade Industrial Holdings, Inc., a Salt Lake City diversified industrial-technology company ($3.4bn revenue, $510m operating profit, 11,000 employees, four segments: Flow Control, Industrial Sensing, Water Treatment, and a small Software & Analytics unit).

Organic growth has slowed to 2%, the stock lags peers by 18 points, and on 12 May 2026 activist fund Meridian Point (6.4% stake) publishes an open letter calling Cascade an incoherent 'industrial grab-bag' trading at a 22% conglomerate discount, demanding a Capital Allocation Day within 90 days and threatening a proxy contest for two board seats.

As the new CEO you must articulate Cascade's corporate theory of value — its specific, hard-to-imitate logic for why its assets are worth more together (Zenger's foresight, insight, cross-sight) — and prove it by how capital is deployed under a ~$1.0bn funding ceiling and a 2.5x practical leverage limit.

Four live bets totalling $1.45bn sit on your desk: HydroSense ($620m, sensing into water — coherent), Verdana Robotics ($410m, fashionable warehouse automation with zero overlap — the growth trap), a Software & Analytics organic build ($180m, high coherence, low near-term EPS), and Apex Pumps ($240m, an accretive bolt-on that adds no new logic).

Round 1 diagnoses the latent connective tissue (embedded sensing) and the misfit segment; Round 2 writes a narrow, falsifiable theory that rejects most opportunities; Round 3 allocates capital under the cap and forces at least one theory-based rejection; Round 4 defends the disciplined 'no' to the board and Meridian and commits to an 18-month falsifiable proof point.

The math rewards a coherent path of bets over any one exciting deal and punishes the five classic errors — ranking bets before a theory, a theory so broad any rival could claim it, chasing Verdana for the growth number, funding everything past the leverage ceiling, and presenting with no testable proof point.

Final KPIs track Theory Coherence, the Conglomerate Discount %, Growth Momentum, and Capital Committed against the ~$1.0bn ceiling.

Para quién es

Una simulación avanzada para participantes acostumbrados a trabajar con los principales marcos y dilemas de la materia, pensada para formación de directivos y profesionales con experiencia.

Cómo funciona una sesión

  1. El docente crea una sesión desde el panel de Eureka e invita a los participantes.
  2. Los participantes juegan 4 rondas. En cada una envían sus decisiones y la simulación calcula los resultados.
  3. La simulación se puede jugar en: English, Español.
  4. El docente sigue el progreso y los resultados de cada participante desde el panel, y usa los resultados de la clase para el debriefing.

Decisiones que toman los participantes

Las decisiones que toman los participantes durante la simulación:

  • What is the candidate connective tissue — the asset that could make the portfolio worth more than its parts?
  • Name the segment with the weakest reason to be in the portfolio.
  • What is the real cause of the 22% conglomerate discount?
  • How rigorously does the team do the diagnosis before reaching for the deal pipeline? (%)
  • Draft Cascade's corporate theory in one sentence.
  • Allocate emphasis across Zenger's three components (must total 100).
  • State what the theory says Cascade should NOT own or buy.
  • Select which of the four bets you fund under the ~$1,000M ceiling (check each that fits your theory).
  • HydroSense — $620M · water-quality sensing, extends Sensing into Water
  • Software & Analytics build — $180M · organic, high coherence, low near-term EPS

Qué siguen los participantes

Lo que los participantes siguen en pantalla a medida que avanzan las rondas:

  • Coherence vs. the Conglomerate Discount

Temas que cubre

Diseñada para asignaturas de Estrategia corporativa.

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